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Ormonde Mining's licence for Barruecopardo tungsten mine may come "within months"

Published: 21:33 26 Jul 2012 AEST

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Ormonde Mining (LON:ORM) could receive a licence for its Barruecopardo tungsten mine in Spain within months following submission of the last bits of paperwork, brokers suggested today.

Ormonde said the documentation, the final stage of the mine permitting process, reflected “significant dialogue” with the various regulatory bodies to ensure that addressed all the issues raised in responses to the initial permit application submitted in January 2011.

Ormonde’s subsdiary Saloro has also agreed to pay Barruecopardo Town Council €100,000 per year for each year the project is in operation with €270,000 to be paid before mining starts.

Kerr Anderson, Ormonde's managing director, said the submission of the final stage documentation was a major milestone for the company.

He said he was confident its application contained all of the guidelines and regulations applicable for a new mining operation at Barruecopardo. 

“We continue to be encouraged by the strong local and regional support for the project, the commencement of which will deliver some 105 direct jobs at the mining operation and provide many economic and social benefits to the local community and surrounding Salamanca area," he said.

A definitive feasibility study published earlier this year put the mine life at nine years with maximum annual mine production of 1.1 million tonnes per annum (Mtpa) to produce an averaged 227,000 metric tonnes per annum.

Feasibility work for the mine shows a 52 per cent rate of return at US$350/mtu and capex of €48.5 mln.

House broker Fairfax said it expects administrative review of the final to result in the issue of a new mining licence over the next few months. This should be good news for the stock.

As well as Barruecopardo, which will produce 12 per cnet of non-Chinese annual global mine production, Ormonde has La Zarza Copper project  funded through a joint venture with Antofagasta Minerals and several gold exploration prospects in highly prospective areas of western Spain.

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