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Highfield Resources making progress with approvals process for Muga Potash Project

The company is continuing constructive discussions with authorities from Madrid, Navarra and Aragón with regards to mining concessions at the Muga project.

Highfield Resources Ltd - Highfield Resources continues progressing Muga Potash Project mining concessions during December quarter
Highfield had A$40 million in cash at the end of the December quarter

Highfield Resources Ltd (ASX:HFR) is making progress with the approvals process for the Muga Potash Project in northern Spain with the mining concession submission nearing completion.

Constructive discussions have been ongoing with authorities from Madrid, Navarra and Aragόn with final submission expected during Q1 2020.

The company is also progressing well with construction permits with applications submitted for the water and power permits during the December quarter.

Potential potash and salt offtake discussions are also ongoing with the company focusing on updating its sales and marketing strategy during the current quarter.

Approvals process

During the previous quarter, Highfield submitted its application for the relevant permits to the local water authority, the Confederación Hidrográfica del Ebro (“CHE”).

These permits relate to the deviation of some small rivers and streams and other preliminary construction work associated with water supply to the mine site.

The company also submitted all relevant power supply permit documentation to the Ministry of Industry and is awaiting the issue of the administrative approvals required for both the temporary and permanent site electrical supplies before applying for the necessary construction permits.

Location of Highfield’s Muga-Vipasca, Pintanos and Sierra del Perdόn tenement areas

In October 2018 Highfield confirmed the strategic importance of the Vipasca permit as a potential extension of the Muga project.

The company has since been focusing on the more prospective areas in the east of Vipasca permit.

Drilling at Vipasca

Throughout the December quarter, the Spanish potash developer continued its drilling program at Vipasca, completing drill hole V18-05.

Although assays are not yet available, the initial visual inspection of the core indicates continuity of the evaporite sequence between the Muga Project and Vipasca permit.

Encouraging assay results for Vipasca drill holes V18-01, V18-02 and V18-03 confirmed potash at good grades (up to 15.25% potash from 996 metres) and confirmed the extension of the potash deposit toward the northwest of Vipasca.

Search for CEO

Highfield is undertaking a global search for an experienced mining executive to replace departing CEO Peter Albert and to lead the company and continue to advance the Muga project through financing and into construction and ultimately potash production.

Chairman Richard Crookes is ensuring a smooth leadership transition by assuming additional responsibilities on a temporary basis, including acting as interim CEO.

The company finished the December quarter well-positioned to advance the Muga project in 2020 with $40 million cash in the bank.

Shares last traded at 74 cents and have traded in the range of 61 cents to 79.5 cents since December 12, 2019.

Quick facts: Highfield Resources Ltd

Price: 0.39 AUD

ASX:HFR
Market: ASX
Market Cap: $128.51 m
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