logo-loader

Highfield Resources focused on developing world-class Muga Potash Mine in Spain

Last updated: 11:07 12 Mar 2024 AEDT, First published: 11:10 28 Jan 2023 AEDT

Snapshot

  • Highfield Resources awards contract for declines and underground infrastructure at Muga
  • Mining 101: Rock chip sampling
  • Highfield Resources updates feasibility study in strong potash market
Highfield Resources Ltd - Highfield Resources focused on developing the world class Muga Potash Mine in Spain

About the company

Highfield Resources Ltd (ASX:HFR) is a potash company that focuses on its flagship low-cost, low-capex Muga Project in Spain.

The company’s potash tenements Muga-Vipasca, Pintanos and Sierra del Perdón are in the Ebro potash producing basin in northern Spain, covering an area of around 276 square kilometres.

Once in production, the project is forecast to be one of the highest margin potash mines in the world.

How it is doing

12 Mar 2024

Highfield Resources Ltd (ASX:HFR) has signed a contract for construction of the declines and underground mining infrastructure at the Muga-Vipasca Potash Project in Spain.

This contract has been awarded to the joint venture (JV) formed by mining specialist contractors EPOS-Empresa Portuguesa de Obras Subterráneas S.A. of Portugal and TUNELAN-Obras Subterráneas S.A. of Spain (EPOS-TUNELAN).

The value of the decline contract is €48 million and is aligned to the estimated construction cost of the declines included in the Updated Muga Feasibility Study of November 7, 2023.

This amount represents 11% of the phase 1 capex of €449 million and just under a third of the total planned contract construction budget.

27 Dec 2023

Highfield Resources Ltd (ASX:HFR) has secured a US$6 million (~A$8.9 million) investment in the form of convertible notes with funds to advance the Muga Potash Project toward development and production.

This investment comes from existing strategic shareholder funds managed by EMR Capital Management Limited, Tectonic Investment Management and from another institutional investor.

08 Nov 2023

Highfield Resources Ltd (ASX:HFR) has reconfirmed the compelling economics of the Muga-Vipasca Potash Project in northern Spain in a 2023 update to its feasibility study (FS).

The update outlined the project’s “outstanding economics”, including a net present value (NPV8) of €1.82 billion ($3.03 billion), a post-tax internal rate of return of 24% and annual EBITDA of around €340 million ($565 million) at full production. 

Insight: Mining 101: Rock chip sampling

07 Nov 2023

Rock chip sampling is a fundamental field method used by geologists to understand the mineral composition of a specific geological area. This technique involves the collection of rock samples by chiseling off chips from an exposed rock face, outcrop, or float. The collected samples are then subjected to meticulous chemical analysis to determine the presence and concentration of minerals or metals within them. This method is indispensable in the preliminary stages of mineral exploration and offers a cost-effective means to pinpoint areas of potential economic interest.

The selection of the sampling sites is a strategic exercise, guided by geological mapping and knowledge of the regional geology. Geologists look for outcrops that are representative of the geology under investigation. These sites are carefully documented, mapping their exact location using GPS for future reference. In some instances, geologists may also collect samples from sub-outcrop or float, which are pieces of rock that have broken off and moved away from the main body of rock.

What management says

08 Nov 2023

 

Highfield Resources Ltd (ASX:HFR) CEO Ignacio Salazar speaks to Thomas Warner from Proactive after updating the feasibility study for the company's Muga Project in Spain.

Salazar explains the rationale for the update, describing it as a reaffirmation of the "outstanding" numbers to a large extent. He highlights that 93% of the initial capital expenditure is now backed by firm offers or contracts.

Highfield Resources updates feasibility study in strong potash market

  Highfield Resources Ltd (ASX:HFR) CEO Ignacio Salazar speaks to Thomas Warner from Proactive after updating the feasibility study for the company's Muga Project in Spain. Salazar explains the rationale for the update, describing it as a reaffirmation of the "outstanding" numbers to a...

on 8/11/23