Highfield Resources progressing towards construction of flagship Muga Potash Project in Spain

Highfield Resources Ltd (ASX:HFR) is progressing with the approvals process for its Muga Potash Project in Spains potash producing Ebro Basin.

During the first half of 2020, the companys subsidiary Geoalcali has been focused on securing the mining concession and construction permits necessary to take the project to the construction phase.

Highfield remains confident of securing the necessary debt and equity financing for Muga, which will support a final investment decision and the commencement of construction at the project.

Mining concession pending

The mining concession documentation was submitted on March 13, 2020, following which the Spanish Government initiated a countrywide confinement program due to the impact of COVID-19, with both the groups employees and government officials working from home.

Shortly after June 22, 2020, when the nationwide COVID-19 State of Alarm was lifted, the start of the public exposition period with respect to the mining concession documentation was gazetted in the National Bulletin on July 4, 2020.

The public exposition period of 30 working days was concluded as scheduled on August 29, 2020, following which Geoalcali will have an opportunity to respond to any queries brought forward.

Highfield estimates that the mining concession will be awarded during the fourth quarter of 2020.

Vipasca permit exploration

Geoalcali has been focusing on the more prospective areas in the east of the Vipasca permit (around 27 square kilometres) which could represent a strategic extension of the Muga Project.

In the first half of 2020, Geoalcali completed its drilling program at the Vipasca permit area, releasing assay results for holes V18-03 and V18-05.

Drill-hole V18-03 confirmed the continuity of the Vipasca ore deposit which remains open towards the west.

Specifically, V18-03 intersected a total of 30.2 metres of potash mineralisation including:

  • 1.5 metres at an average grade of 11.98% K2O from 1022 metres;
  • 1.8 metres at an average grade of 11.29% K2O from 1060 metres; and
  • 1.5 metres at an average grade of 12.79% K2O from 1070 metres.

Drill-hole V18-05 confirmed the extension and continuity of the potash mineralisation between the Muga Project and Vipasca – linking these two projects.

On June 30, 2020, Geoalcali received the exploration permit for the Muga Sur Permit Area which abuts the south part of the Muga Project area.

Development on schedule

During the half-year, design development continued to progress in line with the project program timetable and engineering submissions were made by the principal equipment suppliers and engineering consultants.

Basic design of the process plant is advancing well and detailed design is ongoing.

K-Utec AG Salt Technologies has completed the test-work that will be used to detail the systems and components necessary for the dewatering and backfilling system and continues to progress the basic design work for the backfilling storage and placement systems.

Geoalcali is also carrying out additional lab work to further optimise the salt quality specification that will be produced from the Muga Mine.

Negotiations with Komatsu Mining Corporation for the acquisition of two bolter miners continued during the half-year and Geoalcali expects to sign an equipment purchase contract once negotiations are satisfactorily completed.

The signing of the bolter miners purchase contract will represent a significant contract award and a critical step in developing the MugRead More – Source