Berkeley Energia updates on pre-construction site activity at Salamanca

Shares in Berkeley Energia managed minor gains after it said pre-construction site-based activities were advancing at its 100% owned Salamanca mine in western Spain.

Work on the ground in preparation for the commencement of construction had progressed well with more 600 ha acquired or leased to date under the land acquisition programme.

It added that only a few hectares were remaining to be acquired.

Berkeley Energia said the road deviation was advancing and the new road would be ready for use in the European summer. The equipment procurement for the electrical power line has been completed and the upgrade to the existing line would begin once road construction was complete.

"The crushing circuit, screens, feeders and ancillary equipment are currently being fabricated by established equipment suppliers, Sandvik in Finland and Vibramech in South Africa," it said.

Berkeley Energia said it had entered into a preliminary agreement with Asturiana de Zinc SAU, a Glencore company, to supply locally sourced reagent from 2018 to 2021 at a cost substantially below the one estimated in the Definitive Feasibility Study.

These reagent costs represented about 30% of the overall process operating costs.

In addition, Berkeley Energia had received final proposals from a number of experienced and reputable mining contractors and was pleased with the highly competitive nature of the bids received.

"The company is building a successful track record of cost optimisation, the order of the first major items for the crushing circuit, placed in December last year, was more than 20% below estimates from the Definitive Feasibility Study."

At 13:44 BST, shares Berkeley Energia were up 0.84% to 45p each.