Ormonde announces progress on Barruecopardo Project

Ormonde Mining updated the market on construction activities for the Barruecopardo Project in Salamanca, Spain on Friday, saying that following a period of review of the construction schedule, the board of the project company Saloro had authorised the issuance of outstanding approvals on various equipment and plant construction contracts.

The AIM-traded firm said that would advance the project into an accelerated construction and implementation phase, with an updated schedule allowing for mine commissioning in the third quarter of 2018.

Those approvals came against a backdrop of rising tungsten APT prices, and increasing demand for tungsten concentrates, which the board said would serve to de-risk the project during the commissioning stage.

As the project now moved into its “most critical” stage, the board said in order to focus attention on implementation on time and within budget, Ormonde’s current managing director Steve Nicol would relinquish his role in order to focus full time on his responsibilities as managing director of Saloro and project manager for Barruecopardo.

Therefore, immediately following the upcoming Ormonde annual general meeting, Steve would step down from his position as Ormonde managing director, and current chairman Mike Donoghue would act as interim managing director from that point.

“The company, together with its project partner, [has] always recognised the importance to the company's shareholders, and to project stakeholders, of ensuring that the Barruecopardo Project comes online into a strengthening tungsten price environment, thus not exposing the project or its shareholders to undue risk during the critical commissioning and start-up phases,” explained Michael Donoghue.

Against a backdrop of rising tungsten prices, and increasing demand for tungsten concentrates, the partners believe the time is now right to ensure that the construction of the project progresses at full speed towards commissioning of a new mine at Barruecopardo, now targeted for the third quarter of 2018.”

Donoghue said Nicol, who “diligently guided” the Barruecopardo Project over the past nine years through all the preparations leading up to the current stage, would be stepping down from the board to focus on the implementation of the flagship project.

“The project partners consider this step to be of fundamental importance in reducing implementation risk and successfully bringing Barruecopardo into first production on time and on budget.

“On behalf of the board, I wish to thank Steve for the major contribution that he has made to Ormonde, and particularly his efforts in taking the Barruecopardo Project from brownfield site into its current development stage.

“Ormonde looks forward to continuing to work with Steve and the Saloro team as we advance the project to production.”