Latest drill results have boosted Ormonde Mining’s (LON:ORM) plan to extend the life of its Barruecopardo tungsten mine in Spain by going underground.
Assays from holes drilled beneath the expected open pit site returned tungsten grades between 1.95% to 2.59% over narrow widths and 0.26% and 0.21% over 23m and 25m at depths below 170m.
Barruecopardo currently has an estimated nine year mine life, but Steve Nicol, Ormonde's managing director, said the results confirmed its belief that there is significant potential to substantially extend the mine life at Barruecopardo underground. Further drilling will test the potential while pit construction is underway.
Ormonde added that an objection to the compulsory land acquisition process would mean additional delays in the expected timeline.
An initial ruling had gone in the company's favour but the appeals process would impact the timeline of the project, it said.
Ormonde added it was now finalising discussions with its project partner and debt provider on the optimisation of the project delivery schedule.