PERTH (miningweekly.com) – Diversified miner South32 has completed the $1.3-billion acquisition for the remaining 83% share in TSX-listed Arizona Mining.
The Canadian firm has now been delisted from the TSX, and will cease to be a reporting issuer under the Canadian securities law.
“The acquisition of Arizona Mining adds to our portfolio one of the most exciting base metal projects in the industry. Our deep understanding of the high-grade Hermosa project and surrounding land package, together with our extensive experience at Cannington, positions us well to bring the project to development and deliver significant value to our shareholders,” said South32 CEO Graham Kerr.
The Hermosa project, in the US, contains the high-grade base metals Taylor deposit, the Central zinc, manganese and silver oxide resource, and an extensive, highly prospective land package with potential polymetallic and copper mineralisation.
The Taylor deposit, in Arizona, is a greenfield development project and has a reported resource of 101-million tonnes, at 10.4% zinc equivalent grade, and a previously completed preliminary economic assessment has shown that the project could be a low-cost, long-life operation with the potential to deliver a high internal rate of return on investment.
Kerr said that work to enhance the design and development of the Hermosa project will start in the coming weeks, and will include optimising studies and the start of the exploration decline, which will allow drilling to test for extensions and further enhance the company’s understanding of the existing high-grade resource.