Name of the Project
Muga potash project.

Location
About 50 km to the south-east of Pamplona, Spain.

Project Owner/s
Highfield Resources.

Project Description
An update on the Muga feasibility study has reconfirmed the compelling economics of the project.

The mine plan is based on proven and probable ore reserves of 104.3-million tonnes grading 10.2% potassium oxide, which includes the abutting exploration target.

The plan proposes the delivery of about one-million tonnes a year of muriate of potash – Phase 1 and Phase 2 will both produce 500 000 t/y – over a mine life of 30 years, comprising about 18 years of mine life from ore reserves and 12 years from additional mineral resources and the exploration target.

Underground access will be by twin parallel declines stretching 2.6 km to a depth of about 350 m.

The West decline will be developed with a bolter-miner using continuous haulage systems to transport mined material to surface; the East decline will be developed using road-headers. The same type of equipment will be used to develop underground infrastructure, including workshops and service areas such as emergency evacuation chambers, pumpstations and electrical rooms.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at an 8% discount rate, of €1.82-billion and an internal rate of return of 21%.

Capital Expenditure
The project has an estimated capital cost of €436-million for the Phase 1 operation and €226-million for Phase 2.

Planned Start/End Date
Construction of the Muga project started in June 2022.

Latest Developments
Earth moving in the mine gate area started in June 2022.

The next stage in the construction schedule involves building and establishing key infrastructure to provide electricity for the project, road access and water storage capacity for construction, as well as basic above-ground installations.

These works specifically include the electricity line from the main electricity network to the plant and the mine gate, the road access to the project from the main road and the North ponds, to storage water generated while building the ramps.

Basic urbanisation at the processing plant will also be part of this stage.

The main part of the construction comprises the ramps and civil works, while the process plant and is expected to run for two to two-and-a-half years. Tendering is ongoing and construction agreements are being prepared.

Key Contracts, Suppliers and Consultants
IGAN Consulting Group (revised mine plan).

Contact Details for Project Information
Highfield Resources, tel +34 948 050 577 or email info@geoalcali.com.