Name and Location
Sierra del Perdón (SdP) potash project, Spain.

Client
Highfield Resources.

Project Description
The project entails the construction and operation of a potash mine, in northern Spain.

The SdP mineral resource estimate comprises three relatively shallow potash beds, with the two upper seams consisting primarily of carnallite, and the lower seam of sylvinite. Mineral resources of carnallite are estimated at 52.5-million tonnes grading 10% potassium oxide at a 60% extraction ratio. Sylvinite resources are estimated at 39.4-million tonnes grading 14% potassium oxide with an 80% extraction ratio.

The base case assumes that carnallite and sylvinite ores, at a ratio of 1:1, will be mined and processed.

The scoping study envisages an underground conventional room-and-pillar operation, with mineralisation to be accessed using a decline.

The mine will extract 3.153-million tonnes of combined sylvinite and caranllite ore a year for 20 years.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 10% discount rate, of $527-million and an unlevered post-tax internal rate of return of 38.5%.

Value
Total capital expenditure is estimated at $233-million, including a 20% contingency.

Duration
Highfield is aiming to start construction at SdP in January 2017. Full production is expected to be reached in July 2018.

Latest Developments
The scoping study has demonstrated sufficient technical and economic viability for Highfield to progress to the preparation of a detailed prefeasibility study and its associated technical studies.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Highfield Resources, tel +34 948 050 577 or fax +34 948 050 578.