Highfield Adds Substantial Exploration Target to Muga Project

Highfield Resources Ltd. (ASX:HFR) announced an exploration target for the north western extension of its Muga Project in Spain.

As quoted in the press release:

The Exploration Target encompasses the Capa 1 and Capa 2 seams (two of five seams encountered across the Project) and excludes any of the other project areas contiguous with the Muga Project. The Company chose to exclude the Capa 0, Capa A and Capa B from the Exploration Target, however, it believes continuity could exist in these three seams, mainly the Capa B. These seams do not appear to be as thick nor as high grade as the Capa 1 and Capa 2.

 

 

 

 

 

The Company anticipates commencing a drilling campaign in Q4 of the current calendar year to test the Exploration Target.

Highlights:

• Substantial Exploration Target* calculated for north western extension of flagship Muga Mine project area of:
• Tonnes – 127 to 255 million tonnes of sylvinite
• Grade – 12 to 16% K2O
• Exploration Target is supported by gravimetric survey demonstrating continuity of the potash bearing evaporite into the north western extension of the Project area
• Exploration Target covers only two of five possible seams identified within the total Project area
• Mineralisation in the north western area would provide options to significantly increase mine life and / or operational scale
• Exploration Target and gravimetric survey works support potash bearing evaporite extending into adjoining Vipasca Project area
• Drilling of the Exploration Target is expected to commence in Q4 2015
• Targeted commencement of Muga Mine construction remains on track for Q4 2015

Anthony Hall, managing director of Highfield Resources, commented:

We are encouraged by the addition of this Exploration Target to the Muga Project. Our focus remains commencing construction of the Muga Mine DFS project this year, and in the backdrop, it is important that we continue our exploration work to demonstrate the veracity of likely Muga Mine extensions and the additional four projects under our control. Our stated aim of becoming a significant global potash producer depends on the strength and measured development of our pipeline. We believe that all our projects are likely to be low capex, high margin long life mines – as we are proving our flagship Muga Project to be.

Click here to read the full Highfield Resources Ltd. (ASX:HFR) press release.