Armenian project adds to Tamaya growth options

  Metallurgical test work at Tamaya Resources’ Lichkvaz project (86.21% TMR) in Armenia supports the development of a polymetallic project.Tamaya acquired a major holding (86.21%) in Iberian Resources in 2007 and has since commissioned the examination of Lichkvaz’s potential as a copper and zinc resource in addition to the previously known gold potential of the existing project. Tamaya Chairman, Hugh Callaghan said: “The confirmation of significant base metals content emphasises the low cost nature of the project, with studies pointing to total operating cash cost after by-products and royalties, of approximately US$295/oz.” “Using current metals prices, this would attribute a net present value to the project of around US$200m,” he said. Mr Callaghan said that the importance of this metallurgical discovery for Tamaya should not be underestimated. “Lichkvaz, as a predominantly copper-gold project coming into construction and development, sits neatly in Tamaya’s copper portfolio. “The project’s forecast cashflow from March 2009 will augment our existing revenues from Punitaqui in Chile,” he said.“We then expect the cashflow from our two operating mines to allow a minimally dilutive financing of Filipina Grande in Chile, which is set to be developed as Tamaya’s third copper-gold and iron ore project.” The metallurgical test work completed to-date on Lichkvaz ore samples has shown that the production of two saleable metal concentrates of copper and zinc is possible, as well as the production of a third gold-silver rich pyrite/arsenopyrite concentrate that can be processed on site to produce a cyanide soluble feed for normal cyanidation. Mr Callaghan said that, as well as further metallurgical testing, additional drilling is underway at Lichkvaz for resource extension, and early assay results were highly encouraging.