South32 provides development and exploration update
South32 invested US$96M at Hermosa in the December 2022 half year as it continued critical path dewatering activity and study work for the Taylor zinc-lead-silver deposit and the Clark battery-grade manganese-zinc-silver deposit.
South32completed drilling of the first two dewatering wells during the December 2022 half year, with a total of six dewatering wells expected to be completed during FY23. The second water treatment plant remains on-track to be commissioned in the June 2023 quarter.
The company progressed the Taylor feasibility study which remains on-track to support a planned final investment decision in mid CY23.
South32 completed work on the selection phase of the Clark pre-feasibility study during the December 2022 quarter. While this study remains subject to independent review, work to date has confirmed the opportunity to produce high-purity manganese sulphate monohydrate for the growing North American electric vehicle supply chain.
In parallel, South32 progressed metallurgical test work and continued its drilling program at Clark to collect bulk samples that will support initial pilot plant production from mid CY23.
The company directed US$6M to capitalised exploration in the December 2022 half year, as we continued its planned exploration programs including at the copper-lead-zinc-silver Peake prospect[11]. We expect to commence exploration drilling at the Flux prospect[12] during CY23, following the receipt of approvals.
Ambler Metals project
At its Ambler Metals joint venture, the CY22 summer exploration program was completed and the joint venture progressed work on the pre-feasibility study for the Arctic deposit. South32 share of capitalised exploration was US$8M in the December 2022 half year.
Activity in CY23 is expected to focus on consolidating its geological knowledge and advancing engineering studies, while we monitor progress on approvals for the Ambler Access Project.
The company invested US$19M during the December 2022 half year in our greenfield exploration opportunities, with multiple programs targeting base metals underway in Australia, USA, Canada, Argentina, Peru and Ireland.
