Highfield Resources Limited (“Highfield” or the “Company”) is pleased to announce that initial construction work at the Muga Mine (“Muga” or the “Mine”) has started after the Townhall of Undués de Lerda in Aragón issued the licence for the construction of the mine gate and the declines.

The Company has signed a construction contract with Acciona Construcción S.A. (“Acciona”) for these initial works which cover (see cover image):

  • Fencing of the plot;
  • Installation of the above ground construction staff facilities;
  • Clearing and stockpiling of topsoil;
  • Excavation of the mine entrance;
  • Formation of embankments; and Stabilisation of the slopes with bolts and gunite (dry gun shotcrete).

Ignacio Salazar, CEO, commented: “We start construction at Muga with a great sense of responsibility towards our shareholders, our staff and collaborators, the banks, the community, the authorities and all stakeholders who have helped us to get to this pivotal point. We are receiving a significant endorsement from leading international banks in the financing process in this time of extreme geopolitical instability around potash supply, especially in Europe. We are working closely with the authorities and especially Navarra and Sangüesa to finalize the licensing there and will be reporting back to the market as we progress through construction.

Muga Project

Highfield’s flagship Muga Project (“Muga” or “the Project”) is targeting the relatively shallow sylvinite beds in the Muga Project area that covers about 46km2 located in the Provinces of Navarra and Aragón. Mining is planned to commence at a depth of approximately 350 metres from surface and is therefore ideal for a relatively low-cost conventional mine accessed via a dual decline.

During Q1 2022, Highfield relinquished the Goyo Sur and Muga P.I. areas within the Muga project due to their lack of geological interest.

Given Vipasca’s location adjacent to Muga and its geological characteristics, it has always been considered as a natural continuation of the Muga deposit. The interpretation of the geological information obtained in recent years at Vipasca has shown that the potash unit is too deep in the central and western areas of the permit, situated at least more than 1100 meters depth.

Consequently, the Company has relinquished these areas in 2021, preserving the more economical eastern sector, and resulting in the current area covering approximately 14km2. The eastern part of
the Vipasca permit, previously categorised as an Exploration Target, is currently defined as Mineral Resource and is considered an extension to the Muga Mining Concession.