Initial results from a new drilling campaign at Oued Amizour in the northwest have confirmed earlier projections of a world-scale lead and zinc deposit, according to Terramin Australia.

The deposit is thought to be one of the largest zinc mineralisations in the Mediterranean region.

Data from a new hole drilled on the Tala Hamza deposit supports figures acquired during previous exploration work by state mining company Office National de Recherche Geologique et Miniere (ORGM).

'The assays support Terramin's view that previous drilling and assays on the deposit by the Algerian government's exploration arm, ORGM, were reliable,' says executive chairman Kevin Moriarty. 'The results give us confidence that Oued Amizour will be a world-class mining project within three years.'

The new drill hole found a 64-metre section with 10.7 per cent zinc and 2.3 per cent lead. Samples from a further drill hole will be sent for analysis by mid-February. 'Drilling will accelerate in the coming weeks with the addition of more powerful rigs,' said a company statement.

The Tala Hamza prospect, 12 kilometres from the port of Bejaia, is estimated to contain at least 50 million tonnes of zinc.

The drilling campaign is being carried out by Western Mediterranean Zinc (WMZ), a joint venture of Terramin, ORGM and state mining company Entreprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles. WMZ expects to invest up to $15 million by the end of 2007 to survey the deposit (MEED 20:10:06).