IVERNIA West expects a decision on its Lisheen, Co Tipperary, mine planning application in time to allow construction begin later this year and production get under way in 1998. Ivernia and its partner, Minorco Lisheen, lodged the planning application in early January.
Based on the current known reserves, the lifespan of the lead/ zinc mine at Lisheen is expected to be 13 1/2 years during which time more than 4.1 million tonnes of lead and zinc concentrate will be produced.
Ivernia chief executive Mr David Hough says the mine will generate significant cash flows "which will provide substantial future revenues for Ivernia and its shareholders".
The development of the Lisheen mine will cost £120 million and Ivernia has said that it will fund its 50 per cent share of the development cost through loans from Minorco and Barclays Bank.
In the current year, an exploration programme costing $1.5 million (£950,000) will be conducted on Ivernia's exploration licences.
Ivernia's non Lisheen prospecting licences are held through a joint venture with the Canadian group Rio Algom, which can earn a 50 per cent stake in these licences by spending $3 million on exploration over a three year period. As a result, Ivernia's own exploration costs in 1996 will be only $250,000.
