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Earth Heat Resources takes next step on Capahue project in Argentina

Copahue project, overview sheet (source: Earth Heat Resources)
Alexander Richter 8 Mar 2011

Australian Earth Heat Resources takes next step towards certification and assessment of 30 MW Copahue geothermal power project in South American Argentina.

In an announcement Australian Earth Heat Resources (ASX: EHR) says it “has taken a significant step towards the resource certification and integrated assessment of the 30 megawatt (MW) Copahue Geothermal Project in Argentina.

In a milestone for the project the company has engaged the services of specialist consulting group Sinclair Knight Merz (SKM), who will be a major part of proper resource certification which will enable the first stage of the concept study to take place on target.

The initial scope of the project, being resource certification, is a very important step in the decision making process for the Copahue Phase 1 plant size.

Earth Heat will move swiftly into the engineering concept study, which will involve the plant design, after the conclusion of the certification and assessment.

Having certainty in the Resource gives the company the ability to attract mezzanine and debt funding to the project.

An initial project involving the development of 30 mega watts (MW) of production within 3 – 4 years is underway at Copahue following agreement with the provincial and Argentian Government.

The government of Argentina said that it would purchase power at US$100-120 per MWh to support alternate energy sources. Earth Heat can earn up to 82.5% of the project under an agreement with Canadian based Geothermal One.”

Source: Proactive Investors