Earth Heat Resources to deliver bankable feasibility study for Copahue, Argentina
In an update on its Copahue project in Neuquen province in Argentina, Australian Earth Heat Resources announces the completion of a bankable feasibility study.
In a release by the company, “Earth Heat Resources (ASX: EHR) announces that it continues to advance operations at speed in Argentina, and is positioned to be the first ASX listed geothermal company to complete a Bankable Feasibility Study and order long lead items for a commercial geothermal power project.
In an update to the market, Earth Heat has outlined the company’s progress at the Copahue Project in Argentina, with the completion of a number of highly significant project milestones recently.
Copahue has now been advanced to a much more mature stage than most peer projects, due to its existing database of information, proximity to infrastructure and power demand metrics.
Torey Marshall, managing director, added “The company has been extremely active in taking its investments to the next level in Argentina.
“We are satisfying the criteria of project financiers, receiving enormous interest for power off take, and receiving strong support from the Provincial Government in what is a fantastic administrative jurisdiction.
“At this stage, we are well positioned to be the first ASX listed geothermal company to complete a Bankable Feasibility Study and order long lead items for a commercial (not pilot) geothermal power project.”
Major milestones in Argentina, include:
- Completion of a resource review at Copahue, which resulted in a significant upgrade of around 150%, demonstrating not only the enormous potential of projects within Argentina, but the extremely high quality of the resource itself.
- Completion of a Stage 1 Environmental Impact Assessment (EIA) at Copahue suggests no major issues are likely to be encountered, and as is common worldwide, serves as a masthead for the future environmental compliance of proposed development activities.
- This study will be further augmented by a second stage to be completed during the Bankable Feasibility Study
- Negotiated a Letter of Intent and Heads of Agreement to enter into a binding Power Purchase Agreement (PPA), with a very well respected industrial group, Loma Negra, within Argentina.
- The establishment of a fully operational team in country, giving full capacity to undertake this exciting project within Argentina.
- Execution of several CSR policies, particularly in communication activities within communities close to the project’s site, providing local inhabitants, school teachers, media, provincial and municipal authorities and local key players with full educational access to the project’s planned development.
Most importantly for Earth Heat’s operations in Argentina, the company has received extremely strong support from all the branches of the Provincial Government in Neuquen, in addition to support from the Argentinean Federal Government and the Australian and Canadian Embassies.
As example of this support, despite delays Earth Heat and the Provincial Government have agreed to the framework of the concession contract and now look forward to formal execution in November of this year.”
Further details and source: Proactive Investors