Heemskirk Consolidated Ltd (ASX:HSK) said on March 1 that its Los Santos project 65 x 65 in Spain, which is focussed on delivering process plant performance of 65 tonnes per hour supported by 65% recovery of tungsten to concentrate, was on schedule and budget for April commissioning.

Exploration continued with near-mine success. The company also said the mining contract with the former contractor was terminated at the end of 2009 and agreement to provide a negotiated way forward was not successful.

Pricing from alternative mining contractors is being reviewed with a new contract to be awarded before the end of March. There is sufficient ore in the ROM stockpile to supply the plant during this period.

Also Ernst & Young Transaction Advisory Services Ltd has been appointed corporate adviser in relation to Los Santos, to exploit the strategic value of the Los Santos project for other industry participants.

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