Metals Exploration PLC (AIM: MTL) said its La India gold project in Nicaragua remains on schedule for first gold in December 2026, as construction advances and new equipment financing strengthens the group’s liquidity.
HIGHLIGHTS:
- First gold – first gold production at La India remains on track for December 2026.
- Finance – US$27 million equipment loan completed with a local Nicaraguan bank – an initial US$20.2 million drawn down.
- Safety – c. 2 million cumulative hours worked without a lost-time injury, as at 15 August 2026.
- Process plant – structural, mechanical, piping and electrical installation (“SMPEI”) is approximately 50% complete. The grinding building is structurally complete and the ball mill has been installed in its final location within the building. Additionally, the SAG mill is ready to be lifted into its final position.
- CIL and Detox – CIL tank ring fit-out has advanced to 53 of 60 rings (88% complete), with leach tanks approximately 80% complete and detox tanks approximately 70% complete; all CIL and detox agitators are fully assembled.
- Civil works – bulk earthworks are 93% complete and civil foundations are 92% complete; pre-stripping of the open pit has advanced to 71% complete.
- Site infrastructure – the mine office and heavy mobile equipment (“HME”) office are complete and in use; the water treatment plant is complete; camp installation is approximately 90% complete (kitchen building outstanding, due on site in September 2026); industrial buildings are approximately 88% complete; and the explosives magazine is complete and awaiting its operating permit.
- Tailings Storage Facility (“TSF”) – TSF construction is approximately 60% complete.
- Power – the 2 megawatt (“MW”) grid connection to ENATREL, Nicaragua’s national electricity transmission company, has been completed and energised, being available for operations and commissioning, with the 800 kilovolt-amperes (“kVA”) back-up generator connected and available for operation; the main substation remains targeted for completion in December 2026.
- Mining fleet – 10 Caterpillar Inc. (“CAT”) 777 haul trucks and two CAT 6020 excavators are on site and operational, with a further five haul trucks, a third excavator, two wheel loaders, a telehandler and a second bulldozer in transit or in manufacture.
- ROM stockpile – approximately 244,000 tonnes (“t”) of ore is stockpiled on the run-of-mine (“ROM”) pad ahead of commissioning.
- Logistics – the Company has experienced some delivery delays to certain imported equipment and materials as a result of wider disruption to international shipping linked to the conflict in Iran. The Company is evaluating alternative logistics solutions to mitigate the impact on construction.
- Runruno – Gold production from Runruno is forecast to be at the upper end of the 2026 production guidance of 40,000 – 48,000 ounces, owing to the mining of higher-grade ore at Stage 5 pit. The mining of higher-grade ore is expected for the remainder of 2026.
The company has secured a US$27 million five-year equipment financing facility from Banco de America Central, drawing an initial US$20.2 million to reimburse most of the capital already spent on its CAT mining fleet. A further US$6.8 million will be drawn as additional equipment arrives.
Construction at La India continues to progress, with process plant installation around 50% complete. The ball mill has been installed, the SAG mill is ready for lifting, CIL tank ring installation has reached 88%, and bulk earthworks and civil foundations are more than 90% complete.
Open-pit pre-stripping is 71% complete, with approximately 244,000 tonnes of ore already stockpiled ahead of plant commissioning.
Metals Exploration noted some delays to imported equipment and materials due to disruption to international shipping linked to the Iran conflict, but said these have so far been managed within the overall project schedule.
Elsewhere, the company expects its Runruno mine in the Philippines to produce towards the upper end of its 40,000-48,000 ounce 2026 guidance, supported by higher-grade Stage 5 ore.
Metals Exploration CEO Darren Bowden said construction at the La India gold project in Nicaragua continues to advance strongly as the company works towards first gold.
The process plant is progressing across several areas, with the ball mill now in its final position, the SAG mill ready for installation and the CIL tank fit-out nearing completion.
Metals Exploration has also completed a US$27 million debt facility with Banco de America Central, receiving an initial drawdown of more than US$20 million. The funding reimburses most of the equipment capital already committed from the company’s own resources and materially strengthens its cash position.
The owner-operated mining fleet is also expanding, with 10 haul trucks and two excavators already on site.
Bowden acknowledged some disruption to imported equipment and materials as a result of shipping issues linked to the Iran conflict, but said the company is working with suppliers to keep deliveries on schedule.
He said the combination of construction progress, additional mining equipment and strengthened liquidity demonstrates continued momentum as La India moves towards first gold production.
