MINING is still on schedule to restart on the edge of Plymouth – but directors of the project have warned that the global credit crunch could pose problems.

As revealed in The Herald last year, Hemerdon mine is to be reopened within two years, bringing with it a boost to the local economy of up to £20million per annum over 10 to 15 years.

Over the summer months a series of test drilling exercises have been conducted at the site in preparation for work to begin: but, while that has gone to plan, Australian mining company Wolf Minerals Ltd, which signed a lease to reopen the mine more than 60 years after it closed, has warned of tough times ahead.

Humphrey Hale, managing director of Wolf Minerals Ltd, said: "We're still on schedule to complete our studies in early May 2009.

"It's at this point when we'll be able to deliver more information to local residents outlining the proposed plan.

"The Hemerdon project's still on track, but there may be financial hurdles to overcome to develop the project as we go forward.

"The global credit crisis has taken its toll and this has made it harder to raise capital to develop projects."

He said the drilling programme which was conducted over the summer months was part of the continuing evaluation of the Hemerdon Ball tungsten and tin mine.

"Wolf Minerals Ltd is in the process of updating the feasibility study on the Hemerdon Ball mine that was originally carried out by AMAX in the early 1980s with the aim of bringing the mine back into production," added Mr Hale.

"We've recently completed a small drilling program to increase confidence in the existing ore body model.

"These holes were due to be completed at the end of July; however it's taken until the beginning of October to be concluded. I trust the contractors were not too much of a disturbance to village life.

"We're making headway with the metallurgical and mining studies which are providing encouraging results.

"The assays from this recent drilling program will be used to confirm the concentration of tin and tungsten in the ground.

"This information will be used to determine the economics of the mine and provide information to plan how the mine might be developed."

He also said an ecological survey of flora and fauna had been completed and archaeological studies had begun on the ground which would continue into the new year.

Mr Hale said he had met many local people since announcing the plans last December, and added that he planned to continue the consultation.

Wolf Minerals Ltd says it aims to spend around £60million updating mining equipment and manpower and installing a road diversion which, it is hoped, will alleviate congestion caused by the lorries.

Around 100million tonnes of waste will be created which will be dumped north of the pit on Crownhill Down, next to the Imerys china clay operations.

The company says two or three lorries a day will transfer waste from the site.

Wolf Minerals Ltd. says the mine, near Plympton, could potentially employ up to 200 people and create a further 300 jobs indirectly in the Plymouth area.

The reopening of the mine, which closed shortly after the Second World War, is due to the growth of China's economy and the global need for tungsten, a metal commonly used for light-bulb filaments.

Mr Hale can be contacted through Deborah Clark at deborah_clark@btconnect.com or 01872 225 810.

Alternatively, visit www.wolfminerals. com.au.

tnichols@theplymouthherald.co.uk