NZC-TSX
NORZF-OTCQB
(All amounts are in Canadian dollars unless otherwise stated. M = million)
VANCOUVER, BC, Nov. 10, 2021 /CNW/ - NorZinc Ltd. (TSX: NZC) (OTCQB: NORZF) (the "Company" or "NorZinc") is pleased to announce the filing of the Technical Report entitled, "Prairie Creek NI 43-101 Technical Report on Preliminary Economic Assessment", supporting the positive results of a Preliminary Economic Assessment ("PEA") for its 100%-owned Prairie Creek Project ("Prairie Creek" or the "Project") located in the Northwest Territories, Canada and reports its interim financial results and development activities for the third quarter ended September 30, 2021 ("Q3 2021"). The Technical Report has an effective day of October 15, 2021 and was prepared in accordance with the Canadian National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101").
PEA Highlights Include
Highlighted Results from PEA
After-Tax Net Present Value ("NPV") (Discount Rate 8%) | $299M |
After-Tax Internal Rate of Return ("IRR") | 17.7% |
After-Tax Payback Period | 4.8 Years |
Pre-Production Capex | $368M |
Sustaining Capex and Closure Costs | $332M |
Average Annual Payable Silver | 2,551 koz |
Average Annual Payable Zinc | 122 Mlbs |
Average Annual Payable Lead | 101 Mlbs |
Life of Mine ("LOM") | 20.3 Years |
Total Resource Mined | 17.2 Mt |
Average ZnEqi Diluted Grade of Mineral Resources Mined | 17.10% |
Gross Revenue After Royalty (LOM) | $6,274M |
After-Tax Free Cash Flow (LOM) | $1,121M |
Average Annual EBITDA | $123M |
C1 Costs over LOM (By-Product) | $0.19/lb Zn |
C3 Costs over LOM (By-Product) | $0.60/lb Zn |
C1 Costs over LOM (Co-Product) | $0.73/lb ZnEq |
C3 Costs over LOM (Co-Product) | $0.92/lb ZnEq |
Zinc Price - Flat (LOM) | $1.20/lb |
Lead Price - Flat (LOM) | $1.05/lb |
Silver Price - Flat (LOM) | $24.00/oz |
FX Rate (CAD:USD) | 1.25 |
Q3 2021 Results Highlights
Financial
Prairie Creek
Corporate
Subsequent Events & Outlook
Technical Disclosure
The Technical Report was led by Ausenco, with contributions from Global Mineral Resource Services, Mining Plus and F. Wright Consulting.
The reader is advised that the PEA summarized in this press release is preliminary in nature and is intended to provide an initial, high-level review of the project's economic potential and design options. The PEA replaces and supersedes the Company's previous 2017 Feasibility Study on the project. The PEA mine plan and economic model includes numerous assumptions and the use of Inferred Resources. Inferred Resources are considered to be too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not mineral reserves do not have demonstrated economic viability.
Independent Qualified Person
The PEA was prepared for NorZinc by Ausenco Pty Ltd ("Ausenco") and other industry consultants, all defined as Qualified Person ("QP") under National Instrument 43-101. The QPs that have reviewed and approved the content of this press release are:
About NorZinc
NorZinc is a TSX-listed mine development Company trading under the symbol "NZC" and on the OTCQB under the symbol "NORZF". NorZinc is developing its key project, the 100%-owned high grade silver-zinc-lead Prairie Creek Project, located in the Northwest Territories.
Cautionary Statement – Forward-Looking Information
This press release contains forward-looking information, including, among other things, statements regarding the PEA and the timing for completing an updated feasibility study. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the mine enhancement objectives will achieve the expected results, that additional exploration on the property will result in increases in reserves, that financing will be available to achieve these goals on acceptable terms, that regulatory approvals for the plan will be received. These statements also based on management's expectations regarding the size and quality of resources, future trends for the Company, progress in development of properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, capital market conditions, and the financial results of the Company. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Material risk factors that could cause actual results to differ materially from the forward-looking statements include risks that the assumptions and factors on which the forward-looking information is based differ from expectations, risks related to the COVID-19 global health crisis, the Company's history of losses, lack of revenue generation, and dependence on substantial financing to develop the Prairie Creek Mine, as well as all of the risk factors described in the Company's most recent Annual Information Form and Management's Discussion & Analysis filed with Canadian provincial securities regulatory authorities. The Company disclaims any intention or obligation to update or revise any forward-looking information, except as required by applicable law.
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i ZnEq% = (Grade of Zn in %) + [(Grade of Pb in % * Price of Pb in $/lb * 22.046 * Recovery of Pb in % * Payable Pb in %) + (Grade of Ag in g/t* (Price of Ag in US$/Troy oz/ 31.10348) * Recovery of Ag in % * Payable Ag in %)]/(Price of Zn in US$/lb*22.046 * Recovery of Zn in % * Payable Zn in %). For the purposes of the stated mineral resource estimate, prices used are Zn = $1.15 USD/lb, Pb = $1.00 USD/lb, Ag = $20.00 USD/troy oz, overall average LOM recoveries for Zn, Pb and Ag are 81.5%, 84.3%, and 95.1% respectively, with payables similarly as 85.0%, 94.8%, and 85.0%. For the purposes of the modelled mine physicals, prices used are Zn = $1.20 USD/lb, Pb = $1.05 USD/lb, Ag = $24.00 USD/troy oz. |
SOURCE NorZinc Ltd.
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