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ScoZinc Mining announces Preliminary Economic Assessment update

Mining News - Published on Thu, 27 Dec 2018

Image Source: SteelGuru
ScoZinc Mining Ltd announcd that the report for the updated Preliminary Economic Assessment on its wholly-owned ScoZinc Zinc-Lead Mine in Nova Scotia, Canada is available on SEDAR. The report shows the results of additional technical and economic optimization studies to update the February 2018 PEA. Project returns remain very robust as increased throughput, lower Canadian dollar assumption and lower initial capital largely offset lower metal price assumptions. The updated PEA, was completed by a team of independent experts and ScoZinc personnel and assisted by management.

Compared with the February 2018 PEA, the update includes the following:
1. Revised mill process plan to incorporate a recently purchased SAG mill, which allows for higher throughput

2. Fine-tuned mill performance parameters incorporating historical daily records

3. A more detailed monthly life-of-mine (LOM) plan and production schedule

4. Updated and refined capital and operating costs

5. Additionally, changes in market conditions and outlook in late 2018 warranted revisions to some of the Base Case assumptions incorporated into the revised PEA; particularly a downward revision to metal prices and the Canadian dollar (CAD) to US dollar (USD) exchange rate.

Mr Joseph Ringwald, President and CEO, said that “We are encouraged by the results of the updated PEA which supports the near-term restart of an historic zinc-lead mine in Nova Scotia. The incorporation of our recently acquired SAG mill into this economic study, coupled with our refined mine plan based on a 3,000 tpd throughput, greatly improves the economic returns of an already robust operation. With restart capital in the order of CAD 27 million (including working capital), the involvement of MR! Trading AG with CAD 15 million offtake debt and equity financing for the restart, ScoZinc is well-positioned to be one of Canada's next base metal producers."

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Posted By : Rabi Wangkhem on Thu, 27 Dec 2018
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