NorZinc Reports US$299 Million After-Tax NPV For Prairie Creek Project

NorZinc Ltd. (TSX: NZC) shared today the results of its preliminary economic assessment for the 100%-owned Prairie Creek project in the Northwest Territories. The results highlighted US$299 million after-tax NPV8% at a base case price of US$1.20 per zinc pound, US$1.05 per lead pound, and US$24.00 per silver ounce.

The assessment also incorporates the updated mineral resource estimate for the property effective October 15, 2021. This report shows the mine contains 9.8 million tonnes of total measured & indicated resources at 22.7% zinc equivalent, a 15% increase from the September 2015 estimate.

“While the PEA considers historical data with a reinterpreted mineral resource, it outlines a solid base-case for management as we continue on the planned path towards financing and development of the Prairie Creek Project,” said NorZinc CEO Rohan Hazelton.

The report is providing an assessment for a 2,400 tonnes per day throughput plan with a life of mine of 20.3 years.

After-tax IRR is at 17.7% while the payback period is expected to be 4.8 years. This is based on a preproduction capital outlay of US$368 million.

For the life of mine, after-tax free cash flow is expected to be US$1.12 billion. The expected average EBITDA per year is US$123 million and the total EBITDA for the mine’s life is assessed to be US$2.5 billion.

The mining firm said that it is securing the modified permits to reflect the updated throughput rates and expects this to be released in Q1 2022.

NorZinc Ltd. last traded at $0.06 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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