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ScoZinc Mining Discloses Report for the Independent Preliminary Economic Assessment
COOKS BROOK, Nova Scotia, Feb. 05, 2018 (GLOBE NEWSWIRE) -- ScoZinc Mining Ltd. (TSX-V:SZM) (“ScoZinc” or the “Company”) is pleased to announce that the report
About this update from Edm Resources Inc
[{"type":"text","content":"COOKS BROOK, Nova Scotia, Feb. 05, 2018 (GLOBE NEWSWIRE) -- ScoZinc Mining Ltd. (TSX-V:SZM) (“ScoZinc” or the “Company”) is pleased to announce that the report for the independent updated Preliminary Economic Assessment (PEA) on its wholly-owned ScoZinc Zinc-Lead Mine in Nova Scotia, Canada is available on SEDAR. The PEA, completed by Stantec Consulting, includes a more detailed mine plan, contract mining obtained by bidding to major Nova Scotia contractors, updated capital cost, and updated milling and other operating costs. The report shows robust economics for the restart of the permitted ScoZinc mine. The highlights include: After-Tax NPV (at 5%) CAD $127.9 M After-Tax NPV (at 8%) CAD $107.7 M After-Tax Internal Rate of Return 63.7% Annual Average Earnings Before Interest, Taxes, Depreciation and Amortization for life-of-mine CAD $31.1 M C1 Cash Cost per pound of zinc for life-of-mine (after credits for lead) USD $0.59 Total Cost of production per pound of zinc for life-of-mine (including operating, capital and sustaining costs after credits for lead) USD $0.72 Payback of capital 1.9 years Mill Processing Rate (tonnes per day) 2,600 Total operating cost per tonne milled for the life-of-mine CAD $54.77 Total cost per tonne mined (all materials) CAD $3.05 Restart Capital CAD $26.9 M Zinc Price USD $1.25 Lead Price USD $1.05 Exchange Rate (CAD to USD) 0.81 Total Payable Metal Produced for the life-of-mine (Million lbs) Zinc: 323, Lead: 184 The full text of the report, to National Instrument 43-101 standards, is available at www.sedar.com. Results of the study were disclosed in the Company’s news release dated December 19, 2017 and have been revised based on optimization work to reduce the restart capital costs, finalized contractor costs negotiated over the last 3 weeks, finalized mine plan, and updated reclamation bond cost. The updated plan and costs resulted in the following changes: the after-tax internal rate of return reduced from 64.8% to 63.7%, the after-tax NPV at 8% went from $119.0 million to $107.7 million, restart capital reduced from $31.1 million to $26.9 million, C1 cost per pound of zinc increased from US$0.49 to US$0.59 due to increased concentrate quantities and the payback period remained unchanged. Metal price assumptions, exchange rate and mineral resources are unchanged. Metal Prices and Econo...