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Zephyr Minerals Announces Positive Preliminary Economic Assessment for Dawson Gold Proect
HALIFAX, Feb. 7, 2017 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSX-V: ZFR) (OTC: ZPHYF), is pleased to announce positive results of a Prelimina
About this update from Zephyr Minerals Ltd.
[{"type":"text","content":"HALIFAX, Feb. 7, 2017 /CNW/ - Zephyr Minerals Ltd. (\"Zephyr\" or the \"Company\") (TSX-V: ZFR) (OTC: ZPHYF), is pleased to announce positive results of a Preliminary Economic Assessment (\"PEA\") on its 100%-owned Dawson Gold Project (\"Dawson\") in Colorado, USA. The PEA provides a base case assessment of developing the Dawson Segment mineral resource and does not include the Windy Gulch Segment or the Windy Point Segment. PEA HIGHLIGHTS Base case parameters assume a gold price of US$1,250/oz and an exchange rate (US$ to C$) of 0.76. Pre-Tax IRR and NPV5% of 66% and $46.7 million (US$35.5 million) and a 2.4 year payback of initial capital; After-Tax IRR and NPV5% of 46% and $29.1 million (US$22.1 million) and a payback of 2.7 years; Low initial capital of $43.6 million (US$33.2 million) including contingency; Life of mine (\"LOM\") cash cost of US$563/oz(1); LOM all in sustaining cost, including cash cost, of US$692/oz(2); LOM diluted head grade 9.2 grams per tonne (\"g/t\") (0.27 ounces per short ton (\"oz/st\")); LOM gold combined gravity and float recovery of 92%. (1) Cash cost includes mining cost, mine-level G&A, mill and refining costs. (2) Sustaining capital cost includes underground equipment and waste development costs after the mill has been commissioned. Loren Komperdo, President and CEO of Zephyr stated \"Management is pleased with the results of this initial independent economic assessment of our 100% owned Dawson gold project. This PEA supports that the gold resources at the Dawson Segment have potential for an economic near-term, low capital and high grade underground gold mine. We are confident that we can further enhance the already robust economics by identifying additional resources at the Dawson segment which is open down-plunge and up-plunge; and also by incorporating potential resources from the Windy Gulch segment which is open to the east and at depth, and the Windy Point segment which is open along strike and at depth.\" The PEA was prepared by independent engineering firm, Golder Associates Ltd., with input from a number of other specialized and experienced consulting firms. A technical report prepared in compliance with National Instrument 43-101 of the Canadian Securities Administrators will be filed on SEDAR and the company's website within 45 days. This PEA is preliminary in nature and in...