InZinc Files Positive Preliminary Economic Assessment for West Desert Project
08 May 2014 - 1:04AM
Marketwired Canada
InZinc Mining Ltd. (TSX VENTURE:IZN) (the "Company") is pleased to announce that
the technical report on the Preliminary Economic Assessment ("PEA") of its 100%
owned West Desert zinc-iron-copper project (the "Project") in western Utah has
been filed on SEDAR. The results of the PEA were announced in an April 1, 2014
news release and illustrated the potential for low-cost zinc, copper and iron
production through conventional bulk underground mining and processing methods
while generating strong cash-flow and a high rate of return.
Key PEA Economic Parameters:
After-tax Economics: NPV@ 8% US$258.1 million; IRR 23%; 3.7 year
payback from start of production
Capital Costs: Initial US$247.4 million; Life of Mine US$388.9
million
Life of Mine Production: 1,594.3 Mlbs zinc; 146.7 Mlbs copper; 14.9 Mt iron
(magnetite) concentrate
Cash Cost per Lb Zinc: US$(0.04) C1 direct cash cost; US$0.50 C3 fully
allocated cost
Mine Life: 14.8 years
(i) Long-term metal prices used in the study included zinc at $1/lb, copper at
$3/lb, iron ore at $105/t (62% Fe, CFR-Tianjin), gold at $1,300/oz and silver at
$21/oz; C1 and C3 costs as per Brook Hunt definitions and include sustaining
capital
Metallurgical test work confirmed that the underground resources of the West
Desert project are amenable to conventional flotation processing to produce
marketable zinc and copper concentrates. The concentrates will respectively
contain significant levels of indium and precious metals and are clean, with no
deleterious elements at penalty levels. Test work also demonstrated that a
marketable iron (magnetite) concentrate can be produced at very high recoveries
and low expense using traditional magnetic separation. Efficient removal of a
magnetite concentrate in advance of flotation improves the overall zinc and
copper grades of feed to the flotation plant and is expected to enhance base
metal recoveries.
The Project benefits from all-weather road access, on-site grid power, proximity
to natural gas pipelines and is located 90 km from multiple transcontinental
rail networks servicing western US ports and major North American markets. In
addition, the West Desert Project also benefits from large and potentially
expandable resources. The Project is fully permitted and bonded for future
exploration.
Key PEA Conclusions:
-- The potential for a multi-commodity revenue stream generated from the
three concentrate products over an extended period (14.8 years in this
study) is financially attractive
-- Substantial resources at West Desert remain open for expansion to the
east, west, and south; there is also potential for the discovery of new
zones beyond these extensions
-- West Desert is a project meriting substantial amounts of additional
exploration and development work
The PEA was prepared by Mine Development Associates with contributions from
International Metallurgical and Environmental Inc. in accordance with the
definitions in Canadian National Instrument 43-101. All dollar amounts are US
currency. The PEA is considered preliminary in nature. It includes Inferred
mineral resources that are considered too speculative to have the economic
considerations applied that would enable classification as mineral reserves.
There is no certainty that the conclusions within the PEA will be realized.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
The technical report is entitled "Technical Report on the West Desert
Zinc-Copper-Indium-Magnetite Project - Preliminary Economic Assessment - Juab
County, Utah" and is available both at www.sedar.com and the Company's website
at www.inzincmining.com.
Chris Staargaard, P.Geo., a Qualified Person as defined in NI43-101, has
approved the technical content of this news release.
InZinc Mining Ltd.
C.F. Staargaard, President and CEO
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking
information (collectively, "forward-looking statements") within the meaning of
applicable Canadian and US securities legislation. All statements, other than
statements of historical fact, included herein including, without limitation,
statements regarding the Company's next shareholder meeting. Although the
Company believes that such statements are reasonable, it can give no assurance
that such expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate, intend,
estimate, postulate and similar expressions, or are those, which, by their
nature, refer to future events. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of future results,
performance, or actions and that actual results and actions may differ
materially from those in forward-looking statements as a result of various
factors, including, but not limited to, those risks and uncertainties disclosed
in the Company's Management Discussion and Analysis for the year ended December
31, 2013 filed with certain securities commissions in Canada and other
information released by the Company and filed with the appropriate regulatory
agencies. All of the Company's Canadian public disclosure filings may be
accessed via www.sedar.com and readers are urged to review these materials,
including the technical reports filed with respect to the Company's mineral
properties.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
InZinc Mining Ltd.
C.F. Staargaard
President and CEO
(604) 687-7211
InZinc Mining Ltd.
Joyce Musial
Corporate Communications
(604) 317-2728
joyce@inzincmining.com
www.inzincmining.com
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