ScoZinc Mining (TSXV: SZM) has launched a prefeasibility research for its Scotia zinc-lead mine at Gays River, Nova Scotia. Utilizing an 8% low cost price, the prefeasibility research offers the challenge an after-tax internet current worth of $128 million and an inner price of return of 65%.
The pre-production capital requirement is $30.6 million for a mine with a lifetime of 14.3 years. Payback of the funding would happen in 1.3 years. ScoZinc estimates the cumulative pre-tax free money stream within the first three years of operation will probably be between $30 million and $50 million.
This research consists of, for the primary time, a 43-101 reserve estimate for gypsum. Complete measured and indicated materials is 5.2 million tonnes grading 91.8% gypsum, and the inferred portion is 790,000 tonnes at 91.2%. ScoZinc signed a gypsum offtake agreement in early November. Earlier research for the Scotia mine designated gypsum as waste rock.
Measured and indicated base steel sources are 25.5 million tonnes grading 1.89% zinc and 0.99% lead (2.84% zinc-equivalent), with inferred sources of 5 million tonnes grading 1.5% zinc and 0.66% lead (2.13% zinc-equivalent). Confirmed and possible reserves stand at 13.7 million tonnes grading 2.03% zinc and 1.1% lead (3.09% zinc-equivalent).
The mill on the Scotia mine would have a throughput of two,700 tonnes per day to supply a 57% zinc focus and 71% lead focus. 5-year annual manufacturing could be 35 million lb. zinc and 15 million lb. lead in concentrates. All-in sustaining prices are estimated to be US60¢ per lb. zinc-equivalent.
The mine, 62 km northeast of Halifax, has been on care and upkeep for the reason that third quarter of 2013.
ScoZinc owns 100% of the open pit mine and mill.
The challenge is absolutely permitted, and the following step is financing. Industrial manufacturing may start 9 to 12 months after financing is organized.