Canadian Zinc Updates PFS for Prairie Creek Mine

Canadian Zinc Corp. (TSX:CZN,OTCQB:CZICF) released the results of an updated preliminary feasibility study( PFS) for its Prairie Creek lead-zinc-silver mine. The updated PFS is based on optimization work completed over the last three years.
Highlights of the updated PFS include:

• Post-tax Net Present Value, using an 8% discount, of $302M, with a post-tax internal rate of return of 26%, based on base case metal price forecasts of US$1.00/lb for both zinc and lead and US$19.00/oz silver, for the Life of Mine (“LOM”) production at an exchange rate of $1.25CDN:$1.00US.
• Average EBITDA of $90M per year and cumulative EBITDA of $1,432M over the LOM.
• 17 year mine life based exclusively on a Mineral Reserve of 7.6 million tonnes, grading 8.9% zinc and 8.3% lead, with 128 g/t silver, including a Mineral Reserve in the Main Quartz Vein of 5.2 million tonnes, grading 9.4% zinc, 10.4 % lead and 160 g/t silver.
• Average annual production of 60,000 dmt of zinc concentrate and 55,000 dmt of lead concentrate containing 86M lbs of zinc, 82M lbs of lead and 1.7M ounces of silver.
• Pre-production capital cost is estimated to be $216M, of which $59M will be incurred in Year 1 and $157M in Year 2, with an additional contingency of $28M.
• Average LOM cash operating costs per tonne of ore mined (before transportation costs) are estimated at $165/t

John F. Kearney, chairman and CEO of Canadian Zinc, commented:

We are very pleased with the results of this updated 2016 Preliminary Feasibility Study for the Prairie Creek Mine. The base case economic model indicates a robust project at consensus forecasts for the long term prices of lead and zinc and we believe that there is very good potential for additional project optimization, enhanced economics and further extending the mine life.

Click here to read the full Canadian Zinc Corp. (TSX:CZN,OTCQB:CZICF) press release.