Firestone Ventures Releases Positive PEA for Torlon Hill Project
Firestone Ventures (TSXV:FV) reported positive results from its Preliminary Economic Assessment (PEA) on the Torlon Hill Zinc-Lead-Silver deposit in Guatemala.
Firestone Ventures (TSXV:FV) reported positive results from its Preliminary Economic Assessment (PEA) on the Torlon Hill Zinc-Lead-Silver deposit in Guatemala. The PEA outlines an operation with a 617,000 tonne per year throughout, with a projection of 97% after-tax IRR as well as a US$45.4 million after-tax NPV at a 5% discount rate.
Highlights from the study include:
- After-tax and after-royalty Net Present Value (“NPV”) at a 5% discount rate of US$45.4 Million and an after-tax Internal Rate of Return (“IRR”) of 97% that assumes expenditure and commissioning happen in the same year,
- Payback of 1.2 years after tax and after plant start-up,
- Initial capital cost (“Capex”) of US$26 Million over a 12-month development period,
- An initial 5 year mine life from the mining and processing of three million tonnes at a processing rate of 617,000 tonnes per year from one open pit operation with a strip ratio estimate of 2.57:1,
- Life of Mine (“LOM”) payable production of 106,392 tonnes of contained zinc metal, 42,979 tonnes of contained lead metal and 766,800 ounces of silver from the production of a zinc concentrate and a silver-rich lead concentrate,
- Estimated Operating Costs for the initial 5 year mine-life are $42.42/tonne,
- Commodity price assumptions for base case of $1.00/lb zinc, $1.00/lb lead and $30/ounce silver.
Pamela Strand, Firestone’s President, stated:
The operation outlined by this PEA for the Torlon Hill Project indicates the potential for a fast track to market approach for our zinc project. The projected NPV, net cash flows, and relatively low capital costs arise from Firestone’s advantages, including a deposit near significant infrastructure (including the Pan American highway, multiple ports and future hydro power). Our results to date, coupled with this engineering study make a compelling case for expediting the development of the Torlon Hill Project.