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Rathdowney Resources Ltd. (TSXV:RTH) announced that it’s completed a preliminary economic assessment (PEA) for its Olza zinc-lead project in Southwestern Poland.
Rathdowney Resources Ltd. (TSXV:RTH) announced that it’s completed a preliminary economic assessment (PEA) for its Olza zinc-lead project in Southwestern Poland.
Highlights include:
- Robust after-tax returns (30% IRR) and low Zinc production costs ($0.52/lb of payable Zinc, net of Lead by-product)
- Stable jurisdiction with well-defined permitting process
- Excellent potential to expand resources and extend Project life
The press release also states:
The development scenario recommended by SRK for the Project is a conventional underground mine using room and pillar mining methods and a mineral processing rate of 6,000 tonnes per day (‘tpd’) or 2.16 million tonnes per year (‘Mtpa’). The mine would be accessed by two declines from surface, which enhances the construction timeline and provides for long term operational efficiencies. The PEA incorporates construction of a processing facility, utilizing semi-autogenous grinding (‘SAG’) and ball milling followed by standard flotation to produce marketable low iron zinc and lead concentrates that would be shipped to smelters.
The Inferred Mineral Resource of 24.4 million tonnes (‘Mt’) grading 7.02% Zn+Pb at a 2% Zn cut-off, estimated in compliance with NI 43-101 has been used as a basis for the PEA mine life (‘LOM’) of eight years. Extensive historical drilling conducted by the Polish government has documented widespread zinc-lead mineralization outside of the current resource-area. In the areas where confirmatory drilling was carried out by Rathdowney, there has been good correlation with the results from the historical drilling. The potential to increase Mineral Resources and extend the Project life with additional drilling is considered to be excellent.
Click here to read the full Rathdowney Resources Ltd. (TSXV:RTH) press release.