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Zazu Metals Corporation (TSX:ZAZ) released results of the Preliminary Economic Analysis on the Lik Property in Alaska. Highlights include an average annual production of 234,000 dry tonnes of zinc concentrate and 55,800 dry tonnes of lead concentrate; a total capital cost of $352 million including a 20% contingency for a 2 million tonne-per-year mine and mill with an initial 9 year mine life.
Zazu Metals Corporation (TSX:ZAZ) released results of the Preliminary Economic Analysis on the Lik Property in Alaska. Highlights include an average annual production of 234,000 dry tonnes of zinc concentrate and 55,800 dry tonnes of lead concentrate; a total capital cost of $352 million including a 20% contingency for a 2 million tonne-per-year mine and mill with an initial 9 year mine life.
As quoted in the press release:
The PEA considers the open pit potential of the Lik South deposit. The PEA did not consider Lik North, the contiguous deposit to Lik South, which would be mined using underground methods if economics proved viable.As modeled, Lik South would have average annual production of 234,000 dry tonnes of zinc concentrate and 55,800 dry tonnes of lead concentrate. In total, 17.1mm tonnes of ore milled at an average grade of 7.7% zinc, 2.6% lead and 47 g/t silver is expected from the Lik South open pit. This would rank Lik South as one of the largest producers of zinc concentrate and one of the largest zinc mines globally. The Lik Project resource estimate is shown in Table 2.
The study estimated a total capital cost of $352 million including a 20% contingency for a 2 million tonne-per-year mine and mill with an initial 9 year mine life. Although not considered as part of the economic analysis, additional exploration potential exists in the Lik North extension and its potential to further extend the mine life.
Click here to read the Zazu Metals Corporation (TSX:ZAZ) press release
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