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 Metallum Resources (TSXV: MZN) has released results of the Feasibility Study for its High-Grade Superior Zinc and Copper Polymetallic Project in Ontario. The Superior Project, a former producing mine including the Winston Lake and Pick Lake deposits, is located near the town of Schreiber, east of Thunder Bay, Ontario.
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The Feasibility Study is based on the Bankable Feasibility Study prepared to JORC standards in 2019, with updated pricing to 2021, which incorporated the mineral resource estimate from the January 2021 NI 43-101 Technical Report prepared by Massa GeoServices.
The results of the Feasibility Study confirm an 8.5-year mine life, with an average annual EBITDA of CDN$44.5 million and average profit after tax of CDN$9.7 million, based on a 100% project ownership. The report gives the project an 8% Net Present Value of CDN$131.3 million and an after-tax Internal Rate of Return of 23% based on a long-term price of US$1.22 per lb for zinc, US$3.31 per lb for copper, US$1,635 per ounce for gold and US$21 per ounce for silver. The company anticipates a quick payback with a low initial capital cost of CDN$145.1 million, including owner's costs and pre-production, and CDN$55.2 million in sustaining capital costs over a 3-year payback period
Kerem Usenmez, P.Eng., President and CEO, stated: "We are thrilled to have the Feasibility Study updated in NI 43-101 standards. The updated Feasibility Study confirms that Superior Zinc and Copper Polymetallic Project is a high margin substantial mining project that is expected to provide very robust return on investment. We expect the Zinc and Copper supply in particular to remain in deficit for the life of the mine, as green economy ramps up and more stimulus packages are introduced globally. We continue with our exploration program to tap into the unexplored targets of this world class project. We are excited about the opportunity to create jobs and economic stimulus to Canada, Ontario and the First Nations and local communities surrounding Schreiber."
Over the 8.5 year life of the mine, the company expects to produce 290,076 tonnes of zinc, 10,580 tonnes of copper, 4,816 ounces of gold, and 679,950 ounces of silver from approximately 2.2 million tonnes of ore. It expects to produce 606,346 tonnes of zinc concentrate at a 52% grade, and 44,232 tonnes of copper concentrate at a 26% grade.
Simon Ridgway, Chairman, added: "It is very exciting for Metallum to confirm the low initial investment and short timeline for production for the Superior Project. Metallum is well positioned for Zinc and Copper demand, and we plan to move forward with detailed engineering and mine financings during the remainder of 2021."
The project is under the approval process with the company required to submit documentation to the relevant ministry for review and approval, a process that includes technical review, public consultation and discharging the government's duty to consult indigenous communities.
For more information, including a summary of the Feasibility Study results, please visit the company's website www.MetallumZinc.com, contact Kerem Usenmez, President and CEO, at 604-688-5288 or email info@MetallumZinc.com.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96764