ScoZinc Mining files the 2021 pre-feasibility study technical report
Halifax, Nova Scotia – (Newsfile Corp. – December 30, 2021) – ScoZinc Mining Ltd. (TSX Venture Exchange: SZM) (“ScoZinc“or the”Society“) is pleased to announce that the technical report for the Scotia Mine Pre-Feasibility Study has been filed on SEDAR (www.sedar.com) with an effective date of November 16, 2021..
President and CEO Mark Haywood said: âScotia Mine NI 43-101 Pre-Feasibility Study Update Technical Report Filed Today on SEDAR Demonstrates Significant Improvement in Economy Over PFS 2020, With Average C1 Cash Cost Reduced by 0 , US $ 50 / lb and an after-tax internal rate of return of 67%. With gypsum added as the mine’s third source of revenue, the operation now has a compelling payback period of just 1.3 years and an expected free cash flow of $ 55 million in the first three years. “
Highlights of the Pre-Feasibility Study (âPFS 2021â) are presented below, along with additional details on the NI 43-101 technical report filed on www.sedar.com under ScoZinc’s profile and on the website of the company at www.ScoZinc.com.
Table 1: Highlights of the pre-feasibility study
|Net present value before tax (8% discount rate)||$ 174 million|
|Internal rate of return before tax||69%|
|Net present value after tax (8% discount rate)||$ 128 million|
|After-tax internal rate of return||67%|
|EBITDA (Annual Average)||$ 18 million|
|Repayment period (years)||1.3|
|Free cash flow (cumulative over the first 3 years)||$ 55 million|
|Pre-production CAPEX (including contingencies of $ 2.7 million)||$ 30.6 million|
|Zinc metal production (annual average over 5 years)||35 million pounds|
|Leader in metal production (annual average over 5 years)||15 million pounds|
|Zinc Concentrate Grade (LOM Average)||57%|
|Lead concentrate grade (LOM average)||71%|
|Processing throughput (tonnes per day)||2,700|
|Mine Life (“LOM”)||14.3 years|
|Base metal ore reserves mined (total LOM)||13.66Mt|
|Zinc ore content (LOM average)||2.03% Zn|
|Lead ore content (LOM average)||1.10% lead|
|Gypsum reserves extracted (total LOM)||5.18Mt|
|Gypsum grade (average LOM)||91.8%|
|Net income after royalties and processing fees||$ 875 million|
|Pre-tax operating cash flow||$ 357 million|
|C1 Costs on LOM 1||0.50 USD / lb|
|Total operating cost (per tonne of milled LOM)||$ 52.51 / tonne|
|All-inclusive maintenance cost (ZnEq)1, 2||US $ 0.52 / lb|
|Zinc price (LOM average)||US $ 1.22 / lb|
|Lead price (LOM average)||US $ 1.04 / lb|
|Raw gypsum price (LOM average)||US $ 8.60 / t|
|Exchange rate (CAD: USD)||0.80|
All dollar amounts are expressed in Canadian dollars, unless otherwise indicated
1 After deduction of lead credits
2 All-Inclusive Sustaining Costs (“AISC”) are C1 costs plus Sustaining and Funding capital costs
The 2021 PFS was prepared by MineTech International Limited (âMineTechâ) with assistance from ScoZinc technical staff and extracts from 6e July 2020 PFS prepared by Ausenco Engineering Canada Inc. (âAusencoâ), MineTech, SRK Consulting (US), Inc. (âSRKâ) and Terrane Geoscience Inc. (âTerraneâ).
The contents of this press release have been reviewed and approved by:
- Patrick Hannon MASc., Ing. of MineTech International Limited, which is an independent qualified person as defined by NI 43-101. Mr. Hannon is responsible for, has reviewed and approved the PFS 2021 figures presented in this press release.
- Jason Baker, P.Eng. of ScoZinc Limited, and Mark Haywood B.Eng. (Mining Engineering) Hons, LL.B of ScoZinc Mining Ltd. is responsible for, has reviewed and approved the scientific and technical content of this press release.
About ScoZinc Mining Ltd.
ScoZinc is a Canadian exploration and mining company with full ownership of the Scotia Mine and related facilities near Halifax, Nova Scotia. ScoZinc also holds several prospective exploration permits near its Scotia mine and in the surrounding areas of Nova Scotia.
The Company’s common shares trade on the TSX Venture Exchange under the symbol âSZMâ. For more information please contact:
Mark Haywood President and CEO
Robert Suttie Chief Financial Officer
Simion Candrea VP Investor Relations
Headquarters Purdy’s Wharf 1959 Upper Water Street, Suite 1301, Nova Scotia, B3J 3N2, Canada
Telephone +1 (902) 482 4481
Fax +1 (902) 422 2388
The Company’s corporate documents and technical reports can be viewed on the Company’s SEDAR profile at www.sedar.com. Further information on ScoZinc is also available on Facebook at www.facebook.com/ScoZinc, Twitter at www.twitter.com/ScoZincMining, and LinkedIn at www.linkedin.com/company/scozinc-mining-ltd.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release includes certain forward-looking statements that are not made up of historical facts. Forward-looking statements include estimates and statements that describe the company’s future plans, objectives or goals, including words indicating that the company or management expects a condition or reported result to occur. Forward-looking statements may be identified by words such as âbelievesâ, âanticipatesâ, âexpectsâ, âestimatesâ, âcouldâ, âcouldâ, âcouldâ, âwillâ or âwillâ. Because forward-looking statements are based on assumptions and deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. The risks, uncertainties and other factors involved in forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information contained in this press release includes, without limitation, the Company’s objectives, goals or future plans, statements, potential results of mineralization, exploration and development, l ‘estimate of mineral resources, mining exploration and development plans, timing of the commencement of operations and estimates of market conditions. There can be no assurance that forward-looking statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from ScoZinc’s expectations include, among other things, the extent to which mineral resource and reserve estimates reflect actual mineral resources and reserves, the degree to which factors are present. would make a viable commercial mineral deposit, the price of zinc, lead and gypsum, the uncertainties relating to the availability and costs of the necessary financing in the future, the evolution of the stock markets, the risks associated with international operations, the actual results of ongoing exploration activities, delays in project development, conclusions of economic assessments and changes in project parameters as plans continue to be refined as well as future metal prices, capacity to predict or counter the potential impact of the COVID-19 coronavirus on factors relevant to ac activities of the Company, as well as the factors discussed in the section entitled âRisk Factorsâ in ScoZinc’s MD&A of the Company’s annual financial statements for the period ended December 31, 2020. Although ScoZinc has attempted to identify important factors that could cause actual results to differ materially, other factors may cause results not to be those anticipated, estimated or forecast. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements.