Canadian Mining Journal


ZINC-LEAD: ScoZinc PEA puts after tax IRR at 64.8%

The existing 2,600-t/d ScoZinc mill is being refurbished in preparation for the restart of mining. (Image: ScoZinc Mining)

NOVA SCOTIA – ScoZinc Mining has updated the preliminary economic assessment for restarting the suspended ScoZinc lead-zinc mine at Gays River, near Halifax. The 2017 report has a more detailed mine plan, provision for contract mining, and new cost projections, compared to the 2013 report.

The project has an after tax net present value at 5% discount of $141.2 million and internal rate of return of 64.8%. Restarting the mine will cost $31.1 million, but the capital will be recovered in 1.9 years. Mine life is estimated at 8 years, with an additional 3 years if a third pit is developed.

ScoZinc’s newest projections call for sequential development of two open pits – Main and Northeast – to feed the existing 2,600-t/d mill. There will also be a 500-t/d underground modified cut and fill component to the project. Based on historical data, both a 57% zinc and a 71% lead concentrate will be made.

Using a cut-off of 0.75% zinc equivalent, the measured and indicated resource is 7.8 million tonnes at 3.25% zinc and 1.69% lead. The inferred portion is 3.7 million tonnes at 2.35% zinc and 1.51% lead.

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