NOVA SCOTIA – The preliminary economic assessment is positive for reopening the ScoZinc zinc-lead mine near Gays River. Owner Selwyn Resources of Vancouver recently raised $30 million, sufficient to reopen the mine, provide a 15% contingency and two months of working capital.
The PEA looks at a 2,500-t/d mill and three open pit mines. The pre-tax net present value is estimated to be $54.1 million and the internal rate of return to be 63.9%. Direct cash costs, after lead credits, may be $0.56/lb of lead, but the company will seek to optimize its plan and further reduce costs. Commercial production rates will be reached in 2012.
Selwyn says the measured and indicated resources are 5.2 million tonnes grading 3.03% Zn and 1.70% Pb. The inferred resource s 1.2 million tonnes at 2.60% Zn and 1.37% Pb.
Additional information is posted at www.SelwynResources.com.