NEWS

    Published on March 31st, 2016

    Congratulations to PNX Metals on its positive results

    ECONOMICALLY ROBUST ZINC AND PRECIOUS METALS PROJECT DEMONSTRATED AT HAYES CREEK

    • Scoping Study demonstrates the Hayes Creek project as financially robust producing zinc concentrate and gold-silver doré from both open pit and underground operations
    • The Scoping Study has identified a base case pre-tax project Net Present Value of A$109.4 million with an Internal Rate of Return of 58%, giving a payback period of less than 2 years1
    • Initial capital expenditure of A$54 million for processing plant and infrastructure, plus a further A$10.9 million in year 2 of underground development capital
    • Estimated average annual payable metal sales of 13,700 tonnes of zinc in concentrate, and 1,290,000 oz silver and 14,000 oz gold in doré from production of 400,000 tonnes of ore per year
    • Indicative mine life of 7 years commencing in 2019 with total metal revenues of A$631 million Annualised Life-of-Mine pre-tax net cash flows of A$35 million (net of ongoing underground development capital) resulting in a total Life-of-Mine pre-tax net cash flow of A$244 million
    • Project revenues split between zinc (41%), silver (34%), and gold (25%), providing a natural hedge against fluctuations in individual commodity prices
    • Opportunities for Project enhancement include; increasing the resource base through near mine and regional exploration, increasing metal recoveries through optimisation of the mineral processing route, and improving capital and operating cost efficiencies
    • Pre-Feasibility studies underway, including commencement of long lead-time items such as environmental studies.

     

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    SOURCE: PNX METALS
    DATE: MARCH 31, 2016

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