Vancouver, British Columbia: FIREWEED ZINC LTD. (“Fireweed” or the “Company”) (TSXV: FWZ) is pleased to announce the filing on SEDAR of the independent Preliminary Economic Assessment (“PEA”) report for its Macmillan Pass Project (the “Project”) in Yukon, Canada. The PEA results were previously disclosed in the Company’s news release dated May 23, 2018 and prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The work was lead by JDS Energy and Mining, Inc. (JDS) with Knight Piesold Consulting contributing sections on mine closure, mine waste and water management, Base Metallurgical Laboratories carrying out the metallurgical work, and CSA Global Geosciences Canada Ltd. contributing sections on property description, geology and mineral resources (per the Fireweed news release dated January 10, 2018). The report, which is titled “NI43-101 Technical Report, Macmillan Pass Project, Yukon Territory, Canada,” with effective date May 23, 2018 and report date of July 6, 2018, can be found under Fireweed’s profile at www.sedar.com and on the company website.
Highlights of PEA:
- Long mine life and large-scale production:
- 18-year mine life with 32.7Mt of mineralization mined at 5,000 tonne-per-day average processing rate.
- 1.54Mt of Zinc, 0.88Mt of Lead, and 37Moz of Silver in concentrate shipped.
- Average yearly contained-metal production of 85kt Zinc, 48kt Lead and 2Moz Silver.
- Robust economics using metals prices of $1.21/lb Zn, $0.98/lb Pb, and $16.80/oz Ag:
- Pre-Tax NPV at 8% of $779M CAD and IRR of 32%.
- After-Tax NPV at 8% of $448M CAD and IRR of 24%.
- Manageable CAPEX and rapid payback:
- Pre-production CAPEX of $404M CAD.
- Payback period of 3.9 4 years.
- Starter-pits on Tom West and Jason Main zones reduce up-front capital.
- Significant Upside
- Numerous opportunities for significant economic improvement.
- Known zones remain open for expansion, including into high-grade areas.
- Highly prospective and large land package untested with modern exploration methods.
“We are pleased to file our PEA technical report on SEDAR to give the full details of the work that was completed by our staff and consultants,” commented Brandon Macdonald, Chief Executive Officer. “Many aspects of this study were completed at a level even higher than that required for a PEA study, and we will continue to strive to present the most comprehensive work that shows the robustness of our project.”