PNX Metals Ltd (ASX:PNX) has appointed GR Engineering Services (ASX:GNG) as study manager for the definitive feasibility study (DFS) on its Hayes Creek zinc-gold-silver project in the Northern Territory.
GRES will be responsible for the process design and engineering aspects of the project, including all of the facilities, equipment and capital works required for the construction, commissioning and ramp-up of the process plant and associated infrastructure at the project.
The appointment of GRES is another important milestone in the development of the Hayes Creek Project and a key part of completing the DFS.
The DFS is expected to build on the excellent outcomes achieved in the pre-feasibility study, which forecasts the project to generate a net present value (NPV) of $133 million over a 6.5-year mine life.
The PFS was based on the development of the high-grade Iron Blow and Mt Bonnie zinc-gold-silver deposits which are located less than 3 kilometres apart within the Pine Creek region.
James Fox, managing director, said “We are pleased to have engaged GR Engineering as an integral part of the Hayes Creek project development team, this appointment is another important milestone in the future development of the Hayes Creek zinc-gold-silver project.
“GRES are a well-respected group with a proven track record of delivering project studies many of which lead to project development.”
The study manager will assess the technical aspects of the project, with a focus on optimising process design and achieving efficiencies in capital and operating costs.
GRES will also develop a project execution plan which will include identification of and planning for early works and pre-commitment activities.
With a low $58 million initial capital expenditure requirement, Hayes Creek is forecast to have a 73% internal rate of return, and a short pay-back period of 15 months.