Fireweed Zinc Ltd (CVE:FWZ), the Yukon-based junior, announced exciting results from its 2018 preliminary economic assessment (PEA) today in regards to its Macmillan Pass project.
The PEA contemplated a long mine life of 18 years, which showed Net Present Value (NPV) of C$779mln, using an 8% discount rate, with an internal rate of return of 32%.
“This first NI43-101-compliant PEA on the Macmillan Pass Project represents a significant step for the company as we progress the project towards production,” said chief executive officer Brandon Macdonald.
“Project economics in the PEA demonstrate that Macmillan Pass is not just viable at the zinc, lead and silver prices levels contemplated in the study, but highly robust.”
WATCH: Fireweed Zinc reports positive metallurgical tests at Macmillan Pass in Yukon
The company’s 470 sq km Macmillan Pass Project in Yukon, Canada is host to large zinc-lead-silver deposits, known as Tom and Jason.
Highlights from the PEA included:
18-year mine life with 32.7mln tons of mineralization mined at an average processing rate of 4,900 tons per day.
1.54mln tons of zinc, 0.88mln tons of lead, and 37mln ounces of silver in concentrate shipped.
Average yearly contained-metal production of 85kt zinc, 48kt lead and 2mln ounces of silver.
The company used base case metal price forecasts of US$1.21 per pound for zinc, US$0.98 per pound for lead and US$16.80 per ounce for silver.
Macmillian Pass project could be a premiere district-scale mining camp
“With consideration of the exploration upside not just at the known zones, but also within the broader land package, the project is steadily shaping up to be a premiere district-scale zinc mining camp in the mining-friendly Yukon Territory,” said Macdonald.
The pre-production capital expenditure is $404mln, with a significant chunk of capital cost ($105lmn) going towards site access, in the upgrades of the existing government-owned Canol Road. The 229-km unpaved road runs from paved Highway 4, the Robert Campbell Highway at Ross River, to the project site.
Shares were flat Wednesday at C$2.02.