The development scenario recommended in the PEA is a conventional underground mine and processing facility at a rate of 6,000 tonnes per day or 2.16 million tonnes per year. Standard flotation treatment will produce marketable low iron zinc and lead concentrates that would be shipped by existing rail facilities to smelters.
Key results of the Project Olza PEA , presented in US dollars, include:
- After tax Internal Rate of Return of 30% with a payback of 2.4 years. The Net Present Value after taxes is $170 million at an 8% discount rate.
- Initial capital is $227 million, sustaining capital is $51 million and total operating cost is $69.88/tonne milled (including on-site and off-site costs).
- Life of mine production yielding 1,338 million tonnes of payable zinc and 449 million tonnes of payable lead.
- Excellent potential to increase mineral resources and extend project life.
The final technical report recommends advancing to the feasibility level in a phased approach, using the PEA as a basis for the refining and optimizing the project. In parallel, the Company would move the project forward through the Polish permitting and development process.
The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized.
