NORTHWEST TERRITORIES – A preliminary economic assessment (PEA) for Osisko Metals’ wholly owned Pine Point project outlines an 11,250 t/d open-pit and underground operation, mining 47 small open pits and eight high-grade shallow underground deposits.
The proposed 10-year mine would produce an average of 327 million lb. of zinc and 143 million lb. of lead annually at estimated cash costs of US67¢ per lb. of zinc-equivalent (including smelting, transport and royalties).
With a total initial capital cost of $555.7 million, the after-tax net present value estimate for the project, at an 8% discount rate, stands at $500 million with a 29.6% internal rate of return based on estimated life-of-mine zinc and lead prices of US$1.15 per lb. and US95¢ per lb., respectively.
“On a zinc-only basis, Pine Point could potentially, if it entered into production, become a low-cost zinc-lead producer ranking fourth largest in the Americas and ninth in the world, yielding an exceptionally clean and high-grade zinc concentrate,” Robert Wares, the company’s executive chairman and CEO, said in a release.
“With several deposits open, I am particularly excited to continue exploring and expanding the resource base across the project.”
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