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. Continue Reading →