Name of the Project
Gorno zinc/lead/silver project.

Location
Northern Italy.

Project Owner/s
Base metals developer Altamin, formerly Alta Zinc and Appian.

Project Description
A scoping study has confirmed the Gorno project as a potentially commercially viable underground development opportunity with considerable upside potential. The scoping study is based on a mineral resource estimate of 7.79-million tonnes grading 6.8% zinc, 1.8% lead and 32 g/t silver.

The scoping study estimates an initial life-of-mine (LoM) of nine years, with an LoM production target of 6.04-million tonnes at 7.1% zinc, 1.9% lead and 31 g/t silver, recovering 396 000 t of zinc, 81 800 t of lead and 3.4-million ounces of silver.

LoM concentrate production is estimated at 630 000 t of zinc and 108 000 t of lead, with a mine production rate of 800 000 t/y and processing rate of 520 000 t/y.

Altamin has said that significant expansion and upside potential exists beyond the scoping study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at an 8% discount rate, of $211-million and an internal rate of return of 50%, with a payback of 2.5 years from first concentrate production.

Capital Expenditure
Initial capital expenditure is estimated at $114-million.

Planned Start/End Date
The scoping study expects predevelopment work to start in 2022, with a construction decision expected by mid-2023 and first production early in the second half of 2024.

Latest Developments
Altamin has signed a binding subscription and joint venture (JV) agreement with Appian Italy, replacing an earlier term sheet with Appian Natural Resources Fund II to JV on the Gorno project.

Under the original term sheet, signed in July, Appian would have invested up to A$94-million to earn a 67.4% interest in the project.

Under the new JV agreement, the company’s wholly owned subsidiary Energia Minerals will transfer the Gorno project into a newly incorporated Italian JV company known as Verda Metals.

Appian could then invest up to A$103-million to earn a 67.4% interest in Verda.

The payment will be made in two tranches, with the first A$15.9-million in funding securing Appian a near 29.9% interest in the JV vehicle, with the funding to be used on expanded exploration and infill drilling work, as well as permitting and the completion of a definitive feasibility study.

Appian will then have the right to fund a further A$87.3-million for project construction, following a final investment decision (FID), to earn a further 37.5% interest in the JV. The amount will be sized to fund the expected project financing equity component for the Gorno project, and is based on the scoping study parameters.

Following the satisfaction of conditions precedent, Appian will invest an initial A$4.1-million to earn an initial 9.96% interest in Verda, with the remaining first tranche to be drawn by Verda when required.

The two companies will share the management of the Gorno project prior to an FID, and Altamin is hoping to retain a 32.6% interest in the project once it has been funded to commercial production.

“This funding and JV partnership positions us to quickly commence remobilisation of our drilling contractor to embark upon the largest drilling programme ever initiated at Gorno,” Altamin MD Geraint Harris has said.

Key Contracts, Suppliers and Consultants
CSA Global (scoping study).

Contact Details for Project Information
Altamin, tel +61 8 9321 5000 or email info@altamin.com.au.