Name of the Project
Prairie Creek zinc project.

Location
Northwest Territories, Canada.

Project Owner/s
NorZinc.

Project Description
A preliminary economic assessment (PEA) has concluded that Prairie Creek represents a majorly derisked project, with world-class potential in one of the most favourable and stable jurisdictions in the world.

The PEA incorporates an updated mineral resource estimate of 9.8-million tonnes at 22.7% zinc-equivalent.

The project has demonstrated a robust throughput rate of 2 400 t/d over a 20.3-year mine life.

Average payable zinc-equivalent production is estimated at 261-million pounds a year, including the production of 2.55-million ounces a year of payable silver, 122-million pounds a year of payable zinc and 101-million pounds a year of payable lead.

The project has a life-of-mine of 20.3 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $505-million using base case metal prices of $1.20/lb zinc, $1.05/lb lead and $24/oz silver, and an internal rate of return of 21.4%. The project has a payback of 4.8 years.

Capital Expenditure
Preproduction capital expenditure is estimated at $368-million, including $35-million in contingency, with significant opportunity to improve initial costs through cost optimisation.

Planned Start/End Date
Not stated.

Latest Developments
NorZinc announced a “significant” milestone in December 2021 in the advancement of the Prairie Creek project, with the closing of equity financing to progress construction of an all-season access road to the project.

The proceeds from the financing will be used to progress plans on Phase 1 of an all-season road and other construction needs of the project.

Ultimately, the road will be the first-all season road to Prairie Creek in the project’s 50-year history. The first phase of construction, known as the pioneer winter road, will reopen and cut new trails, where designated, along the access road corridor, allowing for acquisition of critical geotechnical data for subsequent road-building campaigns and to deliver key pieces of heavy equipment required for on-site early construction projects in the following summer season.

NorZinc president and CEO Rohan Hazelton has said that the construction of the road is key to remaining on track, with the company’s targeted development schedule and production expected in late 2024. “This transaction keeps the project progressing while we evaluate financing alternatives for complete scope of this pioneer winter road and the broader project,” he says.

An updated feasibility study was expected to be formally initiated in December, following the completion of initial feasibility level work. The study will build on the results of the October 2021 PEA and will provide a higher level of detail and confidence.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
NorZinc, tel +1604688 2001 or email IR@norzinc.com.