Name of the Project
Prairie Creek zinc project.

Location
Northwest Territories, Canada.

Project Owner/s
Canadian zinc and lead developer 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 has agreed to a cash offer from private equity group RCF VI (RCF) to maintain the current development work at its Prairie Creek project.

RCF will buy NorZinc for C$0.0325 a share in cash, which represents a 3.5% premium to the 45-day volume-weighted average price of $0.0314 a share. RCF and its affiliates currently hold about 48.31% of the outstanding shares of the company.

Concurrently, NorZinc and RCF have amended and restated a credit facility, providing for an increase in the commitment by $11-million.

“The board has explored all viable strategic alternatives. Ultimately, it has concluded that the unsolicited all-cash offer to the minority shareholders contained within the arrangement agreement is in the best interest of the company and its stakeholders,” president and CEO Rohan Hazelton has explained.

The project recently achieved key permitting milestones, having received its water licence from the Northwest Territories government. Combined with the receipt of the land use permit, announced in mid-August, NorZinc has now completed the permitting process for mining operations at the project.

NorZinc continues to work with the regulatory bodies Parks Canada, and the Mackenzie Valley Land and Water Board, on the completion and final approval of the management plans associated with construction of Phase 1 of the all-season road. NorZinc expects to receive all Phase 1 approvals from the respective regulators in October.

Key Contracts, Suppliers and Consultants
None stated.

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