Name of the Project
Prairie Creek zinc/lead/silver project.

Location
Northwest Territories, Canada.

Project Ownre/s
NorZinc.

Project Description
Prairie Creek has total proven and probable reserves of 8.07-million tonnes grading 124.22 g/t silver, 8.1% lead and 8.64% zinc.

A feasibility study completed on the project has confirmed that the Prairie Creek mine can support a significant increase in the mining rate and mill throughput, which will allow for the production of higher quantities of zinc, lead and silver at lower operating costs, compared with the mine plan presented in the 2016 prefeasibility study (PFS).

The feasibility mine plan covers a 15-year life-of-mine from mill start-up.

The study estimates a mining rate of 1 600 t/d, an increase of 18.5% on the 2016 PFS.

Mill throughput after dense-media separation has also increased by 25% to 1 200 t/d.

Average yearly production of lead concentrates has increased by 16 000 t/y to 71 600 t/y, compared with the 2016 PFS, while the grade of lead in the lead concentrates has also improved.

Average yearly total contained lead in zinc and lead concentrates is 105-million pounds a year, an increase of 23-million pounds, 95-million pounds of zinc an increase of 13-million pounds, while the average yearly production of silver has also increased 25% to 2.1-million ounces a year.

Average yearly total contained zinc and lead concentrates have increased by about 7%, from 82-million pounds in the 2016 PFS to 88-million pounds a year.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at an 8% discount rate, of C$344.5-million, a 21% increase on the 2016 PFS, with an internal rate of return of 23.8%. Payback has been estimated at 4.4 years.

Capital Expenditure
Preproduction capital costs have increased from C$244-million in the 2016 PFS to C$278.9-million, including contingency, primarily because of the expansion in mine and mill throughput and accelerated mine development.

Planned Start/End Date
Not stated.

Latest Developments
NorZinc has all the major permits required for the construction and operation of the Prairie Creek mine and an all-season access road that will provide access to the site in the Northwest Territories.

However, owing to the timing of the issuance of the road permits, the company is considering an alternative road construction schedule, details of which will be announced at a later stage, NorZinc has reported.

The initial 170 km winter road to the mine site was planned for the first quarter of next year.

“We finally have the last major permit in place to build the Prairie Creek mine and will be working very hard over the coming weeks to present and obtain approval for the management and monitoring plans for the all-season road so we can advance construction and start to build.”

“The timely approval of the management plans will be critical for Norzinc to continue to meet its development schedule outlined over 16 months ago. It is also critical that we develop the Prairie Creek mine in a manner that is the most environmentally sustainable and with the strongest local indigenous support,” CEO and president Don MacDonald has said.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Canadian Zinc VP corporate affairs Joseph Lanzon, tel +1 613 796 5957 or email joseph.lanzon@norzinc.com.