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Hayes Creek zinc/gold/silver project, Australia

13th October 2017

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Hayes Creek zinc/gold/silver project.

Location
The project is located on granted leases about 170 km from Darwin, in the Pine Creek region of the Northern Territory, in Australia.

Client
PNX Metals.

Project Description
A prefeasibility study (PFS) on the Hayes Creek project has confirmed the project to be a high-value, relatively low-risk and technically strong development opportunity.

The project comprises the Mt Bonnie and Iron Blow zinc/gold/silver volcanic massive sulphide deposits, which are amenable to flotation. The deposits together contain total indicated and inferred mineral resources of 4.08-million tonnes grading 4.35% zinc, 0,91% lead, 0.25% copper, 124 g/t silver and 1.81 g/t gold.

The PFS is based on a steady-state 450 000-tonne-a-year mining and processing schedule derived from initial openpit mining operations at Mt Bonnie and subsequent underground mining operations at Iron Blow.

About three-million tonnes of ore, of which 98% is classified in the indicated category of the project’s mineral resources, is forecast to be processed over a 6.5-year life-of-mine.

The project includes the construction of a purpose-built processing plant about 12 km north of Mt Bonnie and Iron Blow. The plant will comprise crushing, grinding and flotation circuits to generate zinc and precious metals concentrates, and a tails management and distribution system.

Potential Job Creation
The project, if developed as planned, will directly employ an estimated130 personnel at full capacity.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $133-million and an internal rate of return of 73%, with payback of 15 months.

Value
The project will require low upfront capital of $58-million.

Duration
The project is expected to have 6.5-year mine life, starting from 2019.

Latest Developments
Given the outcomes of the PFS, PNX has decided to proceed with a definitive feasibility study (DFS) on the project. Baseline studies pertaining to long-lead time items, such as the approvals process, are already under way. Completion of the DFS will require and is subject to further funding, and the company is evaluating several options in this regard.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
PNX Metals, tel +61 8 8364 3188, fax +61 8 8364 4288 or email info@pnxmetals.com.au.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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