TSX-V-listed Nevada Zinc has entered into a collaboration agreement with US granular micronutrients producer and distributor Cameron Chemicals.
Granular micronutrients are used for the agricultural, turf, and horticultural industries with manufacturing facilities in the states of Virginia, Michigan and Washington. Zinc is considered an essential micronutrient in these sectors.
Nevada Zinc says its Lone Mountain zinc oxide deposit, in Nevada, is strategically located adjacent to California’s $50-billion agricultural industry.
Under the terms of the agreement, Nevada Zinc and Cameron will work together to establish a range of zinc-based micronutrient products to be produced by the company and marketed by Cameron, which has established distribution networks in the US, Canada, Southeast Asia, Korea and South America.
Nevada Zinc president and CEO Bruce Durham says the strategic partnership with Cameron provides the company with the opportunity to pivot away from the more cyclical zinc metal markets while potentially increasing the economic value of its project.
Subject to completing production process evaluation studies, Nevada Zinc’s production is projected to be up to 25 000 t/y of zinc-based micronutrient products. The mine will operate for about 15 to 20 years.
The company points out that the property has only been partially explored and that there is good potential for it to increase in size.
During the remainder of 2020, Nevada Zinc will complete a project evaluation study which will include studies relating to the mining and production processes that will best suit the project.
The company will also start environmental and permitting studies. It will also submit its permit applications, from where affirmative results from the project evaluation work will allow it to make a positive project construction decision at the end of the permitting process.
Concurrent with a positive construction decision, Nevada Zinc will enter into an offtake agreement with Cameron whereby Cameron will purchase 100% of Nevada Zinc’s yearly production during the initial term of the offtake agreement.