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Gorno set to produce for nine years - study

24th November 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – A scoping study into the Gorno zinc/lead/silver project, in Italy, has estimated that the project could have a mine life of about nine years.

ASX-listed Alta Zinc on Wednesday said that the scoping study estimated a total production target of six-million tonnes, containing 77% indicated and 23% inferred mineral resource, at a mining rate of 0.8-million tonnes a year.

The project is expected to produce 630 000 t of zinc concentrate and 108 000 t of lead/silver concentrate over its mine life.

The scoping study estimated a pre-production capital cost of $114-million, excluding a pre-development capital spend of A$5.2-million. Over the projected mine life, Gorno would average annual free cash flows of $67-million during peak production, which is targeted between 2026 and 2031, while the project is also expected to be among the lowest cost global primary zinc producers.

The study estimated a post-tax net present value of $211-million and an internal rate of return of 50%, with a pay-back period of three-and-a-half years.

“The scoping study provides an initial evaluation of the Gorno project that considered several possible options to define a project path to maximise project economics, minimise environmental and social impacts and deliver maximum shareholder returns. In my opinion, Gorno is set to become a best-in-class modern underground mine with a minimal surface and environmental footprint,” said Alta Zinc MD Geraint Harris.

“It will efficiently extract a high-value mineralisation and convert it into one of the highest grade and cleanest zinc and lead concentrate products available globally.

“The initial economic evaluations are compelling and provide substantial justification for the advancement of the asset, as well as highlighting areas where we can further grow the resource base and refine our strategy for progressing the asset throughout 2022.”

Harris said that there are opportunities for further resource extension and optimisation, with the upside potential for increasing mine life and possibly throughput.

“The company has achieved rapid resource growth and exploration success in the last 24 months notwithstanding challenges faced with Covid-19 both globally and within Italy and we remain committed to continuing an extensive programme of exploration and development activities across our 100% owned Italian tenement package.”

Edited by Creamer Media Reporter

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