Name of the Project
Gorno zinc/lead/silver project.

Location
Northern Italy.

Project Owner/s
Altamin, formerly Alta Zinc and Appian.

Project Description
A scoping study has confirmed the Gorno project as a potentially commercially viable underground development opportunity with considerable upside potential. The scoping study is based on a mineral resource estimate of 7.79-million tonnes grading 6.8% zinc, 1.8% lead and 32 g/t silver.

The scoping study estimates an initial life-of-mine (LoM)  of nine years, with an LoM production target of 6.04-million tonnes at 7.1% zinc, 1.9% lead and 31 g/t silver, recovering 396 000 t of zinc, 81 800 t of lead and 3.4-million ounces of silver.

LoM concentrate production is estimated at 630 000 t of zinc and 108 000 t of lead, with a mine production rate of 800 000 t/y and processing rate of 520 000 t/y.

Altamin has said that significant expansion and upside potential exists beyond the scoping study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at an 8% discount rate, of $211-million and an internal rate of return of 50%, with a payback of 2.5 years from first concentrate production.

Capital Expenditure
Initial capital expenditure is estimated at $114-million.

Planned Start/End Date
The scoping study expects predevelopment work to start in 2022, with a construction decision expected by mid-2023 and first production early in the second half of 2024.

Latest Developments
Altamin has struck a binding term sheet with Appian Natural Resources Fund II to form a joint venture at the Gorno zinc project.

Appian will invest up to A$94-million to earn a 67.4% interest in the project.

The fund will be paid in two tranches, with the first comprising a A$14.5-million investment to fund expanded exploration and infill drilling, permitting and the completion of a definitive feasibility study, in exchange for a near 29.9% interest in the project.

Appian will also have the right to fund a further A$79.6-million for project construction following a final investment decision (FID) to earn a further 37.5% interest in the project.

Altamin and Appian will share management of the project before an FID. Altamin is expected to retain a 32.6% interest in Gorno once the project has been funded to commercial production while maintaining full ownership and development control of its other base and battery metals projects in Italy.

Key Contracts, Suppliers and Consultants
CSA Global (scoping study).

Contact Details for Project Information
Altamin, tel +61 8 9321 5000 or email info@altamin.com.au.