Name of the Project
Prairie Creek zinc project.

Location
Northwest Territories, Canada.

Project Owner/s
Canadian zinc and lead developer NorZinc.

Project Description
A preliminary economic assessment (PEA) has concluded that Prairie Creek represents a majorly derisked project, with world-class potential, in one of the most favourable and stable jurisdictions in the world.

The PEA incorporates an updated mineral resource estimate of 9.8-million tonnes at 22.7% zinc-equivalent.

The project has demonstrated a robust throughput rate of 2 400 t/d over a 20.3-year mine life.

Average payable zinc-equivalent production is estimated at 261-million pounds a year, including the production of 2.55-million ounces a year of payable silver, 122-million pounds a year of payable zinc and 101-million pounds a year of payable lead.

The project has a life-of-mine of 20.3 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $505-million using base case metal prices of $1.20/lb zinc, $1.05/lb lead and $24/oz silver, and an internal rate of return of 21.4%. The project has a payback of 4.8 years.

Capital Expenditure
Preproduction capital expenditure is estimated at $368-million, including $35-million in contingency, with significant opportunity to improve initial costs through cost optimisation.

Planned Start/End Date
Not stated.

Latest Developments
NorZinc has received final approvals for all management plans from Parks Canada, as regulator of Nahanni National Park Reserve, pertaining to the permit and licence to construct the Pioneer winter road (PWR), which represents Phase 1 of the all-season access road at the Prairie Creek project.

This approval, combined with the territorial approvals received in September, completes the permitting process for the construction of Phase 1 of the all-season road, which represents the first land access to the project in more than 40 years.

Currently, the site is accessible only on a fly-in, fly-out basis.

Since construction started in mid-October 2022, NorZinc has made significant progress on the PWR with initial construction performed up to kilometre 15.

With the Parks’ approval, the construction timeline can stay on track, with kilometre 17 entering the Nahanni Park boundary.

In parallel with all-season road Phase 1 management plan approvals, the company has started working with territorial and federal regulatory authorities towards completion and approval for Phase 2 of construction for the all-season road, which represents the final step to completion of the fully operational year-round access road to the Prairie Creek project. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
NorZinc, tel +1604688 2001 or email IR@norzinc.com.