ScoZinc improves Scotia mine’s project economics
An updated prefeasibility study (PFS) for the Scotia mine has improved the project economics, which are now 12% more robust than the 2020 study, ScoZinc CEO Mark Haywood reports.
The updated PFS for the past-producing mine includes updated commodity prices, treatment charges, exchange rates and the addition of the gypsum byproduct revenue stream.
“Through detailed planning and analyses, we believe the technical team have resolved many of the mine’s historical bottlenecks, perceived water issues, and poor performance issues to develop an effective, low-risk development and life-of-mine production plan,” Haywood said on Tuesday.
The PFS shows that commercial zinc and lead concentrate and gypsum production could be achieved within 9 to 12 months of project financing of C$30.6-million.
The 2021 PFS calculates an aftertax net present value (NPV) of C$128-million and an internal rate of return (IRR) of 65%. This compares with the 2020 PFS NPV of C$115-million and an IRR of 65%.
The Scotia mine will produce 35-million pounds a year of zinc and 15-million pounds a year of lead.
The base metal resource for the 2021 mineral resource estimate remained unchanged from 2019, but a gypsum resource was added in this year’s estimation. Measured and indicated gypsum resources are estimated at 5.18-million tonnes with a grade of 91.8%.
ScoZinc has not yet finalised a definitive binding agreement for concentrate or gypsum offtakers, but negotiations with a number of buyers are under way.
Gypsum is used as a fertiliser and as the main constituent in many forms of plaster, blackboard/sidewalk chalk, and drywall.
Comments
Research Reports
Projects
Showroom
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
