The updated preliminary economic assessment (PEA) for the Pine Point zinc project, in the Northwest Territories, remains “very robust”, despite capital and operational cost escalations in the current inflationary environment, TSX-V-listed Osisko Metals reports.
The updated PEA calculated an aftertax internal rate of return of 25% and an aftertax net present value (NPV) of C$602-million, and yielded significantly increased resources.
“The new proposed mine plan, with 18% increased tonnage to the mill, could again make Pine Point a top-ten global zinc/lead producer with an annual average production of 329-million pounds of zinc and 141-million pounds of lead over a 12-year mine life.
“On a zinc-only basis, Pine Point could potentially become a low-cost zinc/lead producer ranking fourth largest in the Americas,” said executive chairperson and CEO Robert Ware.
He added that the “exceptionally clean and high-grade zinc concentrate from Pine Point would be sought after by any number of smelters and traders globally”.
Pine Point’s capital costs increased to C$653.3-million and including sustaining capital, to C$1.23-billion. The higher costs were largely attributed to a 12% inflation factor.
Pine Point has an indicated mineral resource of 15.8-million tonnes, grading 4.17% zinc and 1.53% lead, representing about 25% of the declared tonnage in the updated 2022 mineral resource estimate. The project has inferred resources of 47.2-million tonnes, grading 4.43% zinc and 1.68% lead. Indicated and inferred resource tonnages increased by 22% and 26%, respectively.