The Scotia mine in Nova Scotia
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.