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Canadian Zinc Corp.
Summary
| Project: | Prairie Creek | |
|---|---|---|
| Deposit: | Prairie Creek | |
| Location: | Canada | |
| Commodities: | Zinc-Lead-Silver | |
| Date: | 9/14/2016 | |
| Report Code: | NI43-101 | |
| Report Type: | Pre-Feasibility Study | |
| Project Stage: | Pursuing Pre-Feasibility Study | |
| Report details: | 14-9-2016: Canadian Zinc Corp. announces a Pre-Feasibility Study report for its Prairie Creek deposit at the Prairie Creek project. Clarification on Prairie Creek PFS - economic model clarified. VANCOUVER, Sept. 14, 2016 /CNW/ - Canadian Zinc Corporation | |
| Resources: | (not mentioned in this report) | |
| CP/QP: | [Overall Report]: Alan Taylor (Internal) | |
| ABSTRACT: | VANCOUVER, Sept. 14, 2016 /CNW/ - Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) reports that, as part of its ongoing financing and concentrate marketing activities for its 100% owned Prairie Creek lead, zinc, silver mine in the Northwest Territories, the Company has identified an error in the life-of-mine economic model included in its 2016 Preliminary Feasibility Study. The error caused an overstatement in gross smelter revenue to $3.7 billion from $3.3 billion, over the projected 17-year life of the Prairie Creek Mine. The gross metal value of production (using the same assumptions) remains unchanged. The overestimation resulted from the inclusion in the economic model of smelter revenue for bi-product metals in primary concentrates that may not be payable, depending on final concentrate contract terms. All other inputs into the economic model and all technical aspects of the 2016 Preliminary Feasibility Study ("PFS") remain unchanged, including all mineral resource and reserve estimates, mining plans and production rates and estimates of capital and operating costs and assumptions on concentrate treatment charges and penalties. However, royalties and taxes payable also reduce by $153 million over the projected life of the mine, partially offsetting the impact of lower revenue. "It is important to note that the error in the economic model has no impact on reserve estimates, metal production or mine life and, notwithstanding the reduction in revenue, the revised financial results remain strongly positive and continue to demonstrate a robust project with undiscounted cumulative cash flowof $710 million at metal prices of US$1.00/lb for zinc and lead and US$19/oz for silver", said John Kearney, Chairman and Chief Executive. "The revised financial model yields a Pre-tax NPV of $284 million at an 8% discount rate, with an IRR of 23%, and a Post-tax NPV of $155 million, with a post-tax IRR of 18%." | |
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