WEEKLY ONLINE NEWS STORY
You are receiving this weekly newsletter at no additional cost as part of your subscription to Petroleum News. If you do not want to receive this newsletter, email Shane Lasley at [email protected] to be removed from the list.
| March 06, 2014 --- Vol. 08, No. 10 | March 2014
|
Alaska News Nuggets
ZINC/LEAD – Zazu Metals Corp. Mar. 3 reported that a preliminary economic analysis completed by JDS Energy and Mining Inc. produced positive results for the Lik zinc-lead-silver property, situated some 14 miles (22 kilometers) from Teck Resources’ Red Dog Mine in Northwest Alaska. As modeled, a 5,500 metric-ton-per-day mill processing ore from an open pit mine at the Lik South deposit would produce 234,000 dry metric tons of zinc concentrate and 55,800 dry metric tons of lead concentrate per year. In total, 17.1 million metric tons of ore milled at an average grade of 7.7 percent zinc, 2.6 percent lead and 47 grams per metric tons silver is expected from the Lik South open pit. The study estimates a total capital cost of C$352 million including a 20 percent contingency for a 2 million metric-ton-per-year mine and mill with an initial nine-year mine life. Using a zinc price of US92 cents per pound, the preliminary economic assessment estimates a post-tax internal rate of return of 9.7 percent and a post-tax net present value (8 percent discount) of C$25 million. Using a zinc price of US$1.00 per pound, the PEA estimates a post-tax IRR of 13.4 percent and NPV (8 percent discount) of C$148 million for mining Lik South. Estimates using zinc prices of US80 cents, US$1.10 and US$1.20 were also calculated. Zazu said that analysts’ average forecast for zinc in 2015 is US$1.00/lb (Bloomberg with a range of US82 cents to US$1.20/ lb. The Lik deposit is located near the Delong Mountain Transportation System, a state-owned haul road and concentrate-shipping port servicing the Red Dog Mine. Alaska Industrial Development and Export Authority, the state entity that owns the road and port, is analyzing the construction of a 19-mile (30 kilometers) extension to the road and any port modification requirements to accommodate Lik as part of their pre-funding due-diligence. The PEA does not consider Lik North, the contiguous deposit to Lik South, which would be mined using underground methods if economics proved viable.
GRAPHITE – Graphite One Resources Inc. Mar. 3 said it has made a final option payment of US$250,000 on the Graphite Creek property, providing the company 100 percent interest in the large graphite deposit in western Alaska. Graphite Creek will now be governed by a 20-year lease with automatic renewal provisions. The lease agreement allows for a 5 percent net smelter royalty which can be reduced to 3 percent by paying C$2 million for each one percent purchased. Graphite One recently reported an NI-43-101-compliant inferred resource of 284.7 million metric tons grading 4.5 percent graphite (including 37.7 million metric tons at 9.2 percent graphite). Graphite One President and CEO Anthony Huston said, “I am very proud of our team in reaching this milestone. We have succeeded on all fronts, both financially and technically, to now own this asset 100 percent and will forge ahead to unlock the deposit's value for shareholders.”
Did you find this article interesting?
Email it to an associate.
Print this story
Mining News North - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
[email protected] --- http://www.MiningNewsNorth.com
S U B S C R I B E
|
|
|
