Osisko’s zinc project in the Northwest Territories remains robust despite inflationary pressures
Updated Preliminary Economic Assessment (PEA) of Pine Point zinc project in Northwest Territories remains ‘very robust’, despite escalating capital and operating costs in inflationary environment current, reports Osisko Metals, listed on the TSX Venture Exchange.
The updated PEA calculated an after-tax internal rate of return of 25% and an after-tax net present value (NPV) of C$602 million, and generated significantly increased resources.
“The proposed new mine plan, with an 18% increase in mill tonnage, could once again make Pine Point one of the world’s top ten zinc/lead producers with an average annual 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 has the potential to become the fourth-largest low-cost zinc/lead producer in the Americas,” said the Executive Chairman and CEO. Robert Items.
He added that “Pine Point’s exceptionally clean, high quality zinc concentrate would be sought after by a large number of smelters and traders around the world.”
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 approximately 25% of the tonnage reported in the updated mineral resource estimate for Pine Point. 2022. 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.