RE: Positive Scoping Study Results for Zazu's LikThe life of
mine open pit plan includes the production of 16 million tonnes grading 8.08% zinc, 2.57% lead and 47.9 g/t silver. Scott Wilson RPA estimated the pre-production capital cost as US$352 million including a 22% contingency for a 5,500 tonne per day mine and mill with an 8 year mine life. Scott Wilson RPA estimated life of mine operating costs of US$75 per tonne. Their base case assumes metal prices of US$1.00 per pound for zinc, US
.80 per pound for lead and US$16 per ounce for silver. This demonstrated a pre-tax Internal Rate of Return ("IRR") of 9%.
The deposit is highly levered to the zinc price. Using US$1.10 and US$1.20 per pound of zinc in the same model yields pre-tax IRR's of 17% and 23% respectively. The spot zinc price reached US$1.15 in January this year.
zinc price:
https://www.kitcometals.com/charts/zinc_historical_large.html#1year
ZAZ should start moving closer with the zinc price (leveraged/ option on zinc)