A Preliminary Economic Assessment (PEA) for the Ayawilca Zinc Zone was released July 2, 2019. The PEA provided an initial economic study for an underground ramp-access mine development of the Zinc Zone deposit using room and pillar and post pillar mining at a throughput of 5,000 tonnes per day. The Ayawilca Tin Zone and the Colqui Silver Zone resources were not considered in the PEA.
The PEA was prepared in accordance with NI 43-101 by Amec Foster Wheeler Peru S.A. ("Wood") as principal consultant, Transmin Metallurgical Consultants, and Roscoe Postle Associates Inc. ("RPA"). We encourage readers to review the full NI 43-101 technical report which was filed on August 15, 2019, and can be downloaded under the Company’s profile on www.sedar.com or from the Company’s website (link to technical report). The Report is entitled "Ayawilca Polymetallic Project, Department of Pasco, Central Peru - NI 43-101 Technical Report".
Key highlights of the PEA include:
Note: The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Summary of 2019 Ayawilca Zinc PEA Results
PEA Financial Summary
NPV (8% discount rate)
Internal Rate of Return (“IRR”)
Pre-production capital expenditure (Capex)(1)
Closure Cost (5.0% of LOM Capex)
Notes: (1) Includes contingencies of US $45,000,000.
PEA Operating Summary
Processing plant throughput
Average annual zinc concentrate production
Average annual lead-silver concentrate production
Average annual silver in lead concentrate
Net Smelter Return (“NSR”) from zinc and lead concentrates
General and administration costs
Total operating costs (Opex)
Notes: dmt = dry metric tonne
PEA Metal Prices, Cut-off, and Other Assumptions
NSR Cut-off value
Total material processed (LOM)