Boliden closing in on deal for Lundin’s European mines
A deal would cement Boliden’s position as one of Europe’s biggest producers of zinc.
ScoZinc Mining (TSXV: SZM) has signed a non-binding gypsum offtake agreement with an end buyer in Nova Scotia. It covers the life-of-mine supply from the wholly owned and permitted Scotia mine.
The mine is a former zinc-lead open pit producer near Gays River, N.S. A prefeasibility study completed in July 2020 gave the project reopening an after-tax net present value (with an 8% discount rate) of C$115 million and an internal rate of return of 49%. The preproduction capex is C$30.8 million, and that would be paid back in 2.4 years.
The five-year annual average production would be 35 million lb. zinc and 15 million lb. lead. All-in sustaining costs per pound of zinc-equivalent are expected to be $1.19. Separate concentrates grading 57% zinc and 71% lead would be produced.
The Scotia mine has measured and indicated resources of 25.5 million tonnes grading 1.89% zinc and 0.99% lead (2.84% zinc-equivalent). The inferred resource is 5 million tonnes at 1.5% zinc and 0.66% lead (2.13% zinc-equivalent.
ScoZinc said in a release the gypsum revenue will be included in the prefeasibility study that will be available in mid-November. The company is pursuing both equity and debt financing options.
(This article first appeared in the Canadian Mining Journal)
