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Fireweed Zinc – Answering Your Questions On The PEA

Cory
May 25, 2018

Vancouver, British Columbia / May 24, 2018 / JMN Wire / Fireweed Zinc (TSX.V: FWZ) has released results of its Preliminary Economic Assessment on the Macmillan Pass Project in the Yukon.

Highlights include a 4,900 tonne per day operation that would process over 32 million tonnes across a 19-year mine life, producing around 85,000 tonnes of zinc annually along with lead and silver.

At an 8% discount rate and using a spot zinc price of US$1.21 per pound, the study reports an after-tax Net Present Value of C$448 million and an Internal Rate of Return of 24%. Estimated pre-production capital expenditures come in at C$404 million, suggesting a payback period timeline of 4 years.

Initial operations would focus on the Tom West and Jason Main zones to reduce up-front capital costs. The Company says that significant upside potential remains as known zones remain open for expansion and numerous exploration targets across a vast land package remain undrilled.

I chat with Brandon Macdonald to answer some of your questions on the details of the PEA, and look ahead to what’s in store for the Fireweed as we move closer to drill season.

Click download link to listen on this device: Download Show

Discussion
15 Comments
    CFS
    May 25, 2018 25:53 AM

    Corvus Gold Continues Western Expansion, Drills 24.4 Metres @ 3.1 g/t Mother Lode Project, Nevada

    http://corvusgold.com/news/releases/index.php?content_id=289

    May 25, 2018 25:58 AM

    (TK) Tinka Drills 32 Metres Grading 9.6 % Zinc Within a Wider Interval of 107 Metres Grading 6.8 % Zinc in Ayawilca Step-out Hole

    by @newswire on May 24, 2018

    https://ceo.ca/@newswire/tinka-drills-32-metres-grading-96-zinc-within-a

    May 25, 2018 25:05 AM

    Pan American Silver’s Dolores mine in North Mexico overrun by narco gang last night

    5/25/18

    https://incakolanews.blogspot.com/2018/05/breaking-pan-american-silvers-dolores.html

      May 25, 2018 25:06 AM

      Good related comments from NLW James Kwantes:

      @JamesKwantes – “I suspect there’s a more or less direct correlation between amount of narco troubles and the size of the company in #Mexico. Bigger you are, the harder the hustle. Obviously relationships are key. Oh, and if you produce gold bars, watch out!”

      https://ceo.ca/mexico?045fa31d5b85

    May 25, 2018 25:11 AM

    Tahoe Resources (TAHO) (THO.to): ¡Adios, Phil Dalke!

    5/20/18 – Inca Kola News

    “The latest from Latin American mining’s very own self-crashing vehicle, Tahoe Resources (TAHO) (THO.to) is that the general manager of its Peru operations Phil Dalke has “accepted a new position at HQ” in Reno and will become the Vice-President of Special Projects as from next month. If that’s a promotion then Meghan Markle is an unlucky lady, as Dalke is the one now getting blamed by Ferrari Kev for the community, environmental SNAFUs at La Arena and Shahuindo in the last six months, plus of course the massively over-budget and behind schedule Shahuindo expansion program. IKN confidently predicts Dalke will be shown the way out the back door presently.”

    https://incakolanews.blogspot.com/2018/05/tahoe-resources-taho-thoto-adios-phil.html

    May 25, 2018 25:03 AM

    Report: Mining needs $100–$150 billion to meet EV demand

    Frik Els | about 21 hours ago

    http://www.mining.com/report-mining-needs-100-150-billion-meet-ev-demand/

    May 25, 2018 25:22 AM

    Canada Zinc Metals Corp. changes name to ZincX Resources Corp.

    May 7, 2018 – ZincX Resources Corp. is pleased to announce that the Company has changed its name from Canada Zinc Metals Corp. and will commence trading on the TSX Venture Exchange under the new name and the new stock symbol “ZNX” beginning Monday, May 7, 2018.

    http://zincxresources.com/news/index.php?content_id=313

      May 25, 2018 25:29 AM

      (VTT) (VDTAF) VENDETTA COMMENCES FIELD PROGRAM AT THE PEGMONT LEAD-ZINC PROJECT AND PROVIDES CORPORATE UPDATE

      May 10th, 2018

      http://vendettaminingcorp.com/wp-content/uploads/2018/05/2018_NR5_Field_Work_Corporate_Update_FINAL3.pdf

        May 25, 2018 25:32 AM

        (CNX) (CLLXF)Callinex Announces Results of Initial Preliminary Economic Assessment that Generates a 34% IRR and a $230M NPV8% at the Nash Creek and Superjack Projects
        May 14, 2018

        * PEA Highlights:

        – “Average annual production of 77M pounds of zinc, 15M pounds of lead and 437K ounces of silver over a ten year mine life;
        – Life of Mine (“LOM”) undiscounted pre-tax net cash flow of C$483M (C$293M post-tax);
        – Pre-tax IRR of a 34.1% (25.2% post-tax) and a pre-tax NPV8% of C$230M (C$128M post-tax) with a payback period of 2.4 years (2.8 years post-tax);
        – LOM all-in sustaining costs (“AISC”) of C$0.37 per pound of zinc produced, net by-product credits;
        – Total pre-production capital costs of C$168 million (including 18% contingency);
        Assumed metal prices of US$1.25 per lb of zinc, US$1.10 per lb of lead, US$17 per ounce of silver and a C$/US$ exchange rate of 0.77; and
        – Potential to materially enhance the economic return with additional drilling over the district-scale land package.”

        https://callinex.ca/callinex-announces-results-initial-preliminary-economic-assessment-generates-34-irr-230m-npv8-nash-creek-superjack-projects/

          May 25, 2018 25:35 AM

          (HRR.AX) (HER) (HRLDF) Heron Resource
          [update on their Zinc / Copper Woodlawn project]

          Heron Resources

          “$HRR the box cut excavation at the Woodlawn #Zinc #Copper mine is now complete, ready for the portal install and commencement of #mining by Pybar Mining #construction New South Wales ”

          http://www.heronresources.com.au/latestnews.php

    May 25, 2018 25:24 AM

    U.S. Launches Criminal Probe into Bitcoin Price Manipulation

    May 24, 2018 – By Matt Robinson and Tom Schoenberg

    https://www.bloomberg.com/news/articles/2018-05-24/bitcoin-manipulation-is-said-to-be-focus-of-u-s-criminal-probe

    May 25, 2018 25:51 PM
      May 25, 2018 25:52 PM

      “All available data tell us that the once-cyclical nature of the markets has stabilized, and the booming economic growth, low unemployment rates, and manageably slow rates of inflation that the country is currently enjoying are, in fact, unalterable and permanent,” said Herman Dale, lead author of the study.