PNX Metals Ltd has completed a PFS for its Hayes Creek zinc-gold-silver project, located 170 km south of Darwin in the Pine Creek region of the Northern Territory, Australia. The PFS confirms the project to be a high value, relatively low risk and technically strong development opportunity for the company. Given these outcomes, the PNX Board has resolved to proceed immediately with a DFS, with baseline studies relating to long lead-time items such as the approvals process already underway.
- PFS outlines a robust zinc and precious metals project forecast to generate net smelter revenues of A$628 million over a 6.5 year mine life
- A$266 million pre-tax net cashflow estimated over Life of Mine (LoM) at an average of A$41 million per year
- Pre-tax NPV10% of A$133 million, IRR of 73% and a very short 15 month pay-back period
- Low up-front capital of A$58 million to construct the 450,000 t/y sulphide flotation processing plant and associated infrastructure to produce annually in concentrates 18,300 t zinc,14,700 oz gold, and 1.4 Moz silver, or a combined total of 39,100 t zinc equivalent
- Production targets are based on Mineral Resources at the Mt Bonnie and Iron Blow VMS deposits which are classified as 98% Indicated
- Given the exceptional outcomes of the PFS, the PNX Board has resolved to proceed with a Definitive Feasibility Study (DFS) and seek mine approvals which are considered capable of being finalised in 2018
- Significant opportunities exist to expand the project’s Mineral Resource base with near-mine and regional exploration. PNX will aggressively pursue exploration in tandem with ongoing DFS work.