A preliminary economic assessment on Nevada Zinc Corp.'s Lone Mountain project in Nevada generated a post-tax net present value, discounted at 8%, of US$43.2 million, with a 35% internal rate of return and a 2.7-year payback period.
Pre-production capex was estimated at US$25.7 million for an 800-tonne-per-day operation. Average annual zinc production was projected at 35.2 million over a 12-year mine life.
The PEA, based on an average zinc price of US$1.13 per pound, assumed a contract miner will mine the mineralization in a single pit, as well as the use of standard floatation techniques to make zinc concentrate.
Nevada Zinc said June 27 that the study did not include the potential of the project's zinc mineralization to be leached to make a zinc oxide product or become a feedstock for producing zinc sulfate.
A July 2018 maiden estimate for Lone Mountain outlined an inferred resource of 543 million pounds of zinc contained within 3.3 million tonnes of material grading 7.57% zinc and 0.70% lead, at a 2% zinc cutoff.