STTComp
PNX FA Long
Mkt Cap $11m
Cash $4m post placement SPP and Silver forward sales
With ZINC at 10 year highs and poised to go higher PNX represents an excellent leveraged opportunity
Hayes Creek Zinc Lead deposit
JORC [email protected]% Zn +125g/t Ag + 1.81g/t Au + 0.9% Pb + 0.25% Cu =
11% ZINC Equiv or
8.5 gt/ Gold Equiv
The Hayes Creek Project’s JORC 2012 mineral resource estimate (85% Indicated, 15% Inferred) across the Iron Blow and Mt Bonnie deposits contains
177Kt zinc, 238Koz gold, 16.2Moz silver, 37Kt lead and 10Kt copper. This is equivalent to 1.1 million ounces of gold, or 445,000 tonnes of zinc – refer
Hayes Creek Mineral Resources for detail of the mineral resource estimates, including price and metal recovery assumptions used to calculate gold and zinc equivalents.
A Pre-Feasibility Study (PFS or Study) was completed over the Project in late June 2017 and announced to the market on 12 July 2017. The PFS confirms the Project to be a high value, relatively low risk and technically strong development opportunity for the Company. The Study forecasts the Project to generate an
NPV10% of $133 million, based on net smelter revenue from the sale of zinc and precious metals concentrates of
$628 million over a 6.5 year mine life. With a
low $58 million of initial capital expenditure, the Project is forecast to have a
73% internal rate of return and pay-back period of
just 15 months.
The PFS assumes construction of a purpose built processing plant with crushing, grinding, and flotation circuits to generate two valuable product streams, a zinc concentrate and a precious metals concentrate. Annual production in concentrates are forecast to be
18,200t zinc, 14,700 oz gold, and
1.4Moz silver, or
39,100t of zinc equivalent. The concentrates will be trucked to the Port of Darwin and then shipped to international markets for sale and smelting and refining. The development strategy at Hayes Creek includes the use of existing infrastructure including rail, road, high voltage power lines and water, designed to boost economics and reduce project risk.
Refer ASX Announcement 12 July 2017 for full details of the PFS.
The results of the PFS confirm and enhance the results of the Scoping Study completed by the Company in March 2016.
Refer ASX Announcement 31 March 2016
