NorZinc Ltd. Sept. 29 announced that it has received the final permit needed to develop the expanded operation it has planned for the past producing Prairie Creek zinc mine in Canada's Northwest Territories.

The company originally permitted a 1,600-metric-ton-per-day operation for Prairie Creek but decided to expand the mill throughput following the positive results from a 2021 preliminary economic assessment for a 2,400-metric-ton-per-day mining operation that would produce an average of 261 million pounds of zinc-equivalent annually over 20 years of mining.

The expanded operation in the PEA is based on 9.8 million metric tons of measured and indicated resources averaging 9.7% zinc, 8.8% lead, and 139 grams per metric ton silver; and 6.4 million metric tons of total inferred resources averaging 12.9% zinc, 6.7% lead, and 150 g/t silver.

The larger throughput zinc mine outlined in the PEA generates an after-tax net present value (8% discount) of US$299 million, an internal rate of return of 17.7%, and is expected to deliver more than C$8 billion in economic activity in the region over the proposed two decades of mining.

NorZinc has been issued a new Water License for the expanded operation contemplated in the PEA. Combined with the Land Use Permit issued by the Northwest Territories government in August, the company now has all the permits needed to resume operations at the past producing zinc mine.

"The receipt of the Water License represents a substantial milestone for the Company with respect [to] the advancement of the Prairie Creek project and recognition from the GNWT of the significant impact the project will bring to the region and all stakeholders," said NorZinc President and CEO Rohan Hazelton.

Prairie Creek winter road next

With the permits in hand to upgrade and expand the past-producing Prairie Creek Mine, NorZinc is now awaiting authorizations for a planned pioneer winter road (PWR) that will be the first phase of a 170-kilometer (105 miles) all-season road that will allow concentrates from the mine to be delivered to market.

Earlier this month, NorZinc reported that it is staging equipment along the proposed access road in anticipation of receiving the winter road permits in October.

Subject to financing, NorZinc plans to begin construction on the winter road immediately following the receipt of permits.

Initial construction activities will focus on two headings – from the Prairie Creek Mine through the mountains to Cat Camp at kilometer 40 (mile 25); and from the north side of the Liard River. Both headings are planned to be complete and ice bridge construction begun by the end of the year. The main construction crews are expected to have access over the bridge, which will complete the connection to Cat Camp, during the first quarter of 2023.

NorZinc Ltd.

An excavator being barged across the Liard River in preparation for Prairie Creek winter road construction.

"The start of the winter road work at Prairie Creek is a significant turning point for the company as it signifies the start [of] the overall construction of the project and the beginning of the transition into the development phase," said Hazelton. "Preparation work of the PWR is key to remaining on track with our targeted road construction schedule and production expected in late 2025."

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

• Email: [email protected]
• Phone: (907) 726-1095
• https://www.linkedin.com/in/shane-lasley-ab073b12/