VANCOUVER, Aug. 1, 2018 /CNW/ - Rathdowney Resources Ltd.
("Rathdowney" or the "Company") (TSX‐V: RTH) is pleased to provide
an update on progress at its 100% owned Olza Zinc-Lead Project in
Poland.
"Rathdowney is continuing to advance Project Olza toward
development," reports Chairman David
Copeland. "Project activities are currently focused in
key areas necessary to acquire project permits. Our teams are
progressing with the Project Development Plan, and compiling the
data and studies needed for the upcoming Environmental Impact
Assessment process. We are working toward submitting our
application in the third quarter of 2019."
In 2015, Rathdowney announced the results of a Preliminary
Economic Assessment ("PEA")1 by SRK
Consulting (UK) Ltd for Project Olza. The PEA reported strong
potential financial returns for a 6,000 tonnes per day underground
mine with conventional mill, including a post-tax Net Present
Value of US$170 million with an
Internal Rate of Return IRR 30% and payback in 2.4 years.
"The cost to produce a pound of zinc at Olza, on a byproduct
basis would be US$0.47 per pound
based the long-term forecast metal prices - US$1.00 per pound for zinc and US$0.95 for lead per pound - used in PEA," says
Copeland. "Hence, Project Olza is very robust even at a zinc price
much lower than the current US$1.19
per pound."
The strong returns anticipated from a mine at Olza are a result
of the project's favourable location in a well-established brown
fields mining district. The Upper Silesia District of
Poland is well known for its large
Mississippi Valley Type ("MVT") deposits with a history of solid
production from world-class zinc mines. In 2009, the United
States Geological Survey (USGS) released a compilation of mineral
resource data on MVT deposits that shows the Upper Silesia as one
of the world's largest MVT districts as ranked by its contained
metal2. The graph below, derived from
that publication, shows the USGS data as well as additional
information on individual Polish deposits; it is also posted on the
Company's website at
http://www.rathdowneyresources.com/rdr/MapsFigures.asp?ReportID=832767.
____________________________
1 The PEA uses an 8% discount rate and the median of
consensus forecast prices of Zn $1.00-1.10/lb and Pb $0.95-1.00/lb. All values in US dollars and
metric units. Further details are available in Rathdowney's
April 20, 2015 news release and
Preliminary Economic Assessment (PEA) Technical Report, effective
date December 31, 2014, both of which
are available on the Company website www.rathdowneyresources.com
and the Company's profile at www.sedar.com.
2 USGS Open File Report 2009-1297.
This region of Poland has been
mined since the 1200's: recently exploited deposits such as ZGHB's
Pomorzany mine started production in the 1970's and, as befits the
Silesia style of MVT, has yielded in excess of 90 million tonnes of
ore3 from a concession footprint of similar
size to Rathdowney's Project Olza.
Project Olza's deposit geology is simple: rocks formed from
large platform reefs host a series pf very continuous mineralized
zones, ranging in thickness between 2.5 and 8 metres, with strike
lengths of 50-1000 metres, at shallow (on average 180 metres)
depth. Testing of mineralized cores from Olza indicates that
concentrates produced using conventional metallurgical treatment
will be of high quality with no deleterious elements, and low
iron.
All necessary infrastructure for development of a mine already
exists in the immediate vicinity of Project Olza. Well-maintained
highways provide easy access to the property. A spur of the
national railway, connecting to its yards and services, crosses a
portion of the project area. An electrical grid with substations
that have underutilized capacity are also located in the immediate
area. The local population have mining skill sets, including
technical trades in the various disciplines needed and dependable
contractors are at hand. Importantly, there is a young, skilled
technical work force seeking additional training that would fit
well into the rebirth of modern mining in the
region.
___________________________________
3
www.geoportal.pl
"All these items will contribute to a substantial positive
influence on mine availability, productivity, efficiency and cost,
limiting the development and operational risk," said
Copeland. "Project Olza's projected costs are well understood
and controllable, and based on operations in the local area, and
other Eastern European regions where similar work has been
undertaken, and is ongoing."
Tabulated highlights of the after-tax PEA results are available
on the Company website at
http://www.rathdowneyresources.com/rdr/MapsFigures.asp?ReportID=832767.
The PEA is preliminary in nature and includes Inferred Mineral
Resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty that
the PEA will be realized.
Current Project Development Activities
Teams in the field and site offices are working to advance the
Project Development Plan (PZZ) and compiling the data and studies
needed for the Environmental Impact Assessment (EIA) process.
The PZZ is similar to a pre-feasibility study; however, as it
leads to a decision on granting an extraction license or Polish
mining permit, the PZZ focuses more on operational parameters,
mining techniques and staffing as well as related service
requirements. Work on routing services, as well as prioritizing
site locations and mine design is advancing, with a target for
completion mid next year.
The EIA work is ongoing. Field teams are gathering seasonal data
as well as carrying out more detailed data collection at sites
preferred for the proposed facilities. Our team also continues to
coordinate closely with the environmental agencies in Poland as we advance toward submission of a
permit application, anticipated to occur in the third quarter of
2019.
Technical Information in this release has been reviewed and
approved by David Copeland, PEng, a
qualified person, who is also the Chairman and a director of the
Company.
On behalf of the Board of Directors
David Copeland
Chairman
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address exploration
drilling, exploitation activities and events or developments that
the Company expects, are forward looking statements. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Assumptions used by the Company to
develop forward-looking statements include the following: the Olza
project will obtain all required environmental and other permits
and all land use and other licenses, studies and development of the
Olza project will continue to be positive, and no geological or
technical problems will occur. Factors that could cause actual
results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration
successes, continuity of mineralization, potential environmental
issues and liabilities associated with exploration, development and
mining activities, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. For more information on the
Company, investors should review the Company's continuous
disclosure filings that are available at www.sedar.com.
SOURCE Rathdowney Resources Ltd.