TORONTO, June 2, 2020 /CNW/ -
https://www.youtube.com/watch?v=F06Syp__GJM
The C-Suite At the Open video interview series highlights
the unique perspectives of listed companies on Toronto Stock
Exchange and TSX Venture Exchange. Videos provide insight into how
company executives think in the current business environment. To
see the latest C-Suite At The Open videos
visit https://www.tmxmoney.com/en/csuite.html.
About Rathdowney Resources Ltd. and Project Olza (TSXV:
RTH)
Project Olza is located in the Upper Silesian Mining District of
southwestern Poland, a world-class
region of Mississippi Valley-type deposits with well-developed
mining infrastructure. Easily accessible by road, railway, power,
and a skilled workforce, the Olza project site is a one-hour drive
from Krakow, a major city with full services, including an
international airport. The deposits at Olza are 25 km from the ZGHB
zinc smelter at Boleslaw. A railway line runs through the Olza
project area, linking it to the local facilities and also to other
smelters through the port of Gdansk on the Baltic Sea.
Initial drilling by Rathdowney over approximately 30% of the
area of extensive drilling by the Polish Geological Survey,
resulted in the estimation of 24.4 million tonnes of inferred
mineral resources grading 7.02% combined zinc and lead1,
with excellent potential for expansion. Polish Geological Survey
drilling delineated a historical resource of 77 million tonnes
grading 6.15% Zn+Pb in C1/C2 categories that are similar to the
Soviet Classification 2. A qualified person, under
NI43-101 rules, has not done sufficient work to classify this
historical estimate as current mineral resources and the Company is
not treating them as current.
A Preliminary Economic Assessment ("PEA") announced in early
2015 based on the 24.4 million tonne resource, indicates strong
potential financial returns for a 6,000 tpd underground operation
and conventional treatment facility, producing two marketable
concentrates 3. The project has a post-tax net present
value ("NPV") of US$219 million at 5%
discount4, and US$170
million NPV at 8% discount. Free cash flow in the first
three years of full production averages US$125 million per year (cumulatively
US$375 million), ample for debt
financing and near term project payback.
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; however, it does highlight the economic
potential of the inferred resources if developed in line with the
development plan outlined in the PEA.
David J. Copeland, P.Eng.,
President and CEO of Rathdowney and a qualified person as defined
under NI43-101, has reviewed the technical information in this
release.
1Estimated at a 2.0% zinc cutoff; individual grades
are 5.53% zinc and 1.49% lead. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
2Historical estimate by Polish State Geological
Institute PSGI1992 report. These are different from the
classification system of NI43-101.
3BaseCase metal prices use: Zinc - US$1.10/lb in yrs 1-2, US$1.00/lb in remaining Life of Mine ("LOM");
Lead - US$1.09/lb in yr 1,
US$1.00/lb in yr 2, US$0.95/lb in remaining LOM. Assumptions are
based on the median price forecast by >30 independent banks and
investment dealers specialized in commodity market analysis. For
additional details on the PEA, see Rathdowney's news release dated
April 20, 2015.
4Bray, Chris, SRK
Consulting (UK) Ltd, July 2019 Memo
on Discount Rate for Olza PEA (effective date 31 December 2014).
About TMX Group (TSX: X)
TMX Group's key subsidiaries operate cash and derivative markets
and clearinghouses for multiple asset classes including equities
and fixed income. Toronto Stock Exchange, TSX Venture Exchange, TSX
Alpha Exchange, The Canadian Depository for Securities, Montréal
Exchange, Canadian Derivatives Clearing Corporation,
Trayport and other TMX Group companies provide listing
markets, trading markets, clearing facilities, depository services,
technology solutions, data products and other services to the
global financial community. TMX Group is headquartered in
Toronto and operates offices
across North America (Montréal,
Calgary, Vancouver and New
York), as well as in key international markets including
London, Beijing and Singapore. For more information about TMX
Group, visit our website at www.tmx.com. Follow TMX Group on
Twitter: @TMXGroup.
SOURCE TMX Group Limited