공시 • Feb 02
Rockcliff Announces PEA Results Demonstrating A Robust Low-Capital Project with Highly Attractive Economics
Rockcliff Metals Corporation announced the results of its Preliminary Economic Assessment for the company's 100% owned Tower and Rail Project, located in the Flin Flon-Snow Lake Greenstone Belt in the Snow Lake area of central Manitoba. All references to currency herein are in Canadian dollars unless otherwise specified. Highlights of the PEA: After tax NPV8 of $127.6 million and an IRR of 67%; Initial capital of $81.0 million; Near term production possible with a 16-month construction period; Initial capital paid back within 12 months of Commercial Production; and 9.5 year life of mine, with opportunities for mine life expansion. The Study was commissioned in 2021 with the aim of exploring alternative development approaches in order to reduce initial capital requirements and improve financeability of the Project. The forecast potential economic returns from the Project justify further development and advancing work to secure the required permits for operation. The Study supersedes all previous studies and incorporates the updated Mineral Resource Estimates for the Tower and Rail Properties. The study was authored by A-Z Mining Professionals Ltd. ("AMPL"). The updated Mineral Resource Estimate used in the PEA supersedes previous estimates published by the Company. The mineral resource estimate uses a recovered value cut-off of $80/tonne. Apart from updated specific gravity calculations, no additional information or drill results were included in this Mineral Resource Estimate. The PEA envisions developing the Tower Deposit as an underground mine over a 16-month construction period before commercial production is achieved. The development of the Rail Deposit will be funded out of cash flow produced from the Tower Deposit. Both Tower and Rail underground mines will employ the Alimak raise mining method, achieving production rates of 1,100 tonnes per day ("tpd"). Mineralized material will be fed to a Company owned modular mill at 1,100tpd, with tailings to be deposited in an on- site permitted dry stack tailings facility. The modular mill will be transferred to the Rail Property once the Tower Deposit has been fully mined out, which is envisioned to occur in the 5th year of the PEA mine plan. The combined LOM of the Tower and Rail deposits is 9.5 years. AECOM, a multinational engineering firm and Rockcliff's permitting consultant in Manitoba, was engaged to support the Study with a view on permitting requirements and closure plans under the proposed development and operating plan. All work completed suggested that all required permits could be obtained within 24 months, allowing for mining, processing and dry stack tailings deposition on site. The initial development focusses on bringing the Tower Deposit into production. The Rail Deposit will be developed subsequent to declaration of commercial production, and assumed to be funded out of free cash flow from operations. The Tower development schedule is 16 months from commencement to first mineralized material delivered through the mill. Underground mine develop will be a single heading, estimated at $4,311/metre with an advance rate average 6 metres/day. An allowance has been provided for slower development through the sand seam and regolith material. Development costs used in the study have been estimated on first principles basis, incorporating 2021 vendor quotations for all major costs. Alimak raise mining method was chosen as best suited for the Project's deposits. Various mining methods were assessed in a trade-off study, considering safety, production rates and operating cost. Since the Tower and Rail deposits are near surface and have similar geometry (steeply dipping, narrow, and relatively long strike length), the same extraction approach and design principles are applied to both deposits. Both deposits will support an average mining rate of 1,100 tpd, upon declaration of commercial production. Mining rates and costs have been reviewed by a contract miner, which specializes in Alimak raise mining. The following illustrates mining production rates over the LOM. Year 5 has scheduled down time to accommodate the transfer and recommissioning of the modular mill from the Tower site to the Rail site. The PEA relied on the results of previous work done for the Company by Base Metallurgical Laboratories (BML) in Kamloops, British Columbia. The BML test work was conducted in January and February 2020 using core drilled late in 2019 for the express purpose of conducting metallurgical testing. Metallurgical test work to date suggests the recoveries of clean copper and zinc concentrates is achievable, with indicative total metal recoveries to concentrate as follows: The Study incorporated the use of a Company owned modular mill. Modular mills are designed to allow the rapid deployment and commissioning of a complete mineral processing plant. Mobile mill systems are ideal for smaller tonnage operations and mining operations with short mine life. The mill equipment is mounted on road transportable custom built trailer assemblies, which require minimal site civil works to install and commission. The modular mill is designed to run at 1,100 tpd over the LOM. In year 5, once the mineral inventory at Tower has been mined out, the modular mill will be relocated to the Rail Deposit. The modular mill capital cost and operating costs (labour and consumables) were all estimated using 2021 vendor quotations. The PEA incorporated the use of dry stack tailings facility (DSTF). In the dry stack method, tailings are placed and compacted in a mound that is concurrently reclaimed with native soil and vegetation. There's no need for a dam to hold them in place, no possibility of dam failure, and no long-term storage issues. The Study's preliminary design of the DSTF utilizes the flat terrain of both the Tower and Rail properties as well as the latest technologies to ensure long-term stability of the earthen structures coupled with membranes ensuring containment of the stored material. All work done by AECOM to date, in conjunction with the Study, indicates that permitting a DSTF on both the Project is feasible within the indicated project timelines. Concentrates produced on-site are envisioned to be transported from mine sites by rail to Glencore's Horne smelter in Quebec for copper and the Valleyfield facility for zinc concentrate. Smelter and transport costs were updated for 2021 benchmark forecasts, provided by Glencore. Glenore has a first right of refusal on the Tower off-take, providing that treatment and refining charge terms are within standard market rates. AECOM was engaged to provide a preliminary closure plan design and cost estimate. The closure plan has modelled the closure costs as being funded out of cash flow, and lodged with the government of Manitoba, in accordance with the Manitoba Mines Branch closure funding schedule. A total of $10.6million has been included in the cash flow for closure costs.