PNX Metals Limited (ASX: PNX) has appointment experienced mining services firm GR Engineering Services Limited as study manager for the Definitive Feasibility Study (DFS) for its Hayes Creek zinc-gold-silver Project in the Northern Territory.
GRES will be responsible for the process design and engineering aspects of the Project, including all of the facilities, equipment and capital works required for the construction, commissioning and ramp-up of the process plant and associated infrastructure at the Project.
Key activities will include:
- Assessing the technical aspects of the Project, with a focus on optimising process design and achieving efficiencies in capital and operating costs within the scope of the Project;
- Evaluating strategic options and considerations available to the Project to define a robust business case which balances the risk profile and the development costs; and
- Developing a Project Execution Plan which will include identification of and planning for Early Works and pre-commitment activities.
PNX Managing Director James Fox said the appointment of GRES is another important milestone in the development of the Hayes Creek Project and a key part of completing the DFS. The DFS is expected to build on the excellent outcomes achieved in the Pre-Feasibility Study (PFS).
“We are pleased to have engaged GR Engineering as an integral part of the Hayes Creek Project Development team. This appointment is another important milestone in the future development of the Hayes Creek zinc-gold-silver Project.
“GRES are a well-respected group with a proven track record of delivering project studies many of which lead to project development. The DFS will build on the excellent outcomes achieved in the Pre-feasibility Study, released in July 2017.”
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PNX’s recently completed PFS over the Project confirmed it to be a promising future low-cost, high-margin zinc and precious metals mine.
The PFS was based on the development of the high-grade Iron Blow and Mt Bonnie zinc-gold-silver VMS deposits which are located less than 3km apart on wholly owned Mineral Leases within the Pine Creek region of the Northern Territory, 170km south of Darwin.
The PFS 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 through annual production of 18,200t zinc, 14,700oz gold, and 1.4Moz silver (39,100t of zinc equivalent). With a low $58 million initial capital expenditure requirement, the Project is forecast to have a 73% IRR, and very short pay-back period of 15 months.
The Project utilises existing infrastructure that includes rail, road, high voltage power lines and water, further enhancing Project fundamentals and lowering development risks. It is envisaged that the Project can be ready for development in 2020 and will directly employ 130 personnel.