Welcome!

News Feed Item

Zazu Metals Files Positive PEA for Lik on SEDAR

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/24/14 -- Zazu Metals Corporation (TSX:ZAZ) ("Zazu") is pleased to announce their positive Preliminary Economic Assessment ("PEA") on the Lik Property ("Lik") located in Northwest Alaska, has been filed on SEDAR. Lik is located approximately 22kms from Teck's Red Dog Mine.

The PEA considers the open pit potential of the Lik South deposit. The PEA did not consider Lik North, the contiguous deposit to Lik South, which would be mined using underground methods if economics proved viable.

The production rate and production cost indicates Lik South will be one of the largest and lowest cost producers of zinc concentrate globally.

The economic analysis results are shown below in table 1.

  Table 1: NPV / IRR of the Lik South Deposit for a range of zinc prices as 
                                  indicated                                 
                                                                            
                             $0.92(i)                                       
                            (PEA Zinc                                       
                    $0.80      price)        $1.00        $1.10        $1.20
            ----------------------------------------------------------------
                                                                            
Post tax IRR         2.6%        9.7%        13.4%        17.9%        22.1%
Post tax NPV                                                                
 @ 8%       $(76 million) $25 million  $83 million $158 million $233 million
                                                                            
Pre tax IRR          3.7%       12.5%        17.3%        23.1%        28.4%
Pre tax NPV                                                                 
 @ 8%       $(60 million) $69 million $148 million $253 million $357 million
                                                                            
(i) Lesser of November 3-year trailing average and spot price as of         
 12/30/2013.                                                                
For lead: US$1.01 /lb, silver US$19.43per troy ounce                        

The results above reflect Lik's sensitivity to zinc prices. Zazu notes analysts' average forecast for zinc in 2015 is $1.00/lb (Bloomberg 1/31/2014) with a range of $0.82 to $1.20/ lb. Zazu maintains a constructive outlook on zinc prices based on expected global demand growth and anticipated mine closures.

Model Expectations:

--  Cash costs to mine gate: US$0.54 per pound. 
--  Average annual LOM production rate of 234,000 dry tonnes of zinc
    concentrate and 55,800 dry tonnes of lead concentrate. This would rank
    Lik South as one of the largest producers of zinc concentrate globally. 
--  Initial capital expenditure of US$352mm. Average LOM sustaining capital
    of US$3mm per year 
--  Average LOM concentrate grade of 53% zinc for zinc concentrate, and 61%
    lead for lead concentrate  
--  In total, 17.1Mt tonnes of ore milled at an average grade of 7.7% zinc,
    2.6% lead and 47 g/t silver is expected from the Lik South open pit.
    This would rank Lik South as one of the largest zinc mines globally 
--  Lik South mine life of 9 years. Lik North would be mined subsequently if
    economics prove viable. Lik North remains open on strike and depth and
    represents exploration opportunity for Zazu 
--  The Lik Project resource estimate is shown in Table 2. 

The PEA involves the construction of a 5,500 tonne-per-day mill that will produce both a zinc and a lead concentrate using on-site crushing/grinding and sequential flotation methods.

The PEA is preliminary in nature. Mineral resources that are not mineral reserves do not have demonstrated economic viability. It 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 preliminary economic assessment will be realized.

Lik benefits from the existing state-owned infrastructure, consisting of a purpose built haul road and concentrate shipping port. The state entity that owns both the existing road and port, the Alaska Industrial Development and Export Authority ("AIDEA"), is currently analyzing the construction of a 30km extension to the road and any port modification requirements to accommodate Lik as part of their pre-funding due-diligence.

JDS Energy and Mining, Inc. ("JDS") led the PEA with specialist research and opinion provided by other consultants. Roscoe Postle Associates Inc. (RPA) provided a resource estimate and block model for both Lik South and Lik North dated December 31, 2013, as shown in Table 2.

                     Table 2: Mineral Resource Estimate                    
                                                                           
                        Indicated Resources         Inferred Resources     
                                                                           
            Cut-off            Zn     Pb     Ag            Zn     Pb     Ag
Location    % Pb+Zn     Mt      %      %    g/t     Mt      %      %    g/t
---------------------------------------------------------------------------
Open Pit                                                                   
 Lik South       5%  16.85   8.04   2.70   50.1   0.74   7.73   1.94   13.4
 Lik North       5%   0.44  10.03   2.77   59.0   2.13   8.88   2.94   45.8
---------------------------------------------------------------------------
                     17.29   8.09   2.70   50.3   2.87   8.59   2.68   37.5
---------------------------------------------------------------------------
Underground                                                                
 Lik South       7%   0.69   8.04   3.15   51.0   0.51   6.97   1.59   11.3
 Lik North       7%   0.13   8.93   2.93   37.5   1.96   9.22   2.99   45.8
---------------------------------------------------------------------------
                      0.82   8.18   3.12   48.9   2.47   8.76   2.70   38.7
---------------------------------------------------------------------------
                                                                           
Total                18.11   8.10   2.72   50.2   5.34   8.66   2.69   38.0
===========================================================================
Notes:                                                                    
1  CIM definitions were followed for Mineral Resources.                   
2  Mineral Resources are estimated using average long-term prices of      
   $1.20/lb for zinc, $1.20/lb for lead and $27/oz for silver.            
3  A density value of 3.5 g/cc (0.109 tons/ft.3) was used.                

The indicated and inferred resources that may be potentially mined by open pit methods are predominately at Lik South and are constrained by a preliminary Whittle pit shell. The resources that may be potentially mined by underground methods are predominately at Lik North.

The part of this news release pertaining to engineering and financial estimates was reviewed by Robert Matter, P.E., Mining Engineer at JDS, who is a qualified person as defined by National Instrument 43-101. The part of this news release pertaining to the Mineral Resource estimate was reviewed by Mr. Neil N. Gow, P.Geo., a Consulting Geologist with RPA, who is a qualified person as defined by National Instrument 43-101. Messrs. Matter and Gow are independent consultants to Zazu. JDS is currently in the process of completing the National Instrument 43-101 technical report supporting the PEA and an announcement will be made when the report is filed on SEDAR.

About Zazu Metals:

Zazu is a Canadian-based exploration company focused on acquiring and developing base metal properties in North America. Zazu's principal asset is its 50% interest in the Lik zinc-lead-silver deposit in North West Alaska. Teck is a 50% joint venture partner in the Lik deposit. Zazu has the exclusive right to obtain 80% of the property by meeting certain spending commitments by 2018. Zazu is in the enviable position of having only 48 million shares outstanding and no debt.

Additional information about Zazu including a company presentation is available at www.zazumetals.com.

Additional information about the property is on the Teck website (www.teck.com). Zazu is not responsible for the content, accuracy or timeliness of material contained on the Teck website.

ON BEHALF OF THE BOARD OF DIRECTORS

Gil Atzmon, Chairman and CEO

Cautionary statement:

The TSX does not accept responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory has approved or disapproved the information herein.

Forward looking statements:

This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, obtaining Toronto Stock Exchange approval and the ratification of the Plan by shareholders, could differ materially from those currently anticipated in such statements for many reasons such as: the Toronto Stock Exchange requiring amendments to the Plan unsatisfactory to management or the Board, the shareholders of Zazu not ratifying the Plan, or management or the Board determining not to proceed with seeking approval from the Toronto Stock Exchange or the shareholders of Zazu or other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Contacts:
Zazu Metals Corporation
Matthew Ford
President
210 858-7512
[email protected]
www.zazumetals.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In their Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, and Mark Lav...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...