4 February 2020
NorZinc Ltd. is pleased to provide a corporate update:
Highlights
•Schedule Update
•Focus for 2020
•Mine Enhancement Study
•Long Term Financing Update
•Short Term Financing Needs
The development of the Prairie Creek Mine is divided into two phases. Prior to major construction on site in Phase 2, Phase 1 starts with the construction of an initial 170km winter road to the Prairie Creek Mine site. Phase 1 had been planned to commence in Q1 2020.
On November 25, 2019, NorZinc announced that the extended time in obtaining approval of the road permits had required the Company to develop an alternative Phase 1 road construction design to retain schedule. The retention of schedule being dependent on the timing of regulatory approval of the Management Plans which flow from the permits issued by regulators in November 2019. In December, NorZinc submitted all the required Management Plans incorporating the alternative Phase 1 road construction.
Despite the hard work of the regulators that resulted in the release of the Management Plans for comment prior to December 31, 2019, the schedule for final review and issuance of approved Management Plans has extended beyond the time at which NorZinc and its contractors believe the road can be safely completed and used prior to anticipated 2020 spring break-up. As a result, NorZinc is planning a revised program for 2020 activities with the focus on optimizing economics, including a mine enhancement program.
Focus for 2020
NorZinc is developing an enhanced program for 2020 that will be outlined in further detail during Q1 2020. Elements that NorZinc is considering include the potential for:
•A more robust 2021 Phase 1 construction plan and schedule than was possible with the previous schedule.
•Further optimization of the mining design and potential throughput opportunities
•Financing the development with a silver stream, project financing and working with government agencies for financial or other support in light of the economic benefit created by the Prairie Creek Mine development.
•Building on the relationships with local communities in a number of areas to benefit both the local communities and the project.
•Advancement, revision or renewal of certain operating permits to assist 2020 and 2021 activities.