Osisko Metals Inc. has filed a preliminary economic assessment for the proposed Pine Point lead-zinc mine near Hay River, a step CEO Jeff Hussey called a milestone, for moving SA国际影视传媒渁 critical mineral project through the development phase and into production.SA国际影视传媒�

An update to the 2020 PEA, the recently filed report factors in economic changes, including higher costs due to inflation, newly completed hydrogeological modeling and the latest projections on the long-term prices of lead and zinc.

SA国际影视传媒淭he project is still a robust project,SA国际影视传媒� said Hussey. SA国际影视传媒淲e know that inventories are low and we have a high-quality product, so weSA国际影视传媒檙e continuing on towards the feasibility study.SA国际影视传媒�

Once a feasibility study is complete, permits and a project design will be needed to secure enough financing to build the mine. SA国际影视传媒淭hatSA国际影视传媒檚 the process,SA国际影视传媒� he said.

The company, which took ownership of the project in 2018, wants to redevelop a former zinc mine near Pine Point, an abandoned site on the south shore of Great Slave Lake about halfway between Hay River and Fort Resolution.

The mine is projected to produce 329 million pounds of zinc and 141 million pounds of lead a year, over a 12-year lifespan.

A drilling campaign scheduled to last into 2023 is expected to help upgrade some of the mineral resources from the SA国际影视传媒渋nferredSA国际影视传媒� into the SA国际影视传媒渋ndicatedSA国际影视传媒� category for the feasibility study.

SA国际影视传媒淭he Pine Point Project is expected to be a robust, profitable operation at a variety of prices and assumptions,SA国际影视传媒� states a news release announcing the new PEA. SA国际影视传媒淢etal prices used in the 2022 PEA Update study are based on weighted two-year moving averages, hence $1.37/lb zinc and $0.97/lb lead.SA国际影视传媒�

SA国际影视传媒淯nder more bullish scenarios, especially when considering record low inventory levels and continued lack of investment in the zinc production space, the project demonstrates even stronger economic returns and is well-positioned to benefit from a higher zinc price,SA国际影视传媒� it continues.

The report used Deswik mining software to calculate how different mining strategies would affect operating costs over the life of the mine.

Total capital costs to build the mine are estimated at $653.3 million. This increase relative to 2020, factors in 12 per cent inflation in natural gas, steel and concrete.

The report, prepared by the independent engineering firms BBA Inc., WSP Canada Inc., and Hydro-Resources Inc., also includes hydrogeology highlights. Hussey calls this an important part of the project, as managing the volume of water inside an open-pit mine can be an expensive process.

New software used to produce a hydrogeological Site Wide Numerical Model (SWNM) for the Pine Point Project, shows SA国际影视传媒渞educed dewatering estimations by 30 per cent on an annual basis for various key operating and sustaining capital expenditures directly associated with dewatering when compared to mining the open pits individually,SA国际影视传媒� states the release.

SA国际影视传媒淐urrent data suggests that there is potentially an additional reduction of up to 15 per cent beyond the current simulation estimates,SA国际影视传媒� it continues. SA国际影视传媒淥ngoing modelling will further optimize the (life of mine) plan strategy to pump less water, use less energy, and continue to reduce dewatering costs. This also means reduced NG-generated power requirements, and less GHG emissions for a smaller footprint.SA国际影视传媒�

Further optimization of the SWNM and the life of mine plan will be the main objectives of the feasibility study, it continues.

Correction: A previous version of this story had an incorrect figure for the estimated cost to build the mine.