NZC-TSX
NORZF-OTCQB
(All figures are presented in US Dollars
unless otherwise stated)
VANCOUVER, BC, Dec. 20, 2021 /CNW/ - NorZinc Ltd. (TSX:
NZC) (OTCQB: NORZF) (the "Company" or "NorZinc")
today announced that, due to unexpected regulatory requirements, it
is compelled to defer the construction of the Pioneer Winter Road
("PWR") by up to one year. This initial road constitutes Phase 1 of
the All-Season access Road ("ASR") at the Company's
zinc-lead-silver Prairie Creek Project ("Prairie Creek" or "the
Project") located in the Northwest
Territories, Canada. This project will be a significant
producer of zinc, listed as one of the future "critical
minerals".
In November 2019, NorZinc received
the necessary permits to construct, maintain and operate an ASR
from Liard Highway to the Project from the appropriate regulatory
authorities, including the Mackenzie Valley Land and Water Board
("MVLWB") and Parks Canada ("Parks"). Specifically, the permits
received were the Water License ("WL") and Land Use Permits
("LUP").
As a condition of the WL and LUP, the Company is required to
obtain additional sub-certifications referred to as management
plans ("MP") to be approved by both MVLWB and Parks. The company
undertook numerous activities in accordance with the approval
requirements for the MPs including, for example, wildlife studies.
In May 2021, NorZinc formally resumed
the MP approval process initiated in 2019, specifically for the
2021-2022 PWR construction and the Company has been working within
the prescribed processes and timelines as defined in the permits
and has submitted all required applications. Despite these efforts,
the Company has been informed by regulators that, due to the time
assigned for review and consultation by the authorities, it will be
unable to secure the necessary MP approvals for the PWR in time for
the winter road construction season which must begin in
January 2022 to achieve its
objectives.
As a result, the expected project timeline to commence
concentrate production by the end of 2024 is delayed by
approximately one year. The Prairie Creek Project remains one of
the highest grade, undeveloped zinc-lead-silver projects in
Canada with robust economics
indicating an NPV8% of $299 million
and an after-tax IRR of 17.7%, detailed in the Company's
Preliminary Economic Assessment announced on October 21, 2021.
"We are very disappointed that we have been unable to agree
with the regulators on how to fulfill the permitting process in a
timely, predictable and transparent manner. This situation has
resulted in a significant delay in delivering the project's
benefits to our stakeholders, especially our shareholders as well
as the people of the Northwest
Territories who have the most to gain from the Project's
significant benefit by way of jobs creation and economic
stimulus," said Rohan
Hazelton, President & CEO of NorZinc "We
are committed to working with Parks Canada and the MVLWB to
complete all necessary steps in the road permitting process in the
coming months, with the hopes of commencing winter road
construction early in the 2022-23 winter road season.The
Government of Canada's stated
strategy is to support the development of critical minerals,
including zinc, which is the primary metal in Prairie Creek, and it
makes this procedural delay even more disappointing. We
remain dedicated to the responsible development of critical mineral
resources in Canada."
"The company will, subject to financing, use this additional
time to further advance engineering, optimize plans for the mine
and issue an updated Feasibility Study in 2022."
The Prairie Creek Project is expected to bring significant
social and economic benefit to local communities in the
Northwest Territories. Community
input and support is essential in creating a successful regulatory
review and NorZinc is dedicated to ensuring that its
activities fulfill local community expectations regarding
reasonable benefits while protecting the environment.
In particular, the Company has signed benefit agreements
with the Nahɂą Dehé Dene Band (NDDB)
and Liidlii Kue First Nation (LKFN) for the mine and road
that focus on training, employment and business opportunities,
partnership with Indigenous government, and inclusion of local
Dene knowledge and oversight in the project. Overall,
the economic development opportunity of the Project in terms of
total expected gross revenue is over $6
billion and the potential for direct federal, territorial,
and local government benefits is over $600
million.
The Company remains dedicated to the development of the Prairie
Creek Project, and has begun work with the GNWT, its Agencies and
Parks Canada to establish a clearer, more well-defined and
transparent process, in particular as it relates to timelines,
while adhering to responsible, sustainable mining standards and
practices.
About NorZinc
NorZinc is a TSX-listed mine development Company trading under
the symbol "NZC" and on the OTCQB under the symbol "NORZF". NorZinc
is focused on developing its 100%-owned high-grade zinc-silver-lead
Prairie Creek Project, located in the Northwest Territories
www.norzinc.com
Cautionary Statement
This press release contains forward-looking information,
including, among other things, statements regarding the timeline
for commencing winter road construction, the timeline to commence
concentrate production, and the timeline for issuing a feasibility
study on the Project. In making the forward-looking statements in
this release, the Company has applied certain factors and
assumptions that the Company believes are reasonable, including
that regulatory approvals will be obtained when expected and that
the Company will be able to carry out its plans as anticipated.
However, the forward-looking statements in this release are subject
to numerous risks, uncertainties and other factors that may cause
future results to differ materially from those expressed or implied
in such forward-looking statements. Such uncertainties and risks
include, among others, delays in obtaining or inability to obtain
required regulatory approvals, as well as all of the risk factors
described in the Company's most recent Annual Information Form and
Management's Discussion & Analysis available for review on the
Company's profile at www.sedar.com. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, except as required by applicable law.
NPV and after-tax IRR figures used in this news
release are based on the Preliminary Economic
Assessment (the "PEA") described in the technical
report filed on the Company's SEDAR profile on
November 10, 2021. The PEA
is preliminary in nature and is intended to provide an
initial, high-level review of the project's economic potential and
design options. The PEA mine plan and economic model includes
numerous assumptions and the use of Inferred Resources. Inferred
Resources are considered to be too speculative geologically to have
economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that
the PEA will be realized. Mineral Resources that are not mineral
reserves do not have demonstrated economic viability.
SOURCE NorZinc Ltd.