(TheNewswire)
HIGHLIGHTS
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Discussions with multiple global metal traders andsmelters have commenced regarding future offtake for the zinc andcopper concentrates to be produced at the Superior LakeProject
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Forecastedannual production of 69,819t of Zn and 5,308t of Cu concentrate perannum.
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Both the zinc and copper concentrates are of a highquality with favorable grades and minimal deleterious elements (Table1 and Table 2)
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The Project has established transportation routes toNorth American and international smelters, giving the Project itsunique location 30km from an operating rail terminal (Image 1)
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The market outlook for zinc is strong, due to decliningproduction from existing primary zinc mines, and increased forecastson long-term demand driven by decarbonization
May 31, 2022 – TheNewswire - Metallum Resources Inc.(TSXV:MZN) ( “Metallum” or the “Company”) ispleased to announce the commencement of discussions with multipleglobal metal traders regarding future offtake from the Company’sSuperior Lake Zinc and Copper Project (“Project”) in Ontario,Canada.
Preliminary discussions with a number of these groupshave indicated a willingness to have offtake linked to additionalfunding solutions. An offtake related financing is typically in theform of mezzanine debt or concentrate pre-payments.
Image 1: Location of Zinc smelter innorth America and transportation routes
The concentrate produced at Superior Lake can accesssmelters using existing rail and road infrastructure to North Americansmelters as well as smelters in Asia, using the Vancouver port. TheThunder Bay port, which is located 214km from the mine gate, willprovide access to smelters in Europe. The Project’s unique locationand access to the Canadian rail and highway network will provideaccess to Canadian port systems, both East and West coasts, allowingeasy access to major smelters around the globe.
Both the Zinc and Copper concentrates are wellunderstood given the Project successfully operated for a decade beforeclosing in 1998 due to sustained low zinc prices. This historicalproduction as well as additional metallurgical test work carried outby SGS Lakefield in Canada (Superior Zinc and Copper ProjectFeasibility Study N.I. 43-101 compatible, DRA – October 2021),provides detailed information and certainty to these groups. Detailedinformation regarding the concentrate grades and quality can be foundin Table 1 below.
Table 1: Historical Winston LakeDetailed Zinc Concentrate Specifications
Element | % (LOM Average) |
Zn | 54 |
Cu | 0.6 |
Fe | 11 |
Pb | 0.01 |
S | 32 |
Si0 2 | 0.5 |
Element | ppm (LOM Average) |
Ag | 40 |
As | <20 |
Al 2 O 3 | 6500 |
Au | 0.4 |
BaO | 100 |
Bi | 80 |
CaO | 490 |
Cd | 1,300 |
Cl | 150 |
Cr | 80 |
Co | 100 |
F | 300 |
Ge | 20 |
Hg | 5 |
In | 330 |
MgO | 1,900 |
Mn | 1,500 |
Mo | <10 |
Ni | 25 |
Sb | 20 |
Se | 310 |
Sn | 180 |
Te | 1 |
Table 1: Historical Winston LakeDetailed Copper Concentrate Specifications
Element | Forecast LOM Average |
Cu | 24 |
Zn | 7.5 |
Fe | 29 |
Pb | 0.07 |
S | 35 |
Si0 2 | 1.1 |
Element | ppm (LOM Average) |
Ag | 344 |
As | 110 |
Al 2 O 3 | 1,300 |
Au | 12.9 |
BaO | 270 |
Bi | 230 |
CaO | 570 |
Cd | 180 |
Cl | 70 |
Cr | 100 |
Co | 190 |
F | 50 |
Ge | 20 |
Hg | 3 |
In | 110 |
MgO | 3,700 |
Mn | 240 |
Mo | <10 |
Ni | 80 |
Sb | 50 |
Se | 300 |
Sn | 170 |
Te | 5 |
Qualified Person
The news release has been reviewed and approved byAndrew Tims, P.Geo., Exploration Manager of the Company, and aQualified Person as defined by National Instrument 43-101 – Standards of Disclosure forMineral Projects .
ON BEHALF OF THE BOARD
For further information, contact:
Kerem Usenmez, President & CEO
Tel: 604-688-5288; Fax: 604-682-1514
Email: info@metallumzinc.com
Website: metallumzinc.com
Neither the TSXVenture Exchange nor the Investment Industry Regulatory Organizationof Canada accepts responsibility for the adequacy or accuracy of thisrelease.
Cautionary NoteRegarding Forward-Looking Statements
Certain statements contained in thisnews release constitute forward-looking statements within the meaningof Canadian securities legislation. All statements included herein,other than statements of historical fact, are forward-lookingstatements and include, without limitation, statements about theestimated economics of the Project, potential offtake related financing, and the Company’s development plans forthe Project. Often, but not always, these forward looking statementscan be identified by the use of words such as “estimate”,“estimates”, “estimated”, “potential”, “open”,“future”, “assumed”, “projected”, “used”,“detailed”, “has been”, “gain”, “upgraded”,“offset”, “limited”, “contained”, “reflecting”,“containing”, “remaining”, “to be”, “periodically”, orstatements that events, “could” or “should” occur or beachieved and similar expressions, including negative variations.
Forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements of the Companyto be materially different from any results, performance orachievements expressed or implied by forward-looking statements. Suchuncertainties and factors include, among others, the uncertainties inherent in theestimated economics of the Project, and whether the Company willarrange any offtake related financing; whether exploration and development of theCompany’s properties will proceed as planned; changes in generaleconomic conditions and financial markets; the Company or any jointventure partner not having the financial ability to meet itsexploration and development goals; risks associated with the resultsof exploration and development activities, estimation of mineralresources and the geology, grade and continuity of mineral deposits;unanticipated costs and expenses; risks associated with COVID-19including adverse impacts on the world economy, exploration anddevelopment efforts and the availability of personnel; and such otherrisks detailed from time to time in the Company’s quarterly andannual filings with securities regulators and available under theCompany’s profile on SEDAR at www.sedar.com. Although the Companyhas attempted to identify important factors that could cause actualactions, events or results to differ materially from those describedin forward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.
Forward-looking statements containedherein are based on the assumptions, beliefs, expectations andopinions of management, including but not limited to: the accuracy ofthe estimated economics of the Project; that the Company willarrange offtake relatedfinancing; that theCompany’s stated goals and planned exploration and developmentactivities will be achieved; that there will be no material adversechange affecting the Company or its properties; and such otherassumptions as set out herein. Forward-looking statements are made asof the date hereof and the Company disclaims any obligation to updateany forward-looking statements, whether as a result of newinformation, future events or results or otherwise, except as requiredby law. There can be no assurance that forward-looking statements willprove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,investors should not place undue reliance on forward-lookingstatements.
ABOUT METALLUM RESOURCES
Metallum Resources(MZN.TSXV ) owns 100% of the Superior Lake Zincand Copper Project in Ontario, Canada. The Project ranks as thehighest-grade zinc project in North America with a resource of 2.35 Mtat 17.9% Zn, 0.9% Cu, 0.4 g/t Au and 34 g/t Ag.
The Company completed a positive Feasibility Study thathighlights the Project will rank in the lowest quartile of operatingcosts (C1 costs – C$0.44 / lb; AISC C$0.51 / lb). These low costsdriven by the high grade of the Project drive robust economic returns.The majority of permits and licenses are in place allowing for a quickre-development following a Final investment Decision.
For further details about the Company and the SuperiorProject, please visit the Company’s website at metallumzinc.com .
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