Rockcliff Metals Corp. [RCLF-CSE; RKCLF-OTCQB] released results of its preliminary economic assessment (PEA) for the 100%-owned Tower and Rail project in the Flin Flon-Snow Lake greenstone belt of the Snow Lake area of central Manitoba.
Highlights of the PEA include an After-tax net present value (NPV) with an 8% discount rate of $127.6 million and an IRR of 67%, Initial capital is $81.0 million with near term production possible with a 16-month construction period. There would be initial capital paid back within 12 months of commercial production; and a 9.5 year life of mine, with opportunities for mine life expansion.
Ken Lapierre, Interim President and CEO, commented: “W are delighted with the excellent results of this PEA that clearly demonstrates a traditional mining scenario is a legitimate path forward for both the Tower and Rail Deposits. The results are robust highlighted by a $81.0 million capital investment generating an after tax NPV (8%) of $128.6 million and 67% IRR. The short 12-month payback period from a 9.5-year life of mine generates an approximate 12,000 CuEq tonnes per year at an all-in sustaining cost of US$2.46 per pound copper. Both deposits remain open with a real possibility of adding Mineral Resources to extend the life of mine. An additional pipeline of four 100%-owned deposits at various stages of exploration and an extensive portfolio of prospective ground in and around the Snow Lake mining camp bodes well for the future of Rockcliff. With two drills presently testing 3 different properties and advancing our knowledge at the Tower and Rail Deposits we remain extremely active in moving forward with our Manitoba assets.”
The updated Mineral Resource Estimate used in the PEA supersedes previous estimates published by the company. The mineral resource estimate uses a recovered value cut-off of $80/tonne. At Tower, Indicated Minerals Resources are 1,711,000 tonnes of 3.28% copper, 1.04% zinc and 0.7 g/t gold. Inferred Resources are 499,000 tonnes of 1.74% copper, 1.16% zinc and 0.2 g/t gold.
At Rail, Indicated Resources are 2,053,000 tonnes of 1.87% copper, 0.59% zinc and 0.6 g/t gold. Inferred Resources are 1,079,000 tonnes of 2.14% copper, 0.83% zinc and 0.9 g/t gold.
The PEA envisions developing the Tower Deposit as an underground mine over a 16-month construction period before commercial production is achieved. The development of the Rail Deposit will be funded out of cash flow produced from the Tower Deposit. Mineralized material will be fed to a company-owned modular mill at 1,100tpd, with tailings to be deposited in an on-site permitted dry stack tailings facility. The modular mill will be transferred to the Rail property once the Tower Deposit has been fully mined out, which is envisioned to occur in the 5th year of the PEA mine plan. The combined LOM of the Tower and Rail deposits is 9.5 years.
The initial development focusses on bringing the Tower Deposit into production. The Rail Deposit will be developed subsequent to declaration of commercial production, and assumed to be funded out of free cash flow from operations.