NorZinc completes permitting process for Prairie Creek mine in NWT

Following the receipt its land use permit last month, NorZinc (TSX: NZC; US-OTC: NORZF) has now received a new water licence from the government of Northwest Territories for an expanded 2,400-tonne-per-day mine plan at its Prairie Creek project, completing the permitting process for its mine operation.

“The receipt of the water licence represents a substantial milestone for the company with respect the advancement of the Prairie Creek project and recognition from the GNWT of the significant impact the project will bring to the region and all stakeholders,” said Rohan Hazelton, president and CEO of NorZinc, in a release.

Based on the preliminary economic assessment completed in October 2021 and the envisioned mining rate of 2,400 tonnes per day, the Prairie Creek project would have a net present value (at 8% discount) of US$299 million and an internal rate of return of 17.7%. The PEA pegged the initial capex at $368 million.

Average EBITDA per annum is estimated at US$123 million, with the study forecasting the development could bring $8 billion in economic activity to the region over its 20-year mine life.

Located in traditional Dene territory, about 200 km west of Fort Simpson, NorZinc’s Prairie Creek property consists of the proposed high-grade zinc-lead-silver mine and surrounding land and access.

Should everything go according to plan, the Prairie Creek mine is expected to enter production by the end of 2025. The project’s original timeline was delayed by more than a year as NorZinc was required to obtain additional sub-certificates referred to as “management plans” on top of the permits required to build and maintain an all-season road from Liard Highway to the mine site.

NorZinc will continue to work closely with the regulatory bodies – Parks Canada and the Mackenzie Valley Land and Water Board – on the completion and final approval of the management plans associated with construction of the project’s phase 1 all-season access road.

The company recently began staging work in preparation of constructing the 170 km road. All first-phase approvals from the respective regulators are expected in October 2022.