EuroZinc to boost output

The addition of a cone crusher will enable EuroZinc Mining (EZM-V) to expand projected mill throughput to 1.8 million tonnes per year at the Aljustrel zinc-copper-lead project in southern Portugal.

The original feasibility study called for annual production of 1.6 million tonnes at a capital cost of US$75 million.

Based on a zinc price of US$1,213 per tonne (US55 per lb.), the project had an after-tax internal rate of return of 15.5% and a payback period of five years; the production increase changes this to 21.6% and 3.8 years.

Zinc production is now expected to average 174 million lbs. per year for the first seven years of full production, followed by 33 million lbs. copper over two years.

Reserves at the Feitais deposit’s zinc-rich zone are estimated at 12.2 million tonnes grading 5.67% zinc, 0.22% copper and 1.77% lead, plus 64.15 grams silver, whereas reserves in the deposit’s copper-rich zone are pegged at 1.6 million tonnes of 2.16% copper, 0.97% zinc, 0.27% lead and 14.26 grams silver.

Reserves at the Moinho deposit stand at 1.6 million tonnes grading 4.48% zinc, 0.54% copper, 1.78% lead and 53.47 grams silver.

In addition, resources at Feitais total 18.4 million tonnes of 6.02% zinc and 6.7 million tonnes of 2.12% copper, while resources at Moinho total 5.9 million tonnes of 4.70% zinc and 2.2 million tonnes of 1.93% copper.

EuroZinc is acquiring a 75% interest in Aljustrel from a state-owned enterprise, which will own the remainder.

EuroZinc’s last major hurdle in acquiring its interest is arranging project financing, which is to consist of a European Union grant and interest-free loan.

The decision to expand mill throughput was based on studies carried out by EuroZinc in conjunction with SRK and Rescan/Hatch Engineering.