Mr. Michael Williams reports
VENDETTA FILES NI 43-101 TECHNICAL REPORT - PEGMONT UPDATED MINERAL RESOURCE ESTIMATE AND PRELIMINARY ECONOMIC ASSESSMENT
Vendetta Mining Corp. has filed a National Instrument 43-101 technical report, entitled Updated Mineral Resource Estimate and Preliminary Economic Assessment of the Pegmont Lead-Zinc Project.
The report, which is dated March 14, 2019, and is effective Jan. 22, 2019, was prepared in compliance with NI 43-101 (Standards for Disclosure for Mineral Projects). The report is available under Vendetta's profile on SEDAR and will be placed on Vendetta's website.
The report was prepared by a team of independent consultants from AMC Mining Consultants (Canada) Ltd., GR Engineering Services and AARC Environmental Solutions.
The report supports the scientific and technical disclosure in the updated mineral resource and preliminary economic assessment estimates contained in the company's news release dated Jan. 28, 2019.
About the Pegmont lead-zinc project
Pegmont is situated in the Mount Isa-McArthur mineral province, which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several world-class lead-zinc-silver mines.
The current mineral resource at Pegmont:
- Indicated -- 5,758 kilotonnes at 6.5 per cent lead, 2.6 per cent zinc and 11 g/t silver;
- Inferred -- 8,277 kilotonnes at 5.1 per cent lead, 2.8 per cent zinc and eight g/t silver.
The results of a preliminary economic assessment (PEA) on Pegmont were released by the company on Jan. 28, 2019 (see Venetta news release dated Jan. 28, 2019). The PEA outlined a 10-year mine plan that generates a strong economic return with a pretax IRR of 32 per cent (after tax 24 per cent) and net present value (8 per cent) of $201-million ($128-million after tax) for the base case long-term consensus metal prices assumed (91 cents per pound lead, $1.09 per pound zinc and $16.50 per ounce silver).
The spot price and exchange rate case demonstrates the strong sensitivity to metal prices with a pretax IRR (internal rate of return) of 37 per cent (after tax, 27 per cent) and net present value (8 per cent) of $249-million ($158-million after tax), using metal prices as of Jan. 22, 2019, of 94 cents per pound lead, $1.25 per pound zinc and $15.30 per ounce silver, and U.S.-dollar/Australian-dollar exchange rate of 71 cents.
The PEA identified further project enhancements and Vendetta has identified several high-priority exploration targets.
About Vendetta Mining Corp.
Vendetta is a Canadian junior exploration company engaged in acquiring, exploring and developing mineral properties, with an emphasis on lead and zinc. It is currently focused on advanced-stage exploration projects in Australia, the first of which is the Pegmont lead-zinc project.
Peter Voulgaris, MAIG, MAusIMM, a director of Vendetta, is a non-independent qualified person as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this press release and consents to the information provided in the form and context in which it appears.
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