Vendetta Mining updates mineral resource estimate and preliminary assessment for Pegmont project

Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) said Thursday it released an updated mineral resource estimate and preliminary economic assessment at its Pegmont Lead-Zinc project.

The Vancouver-based company’s open-pit Pegmont lead-zinc project is in the Mount Isa-McArthur mineral area of Queensland, Australia. 

READ: Vendetta Mining unveils $1.5 million financing and mulls dual listing on Australian Stock Exchange

According to the firm, the project’s mineral resource is 5.8 million tons indicated and 8.3 million tons inferred. Under industry standards, the three exploration categories in order of increasing knowledge and confidence are inferred, indicated and measured.

The company said the report was prepared by a team of independent consultants from AMC Mining Consultants (Canada) Ltd, GR Engineering Services and AARC Environmental Solutions.

Its recently published preliminary economic assessment (PEA) for the Pegmont project shows an after-tax net present value of A$128 million and an internal rate of return (IRR) of 24%. That’s assuming a long-term consensus for lead at A$0.91 per pound, zinc at A$1.09 per pound and silver at A$16.50 per ounce.

Based on spot pricing of A$0.94 per pound of lead, A$1.25 per pound of zinc, and silver at A$15.30 per ounce, the after-tax IRR jumps to 27% with a A$158 million net present value.

The average annual production at the mine is projected at 124 million pounds of lead, 50 million pounds of zinc and 298,000 ounces of silver. A 10-year mine life is expected at 3,000 tonnes per day as an open pit followed by an underground operation.

The company said it has identified several high priority exploration targets.

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors