The Scotia zinc-lead mill may soon be restarted. Credit: ScoZinc Mining
ScoZinc Mining (TSXV: SZM) has signed a non-binding gypsum offtake agreement with an end buyer in Nova Scotia. It covers the life-of-mine supply from the wholly owned and permitted Scotia mine.
The mine is a former zinc-lead open pit producer near Gays River, N.S. A prefeasibility study completed in July 2020 gave the project reopening an after-tax net present value (with an 8% discount rate) of C$115 million and an internal rate of return of 49%. The preproduction capex is C$30.8 million, and that would be paid back in 2.4 years.
