• Tue. Oct 19th, 2021

Vendetta Mining Corp advances the Pegmont project in Queensland, at the heart of the world’s largest lead-zinc belt

ByDiane A. Gomez

May 7, 2021

  • The project is in a prime mining jurisdiction
  • Resource estimate raised three times to date with more potential to come
  • Robust PEA in 2019

What Vendetta Mining Corp does:

Vendetta Mining Corp () () is a Canadian junior exploration company focused primarily on lead and zinc.

The company purchased the Pegmont lead-zinc project in 2019, which is strategically located in the Mount Isa – McArthur mineral province, at the heart of the world’s largest lead-zinc belt in Queensland, Australia.

Pegmont is a largely open pit, high grade resource with excellent infrastructure. It also claims an indicated resource estimate of 5.8 million tonnes at 6.5% lead, 2.6% zinc and 11 grams per tonne (g / t) silver. The presumed grade contains 8.2 million tonnes at 5.1% lead, 2.8% zinc and 8 g / t silver.

In early 2019, the group released a Preliminary Economic Assessment (PEA), which outlined a 10-year mining plan and a strong economy.

He showed a pre-tax internal rate of return (IRR) of 32% (24% after-tax) and a net present value (NPV) of C $ 201 million (C $ 128 million after-tax) using the prices of long-term consensus metals from the United States. $ 0.91 per pound of lead, US $ 1.09 per pound of zinc and US $ 16.50 per ounce of silver and an exchange rate of US $: A of US $ 0.75. Pre-production investments have been valued at C $ 170 million.

How are you :

Vendetta saw an increase in transaction flow and exploration activity in the middle of the year after a fairly quiet start to 2021.

In August, the company announced that it had entered into an option agreement to acquire 100% of the Killer Bore zinc exploration concession, located 5 kilometers from its Pegmont project in Queensland, Australia.

Vendetta noted that the Killer Bore exploration permit consists of two non-contiguous blocks totaling 1,550 hectares, with historic drill results comprising 4 meters (m) of 8.97% zinc and 0.51% copper of 80 84 m down the hole.

Vendetta will acquire the option of the Killer Bore concession from Australian copper producer Sandfire Resources with exploration spending of A $ 102,000 before the end of the second anniversary of the agreement, plus an additional A $ 500,000 in expenses. exploration between the start of the third anniversary and before the end of the fifth anniversary.

Sandfire Resources will retain a 2% net smelter return (NSR) royalty on the Killer Bore property.

Meanwhile, in July, Vendetta announced that a 10-hole drilling program would begin at Pegmont later this month with the goal of expanding mineralization in Zone 5.

Late last year, a two-hole program was completed as part of a Queensland Government collaborative exploration initiative, with one in this area reaching 8.42m at 7.07% lead , 5.98% zinc and 9 grams per tonne (g / t) silver from 161.10 m downhole, outside the current resource, with an estimated actual thickness of 7 m.

The objective of the drilling is to extend the mineralization centered around this intersection, testing a lateral length of approximately 500 m.

On the financial side, the company announced on February 23 that it had closed the third and final tranche of a private placement, previously announced in August 2020, with a total of 10,433,333 units issued at a price of $ 0.06 each for one. gross proceeds of $ 625,999.98. . With the proceeds of the first and second tranches of the offering, Vendetta stated that it had issued 25,516,868 units for a total of $ 1,531,012.

The net proceeds from the financing will be used to advance the development of the company’s Pegmont project and general working capital, Vendetta added.

Inflection points:

  • Drilling begins on the Pegmont Deeps zinc target
  • Metal prices move
  • Other news feed

What the boss says:

Commenting on the company’s option agreement to acquire the Killer Bore concession, Vendetta Mining CEO Michael Williams said in a statement: is zinc-dominated, with copper, little or no lead, and in pyrrhotite iron formations.

Williams added, “If this proves correct, it highlights the scale of the Pegmont system and could provide high grade mineralization that could be incorporated into the Pegmont development plan. ”

Contact Sean at sean@proactiveinvestors.com

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *