Pine Point Mining (ZINC.V) has received the results of a metallurgical test work focusing on the L36 deposit where the company is trying to confirm the historic resources in order to include the L36 deposit in the mine plan. ZINC submitted a composite sample from four drill holes (with an average grade of 3.7% zinc and 0.41% lead) to the lab, where 53% of the feed mass was rejected in the DMS process , whilst recovering 95% of the lead and 91% of the zinc.
93% of the zinc was recovered in the zinc concentrate (which had a high grade of 59.5% zinc) whilst 85% of the lead was recovered in the lead concentrate, resulting in a concentrate grade of almost 77%. This means that of the 3.7% and 0.41% head grade, approximately 85% of the zinc (3.13% of the 3.7% head grade) was recovered in a zinc concentrate with 81% of the lead (0.33%) reporting to the lead concentrate. Applying an 85% and 95% payability ratio for the zinc and lead, the net recoverable grade per tonne of L36 rock is 0.31% lead and 2.66% zinc resulting in a recoverable and payable rock value of $77/t based on a lead price of $1/lb and a zinc price of $1.20/lb.
Pine Point also mentioned the testing revealed the L36 ore is relatively soft and the high grades in the final concentrates was reached without having to regrind the ore. This could indicate a lower capex and a lower opex compared to previous assumptions, thus expanding the operating margins.
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