RATHDOWNEY RESOURCES PROVIDES CORPORATE OUTLOOK FOR 2022
VANCOUVER, BC, March 28, 2022 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) is pleased to provide an outlook on the expected catalysts and some key drivers for its Olza Project in 2022. The Company remains focused advancing toward a Mining License for its 100%-owned Project Olza, a proposed zinc-lead-silver underground development project in the well-established Upper Silesian Mining District of Poland. The Company remains cognizant of the geopolitical events in Eastern and Central Europe and, as such, is expecting a more gradual pace of development than initially planned.
The prospects for zinc projects in Poland have improved significantly. With zinc trading at favourable prices (US$1.78/lb on March 21, 20221) and zinc demand on the rise2, the potential returns from mine development at a project such as Olza with all-in cash costs of US$0.57/lb as forecast in a 2015 Preliminary Economic Assessment3, have also improved.
According to the International Trade Administration (ITA) at the U.S. Department of Commerce4, the Polish Government has signaled that it wants to support the development of and investment in new and innovative manufacturing technologies such as additive manufacturing. The natural consequence of such increased primary manufacturing activity is a likely increase in the demand for metals such as copper and zinc.
An example of this move into advanced manufacturing using copper and zinc is a recent German/Polish joint venture in which the primary and electrical components for electric cars are being cast, machined and installed in Poland5.
Although zinc smelters in most of Europe are struggling with high power costs and lack of zinc concentrate, Poland has been one key supply node, producing zinc metal in a cost-effective manner as it generates almost all of its power internally. The country is also home to zinc and lead smelters, including one key smelting operation 17 km by rail or road from the Olza site. The Pomorzany Mine has been the main source of concentrate for this smelter and recently announced that it will close because of ore depletion. Rathdowney's Project Olza is a potentially viable and scalable near-term project, for which metallurgical testing has demonstrated that Olza would produce clean, high value concentrates3 that could replace Pomorzany as a concentrate source.
To that end, Rathdowney has continued to progress with a number of studies directed toward planning a modern mine, with all key items leading to completion of final documents needed for the submission for a Mining License. These include:
- Completion of multiple years of environmental field studies of water resources, soils/contaminates, atmospheric conditions, vegetation types, trees, fauna, existing communities, and industries, including data collection, analysis, variability review, and most importantly, regional climatic repeat events. Progress on this work continues in tandem with development of the overall documentation volumes.
- Advancement of the Mining Development program, known as the PZZ in the Polish permitting framework. This multi-document compendium relies extensively on field work, geological and resource documentation, geotechnical studies, extensive ground water studies, mine design and operations planning, assessments of the use of and interface with existing infrastructure, including industrial infrastructure, availability of material suppliers/contractors, and those portions of the community retail and services in the immediate area.
The work is important to all stakeholders and our potential mine development, as it also includes assessments of the current underground water conditions. A key objective for us is to, at a minimum to preserve if not improve surface and underground water conditions. Our corporate standards and Polish government regulations require underground development that ensures surface stability, and to develop and operate processing and mine facilities that minimize impacts on the community and are compatible with existing roads and traffic. Our planning also addresses air quality, progressive reforestation and site grooming in areas of potential crushed waste rock material storage, consideration of wildlife and vegetation, and minimizing and mitigating industrial noise and light spill by, for example, using lighting directive shades or plantings of mature tree groups as screens near areas of existing habitation.
A key development in Poland's mining sector has been the increased attention to the environmental elements related to large industrial scale projects. This is a relatively recent requirement that is part of the newer environmental regulations adopted from the European Union.
Rathdowney welcomes this direction and is committed to best practices in mine development. This commitment draws from its strong record of accomplishments through its affiliation with Hunter Dickinson Inc. ("HDI") and its work with associated companies and projects. Rathdowney envisions a modern mining operation at Project Olza, working to the highest environmental standards. We are also committed to implementing high standards of safety that includes utilizing such things as autonomous and battery powered equipment and providing additional training and enhancements for the workforce.
"Our experience as part of the HDI group, has shown us that any modern mining operation must adhere to the highest standards. This includes respecting environmental concerns, engaging and consulting with communities and other stakeholders/employees, maintaining a safe workplace, offering fair wages and ensuring overall adherence to the rule of law. This is demonstrated by the work that HDI has completed on successful projects, including the exploration and pre-operation phases at the Mount Milligan (copper-gold) mine and the operational restart of the Gibraltar open pit (copper-molybdenum) mine, respectively, in BC, Canada; the exploration and development phases at the Campo Morado (zinc-lead-gold-silver) mine in Guerrero State, Mexico; and the discovery of two copper-gold deposits and one advanced through feasibility phase at Xietongmen in Tibet. These projects are evidence of how environmental and socio-economic considerations at the exploration and development stages can support a long and positive operating phase, as has been the case for a number of historic HDI projects," said David Copeland, Rathdowney's Chairman, and a principal of HDI.
Mr. Copeland added, "Rathdowney is deploying the full extent of the experience of its technical team and consultants to ensure that its path to a mining license will have considered stakeholders, and a wide range of possible scenarios and technical options that will make for a truly modern environmentally sensitive, and operational safe, mining development."
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing Project Olza through the permitting process toward a mining license and into production.
The Olza Zinc-Lead-Silver Project is located in the Upper Silesian Mining District of southwestern Poland, a "world-class" region of Mississippi Valley-type deposits with well-developed mining infrastructure (existing power, adjacent railway, major mining suppliers and a trained mining work force). Easily accessible by major roads, the Olza project site is a one-hour drive from Krakow, a major city with full services, including a major regional hospital, and an international airport. The deposit at Olza is 25 km from the ZGHB zinc smelter at Boleslaw. A railway line runs through the Olza project-area, linking it to the local ZGHB smelter, and to other smelters in greater Europe through ports on the Baltic Sea.
A Preliminary Economic Assessment ("PEA")3 announced in early 2015 indicates strong potential financial returns for an underground operation and conventional treatment facility, producing marketable zinc and lead concentrates. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.
David J. Copeland, P.Eng. Chairman of Rathdowney and a qualified person as defined under NI43-101, has reviewed and approved the technical information in this release.
On behalf of the Board of Directors
David J. Copeland
Chairman
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: the Olza project will obtain all required environmental and other permits and all land use and other licenses, studies and development of the Olza project will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
1Closing price by KITCO |
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3 For a 6,000 tonnes per day underground mine with conventional, on-site processing facilities and forecast metal prices for Zn: US$1.10/lb in yrs 1, 2 & US$1.00/lb for remaining Life of Mine (LOM); Pb: US$1.09/lb in yr 1, US$1.00/lb in yr 2 & U$0.95/lb for remaining LOM. For further details on the Preliminary Economic Assessment (PEA) for Project Olza, see Rathdowney News Release April 20, 2015 and the PEA Technical Report posted on Company's profile under www.sedar.com. |
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4 www.trade.gov/country-commercial-guides/Poland-advanced-manufacturing |
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SOURCE Rathdowney Resources Ltd.
For further information on Rathdowney and Project Olza, please visit www.rathdowneyresources.com or contact Investor Relations (Melanee Henderson) at 604-684-6365 or toll free in Canada at 1-800-667-2114
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