VANCOUVER, July 11, 2019 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSX‐V: RTH) is pleased to announce that the Company will be featured on CEO Clips on the BNN Bloomberg Channel.
BTV's CEO Clips will feature Rathdowney on the BNN Bloomberg Channel 6 throughout the day and evening (6am – 12am eastern) of Saturday, July 13 and Sunday, July 14, 2019. View link: https://www.b-tv.com/rathdowney-resources-zinc-project-ceo-clip-90sec/
BTV's CEO Clips provides a series of short video profiles on innovative publicly traded companies across North America. Further online distribution will occur through BTV's CEO Clips and includes: Thomson Reuters Terminals, Yahoo Finance, Stockwatch, Bloomberg, Stockhouse.com and BTV's YouTube channel.
The video is also posted on the homepage of the Rathdowney website.
About the BNN Bloomberg Channel and BTV
BNN Bloomberg is Canada's only Business News Network reporting on finance and the markets.
BTV-Business Television and CEO Clips produce and create the largest library of issuer videos and campaigns for broadcast on TV and financial sites. Contact [email protected]
About Rathdowney and Project Olza
Rathdowney is focused on advancing its 100%-owned Olza zinc-lead-silver project ("Project Olza") through permitting and into production. The Company is currently embarked on a two-year plan to secure a Mining License for the project.
Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a region of Mississippi Valley-type zinc-lead deposits that are world-class in terms of size and tonnage, with a demonstrated history of long-life mines such as Pomorzany and Olkusz. Deposits of zinc and lead were identified in the immediate area of Project Olza through core drilling by Polish State companies in the 1950s to 1980s, with historical estimates indicating the potential for significant zinc-lead resources. Rathdowney acquired Project Olza in 2010, conducted confirmatory core drilling over a portion - about 30% - of the historical core drilling-area, and completed resource studies, metallurgical testing and other engineering work. Current inferred resources (in the 30% area described above) are 24 million tonnes at a grade of 7.02% (zinc plus lead)1.
A Preliminary Economic Assessment ("PEA") indicated strong potential financial returns for a 6,000 tonnes per day underground mine with on-site processing facility at Project Olza (see news release dated April 20, 2015), including an after-tax Internal Rate of Return ("IRR") of 30%; a US$170 million Net Present Value ("NPV") and a 2.4-year payback. Moreover, the PEA forecasts US$125 million of free cash flow annually, some US$375 million on a cumulative basis for the first three years of operation.2
The Preliminary Economic Assessment 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; however, it does highlight the economic potential of the inferred resources if developed in line with the development plan outlined in the PEA.
Rathdowney believes that the opportunity to increase the mineral resources and support a long life mine at Project Olza are excellent. Only 30% of the area of historical core drilling at Project Olza has been tested by Rathdowney's confirmatory core drilling program. An Exploration Target Range study in 2019 further assessed the potential in the area of the historical drilling but outside of the area of Rathdowney's current mineral resource. Using conditional simulation, the study outlined an Exploration Target Range (as defined under 43-101) of 54 – 92 million tonnes at grades of 3.9-5.2% zinc and 1.0-1.3% lead3. This Exploration Target Range is conceptual in nature and is not a mineral resource estimate. While there is no guarantee additional drilling will lead to a resource estimate in this range, the Exploration Target illustrates the excellent remaining potential of the Olza property.
There are distinct advantages to Project Olza's location in the Upper Silesian mining district, including a local skilled workforce and well-established mining infrastructure. Easily accessible by paved roads, the project site is a one-hour drive from Krakow, a major city with full services and an international airport. Power lines with sufficient power to supply the project are adjacent to the site and local communities have more than sufficient housing to cater to both temporary construction workforce requirements (eliminating the need for fly-in fly-out facilities) and long-term employee needs. The ZGHB zinc smelter at Boleslaw is only 25 km from the site, and a railway line runs through the project-area, linking it to the ZGHB smelter and to ports on the Baltic Sea, providing access to smelters in the rest of Europe. All of these factors will assist in mine development.
Rathdowney is committed to responsible mineral exploration and development. Our local Project Olza community team is actively engaged with local communities and governments at all levels regarding project activities and plans.
The technical disclosure in this release has been reviewed and approved by Qualified Person ("QP") David Copeland, PEng, who, as Rathdowney's Chairman and a director, is not independent of the Company.
On behalf of the Board of Directors
J.R.H (Dick) Whittington
President & CEO
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: Project Olza will obtain all required environmental and other permits and all land use and other licenses, studies and development of Project Olza 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.
Individual metal grades are 5.53% Zn and 1.49% Pb. At 2% Zn cut-off, as audited and verified and restated at February 2015 by independent QP - L. Roberts, MAusIMM (CP), SRK Consulting (UK) Ltd. Mineral Resources that are not mineral reserves do not have demonstrated economic viability.
Base Case metal prices use: Zinc - US$1.10/lb in yrs 1-2, US$1.00/lb in remaining Life of Mine ("LOM"); Lead - US$1.09/lb in yr 1, US$1.00/lb in yr 2, US$0.95/lb in remaining LOM. Assumptions are based the median price forecast by >30 independent banks and investment dealers specialized in commodity market analysis. For further details, PEA technical report posted on the Company's website and on its profile at www.sedar.com.
Olza Project Exploration Target Range (ETR) Study, unpublished internal report, by R. Mohan Srivastava and David Gaunt (2019). Mr. Gaunt is a QP that is not independent of the Company and Mr. Srivastava is an independent QP. The exploration target area of interest is inside the Zawiercie and Rokitno concessions and substantially overlaps the area of historical estimates but excludes the footprint of the current mineral resource and a buffer zone surrounding it. The exploration target ranges (ETR) of tonnages and grades were derived by completing a series of 100 equally plausible conditional simulations. A histogram of the tonnage and grade values from these simulations was completed, and the 10th and 90th percentile selected as the ETR bounds.
SOURCE Rathdowney Resources Ltd.
For further information: on Rathdowney and Project Olza, please visit our website at www.rathdowneyresources.com at 604-684-6365 or toll free (NA) at 1-800-667-2114.