Apr 24, 2014
Zazu Metals Files Positive PEA for Lik on SEDAR
Vancouver, British Columbia, April 24, 2014 - Zazu Metals Corporation (Zazu) is pleased to announce their positive Preliminary Economic Assessment (PEA) on the Lik Property (Lik) located in Northwest Alaska, is filed on SEDAR. Lik is located approximately 22kms from Teck's Red Dog Mine.
The PEA considers the open pit potential of the Lik South deposit. The PEA did not consider Lik North, the contiguous deposit to Lik South, which would be mined using underground methods if economics proved viable.
The production rate and production cost indicates Lik South will be one of the largest and lowest cost producers of zinc concentrate globally.
The economic analysis results are shown below in table 1.
Table 1: NPV / IRR of the Lik South Deposit for a range of zinc prices as indicated:
The results above reflect Lik's sensitivity to zinc prices. Zazu notes analysts' average forecast for zinc in 2015 is $1.00/lb (Bloomberg 1/31/2014) with a range of $0.82 to $1.20/ lb. Zazu maintains a constructive outlook on zinc prices based on expected global demand growth and anticipated mine closures.
The PEA is preliminary in nature. Mineral resources that are not mineral reserves do not have demonstrated economic viability. It 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 preliminary economic assessment will be realized.
Lik benefits from the existing state-owned infrastructure, consisting of a purpose built haul road and concentrate shipping port. The state entity that owns both the existing road and port, the Alaska Industrial Development and Export Authority (AIDEA), is currently analyzing the construction of a 30km extension to the road and any port modification requirements to accommodate Lik as part of their pre-funding due-diligence.
JDS Energy and Mining, Inc. ("JDS") led the PEA with specialist research and opinion provided by other consultants. Roscoe Postle Associates Inc. (RPA) provided a resource estimate and block model for both Lik South and Lik North dated December 31, 2013, as shown in Table 2.
Table 2 Mineral Resource Estimate
The indicated and inferred resources that may be potentially mined by open pit methods are predominately at Lik South and are constrained by a preliminary Whittle pit shell. The resources that may be potentially mined by underground methods are predominately at Lik North.
The part of this news release pertaining to engineering and financial estimates was reviewed by Robert Matter, P.E., Mining Engineer at JDS, who is a qualified person as defined by National Instrument 43-101. The part of this news release pertaining to the Mineral Resource estimate was reviewed by Mr. Neil N. Gow, P.Geo., a Consulting Geologist with RPA, who is a qualified person as defined by National Instrument 43-101. Messrs. Matter and Gow are independent consultants to Zazu. JDS is currently in the process of completing the National Instrument 43-101 technical report supporting the PEA and an announcement will be made when the report is filed on SEDAR.
About Zazu Metals:
Zazu is a Canadian-based exploration company focused on acquiring and developing base metal properties in North America. Zazu's principal asset is its 50% interest in the Lik zinc - lead - silver deposit in Northwest Alaska. Teck is a 50% joint venture partner in the Lik deposit. Zazu has the exclusive right to obtain 80% of the property by meeting certain spending commitments by 2018. Zazu is in the enviable position of having only 48mm shares outstanding and no debt.
Additional information about Zazu including a company presentation is available at www.zazumetals.com.
Additional information about the property is on the Teck website (www.teck.com). Zazu is not responsible for the content, accuracy or timeliness of material contained on the Teck website.
ON BEHALF OF THE BOARD OF DIRECTORS
Chairman and CEO
The TSX does not accept responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory has approved or disapproved the information herein.
This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of project development, capital and reclamation costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; discrepancies between estimated and actual resources and metallurgical recoveries; uncertainties inherent to economic studies in respect of the preliminary economic assessment; changes in project parameters as plans continue to be refined; ability to construct the necessary extension to the road access and any requirements for port modifications; litigation, legislative, environmental and other judicial, regulatory (including licenses and permits), political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Zazu Metals Corporation
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