Resource World Magazine

A U G U S T / S E P T E M B E R 2 0 1 8 www.resourceworld.com 47 MINING FIREWEED ZINC [FWZ-TSXV] has two drills turning on its wholly-owned flagship asset, the 470 km 2 Macmillan Pass zinc project in the Yukon, Canada. This is part of an $8 million cam- paign that includes a 10,000-metre drill program planned for the 2018 season. The company has three main goals in mind: to expand known zones through step out drill holes to build tonnage beyond the current resource; to upgrade priority mineralized zones to measured and indicated resource status; and, drill new exploration targets to identify new deposits on their large land package. "With a healthy treasury, we are planning to both drill to expand and upgrade our mineral resource and carry out aggres- sive exploration toward making new discoveries," commented Brandon Macdonald, CEO of Fireweed Zinc. Current resources at Macmillan Pass stand at: Indicated: 11.2 million tonnes averaging 6.59% zinc, 2.48% lead, 21.33 g/t sil- ver; Inferred: 39.5 million tonnes averaging 5.84% zinc, 3.14% lead, 38.15 g/t silver. "We have assembled a very large under-explored land pack- age in a district known for producing large zinc deposits," says Macdonald. "Our field work will cover untested priority targets and greenfields exploration areas in search of new discoveries, some of which we hope will be ready to drill later this season." An extensive geochemical sampling program is already well underway with about 2,400 samples collected in the areas around the Tom and Jason deposits. The company intends to sample the End Zone area next. In addition, ground geophysics which includes gravity and passive seismic surveys, have been com- pleted over the Jason and are in progress at the Tom deposit. Over the past year Fireweed Zinc acquired control of almost the entire Macmillan Pass Zinc District, a 470 km 2 land package. This is also the first time in more than 25 years that any large-scale exploration program has been carried out in the district. The 2018 field exploration work is being driven by modern exploration concepts that will combine extensive geological mapping, prospecting, geochemical surveys, ground gravity surveys, and topographic surveys (airborne Light Detection and Ranging (LiDAR) and ground Differential GPS (DGPS) surveys). In all, a crew of about 45 people (including drillers) will be in camp to carry out the large work programs. In late May 2018, the company released the summary details of a Preliminary Economic Assessment study led by JDS Energy and Mining with sections contributed by Knight Piesold Consulting, Base Metallurgical Laboratories and CSA Global Geosciences Canada Ltd. The Report was recently filed on SEDAR as well as on company's website. Highlights of the PEA include: • 18 year mine life based on 32.7 million tonnes of mineralization mined at 5,000 tonnes per day; • 1.54 million tonnes of zinc, 0.88 million tonnes of lead and 37 million ounces of silver in concentrate to be shipped over life-of-mine; • Using metals prices of US $1.21/lb zinc, US $0.98/lb lead and US $16.80/lb silver the Pre-Tax Net Present Value (NPV) based on an 8% discount rate tallied to CAD $779 million with an IRR of 32%; • The After-Tax NPV (8%) was CAD $448 million and IRR of 24%; • Pre-production capital expenditures required to start the mine weighed in at CAD $404 million with a payback period of four years (post-tax, base-case scenario); • Life-of -Mine, All-In Operating Costs are estimated at CAD $82/ tonne; • Two concentrates would be produced: 1) A zinc concentrate Returning to camp from drilling the Tom deposit at the Macmillan Pass zinc project in the Yukon. Photo courtesy Fireweed Zinc Ltd. Fireweed Zinc advancing and expanding Macmillan Pass Project by Thomas Schuster

• Cover