Issue link: http://resourceworld.uberflip.com/i/937377
60 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 8 and the related sales and marketing busi- ness. The acquisition provided direct end-market access for the cobalt hydrox- ide production from its Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo, among other advan- tages. Lundin Mining holds an effective 24% ownership interest in the joint ven- ture, with Freeport holding an effective 56% and acting as operator of the joint venture and Gécamines (DRC state mining company) holding a 20% interest. Nevsun Resources Ltd. [NSU-TSX, NYSE AMERICAN] is active at the Timok copper-gold project in the Bor region of Serbia that comprises the Cukaru Peki Upper Zone and Lower Zone. Nevsun owns 100% of the Cukaru Peki Upper Zone. The Lower Zone is a joint venture with Freeport-McMoRan Inc. Nevsun filed a NI 43-101 compliant Preliminary Economic Assessment in December 2017 for the Timok Upper Zone that was prepared by was prepared by SRK Consulting (UK) Limited, an independent mining and geological consulting com- pany. The study envisioned a 15-year mine life producing over 2.1 billion pounds or 0.96 million tonnes of payable copper. The sub-level cave mining method would be used with 3.3 million tonnes per annum sent to a conventional plant producing copper concentrate. The government of Serbia also offers a 10-year tax holiday for large capital investments. There is an after- tax NAV of $1.5 billion at a flat US $3.00 per pound copper and an 8% discount rate with a 50% IRR and under a 1.5-year payback. The above figures are based on drill- ing that has delineated measured and indicated resources totaling 28.7 million tonnes grading 3.7% copper and 2.4 g/t gold. In addition, there are 13.9 million tonnes of inferred resources grading 1.6% copper and 0.9 g/t gold. These resources represent 1.05 million tonnes of cop- per plus 2.2 million ounces of gold in the measured and indicated category and 0.23 million tonnes of copper and 0.43 million ounces of gold inferred. Ongoing drilling is taking place to discover more Upper Zone-style deposits. For the Timok Upper Zone, the initial capital cost is estimated to be $630 million, including contingency, with life-of-mine sustaining capital costs of $342 million, including contingency. Total life-of-mine operating costs (including processing) are estimated to be $74.96/tonne. The project is located in an estab- lished mining jurisdiction supportive of new mining investment and is 5 km from the Bor mining and smelting com- plex. Infrastructure is well developed with power, roads, rail, water, smelters and ports. Nevsun Resources is working with the Serbian government on permit- ting with the goal of starting production in 2021. Meanwhile, decline development will start in the first quarter of 2018. Rathdowney Resources Ltd. [RTH- TSXV] has spent over $25 million developing and permitting its flagship, 100%-owned Olza zinc-lead-silver devel- opment project in southwest Poland. The company has been drilling in a small por- tion of an area hosting historical resources and has produced an inferred resource of 24.4 million tonnes grading 7.02% zinc+lead (at 2.0% Zn cut-off), which was utilized in a 2015 Preliminary Economic Assessment that demonstrated robust eco- nomics for development using stand-alone infrastructure. Resource expansion potential is excel- lent as a 1990 historical estimate from PSGI reported 77 million tonnes grading 6.15% zinc+lead. Strongbow Exploration Inc. [SBW- TSXV; SBWFD-OTC] reported that the 100%-owned South Crofty tin project in Cornwall County, southwest England is now fully permitted with Underground Mine Permission (issued in 2013) valid for another 54 years until 2071, and Planning Permission for the construction of a new process plant, including the water treat- ment plant, construction of which will begin immediately. The company plans to dewater and re- open the tin mine and is advancing toward a final feasibility study. Strongbow pub- lished a N1 43-101 Preliminary Economic Assessment on South Crofty in February 2017. Highlights from Strongbow's 2017 Preliminary Economic Assessment include: a Pre-tax Net Present Value $165.9 mil- lion; After-tax Net Present Value $130.5 million; Internal Rate of Return 23.4%; Pre- production CAPEX $118.7 million; Payback period of 3.8 years; life-of-mine (LOM) sus- taining CAPEX $83.8 million; Mine Life of eight years; Average LOM cash cost $3.36/ lb tin equivalent; Average LOM all-in sus- taining cash cost $4.44/lb tin equivalent; mineralized material mined 2.575 million at an average grade 1.55% tin equivalent. n EUROPE