Nexa Resources S.A. Announces That the Installation License for Its Aripuanã Greenfield Project Was Granted
December 20 2018 - 4:30PM
Business Wire
Nexa Resources S.A. (NYSE: NEXA) (TSX:NEXA)(“Nexa Resources” or
the “Company”) announces that the Environmental Authority of the
State of Mato Grosso, Brazil (SEMA/MT) granted today the
Installation License (“LI”) for the Aripuanã project.
After receiving a Preliminary Environmental License (“LP”) in
April 2018 and concluding the bankable feasibility study and the
filing of the Technical Report in October 2018, our Board of
Directors approved the implementation of the project, pending only
the receipt of the LI to begin its construction. With the
publication of the LI, Nexa intends to start construction
immediately.
About Aripuanã
Aripuanã project is an underground zinc polymetallic mine and
concentrate processing facility containing zinc, lead, copper,
silver and gold in the state of Mato Grosso, Brazil. The average
zinc equivalent production of the Aripuanã project is estimated at
120 thousand tonnes per year for 13 years, considering only the
proven and probable mineral reserves estimated at 26.2 million
tonnes in accordance with CIM (2014) Definition Standards as
incorporated in National Instrument 43-101 – Standards for
Disclosure for Minerals Projects (“NI 43-101”). The Aripuanã
deposits are typical Volcanogenic Massive Sulphide (VMS) expected
to support a production rate of 2.3 million tonnes of ore per year.
The processing plant can treat up to 6,300 tonnes per day of
ore.
According to its Technical Report, dated October 15, 2018, it is
estimated that Aripuanã could produce an annual average of
approximately: 66.7 thousand tonnes of zinc in concentrate, 23.0
thousand tonnes of lead in concentrate, 3.7 thousand tonnes of
copper in concentrate; 1.87 million ounces of silver; and 13.0
thousand ounces of gold contained in the lead and copper
concentrates. The mineral reserves grades are: 3.7% Zn, 1.4% Pb,
0.2% Cu, 0.3 g/t Au, and 34 g/t Ag.
The Aripuanã project is owned by Mineração Dardanelos Ltda., a
joint venture between Nexa (which holds a 62.3% interest), Nexa
Resources Perú S.A.A., a subsidiary of Nexa (which holds a 7.7%
interest) and Mineração Rio Aripuanã Ltda., a subsidiary of Karmin
Exploration Inc. (which holds the remaining 30%).
Outlook
The project is estimated to be operational by the beginning of
2021, with total investment estimated at approximately US$ 392
million (100% of Aripuanã), pending the receipt of its Operating
License (LO), expected by the end of 2020. The Company plans to
invest 35% of the total estimated capital expenditures in 2019, 49%
in 2020 with residual investments to be made during the start of
production in 2021.
There is excellent potential to extend mine life by up to six
years, based on the significant current inferred mineral resources
and Nexa’s good track record of conversion to measured and
indicated resources.
Since the start of exploration, the Company has drilled more
than 215,000 meters in the project area and surroundings focused on
mineral resources conversion and identification of mineralized
deposits. Limited exploration has also identified additional
mineralized bodies in the region. The Company also owns rights to
conduct exploration activities on 65,887 hectares in the
region.
About Nexa
Nexa is a large-scale, low-cost integrated zinc producer with
over 60 years of experience developing and operating mining and
smelting assets in Latin America. The Company operates and owns
five long-life underground mines, three located in the Central
Andes of Peru and two located in the state of Minas Gerais in
Brazil. Two of the Company’s mines, Cerro Lindo in Peru and Vazante
in Brazil, are among the 10 largest zinc mines in the world and
combined with the Company’s other mining operations, place the
Company among the top five producers of mined zinc globally in
2017, according to Wood Mackenzie.
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This News Release contains certain forward-looking information
and forward-looking statements as defined in applicable securities
laws (collectively referred to in this News Release as
“forward-looking statements”). All statements other than statements
of historical fact are forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of NEXA to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. These forward-looking statements
include (but are not limited to) estimates, forecasts, and
statements as to management’s expectations with respect to the
business and operations of the Company and mining production and
its projects.
Forward-looking statements are necessarily based upon a number
of factors and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Statements concerning future production costs or volumes are based
on numerous assumptions of management regarding operating matters
and on assumptions that demand for products develops as
anticipated, that customers and other counterparties perform their
contractual obligations, that operating and capital plans will not
be disrupted by issues such as mechanical failure, unavailability
of parts and supplies, labor disturbances, interruption in
transportation or utilities, adverse weather conditions, and that
there are no material unanticipated variations in the cost of
energy or supplies.
We assume no obligation to update forward-looking statements
except as required under securities laws. Further information
concerning risks and uncertainties associated with these
forward-looking statements and our business can be found in our
public disclosures filed under our profile on SEDAR (www.sedar.com)
and on EDGAR (www.sec.gov).
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version on businesswire.com: https://www.businesswire.com/news/home/20181220005859/en/
Nexa Resources S.A.Leandro CappaHead of IR
| ir@nexaresources.com
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