(All dollar amounts are in U.S. dollars unless
otherwise indicated)
PERTH, Australia, Nov. 20, 2017 /CNW/ - LeadFX Inc.
(the "Company" or "LeadFX") (TSX: LFX) today provides
an update on the status of the definitive feasibility study for a
proposed hydrometallurgical facility at the Company's 100% owned
Paroo Station lead mine in Western
Australia and its corporate affairs.
Paroo Station Lead Mine - 70,000tpa Hydrometallurgical
Facility Definitive Feasibility Study
InCoR Energy Materials Limited is financing the completion of a
definitive feasibility study into the technical and financial
viability of producing up to 70,000 tonnes per annum of lead ingots
from the Paroo Station lead mine ("DFS"). Lead ingots would
be produced from a special purpose hydrometallurgical facility to
be built on site, adjacent to the existing concentrator facility,
treating the flotation concentrate to produce lead ingot.
The DFS is being prepared by global engineering and construction
firm SNC-Lavalin (TSX: SNC) out of their Perth office. The preparation of the DFS has
advanced with DFS-level engineering, design and estimation nearing
completion, subject to the remaining test work programs.
A variability test work program designed to simulate the life of
mine concentrate feed to the hydrometallurgical facility has
commenced. A hydrometallurgical pilot plant has been assembled at
ALS Metallurgy laboratory premises in Balcatta, Perth to simulate the ore to finished product
flowsheet. A 20t bulk ore sample has been delivered from site and a
pilot flotation circuit has been used to prepare concentrates for
the pilot plant. The pilot plant will treat these concentrates to
produce lead cathode over a period of up to two weeks, expected to
commence on or around November 23,
2017. Accordingly, management expects the DFS to be
completed later in December 2017.
The existing mine is fully permitted to mine and produce lead
concentrates and to transport those concentrates to the port of
Fremantle, Western Australia for
export. LeadFX management has met with representatives from
the Office of Environmental Protection Authority ("EPA") to
discuss the permitting process for the hydrometallurgical facility
and proposed mine expansion, and plan to submit referral
documentation in January 2018 to
allow the EPA and other regulatory agencies to commence their
assessment process.
Corporate Affairs
In August 2017 LeadFX
announced that each of Enirgi Group Corporation ("Enirgi
Group") and Enirgi Group Services Australasia Pty Ltd, a wholly
owned subsidiary of Enirgi Group, had provided the Company and
Rosslyn Hill Mining Pty Ltd ("RHM) - owner of the Paroo Station
lead mine - respectively notice to terminate their respective
management services agreements following a transition period of up
to 90 days. The transitional period concludes today November 20, 2017.
The management of LeadFX has now been relocated to
Perth to reflect the increasing
focus of the Company on the re-start process for the Paroo Station
lead mine. All corporate, finance, investor relations, regulatory
affairs and administration functions are based out of Perth. Moreover, each of the Company's key
technical service contributors to the Paroo Station lead mine DFS
and its operations are within short distance of key management.
LeadFX's head office and mailing address is now: Suite 1D, 21
Teddington Street, Burswood, Perth, Western
Australia 6100.
A number of office holders of LeadFX have either ended or
end their association with LeadFX today including the Company's
Chief Financial Officer Mr. Lincoln
Greenidge. The position of Chief Financial Officer will be
filled on an interim basis by Mr. Michael
Roach who is expected to commence with LeadFX on
18 December 2017. Michael is a CPA
with a Bachelor of Commerce degree from Curtin
University in Perth.
Michael has worked for RHM on two previous occasions and
understands the Company's finance and accounting systems well. We
look forward to Michael joining the Company. The Board of Directors
thanks Lincoln for his dedicated service to LeadFX and
wishes him every success for the future.
Commenting on the transition Chief Executive Officer
Andrew Worland stated "I would like
to thank the Enirgi Toronto and Melbourne teams, in particular my predecessor
Rob Scargill, for the highly
professional way in which they have undertaken the transition of
management services and handover of corporate, financial, investor
and regulatory affairs knowledge. Without exception staff have been
very gracious with their time and I wish each of them well.
North American lead assets
The Company has a majority ownership position in Chief
Consolidated Mining Company ("Chief"), and Chief owns mining
properties in the State of Utah,
United States. Chief has entered into an agreement with the
Utah Division of Oil, Gas and Mining to extend the mining permits
on properties owned by Chief and associated with the historic
Burgin mines in the Tintic District in Utah. The Company is considering ways to
monetize or divest its investments in the region. LeadFX has
received expressions of interest from a number of parties to
participate in the future development plans for the properties. In
the week beginning November 6, 2017
the Company hosted some of these parties on site as they undertook
initial due diligence.
Strategic Focus
Management's focus is geared toward bringing the Paroo Station
lead mine into production as a lead ingot producer in the shortest
possible timeframe. Key tasks required to achieve this include, but
are not limited to:
- Completing and release the results of the hydrometallurgical
facility DFS and a new life of mine economic model for the Paroo
Station lead mine;
- Initiate value engineering on improvement opportunities
identified in the DFS;
- Expedite the approvals process for the hydrometallurgical
facility;
- Manage and secure the Company's working capital position
through June 2018 and beyond,
including refinancing of the existing secured debt due to Sentient
on 28 February 2018;
- Subject to the outcomes of the DFS and working capital
availability, commence early works and procurement of long lead
items; and
- Securing full project financing for the hydrometallurgical
facility.
About LeadFX
LeadFX is a Toronto Stock Exchange listed ("LFX"),
Australian based, mining company focused on the development of its
lead and lead-silver projects located in Australia and North
America. The Company's primary undertaking is the Paroo
Station lead mine. The Paroo Station lead mine is located 30km west
of the town of Wiluna in Western
Australia (refer Figure 1). The Company also owns an 83.5%
interest in the Burin mines and surrounding land claims in the
Tintic mining district 60 miles south-east of Salt Lake City, Utah and exploration interests
in the Amber Mineral belt in Alaska.
The Paroo Station lead mine has been on care and maintenance
since January 2015 (refer Figure 2).
A dedicated staff of plant operators and technicians have
undertaken consistent structural and integrity checks of plant and
equipment, run mills at regular intervals and maintained the
flotation tanks ensuring the plant can be re-started and brought
back to pre-closure production levels within months.
We refer readers to the Company's Annual Information Form dated
February 23, 2017 as filed on SEDAR
(wwww.sedar.com) and the Company's website www.leadfxinc.com for
details of historical production performance for the Paroo Station
mine and the NI43-101 Technical Report on the Paroo Station Lead
Carbonate Mine, Wiluna, Western
Australia dated March 10, 2015
for prepared by SRK Consulting (Australasia) Pty Ltd for details on
Mineral Resources
Forward-Looking Statements
This news release may contain "forward-looking
statements" within the meaning of applicable Canadian securities
laws. Examples of forward-looking information in this news release
includes but is not limited to statements and information
concerning the timin timing and length of care and maintenance at
Paroo Station, future sales, future targets and estimates for
production and sales, the receipt and timing of required additional
financing to restart and operate Paroo Station, statements relating
to the business and future activities of, and developments related
to LeadFX, future lead production, the timing and future benefits
of the transaction with InCoR, the anticipated benefits of the
Technology at Paroo Station, the possible extension of mine life
from application of the Technology, the anticipated cost and timing
of delivery of the DFS and success of pilot trials, the timing an
ability to obtain regulatory approvals to build a
hydrometallurgical facility, the application of the Technology to
future projects and strategic endeavors, the timing of exercising
the Warrants, the feasibility, cost and timing of constructing a
hydrometallurgical processing facility at Paroo Station, the
Company's ability to meet its working capital needs and debt
repayments in the near term, the timing and ability of the Company
to sell its interests in Chief Consolidated Mining Company, the
circumstances or timing and costs surrounding a restart of the
Paroo Station, , projections with respect to cash flows and working
capital, the cost and timing for completion of capital projects
necessary for any future operations, the Company's ability to
comply with the transportation and operating conditions for the
Paroo Station, capital expenditures, operating costs, cash costs,
Mineral Resources, Mineral Reserves, life of mine, recovery rates,
grades and prices, business strategies and measures to implement
such strategies, competitive strengths, estimated goals and plans
for LeadFX's future business operations, commodity prices outlook
and other such matters. Forward-looking statements are often, but
not always, identified by the use of words such as ''seek'',
''anticipate'', ''contemplate'', ''target'', ''believe'', ''plan'',
''estimate'', ''expect'', and ''intend'' and statements that an
event or result ''may'', ''will'', ''can'', ''should'', ''could''
or ''might'' occur or be achieved and other similar expressions.
Forward-looking information by its nature requires assumptions and
involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information, and readers are cautioned not to place undue reliance
on such information. These statements are based upon certain
reasonable factors, assumptions and analyses made by management in
light of its experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. However, whether actual results and developments
will conform with management's expectations is subject to a number
of risks and uncertainties, including, the potential benefits from
the Technology, the ability to deploy or prove up the Technology on
a commercial scale, expected concentrate sales when in operations,
the costs and other capital expenditures required to maintain
operations and transportation, the timing, need and ability to
raise any additional financing and the risks relating to ramping up
mining and milling throughput and operations, funding requirements,
the need to secure approval of secured creditor and majority
shareholder, operations being placed on care and maintenance, the
restart of mining and milling operations, matters relating to
regulatory compliance and approvals, the potential for shareholder
dilution from the Warrants, matters relating to public opinion,
presence of a majority shareholder and management services
agreements with Enirgi Group Corporation, matters related to the
Esperance settlement and shipments through the Port of Fremantle,
regulatory proceedings and litigation and general operating risks
such as metal price volatility, lead carbonate concentrate
treatment charges, exchange rates, the fact that the Company has a
single production-stage mineral property, health and safety,
environmental factors, mining risks, metallurgy, labour and
employment regulations, government regulations, insurance,
dependence on key personnel, constraints on cash distribution from
Paroo Station, the nature of mineral exploration and development
and common share price volatility.
Additional factors and considerations are
discussed in the Company's 2016 Annual Information Form and
elsewhere in other documents filed from time to time by LeadFX with
Canadian securities regulatory authorities. While LeadFX considers
these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect. These factors may
cause the actual results of the Company to differ materially from
those discussed in the forward-looking statements, and there can be
no assurance that the actual results or developments anticipated by
management will be realized or, even if substantially realized,
that they will have the expected results on the Company. Undue
importance should not be placed on forward-looking information nor
should reliance be placed upon this information as of any other
date. Except as required by law, while it may elect to, LeadFX is
under no obligation and does not undertake to update this
information at any particular time.
SOURCE LeadFX Inc.