NICKEL CREEK PLATINUM ANNOUNCES PRECAUTIONARY MEASURES AGAINST COVID-19 FOR THE ANNUAL AND EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS

  • Updated NI 43-101 Feasibility Study Assumptions Increased Project Pretax NPV at C$383.1 million (previously – C$175.8 million) and after-tax NPV at C$287 million (previously – C$126.3 million)

  • Average life-of-mine EBITDA increased to C$102 million per year (previously $67.6 million); peaking at C$168 million in the fourth year of production

  • The price of zinc has increased significantly since the October 2021 feasibility study . The fundamentals for a sustained price rally continue to strengthen due to multiple factors, including the importance of zinc in the renewable energy industry

  • The company is fully funded until a final investment decision (FID) following the recent fundraising of C$5.2 million

May 17, 2022 – TheNewswire – Metallum Resources Inc. (TSXV:MZN) ( “Metallum” or the “Company”) is pleased to announce updated economics for its Lake Superior Zinc and Copper Project (“Project”) in Ontario, Canada. Based on updated assumptions 1 projects VAN 8 Pre-tax increased to C$383 million (previously – C$175.8 million) while the average EBITDA 3 went to 102 million Canadian dollars per year (previously C$67.6 million). Figure 1 illustrates the pre- and post-tax NPV of the project 8% returns based on a number of zinc price scenarios.

Image 1: NPV 8 under a range of different zinc price assumptions 1,2,4


Click on image to view full size

The significant improvement in the prices of the suite of raw materials produced at the project (zinc, copper, silver and gold) has resulted in improved returns from the project compared to the feasibility study (Table 1 below). While the price of zinc, the main commodity produced at the project, has declined slightly from its recent 15-year high ($2.05/lb) reached in April 2022, fundamentals for the sector are overwhelmingly positive in due to limited new supply, while a significant increase in demand, largely driven by the importance of zinc in multiple renewable energy sectors (EV (electric vehicles), solar power generation and wind power).

1 – Updated prices of raw materials: Zn: 1.65 US$/lb, Cu: 4.22 US$/lb, Au: 1,845 US$/oz, Ag: 21.6 US$/oz; 2 to 8% of discounted NPV before tax; 3 – Average EBITDA over life of mine. The total EBITDA of the project is 870 million dollars; 4 The feasibility study was conducted using a zinc price of 1.22 USD/lb (2,700 USD/t), a copper price of 3.31 USD/lb (7,300 USD/t), a silver price of $21.00/oz and a gold price of $1,635. /oz.

Image 2: Forecast of the demand for zinc used in the renewable energy industry 5


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5 – Source: RAW, IRENA, Teak

Given the strengthening market fundamentals for the project, the company is advancing the project through a number of critical stages before making a final investment decision (FID) in the future. Updates on these initiatives will be released as work progresses.

The company is in excellent financial condition following the recent C$5.2 million fundraising which sees the company fully funded until an FID is completed. A summary of the main inputs and outputs of the feasibility study and updated feedback are highlighted below.

Table 1: Feasibility assumptions and updated results

Units

Feasibility study

(November 2021) 2

Updated assumptions 1

Change to Canadian dollars

Switch

%

Average zinc production (concentrate)

Tons per year

33,401

33,401

Average copper production (concentrate)

Tons per year

1,270

1,270

The life of the mines

years

8.5

8.5

Initial investment 1

Millions of Canadian dollars

145.1

145.1

C 1 – Operating costs

$CAD/lb

0.44

0.44

AISC – operating costs

$CAD/lb

0.55

0.51

-0.04

7%

NPV before tax 8%

Millions of Canadian dollars

175

383

207.3

118%

IRR before tax

%

26

42

16

62%

NPV after tax 8%

Millions of Canadian dollars

126

287

160.7

127%

IRR after tax

%

23

38

15

65%

Refund

years

2.5

2.25

0.25

11%

Zn price

USD/pound

1.22

1.65

0.43

35%

Cu Price

USD/pound

3.31

4.22

0.91

27%

At the price

USD/ounce

1,635

1,845

210

13%

Price Ag

USD/ounce

9:00 p.m.

9:60 p.m.

0.6

3%

1 – Updated prices of raw materials: Zn: 1.65 US$/lb, Cu: 4.22 US$/lb, Au: 1,845 US$/oz, Ag: 21.6 US$/oz;

2 – The feasibility study was conducted using a zinc price of 1.22 USD/lb (2,700 USD/t), a copper price of 3.31 USD/lb (7,300 USD/t), a silver price of 21.00 USD/oz and a gold price of the United States. $1,635/oz.

The Feasibility Study dated October 13, 2021 was prepared by DRA Global Limited, with contributions from other leading engineering companies. The detailed technical report is available on SEDAR under the Company’s profile. The technical report is also available on Metallum’s website at metallumzinc.com.

Qualified person

The press release has been reviewed and approved by Andrew Tims, P.Geo., the Company’s Director of Exploration and a Qualified Person as defined by National Instrument 43-101 – Disclosure standards for mining projects .

ON BEHALF OF COUNCIL

For more information, contact:

Kerem Usenmez, President and CEO

Tel: 604-688-5288; Fax: 604-682-1514

Email: info@metallumzinc.com

Website: metallumzinc.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of Canadian securities laws. All statements included herein, other than statements of historical fact, are forward-looking statements and include, but are not limited to, statements about the feasibility study, updated project economics and plans for company development for the project. Often, but not always, these forward-looking statements can be identified by the use of words such as “estimate”, “estimate”, “estimate”, “potential”, “open”, “future”, “assumed”, “projected”. “. “, “used”, “detailed”, “has been”, “gain”, “improved”, “compensated”, “limited”, “content”, “reflecting”, “containing”, “remaining”, “to be “, “periodically” or statements that events “could” or “should” occur or be realized and similar expressions, including negative variations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by the statements. prospective. These uncertainties and factors include, among others, the uncertainties inherent in the feasibility study and updated project economics; whether exploration and development of the Company’s properties will proceed as planned; changes in general economic and financial market conditions; the Company or any joint venture partner not having the financial capacity to achieve its exploration and development objectives; risks associated with the results of exploration and development activities, mineral resource estimates and the geology, grade and continuity of mineral deposits; unforeseen costs and expenses; risks associated with COVID-19, including adverse impacts on the global economy, exploration and development efforts and personnel availability; and other risks detailed from time to time in the Company’s quarterly and annual filings with securities authorities and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actual actions, events or results differ from those anticipated, estimated or expected.

The forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including, but not limited to: the accuracy of the feasibility study and updated economic data of the project ; that the Company’s stated objectives and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and any other assumptions as set forth herein. Forward-looking statements are made as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. required. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.

ABOUT Metallum Resources

Metallum Resources (MZN.TSXV) owns 100% of the Lake Superior zinc and copper project in Ontario, Canada. The project ranks as the highest grade zinc project in North America with a resource of 2.35 Mt at 17.9% Zn, 0.9% Cu, 0.4 g/t Au and 34 g/ t Ag.

The Company has completed a positive feasibility study which highlights that the project will rank in the lowest quartile of operating costs (C1 costs – C$0.44/lb; AISC C$0.51/lb) . These low costs driven by the high grade of the project generate strong economic returns. The majority of permits and licenses are in place allowing rapid redevelopment following a final investment decision.

For further details on the Company and the Superior Project, please visit the Company’s website at metallumzinc.com .

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