Panther Metals (PALM) has agreed a collaboration with Aim-traded Fulcrum Metals Ltd to investigate the potential commercialisation of the historical mine processing tailings storage facility located on the Winston project in Ontario, Canada.
Fulcrum is already pioneering the use of innovative technology to recover precious metals from mine tailings at its Teck-Hughes gold tailings project, in Ontario, Canada.
A modern, sustainable approach to mine waste reprocessing and precious metal capture potentially offers Panther a shorter pathway to significant cashflow which could be deployed towards extending the 8.5 year mine life envisaged in the 2021 mine redevelopment feasibility study for Winston.
Winston is an advanced stage polymetallic zinc, copper and precious metal property comprising a high-grade critical mineral mine redevelopment and resource building opportunity. Based on a feasibility study published in 2021 the project is expected to generate average life of mine annual EBITDA of C$67.64 million. The same study showed Winston to have a pre-tax NPV of C$175.8 million at an 8% discount.
Between 1988 and 1998 a reported 3.3 million tonnes of ore was mined and processed at Winston, with an average head grade of 14.6% zinc, 1% copper, 32.2 grams per tonne silver, and 1.4 grams gold. The operation was finally closed in February 1999 due to a very low zinc price at the time.
“This collaboration is the first step in investigating a potential early source of positive cashflow for Panther at the Winston project,” said Darren Hazelwood, chief executive of Panther.
“The infrastructure is well maintained on the brownfield Winston Lake mine site allowing for the potential rapid evaluation and monetisation of the historical mine processing tailings.
Working with Fulcrum Metals, who are advancing a mine-tailings reprocessing project elsewhere in Ontario, we intend to explore innovative ways to generate additional value and potentially extend the life of our flagship project. It’s a strong step forward in our mission to build a sustainable and profitable future for our shareholders.”
View from Vox
In the absence of hard numbers, it’s interesting to speculate about the size of the economic opportunity on offer here. Winston was primarily mined for zinc, and at a time when the gold price was seriously in the doldrums. Wizened old owls will remember that back in the 1990s, the gold price dropped below US$300, less than a tenth of where it is today. So how much gold was left in the tailings that might not have been if gold were at a price comparable to current levels? The answer could turn out to be very meaningful in financial terms.