Lithic Resources Ltd. (TSXV:LTH) announced that it plans to complete a Preliminary Economic Assessment (PEA) for its 100% owned zinc-copper-silver-gold project in western Utah. The project consists of large undeveloped, near surface oxide resources and associated deeper sulphide resources and the new PEA is aiming to improve the project by expanding the scope beyond previous assessments.
As quoted in the press release:
Accordingly, the new PEA will evaluate the following opportunities and potential improvements:
- Potential open pit mining of near surface oxide resources (representing more than 20% of current Project resources) supported by positive preliminary leach testwork completed by Kappes Cassiday in 2009
- Potential revenue capture from significant amounts of by-product iron generated from the processing of sulphide resources
- Optimization of potential underground mining and refinement of capital requirements
- Impacts of improved metal prices and reduced smelter costs for concentrate treatment
Lithic Resources Ltd. President and CEO, Chris Staargaard said:
The newly-named ‘West Desert Project’ reflects a broader and renewed perspective of the economic potential of the project. West Desert is host to a spectrum of metals offering a wide scope for potential revenue. Combining the potential for both open pit and underground mining, with ready access to road, rail and grid power are just a few of the many advantages for West Desert. Large zinc deposits with ‘clean’ characteristics (absent of mercury, arsenic, selenium, iron sulphide) such as West Desert are rare. Large zinc deposits with good grades and significant byproduct credits, located in politically stable jurisdictions are also increasingly rare. I am excited to combine all of these advantages and new opportunities towards a positive PEA for the West Desert Project.