Metallum files technical report on feasibility study for Superior project in Ontario: after-tax IRR 23%, NPV 8% to $ 131.3M, 3-year payback

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Vancouver, British Columbia –News Direct– Metallum Resources Inc.

Métallum Resources Inc.

October 14, 2021 – TheNewswire – Vancouver, British Columbia – Metallum Resources Inc. (TSXV: MZN) (“Metallum” or the “Company”) is pleased to announce that the Company has filed a technical feasibility study report , prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) for its high grade polymetallic zinc and superior copper project (“project”) located near the town of Schreiber, east of Thunder Bay, Ontario. The Company previously announced the results of the feasibility study (see the press release of September 15, 2021) which revealed a net present value (“NPV”) of the project after tax (discount rate of 8% ) of CA $ 131.3 million with an internal tax rate of return (IRR) of 23% at a zinc price of US $ 1.22 / lb (US $ 2,700 / t) and a life of the 8.5-year-old mine, with an average annual EBITDA of C $ 67.6 million. A summary of the main highlights and findings contained in the technical report is presented below. The detailed technical report is available on SEDAR under the Company’s profile and on Metallum’s website at metallumzinc.com.

All dollar amounts are shown on a 100% project ownership basis.

Highlights of the feasibility study

Units

Values

Flow per day

tons

1000

Zinc content (average)

%

13.7

Copper content (average)

%

0.62

Silver content (average)

g / t

26.71

Gold content (average)

g / t

0.21

Product concentrate – Zinc

tons

593,461

Product concentrate – Copper

tons

45 118

Zinc recovered

tons

283 912

Recovered copper

tons

10,792

Money recovered

ounce

767,703

Gold recovered

ounce

5,929

The life of the mines

years

8.5

Stripping report

Waste: Ore

0.73: 1

Initial investment1

Millions of Canadian dollars

145.1

Average life of mine operating costs

$ CAD / tonne of ore processed

952

All in maintenance cost (“AISC”)

$ CAD / tonne

1 221

NPV after tax (8% discount rate)

Millions of Canadian dollars

126.3

IRR after tax

%

23

Refund

years

3

1: Includes pre-production and owner fees

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

The feasibility study was prepared by DRA Global Limited, with contributions from other leading engineering companies.

Qualified people

The press release has been reviewed and approved by Andrew Tims, Geologist, Chief Exploration Officer of the Company and Qualified Person within the meaning of NI 43-101. The technical and financial information contained in this press release has been reviewed and approved by Daniel M. Gagnon, Eng. of DRA Global, also a qualified person within the meaning of NI 43-101.

About DRA Global

DRA Global Limited (ASX: DRA | JSE: DRA) (“DRA”) is a multidisciplinary engineering, project management and operations management group primarily focused on the mining and mineral resources industry. DRA has extensive global experience, spanning over three decades and over 7,500 studies and projects as well as operation and maintenance solutions across a wide range of products.

DRA has expertise in mining, minerals and metals processing and related off-process infrastructure, including ESG, hydraulic and energy solutions for the mining industry. DRA provides consulting, engineering and project delivery services throughout the life cycle of the investment project, from design to operational readiness and commissioning, as well as operations services, continuous maintenance and shutdown.

DRA, headquartered in Perth, Australia, serves its global customer base through 20 offices in Asia Pacific, North and South America, Europe, Middle East and Africa.

About Metallum Resources

Metallum Resources is a zinc and copper focused base metals resource company led by a Canadian management team with extensive experience in the acquisition, exploration and development of resource properties. The Company is developing its flagship Superior Zinc and Copper project located in Ontario, Canada.

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

ON BEHALF OF THE BOARD

Kerem Usenmez,

President and CEO

Métallum Resources Inc.

Symbol: TSXV-MZN

For more information, contact:

Kerem Usenmez, President and CEO

Phone. : 604-688-5288; Fax: 604-682-1514

Email: [email protected]

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 in this document, other than statements of historical fact, are forward-looking statements and include, without limitation, statements regarding the feasibility study and the Company’s development plans for the project. Often, but not always, these forward-looking statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”. ”,“ Used ”,“ detailed ”,“ has been ”,“ gain ”,“ improved ”,“ offset ”,“ limited ”,“ content ”,“ reflecting ”,“ containing ”,“ remaining ”,“ to be “,” Periodically “, or statements that events” may “or” should “occur or be achieved 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 differ materially 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; whether exploration and development of the Company’s properties will proceed as planned; changes in general economic conditions and financial markets; the Company or any joint venture partner that does not have the financial capacity to achieve its exploration and development objectives; risks associated with the results of exploration and development activities, the estimation of mineral resources and the geology, grade and continuity of mineral deposits; unforeseen costs and expenses; risks associated with COVID-19, including negative impacts on the global economy, exploration and development efforts and staff availability; and other risks detailed from time to time in documents filed quarterly and annually by the Company with securities regulatory authorities and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify material factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or or results differ from those anticipated, estimated or intended.

The forward-looking statements contained in this document are based on the assumptions, beliefs, expectations and opinions of management, including, but not limited to: the accuracy of the feasibility study; that the stated objectives of the Company and the planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and all other assumptions set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update 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. Therefore, investors should not place undue reliance on forward-looking statements.

See the source version on newsdirect.com: https://newsdirect.com/news/metallum-files-feasibility-study-technical-report-for-superior-project-ontario-after-tax-irr-of-23-npv – 8-at-131-3m-payback-3-years-base-case-480609541


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