BRIEF-Canadian Zinc says identified an error in life-of-mine economic model

Wed Sep 14, 2016 7:10am EDT
 
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Sept 14 (Reuters) - Canadian Zinc Corp

* Says identified an error in life-of-mine economic model included in its 2016 preliminary feasibility study

* Error caused an overstatement in gross smelter revenue to $3.7 billion from $3.3 billion, over projected 17-year life of prairie creek mine

* Says gross metal value of production (using same assumptions) remains unchanged

* Says royalties and taxes payable also reduce by $153 million over projected life of mine

* Says notwithstanding reduction in revenue, revised financial results remain "strongly positive"

* Says revised financial model yields a pre-tax npv of $284 million at an 8% discount rate, with an irr of 23%

* Says "long term outlook for lead and zinc remains very positive" Source text for Eikon: Further company coverage: