Dick
Whittington, President & CEO to step down
VANCOUVER, Dec. 31, 2019 /CNW/ - Rathdowney Resources
Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces that its
corporate focus in 2020 will be exclusively on advancing toward
securing a Mining License for its 100%-owned Project Olza – a
zinc-lead-silver underground development project in Poland's well-established Upper Silesian
mining district.
Securing a Mining License for Project Olza requires a
multi-faceted scope of work, largely to be undertaken by
Rathdowney's in-country Polish team, and includes: Environmental
Documentation Completion; Community and Stakeholder Engagement;
Land Zoning Changes; ongoing Geological Data Filings; and
engineering support for the Polish PZZ (site development and
underground mining plan). Near-term work at Project Olza is focused
on finalizing environmental documentation to support project
permitting, as well as on-going community engagement.
The concentration of Rathdowney's 2020 program solely toward
environmental and socioeconomic technical work has contributed to
the departure from the Company of Mr. J.R.H. (Dick) Whittington, who will step down as
President and CEO of Rathdowney Resources Ltd., and resign from the
Company's Board of Directors.
Current Rathdowney Chairman and Director Mr. David J. Copeland will serve as interim
President and CEO.
"Rathdowney wishes to thank Dick
Whittington for his important contributions and significant
efforts in moving Project Olza forward during this phase of its
development," Copeland said. "Dick's leadership, his business
acumen and experience have had a positive and lasting effect on the
Company and the project, and we look forward to bringing him back
onto the Rathdowney corporate team in future as Project Olza
advances toward mine development and operations."
"I am disappointed to leave the Rathdowney team, but I
appreciate the need to focus our corporate resources on
project-critical areas – particularly in the face of challenging
financial markets," Whittington said. "The business plan for
Rathdowney going forward is clearly set out, and will continue to
be the foundation for the Company's success for the foreseeable
future."
Copeland noted that Rathdowney will continue to advance
Whittington's plan toward obtaining a Mining License for Project
Olza, although at a slower pace in the immediate term.
Rathdowney retains a solid team in Poland to support the project's community and
environmental compilation programs.
"Project Olza is a superb asset," Whittington said. "Simply put,
it is the best project I have had the pleasure of working on in my
career. At the same time, I have thoroughly enjoyed my experiences
in Poland and with the Project
Olza team. Poland is an energetic
country with a world famous mining industry and a tremendous
future."
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing Project Olza
through the permitting process toward a mining license and into
production.
Project Olza is located in the Upper Silesian Mining District of
southwestern Poland, a world-class
region of Mississippi Valley-type deposits with well-developed
mining infrastructure. Easily accessible by road, the Olza
project site is a one-hour drive from Krakow, a major city with
full services, including an international airport. The
deposits at Olza are 25 km from the ZGH zinc smelter at Boleslaw. A
railway line runs through the Olza project-area, linking it to the
local facilities and also to other smelters through ports on the
Baltic Sea.
Initial drilling by Rathdowney built on the extensive drill
database assembled by Polish State Survey to delimit 24.4 million
tonnes ("Mt") of inferred mineral resources grading 7.02% combined
zinc and lead ("Zn+Pb")1, with excellent potential for
expansion as indicated by drilling over a wider area by the Polish
State Survey ("PSGI"). A historical estimate of 77 Mt grading
6.15% Zn+Pb in C1/C2 categories under the Polish classification
system was completed by PSGI in 19902. A qualified
person, under NI43-101 rules, has not done sufficient work to
classify the estimate as current mineral resources and the Company
is not treating them as current.
A Preliminary Economic Assessment ("PEA"), announced in early
2015 and based on the 24.4-Mt mineral resource, indicates strong
potential financial returns for a 6,000 tpd underground operation
and conventional treatment facility, producing two marketable
concentrates3. The PEA forecast a Post-Tax Net Present
Value of US$170 million at an 8%
discount rate or US$219 million at a
5% discount rate4. Free cash flow in the first three
years of full production averages US$125
million per year or cumulatively US$375 million over three years, which management
believes is ample for debt financing and near term project
payback.
Further environmental and associated technical studies are
underway to advance mine planning and permitting for the
project.
David Copeland, P.Eng., Chairman
of Rathdowney and a qualified person as defined under NI43-101, has
reviewed the technical information in this release.
On behalf of the Board of Directors
David Copeland, P.Eng.
Chairman and Director
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address exploration
drilling, exploitation activities and events or developments that
the Company expects, are forward looking statements. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Assumptions used by the Company to
develop forward-looking statements include the following: the Olza
project will obtain all required environmental and other permits
and all land use and other licenses, studies and development of the
Olza project will continue to be positive, and no geological or
technical problems will occur. Factors that could cause actual
results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration
successes, continuity of mineralization, potential environmental
issues and liabilities associated with exploration, development and
mining activities, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. For more information on the
Company, investors should review the Company's continuous
disclosure filings that are available at www.sedar.com.
______________________________________
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1
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Estimated at a 2.0%
zinc cutoff; individual grades are 5.53% zinc and 1.49% lead.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
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2
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Historical estimate
by Polish State Geological Institute PSGI 1992 report (C1, C2
categories under the Polish Classification system, similar to the
Soviet classification system used at the time). These are
different from the classification under NI 43-101.
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3
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Base Case metal
prices use: Zinc - US$1.10/lb in yrs 1-2, US$1.00/lb in remaining
Life of Mine ("LOM"); Lead - US$1.09/lb in yr 1, US$1.00/lb in yr
2, US$0.95/lb in remaining LOM. Assumptions are based the median
price forecast by >30 independent banks and investment dealers
specialized in commodity market analysis. For further details, see
Rathdowney's news release dated April 20, 2015 and the PEA
technical report posted on the Company's website and on its profile
at www.sedar.com.
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4
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Bray, Chris, SRK
Consulting (UK) Ltd, July 2019 Memo on Discount Rate for Olza PEA
(effective date 31 December 2014).
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SOURCE Rathdowney Resources Ltd.