The Scotia Mine - Overview
100% owned and fully permitted mine and mill
The land associated with the Mine is owned outright by ScoZinc
Excellent infrastructure in place - buildings/roads/power - and:
Close to Halifax International Airport and two all-season shipping ports
Large untapped mineral resources on adjoining mine lease and exploration licences
Completed PEA with very attractive economics (before-tax NPV 5% of C$106.5 million)
For more information on the Scotia Mine, its location, history, geology, mineral resources, and infrastructure please see below.
Property Location and Description
The Scotia Mine is located at approximately 45°02′ North, 63°21′ West, or 65 kilometres northeast of Halifax, Nova Scotia, in the Halifax Regional Municipality. The Mine consists of 648 hectares of mineral rights in the form of three contiguous mineral leases, including land with exploration potential for zinc and lead mineralization. ScoZinc also owns real estate property of 712.5 hectares, which includes the mineral leases and adjoining areas.
The ScoZinc has defined several mineral resource deposits surrounding the historical Gays River Zinc & Lead deposit which was mined in the past. We have grouped our mineral resources into two primary deposits groups, named as the "Scotia Deposit" and the "Getty Deposit".
Zinc and Lead mineralization was discovered at the Scotia Mine in 1973 by the Esso and Cuvier joint venture. Esso initiated mine development in 1978, commissioned the mill in 1979, developed the underground mine, and began mining and milling.
Seabright acquired the Scotia Mine property and mill in 1984. Seabright converted the mill for gold processing and processed gold ore from several satellite properties.
The Scotia Mine property was acquired in 1988, by Westminer Canada Limited, the Canadian subsidiary of Australia based Western Mining Corp. Westminer dewatered the mine and continued mining and milling.
In 1997, Savage Resources Canada Limited acquired the Scotia Mine assets from Westminer. Savage concluded that an open pit operation was feasible and initiated environmental permitting.
Savage was subsequently taken over by Pasminco Resources Canada. Regal Mines Limited purchased Pasminco Resources in February 2002. Regal Mines was owned 50% by OntZinc Corporation and 50% by Regal Consolidated Ventures Limited. As part of the sale, Pasminco Canada Holdings Inc. retained a 2% net smelter return (NSR) royalty on future production. In December 2002, OntZinc acquired Regal Consolidated’s 50% interest to own 100% of Pasminco Resources. Savage Resources Limited was the successor of Pasminco Holdings and held the 2% royalty.
OntZinc later changed its name to HudBay Minerals Inc. after purchasing, through reverse takeover, Hudson’s Bay Mining and Smelting in December 2004. Hudbay owned the Scotia Mine through its wholly-owned subsidiary, ScoZinc Limited.
In 2006, Acadian Gold Corp. purchased 100% of ScoZinc and all of its assets (consisting mainly of the Scotia Mine and its infrastructure) from OntZinc for $7 million. Acadian Gold subsequently changed its name to Acadian Mining Limited. On 29 May 2007, ScoZinc exercised its option to buy-out the 2% NSR for $1,450,000.
ScoZinc reactivated the mill and continued surface mining the deposit during 2007 and 2008. Depressed metal prices and high operating costs forced ScoZinc to place the mine on care-and maintenance status.
In May 2011, Selwyn Resources Limited (name changed to "ScoZinc Mining Ltd." in 2015) purchased ScoZinc and all of its assets, including the Scotia Mine and ScoZinc’s exploration claims, for $10 million less a deduction relating to increased reclamation bonding requirements that were being determined at the time of the acquisition.
In August 2019, new management of ScoZinc Mining Ltd. was appointed to consolidate all previous work and develop a definitive plan for re-starting the Scotia Mine as quickly as practicable.
The Scotia and Getty Deposits are underlain by basement rocks of the Cambro-Ordovician Meguma Group, which had significant local topographic relief due to rift faulting and erosion. Locally, a veneer of Horton Group, red-brown conglomerate, and sandstone mark the base of the unconformably overlying Lower Carboniferous rocks, which host the deposit. In areas where the basement rocks formed islands in the Carboniferous Sea, coral reefs formed along the shores. These carbonate rocks are the Gays River Formation or GRFM. The MacCumber Formation is time-equivalent to the Scotia Mine Formation. The MacCumber and GRFM are overlain by evaporites of the Carroll’s Corner and Stewiacke Formations.
The GFRM mineralization has long been considered a Mississippi-Valley-type Pb-Zn deposit. This type of deposit is carbonate-hosted, classified as a typical open space filling type, and hosted in a dolomitized limestone. The limestone developed as a carbonate build-up on an irregular pre-Carboniferous basement topographic high where conditions allowed for growth of reef-building organisms.
The Zn/Pb-bearing GFRM trends in an east-northeast direction across the property. Locally, the mineralization dips 45° on average, and up to vertical in places, to the north-northwest which is the depositional slope of the front of the Scotia Mine reef unit. But the dip tends to be horizontal in the back reef area (south of the main trend). The mineralization is present as sphalerite and galena and grades from massive Pb-Zn ore-grade material in the fore reef to finely disseminated, lower grade material in the back reef. In the mine area, the Scotia Mine Formation is overlain either by the evaporites of the Carroll’s Corner Formation and/or overburden.
ScoZinc has determined Mineral Resource estimations on the Scotia Deposit and the Getty Deposit to the Canadian National Instrument ("NI") 43-101 standards.
The detailed Mineral Resources estimation calculations are provided in the detailed technical reports using the links below, and also on Sedar under ScoZinc's profile. Please click this link to view all the technical reports.
For the reader's convenience, a location map and an extract of the NI 43-101 Mineral Resources estimate for the Scotia Deposit (Main Deposit and North-East Deposit) and the adjoining Getty Deposit are provided below. Photographs of high-grade and medium grade rock samples previous mined as ore is also provided below.
For more information, please view our latest Technical Report on the Scotia Mine.
Estimate prepared by independent Qualified Persons, engaged by ScoZinc Mining Ltd, to NI 43-101 standards (see February 2018 PEA). Note: Zinc Equivalent % (Zn Eq.%) = Zn % + (Pb % x 1.18) and is based on mill recoveries of 89.3% for Zinc and 89.5% for Lead, $US1.10/lb Zn and $US1.15/lb Pb metal pricing and smelter returns of 85% for Zinc and 95% for Lead.
Existing Site Infrastructure
The ScoZinc mine/mill complex, designed and built in 1978/1979, is a flotation process and has operated for extended periods at a rate in excess of 2,200 tonnes per day. Most infrastructure required for mineral extraction and processing is available onsite. As shown in the photographs below, the existing infrastructure is extensive, including grinding mills, mineral processing tanks, conveyor systems, concentrate load out facilities, metallurgical testing laboratories, warehouse, core yard and office buildings. ScoZinc has estimated the replacement value for all our assets to be in the order of C$100 million.
Highway access to the site is excellent. The road network and other civil infrastructure is in good condition with typical minor maintenance being required. Before production may occur, integrated with the pre-stripping operation, roadwork will be completed onsite to service the expanded production area.
Storage and ship loading facilities for lead and zinc concentrates are available at the seaport of Sheet Harbour, a distance of 80 kilometres from the mine site over paved roads. ScoZinc leases land and infrastructure from the Province and owns the conveyors and ship loader. Rail transport facilities have also been used for concentrate shipping via the port in Halifax. A railway siding is located in Milford, 8 kilometres from the site on paved roads.
Three-phase power is supplied through the regional grid at reasonable rates. Most of the mill’s water requirements are satisfied by in-process recycling. The existing tailings pond has sufficient capacity for the life of the project. There is also sufficient area for waste rock storage on the property.
Three-phase power is at the Mine site and supplied through the regional grid for approximately 8 MegaWatts. Process water requirements are satisfied by from existing well fields and nearby water course licences. The existing tailings pond has sufficient capacity for the life of the project, and there is also sufficient area for waste rock storage on the property.
Although our Scotia Mine is currently on care & maintenance, ScoZinc has maintained an extensive list of mineral leases and permits in place, including Environmental Assessments and Industrial Approvals.
These permits are necessary for full mining and processing operations to commence within a very short time-frame.