Vendetta Mining advancing Pegmont project in Queensland, at the heart of the world’s most important lead-zinc belt

Project lies in top-rated mining jurisdiction Resource estimate lifted three times to date with more potential to come Robust PEA in 2019 What Vendetta Mining Corp does: Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) is a Canadian junior explorer, focused mainly on lead and zinc. The company bought the Pegmont lead, zinc project in 2019, which is strategically located in the Mount Isa - McArthur mineral province, the heart of the world’s most important lead-zinc belt in Queensland, Australia. Pegmont is a high-grade, largely open pit resource, which has excellent infrastructure. It also boasts an indicated resource estimate of 5.8 million tonnes at 6.5% lead, 2.6% zinc and 11 grams per ton (g/t) silver. The inferred category hosts 8.2 million tonnes at 5.1% lead, 2.8% zinc and 8 g/t silver. In early 2019, the group released a preliminary economic assessment (PEA), which outlined a 10-year mine plan and robust economics. It showed a pre-tax internal rate of return (IRR) of 32% (after-tax 24%) and net present value (NPV) of C$201 million (C$128 million after-tax) using long term consensus metal prices of US$0.91 per pound lead, US$1.09 per pound zinc and US$16.50 per ounce of silver and a US$:A$ exchange rate of US$0.75. Pre-production capex was put at C$170 million. How is it doing: Due to the coronavirus pandemic, which has dominated 2020 so far, the Queensland government waived the rent on mining firms' exploration permits and the EPM26210 permit, where Pegmont is hosted and therefore Vendetta, has benefitted from this relief. Meanwhile, in February this year, the firm reported what it called "highly encouraging" results from material sorting test work at the Pegmont project. In simple terms, the  X-ray transmission (XRT) sorter can easily differentiate between high-grade material and lower density waste, thus potential plant feed can be screened prior to grinding and flotation. On the financing front, in July, Vendetta closed a final tranche of a total C$811,572 non-brokered private placement to further advance the project. The group also told investors that Jasmine Lau had resigned as its chief financial officer (CFO), with Alastair Brownlow replacing her. Notably, there was drilling news for Pegmont released in August this year as it emerged Vendetta had been awarded a A$200,000 grant from the Queensland government, which will allow it to drill test the Pegmont Deeps zinc target at the property. The project was one of 25 high-quality projects recognised and the firm secured the maximum funding available under the state government's Collaborative Exploration Initiative (CEI). It will help fund the drilling two 700 metre deep holes, designed to test whether the Pegmont host sequence repeats at depth, it added. In the same statement, Vendetta also revealed it was preparing a coronavirus (COVID-19) operating procedure, in line with Australian Federal and Queensland State Government rules to allow drilling to commence and announced a private placement of up to 6.25 million units at C$0.08 each to raise gross proceeds of C$500,000. Inflection points: Start of drilling at Pegmont Deeps zinc target Metals prices moves Other newsflow What the boss says: Peter Voulgaris, Vendetta director and project manager, said of the Queensland government grant that it was a "welcome endorsement of the potential that remains at Pegmont". "While the company's focus has been, and remains value-driven resource development, this Queensland Government initiative allows us the flexibility to step away from that development focus and test a very exciting conceptual structural target. If successful, the potential resource expansion has been enhanced significantly," he said.