The Prairie Creek project is currently owned by Resource Capital Funds (“RCF”); RCF acquired NorZinc Ltd., the owner of the Prairie Creek project in December 2022.  Under the terms of the royalty, a 1.2% NSR royalty on the Prairie Creek project is payable to Sandbox on a quarterly basis from the minerals (which includes all precious and base metals) produced from the property.

The Prairie Creek project is located in the Northwest Territories, Canada. The property is a high-grade zinc, silver, lead deposit which was built originally as the Cadillac Silver Mine in the early 1980s, but never put into operation.  The Prairie Creek project has extensive infrastructure in place including five kilometres of underground workings, a 1,000 tonnes per day mill, heavy duty and light duty surface vehicles, surface exploration diamond drill rig, camp accommodation, maintenance and water treatment facilities and a 1,000 metre gravel airstrip.  

Based on the results of a 2021 preliminary economic assessment, Prairie Creek will have a 20 year mine with a throughout rate of 2,400 tonnes per day and average annual payable zinc equivalent (“ZnEq”) production of 261 million pounds.  The 2021 Mineral Resource Estimate for the Prairie Creek Project includes 9.8 million tonnes of total Measured & Indicated Resources containing 22.7% ZnEq and 6.4 million tonnes of total Inferred Resources containing 24.1% ZnEq.  The above information is sourced from a Prairie Creek technical report with an effective date of October 15, 2021 and dated November 10, 2021, which can be found on Norzinc’s Ltd’s profile on www.sedar.com.