Nevada Zinc has initiated a strategic partnership with BelZinc, capitalizing on the cutting-edge zinc processing technology developed by the latter. This collaborative venture is poised to streamline the production of top-tier Zinc Oxide, leveraging resources from the Lone Mountain mine located in Nevada, United States. This dynamic partnership empowers Nevada Zinc with exclusive access to BelZinc's proprietary zinc processing technology, expertly engineered to transform non-sulphide zinc ore into premium-quality Zinc Oxide.

The impetus driving this innovative endeavor is rooted in the ambition to curb emissions associated with smelting operations. The central objective revolves around minimizing the ecological footprint linked to the smelting process. Nevada Zinc's strategic decision to harness BelZinc's technological prowess for Zinc Oxide production stems from its potential to yield positive environmental outcomes. Preliminary samples dispatched to European smelters have already exhibited encouraging results, reinforcing the efficacy of this approach.

In reciprocation for gaining access to the Zinc Oxide production technology, Nevada Zinc has extended a lucrative proposition to BelZinc—a right of first refusal for involvement in upcoming projects spearheaded by BelZinc in the North American region. This comprehensive agreement also encompasses the issuance of 12 million shares from Nevada Zinc to BelZinc, translating into a substantial ownership stake of 10.8% within the company. Furthermore, BelZinc stands to accrue a fixed and variable licensing fee for each metric ton of Zinc Oxide produced through the utilization of this cutting-edge technology.

Mike Wilson, the esteemed CEO of Nevada Zinc, underscored a salient contrast between the magnitude of the Zinc Oxide market and the zinc sulphate micronutrient market—a domain Nevada Zinc has been diligently focusing on since 2021. Wilson emphasized that the right of first refusal not only aligns with Nevada Zinc's strategic direction but also positions the company as an influential catalyst in driving BelZinc's expansion initiatives across North America.

A coherent convergence of strategic objectives is evident in the plans of both Nevada Zinc and BelZinc. The roadmap they have charted entails the unveiling of a comprehensive Preliminary Economic Assessment (PEA) by the culmination of the fourth quarter this year. Concurrently, their concerted efforts are directed toward the completion of a comprehensive pre-feasibility study by the latter part of 2024. This ambitious agenda is set in motion with the launch of a definition and exploratory drill program at the Lone Mountain site, slated to commence in the first quarter of 2024. The overarching goal of this symbiotic collaboration is multifaceted: to unlock the latent potential embedded within the Lone Mountain mine and to establish a substantive legacy by advancing sustainable practices within the domain of zinc production.

In summary, the collaboration between Nevada Zinc and BelZinc represents a profound step toward revolutionizing Zinc Oxide production. With a profound commitment to environmental stewardship and technological innovation, this partnership not only has the potential to reshape industry practices but also embodies a pioneering spirit in the realm of sustainable resource utilization. Through their synergistic efforts, Nevada Zinc and BelZinc are poised to redefine the trajectory of zinc production while championing ecological consciousness within the broader context of industrial progress.