Nexa Resources Announces Aripuanã Ramp Up and Exploration Program Update

LUXEMBOURG / ACCESSWIRE / July 5, 2022 / Nexa Resources S.A. ("Nexa Resources" or "Nexa" or the "Company") (NYSE:NEXA) is pleased to inform that ramp-up activities at the Aripuanã world-class polymetallic mine have safely started and the demobilization of construction teams is underway.

Aripuanã is located in the state of Mato Grosso, Brazil, and is one of the industry's most sustainable mining projects, with nearly 100% of water recirculation and the use of dry stacking and cemented paste backfill for the waste material.

Ignacio Rosado, President and Chief Executive Officer ("CEO"), said, "We are very proud to announce that Aripuanã has reached the ramp-up phase, as expected. It is a remarkable accomplishment, and we would like to congratulate the entire team for their commitment to delivering the project.

Aripuanã is currently Nexa's largest investment in Brazil, which contributes to the social and economic development of the region. It is also one of the few zinc projects in the world and we are confident that it will be a low-cost and long-life mine operation. This is the third flagship mine in our asset portfolio, strengthening our unique position to meet the growing demand for zinc", concluded Mr. Rosado.

Ramp-up activities are currently focused on steadily increasing the plant throughput rate. With over 650kt of ore available in stockpiles, which is enough to cover six months of the estimated ramp-up curve, the milling capacity utilization rate is expected to reach an average of 30-40% in 3Q22 and 70-80% by December 2022. Full production is expected in 2Q23.

Following the commissioning performance stability plan, process knowledge, ore recovery and asset reliability, commercial production should be achieved by 4Q22.

Furthermore, the mine is already fully operational, and underground activities are focused on developing and preparing areas for mining operations and increasing mineral reserves with drilling in new areas, seeking operational stability during the entire operation. Mine development has also achieved the expected monthly output of 1,000 meters (100% of capacity).

2022 production guidance remains unchanged, and it is estimated at 14 to 23kt of zinc, 1.6-2.3kt of copper, 5.0-7.7kt of lead, and 0.3-0.5MMoz of silver, subject to risks around the ramp-up of a new mine, among other factors.

Aripuanã consists of three main mineralized zones - Arex, Link, and Ambrex - with an estimated average annual production of 70kt of zinc, 24kt of lead, 4kt of copper, 1.8Moz of silver, and 14.5koz of gold over a life-of-mine of 11 years, considering only the mineral reserves estimated under Regulation S-K 1300.