Superior Lake Resources has released a bankable feasibility study (BFS) for the Superior Lake zinc project in Ontario, Canada that backs the site’s prospects as a high-margin asset.
The BFS for the site has estimated a nine-year mine life with average earnings before interests, tax, depreciation and amortisation (EBITDA) of US$36 million ($50 million).
It shows the project’s plant has the capacity to produce 325,000 tonnes per year, with an average zinc grades of 13.7 per cent and recovery of 96 per cent.
The BFS has revealed excellent project economics with all-in sustaining costs (AISC) of US$0.47 a pound of zinc.
Superior Lake’s development of the project will be enhanced by existing infrastructure from previous mining and processing operations.
The BFS has been supported by a maiden reserve of 1.96 million tonnes of ore at 13.9 per cent zinc, 0.6 per cent copper, 0.2 grams a tonne gold, and 26.2 grams a tonne silver.
Chief executive officer David Woodall said the low AISC would rank the project in the lowest quartile of zinc producers globally.
He added that Superior Lake was focused on the future, with the mine close to other geophysical anomalies identified in the 2019 exploration program.
“A discovery at any of these anomalies would significantly change the parameters of the project both in terms of mine life as well as production profile. In the coming months, the company will focus on finalising off-take, equity and debt financing as well as completing an optimisation study whereupon a decision to mine will be made,” Woodall said.
The operations was previously closed in 1999 due to low zinc prices of US$0.42 a pound. This month’s average zinc prices have been US$1.03 a pound.