PERTH (miningweekly.com) – ASX-listed Superior Lake will undertake a definitive feasibility study on its namesake project, which will be completed by mid-2019, after the restart study demonstrated that the project, in Canada, proved positive.
The study estimated that some $75-million would be required to restart the operation, with plant throughput estimated at 1 000 t/d to produce 88 000 t/y of zinc concentrate and 6 700 t/y of copper concentrate over a mine life of six-and-a-half years.
The pre-tax net present value of the Superior Lake project has been estimated at $164.8-million, while the internal rate of return has been estimated at $118.9-million.
“The restart study clearly demonstrates the Superior Lake project is one of the leading zinc development assets globally today,” said CEO David Woodall.
“The standout features of the study were the exceptionally low estimated operating costs, which is driven by the high-grade ore, as well as the low estimated initial capital costs.”
Life-of-mine operating costs have been estimated at $0.51/lb.
Woodall said that while the existing resource at Superior Lake provided an excellent platform for the company to join the ranks of zinc producers in the coming years, the company believed that the exploration potential, untested for more than 20 years, held significant value.
Further exploration will now be conducted at the base metals project, while service providers would be selected to conduct the definitive feasibility study. The company will also start the permitting process for the Superior Lake project.