Superior Lake's BFS proves positive
PERTH (miningweekly.com) – A bankable feasibility study (BFS) into the Superior Lake base metals project, in Canada, has estimated that an initial capital investment of $86-million would be required to develop the 325 000 t/y operation.
Australia-based Superior Lake Resources on Wednesday reported that over the estimated nine-year mine life, the project would produce some 38 000 t/y of contained zinc and 1 400 t/y of contained copper at C1 costs of $0.35/lb of zinc.
The BFS estimated a pre-tax net present value of $157-million and an internal rate of return of 31%, with earnings before interest, taxes, depreciation and amortization at full production reaching $59-million a year.
The study's outcomes compares with a restart study, completed in October last year, that outlined an operation near Thunder Bay, Ontario, that would produce 46 000 t/y of contained zinc metal with AISC of $0.51/lb.
“The purpose of this BFS was to validate Superior Lake becoming a viable zinc operation. This was clearly achieved as the study demonstrates the project will generate strong cash flow throughout the nine year mine life,” said Superior Lake CEO David Woodall.
“The driving factor for the result was the low all-in sustaining cost (AISC) of $0.47/lb, which if brought into production, would rank the project in the lowest quartile of producers globally.”
Woodall noted that potential existed to expand the mine life, with the mine decline in close proximity to previously identified geophysical anomalies, which will be tested in the near future.
“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 offtake, equity and debt financing, as well as completing an optimisation study whereupon a decision to mine will be made.”
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