Zinc development company files bankable feasibility study
Ontario-focused Superior Lake Resources announced the results of its bankable feasibility study on Wednesday, showing a net present value of $157M and an internal rate of return of 31% for its zinc project.
The new bankable feasibility study estimated an initial capital expenditure of US$86 million to get started. Mine life would be nine years.
David Woodall, CEO of Superior Lake, commented in a news release.
"The purpose of this BFS was to validate Superior Lake becoming a viable zinc operation," said Woodall. "This was clearly achieved, as the Study demonstrates the Project will generate strong cash flow throughout the nine-year mine life. The driving factor for the result was the low AISC (LOM - US$0.47 / lb), which, if brought into production, would rank the project in the lowest quartile of producers globally."
The Superior Lake project was discovered in 1879 and has been mined intermittently since.
"The development of the Project has been completed with the future in mind, as the decline will be in close proximity to each of the major geophysical anomalies that were identified in the 2019 exploration program, all of which are expected to 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 off-take, equity and debt financing as well as completing an Optimisation Study whereupon a decision to mine will be made."