Explorer Superior Lake hits a whole lotta zinc in Canada
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Canada-based explorer Superior Lake Resources has hit up to 25.2 per cent zinc at its namesake project in the area’s first drilling campaign for more than 20 years.
Fresh drilling results included 1.56m at 20.12 per cent zinc and 0.8 per cent copper, as well as 0.35m at 25.2 per cent zinc and 0.18 per cent copper.
The explorer’s share price was steady at 3c in morning trade.
Superior Lake (ASX:SUP) told investors the project was already one of the highest-grade zinc deposits globally, with a JORC resource of 2.15 million tonnes at 17.7 per cent zinc, 0.9 per cent copper, 0.4 grams per tonne gold, and 33.5 grams per tonne silver.
An orebody over 12 per cent zinc is usually considered high grade.
Superior Lake Resources – formerly known as Ishine Resources International – picked up the historic mining area at Superior Lake earlier this year.
The company said the Pick Lake zinc mine operated briefly in 1998, producing 173,000t of zinc ore before the operation was suspended in December that year due to the poor zinc prices of about $US0.42 per pound.
The zinc spot price is currently about $US1.17 per pound.
An October restart study reckons the project could produce about 46,000 tonnes per year zinc over an initial 6.5 year mine life, at an all-in-cost of about $US0.51 per pound.
Superior Lake wants to complete a Definitive Feasibility Study (or DFS) on the project by mid next year.
“The Superior Lake Zinc Project has the potential to be in the lowest-cost quartile of zinc producers globally, given the low estimated operating costs and low estimated initial capital cost due to the infrastructure already in place,” Superior Lake Chief Executive Officer David Woodall said.
“Further discoveries will improve our economics.”
The explorer — which isn’t making any money – had about $5.2 million in the bank at the end of September.