Superior Lake kicks off key study at Canadian zinc play

By Megan Graham. Published at May 10, 2018, in Small Caps

Superior Lake Resources Limited (ASX:SUP) has today informed the market of the commencement of a Stage 1 preliminary engineering study for the re-development of the Pick Lake and Winston Lake mines — which make up the company’s overall zinc-copper Superior Lake Project.

SUP asked three engineering companies to provide proposals based on an initial scope of work generated by the company, including the following key programs:

  • A dewatering strategy for the mines including cost and schedule estimates;
  • A high-level cost estimate to re-equip the mine in preparation for start-up;
  • A high-level cost estimate for the installation of a new mill / concentrator and associated infrastructure;
  • A schedule of permitting and licensing requirements for the development and start-up of the mines.

According to the company, the purpose of the preliminary engineering study is to allow the following concepts to be investigated and considered as part of the overall re-start strategy: mine dewatering (options to dewater the mine in its entirety or partial dewatering); mine re-equipping (establishment of a preferred mining methodology followed by options to re-establish the infrastructure); mill (a capital cost estimate generated from previous mill design); and licensing (the permitting and licencing requirements from the Ontario provincial and Canadian federal regulator).

All three engineering companies were considered before SUP chose Nordmin Engineering Ltd as the preferred consultant for the work. Nordmin’s head office is located in relatively close by Thunder Bay. This fact, combined with Nordmin’s methodology and philosophy closely aligning with that of SUP’s, prompted the company to make the selection. In addition, a number of Nordmin’s staff have had previous experience at Winston Lake.

David Woodall, Chief Executive Officer, commented on today’s news: “This program of work will provide the necessary information to allow the company to develop a re-start strategy for the Project that will have a solid basis and provide confidence in Superior’s abilities to bring the mines back into operation in the most efficient manner.”

It should be noted that SUP is an early stage play and anything can happen, so seek professional financial advice if considering this stock for your portfolio.

An updated list of resource and exploration targets will come from the new 3D geology model that is currently being produced as part of the Stage 1 program. This combined with the selection of an engineering consultant enables SUP to develop a preferred restart plan that can be used as the basis for a combined Pre-feasibility / Feasibility Study that will occur as part of the next stage.

Superior lake resources project timeline

SUP’s timeline for Stage 1 at the Superior Lake Zinc-Copper Project.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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