Superior Lake Resources Ltd (ASX:SUP) has identified a new footwall zone and confirmed high-grade mineralisation in drilling at its Superior Lake Zinc Project in Ontario, Canada.
The results have the potential to increase the project’s 6.5-year mine life, lift production and lower costs.
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Superior chief executive officer David Woodall said the results were an outstanding start to the exploration program.
Woodall said: “Assuming similar success from the remaining hole in the current program, we are confident of defining an initial resource at Mid-Pick, as well as increasing the project’s mine life.
“The Superior Lake Zinc Project has the potential to be in the lowest-cost quartile of zinc producers globally.
“[This is because of] the low estimated operating costs and low estimated initial capital costs due to the infrastructure already in place.
“Further discoveries will improve our economics.”
Potential to increase resource
A drill hole in the Mid-Pick zone outside of the current JORC resource assayed 1.56 metres at 20.12% zinc and 0.8% copper.
The intersected footwall zone produced an assay of 0.35 metres at 25.2% zinc and 0.18% copper, with this area also outside of the current JORC-defined zone.
Further drilling is ongoing to define the new mineralised areas which have the potential to increase the project’s overall mineral resource estimate.
The project’s Pick Lake deposit has a JORC resource of 2.15 million tonnes at 17.7% zinc and 0.9% copper.
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An October restart study forecasted the project will produce around 46,000 tonnes per year of zinc with an all-in sustaining cost (AISC) of 51 US cents a pound.
Along with the first drill program, a litho-geochemistry and structural review of the project identified five high-priority targets.
The targets will be tested to 1,000 metres with a surface geophysics program scheduled for February.
The company is aiming to complete a definitive feasibility study for the project by the middle of 2019.