Canada

Sugar Zone Expansion Project

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Overview

Mine TypeUnderground
StagePermitting
Commodities
  • Gold
Mining Method
  • Longhole open stoping
  • Longitudinal retreat
Backfill type ... Lock
Mine Life... Lock
SnapshotThe Sugar Zone mine is high grade underground mine.

On January 20, 2021, Positive Feasibility Study Results for Expansion to 1,200 tpd were announced.

The expansion can be implemented with amendments to the closure plan, amendments to existing operating permits and a construction permit that is issued following an engineering review, all of which are granted by provincial governmental agencies. There is no requirement for any federal permits or new environmental assessment.
Related AssetSugar Zone

Owners

SourceSource
CompanyInterestOwnership
Silver Lake Resources Ltd. 100 % Indirect
Silver Lake Resources Limited, through its subsidiary Silver Lake Ontario Inc., owns a 100% interest in the Sugar Zone mine.

Contractors

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Deposit type

  • Vein / narrow vein
  • Mesothermal
  • Orogenic
  • Porphyry

Summary:

In the Superior Province, major gold deposits are spatially associated with large-scale regional deformation zones and associated Timiskaming-type metasediments (LeClair et al., 1993). These regional structures are interpreted as zones of transpressive terrain accretion.

Typical greenstone-hosted, mesothermal gold deposits are associated with structurally controlled quartz-carbonate veins hosted by moderately to steeply dipping shear zones displaying brittle to ductile deformational features in low-grade (greenschist) metamorphic rocks. In contrast, the Sugar Zone gold deposit is hosted in medium-metamorphic-grade (amphibolite) rocks that exhibit ductile deformation. The Sugar Zone host rocks have been intruded by felsite and porphyry sills, and exhibit strong association of gold with silica-sulphide-potassic alteration.

The Sugar Zone is interpreted as an orogenic, mesothermal gold deposit located in the SDZ, which is an area of high strain. The auriferous zones of the Sugar zone are interpreted to be highly strained altered mafic flows, intermediate to felsic porphyritic intrusions, and boudinaged auriferous quartz veins. Alteration consists primarily of silicification, biotization, and sulphidization. Hydrothermally altered basalt is recognized as a key component of mineralized zones. Commonly in contact with porphyries within mineralized zones, it is strongly silicified biotitic basalt containing significant amounts of pyrrhotite, and pyrite.

The Upper, Lower, and Footwall mineralized subzones range in thickness from 0.2 m to 6 m, strike at 140° and dip between 65° and 75° to the west.

The mineralized Upper, Lower, and Footwall Subzones of the Sugar Zone lie within the SDZ. They occur within a highly strained assemblage consisting of variously altered mafic volcanic flows, intermediate porphyritic intrusions, and boudinaged auriferous quartz veins. The three zones range in true thickness from about 0.2 to 6 m, and are separated by 20 to 30 m of un-mineralized metavolcanics.

Each Subzone is made up of one or more porphyritic intrusions, flanked by altered basalt, and hosting conformable quartz veins. Alteration within the mafic metavolcanic portions of the subzones consists primarily of silicification that occurs both as pervasive alteration, and as quartz veining, diopsidation, and biotization. The porphyry units of the zones exhibit biotite and silica alteration, but lack diopside alteration.

Gold mineralization mostly occurs in quartz veins, stringers, and quartz-flooded zones predominantly associated with porphyry zones, porphyry contact zones, hydrothermally altered basalts and, rarely, weakly altered or unaltered basalt within the Upper, Lower, and Footwall Subzones. Fine to coarse-grained specks and blebs of visible gold are common in the Sugar Zone quartz veins, usually occurring within marginal, laminated, or refractured portions of the veins. The visible gold itself is often observed to be concentrated within thin fractures, indicating some degree of remobilization. Quartz veins and floods also contain varying amounts of pyrrhotite, pyrite, chalcopyrite, galena, sphalerite, molybdenite, and arsenopyrite. The presence of galena, sphalerite, and/or arsenopyrite is a strong indicator of the presence of visible gold. Pyrite, chalcopyrite, and rarely molybdenite form a minor component of total sulphides, and do not appear to be directly related to the presence of gold mineralization.

The Middle Zone, located between the Sugar and Wolf Zones, may represent the extension of the Sugar Zone to the north. The zone occurs within a highly strained package of massive and pillowed flows exhibiting various degrees of biotite alteration. Gabbro sills and flows are common about the zone. Similar to the Sugar Zone, a weak Upper and Footwall Zone may locally be developed. The zone typically ranges from 0.2 to 6 m in thickness. Middle Zone gold mineralization is often associated with quartz veins and veinlets hosted within a package of altered mafic volcanic and feldspar porphyry. The gold mineralization is often accompanied by 1%–5% pyrrhotite, and pyrite with local sections of minor galena and sphalerite. Galena is normally indicative of higher grades and the presence of visible gold.

The auriferous Wolf Zone lies along strike of the Sugar Zone, and may represent the northern extension of the SDZ. It is defined as highly strained packages consisting of variously altered mafic volcanic flows and gabbros. The zone ranges in true thickness from 0.2 to 3.0 m. The Wolf Zone is made up of highly sheared mafic metavolcanics and a network of intrusive, intermediate quartz-feldspar porphyry dykes/sills. Alteration in the mafic volcanic and gabbro units consists mainly of silicification (both pervasive and quartz veining), diopside alteration, and magnesium-rich, brown biotite alteration. Alteration within the intermediate porphyry units consist of mostly silicification, with small amounts of magnesium-rich brown biotite, and no diopside. The zone is observed in trenches to pinch and swell over 30 m. Wolf Zone gold mineralization mostly occurs in quartz veins, stringers, and quartz-flooded zones predominantly associated with porphyry zones and hydrothermally altered basalts and gabbros. Fine-grained specks of visible gold are occasionally observed in the Wolf Zone quartz veins. The visible gold itself is often observed to be concentrated within thin fractures, indicating some degree of remobilization. Quartz veins and floods also contain varying amounts of pyrrhotite, pyrite, and occasional galena. The presence of galena is a strong indicator of the presence of visible gold. Pyrite and pyrrhotite form most of the total sulphides, but do not appear to be directly related to the presence of gold mineralization.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityUnitsAvg. AnnualLOM
All production numbers are expressed as metal in doré.

Operational metrics

Metrics
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Total tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2021 study.

Production Costs

CommodityUnitsAverage
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All-in sustaining costs (AISC) Gold USD  ....  Subscribe
Assumed price Gold USD  ....  Subscribe
* According to 2021 study / presentation.

Operating Costs

Currency2021
UG mining costs ($/t milled) CAD 122 *  
Processing costs ($/t milled) CAD  ....  Subscribe
G&A ($/t milled) CAD  ....  Subscribe
Total operating costs ($/t milled) CAD  ....  Subscribe
* According to 2021 study.

Project Costs

MetricsUnitsLOM Total
Expansion CapEx $M CAD  ......  Subscribe
Sustaining CapEx $M CAD  ......  Subscribe
Closure costs $M CAD  ......  Subscribe
Total CapEx $M CAD  ......  Subscribe
UG OpEx $M CAD  ......  Subscribe
Processing OpEx $M CAD 122
Backfill costs $M CAD  ......  Subscribe
Transportation (haulage) costs $M CAD 35.7
G&A costs $M CAD 162.5
Total OpEx $M CAD  ......  Subscribe
Mining Taxes $M CAD  ......  Subscribe
Income Taxes $M CAD  ......  Subscribe
Net revenue (LOM) $M CAD  ......  Subscribe
EBITDA (LOM) $M CAD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M CAD  ......  Subscribe
After-tax Cash Flow (LOM) $M CAD  ......  Subscribe
Pre-tax NPV @ 5% $M CAD  ......  Subscribe
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Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Mar 5, 2021
....................... Subscription required ....................... Subscription required Subscription required Mar 5, 2021
....................... Subscription required ....................... Subscription required Subscription required Nov 12, 2023

Total WorkforceYear
...... Subscription required 2021

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