RESOURCES GROW SIGNIFICANTLY
CONTINUED EVIDENCE THAT PLUTONIC IS A LARGE
MINERALIZED SYSTEM WITH LONG TERM POTENTIAL
(In US Dollars unless otherwise
stated)
TORONTO, July 21, 2020 /CNW/ - Superior Gold
Inc. ("Superior Gold" or the "Company") (TSXV: SGI) is pleased
to announce the updated Mineral Reserve and Mineral Resource
estimates as at December 31, 2019 for
its Plutonic Gold Operations located in Western Australia, which are comprised of the
100%-owned Plutonic underground gold mine and 100%-owned Hermes
open pit gold project, along with the Company's interest in the
Bryah Basin joint venture.
Comparisons are made to the prior Mineral Reserve and Mineral
Resource estimates as described in the previously filed National
Instrument 43-101 (NI 43-101) report dated July 30, 2019.
Highlights of the 2019 Mineral Reserve and Resource
Estimates:
- 29% increase in Total Measured and Indicated Resources to 1.59
million ounces gold
- 55% increase in Total Inferred Resources to 2.82 million ounces
gold
Chris Bradbrook, President and
CEO of Superior Gold stated: "We are extremely pleased to be able
to provide this updated Mineral Reserve and Mineral Resource
estimate, which continues to deliver on our stated goal of
increasing resources, extending the mine life and maximizing the
potential of the Plutonic Gold Operations.
As announced in our Press Release dated May 12, 2020, because of the progress made with
the comprehensive Mineral Resource estimate for the Plutonic Gold
Operations ("Plutonic"), we decided to include it as part of our
annual Reserve and Resource estimate. The comprehensive Mineral
Resource estimate incorporates historic intersections encountered
outside of the main underground working areas which have not
previously been interpreted and included in a Resource statement.
We believe it is this comprehensive Mineral Resource estimate which
is the best indicator for the future of Plutonic and is continued
evidence that Plutonic is a large mineralized system with long term
potential.
This comprehensive Mineral Resource estimate was part of a
larger program of re-examining the geological modelling of the gold
mineralization at Plutonic. Historically, the Plutonic underground
mine has not mined to reserve grade, and one of the primary goals
of this latest Reserve and Resource estimation was to allow for
more predictive planning and improved production forecasts.
Prior Mineral Reserve and Resource estimations utilized open
block models and the Company inherited Reserve and Resource models
and estimates that required further evaluation and definition. Our
experience with the Plutonic mine has demonstrated that open block
models are not the most accurate method to identify the
distribution of mineralization, and tend to overestimate grade.
We continue to refine and improve our Mineral Reserve and
Resource estimation for Plutonic. This year's Reserve and Resource
estimates have utilized additional geologically constrained
wire-framed models which we believe better predict the grade and
distribution of the mineralization. As a result, whilst our Reserve
and Resource grades have declined, our confidence in the
distribution of the mineralization, and our expected ability to
mine to reserve grade, and therefore improved profitability, has
increased. Since we acquired Plutonic, our focus has been on better
understanding the mineralization through the upgrading of
pre-existing Inferred Mineral Resources to Measured and Indicated
and by adding Inferred Mineral Resources outside of that to
demonstrate that the Plutonic underground deposit remains open in
multiple directions including at depth. We are very pleased with
our progress in this respect.
We will continue our aggressive program of underground drilling
to both further upgrade Inferred Mineral Resources to Measured and
Indicated and outline new areas of mineralization. In particular,
we will focus on better defining and expanding the new high grade
mineralization which was announced in our Press Releases dated
December 10, 2019, February 10, 2020, June
17, 2020 and June 24, 2020 for
the Baltic, Baltic Deeps and
Indian Zones with intersections of up to 56.3 g Au/t over 15.10
metres (as announced on June 17, 2020
in the Press Release titled "Superior Gold Inc. Announces Best
Underground Exploration Intersection to Date Outside of Existing
Resources").
Additionally, given the substantial increase in Mineral
Resources, we will be examining the potential to increase the rate
of underground production."
Mineral Reserves as at December 31,
2019 were estimated using a long term gold price of
A$1,925 per ounce ($1,348 per ounce). Cut off grades for the Mineral
Reserves for Plutonic underground were 2-3 g Au/t (depending on
stoping area), and 0.4 g Au/t for the open pit areas. Dilution of
15% was factored into the estimation of underground Mineral
Reserves. Mineral Resources as at December
31, 2019 were estimated using a long term gold price of
A$2,150 per ounce ($1,505 per ounce). Cut off grades for the Mineral
Resource estimates were 1.50 g Au/t for underground and 0.40 g Au/t
for open pit.
Mineral Reserve Estimates
Table 1: Proven and Probable Mineral Reserves1
2
|
December 31,
2018
|
December 31,
2019
|
|
Tonnes
(millions)
|
Grade
(g Au/t)
|
Oz Au
(000's)
|
Tonnes
(millions)
|
Grade
(g Au/t)
|
Oz Au
(000's)
|
Underground
|
|
|
|
|
|
|
Proven
|
1.23
|
4.82
|
191
|
1.07
|
4.40
|
150
|
Probable
|
1.03
|
4.61
|
152
|
1.51
|
3.70
|
180
|
Total
|
2.26
|
4.73
|
343
|
2.58
|
4.00
|
330
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
Probable
|
1.51
|
1.32
|
64
|
1.35
|
1.10
|
50
|
|
|
|
|
|
|
|
Stockpiles
|
|
|
|
|
|
|
Proven
|
0.23
|
0.94
|
7
|
–
|
–
|
–
|
|
|
|
|
|
|
|
Grand
Total
|
4.00
|
3.22
|
414
|
3.93
|
3.00
|
380
|
|
1 Mineral Reserves are included
within the Mineral Resources.
|
2 All
figures are rounded and use significant figures. Subtotals, totals,
and weighted averages are calculated from quantities before
rounding.
|
The underground grade declined relative to the year end 2018
Mineral Reserves as a result of the change from the prior use of
open block models to those based on geologically controlled
wire-framed models. Additionally the increase in the allowance for
underground dilution to 15% (compared to 10% used for the
December 31, 2018 reserve estimate)
negatively impacted the reserve grade compared to the prior
year.
Mineral Resource Estimates
Table 2: Measured and Indicated Mineral Resources1
2
|
December 31,
2018
|
December 31,
2019
|
|
Tonnes
(millions)
|
Grade
(g Au/t)
|
Oz Au
(000's)
|
Tonnes
(millions)
|
Grade
(g Au/t)
|
Oz Au
(000's)
|
Underground
|
|
|
|
|
|
|
Measured
|
1.78
|
7.66
|
437
|
3.69
|
5.50
|
650
|
Indicated
|
2.95
|
5.94
|
564
|
5.54
|
4.60
|
820
|
Total
|
4.73
|
6.59
|
1,001
|
9.23
|
5.00
|
1,470
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
Measured
|
|
|
|
|
|
|
Indicated
|
4.70
|
1.46
|
221
|
2.69
|
1.40
|
120
|
Total
|
4.70
|
1.46
|
221
|
2.69
|
1.40
|
120
|
|
|
|
|
|
|
|
Stockpiles
|
|
|
|
|
|
|
Measured
|
0.23
|
0.94
|
7
|
–
|
–
|
–
|
|
|
|
|
|
|
|
Grand
Total
|
9.65
|
3.96
|
1,229
|
11.92
|
4.20
|
1,590
|
|
1 Mineral Resources are inclusive of
Mineral Reserves.
|
2 All
figures are rounded and use significant figures. Subtotals, totals,
and weighted averages are calculated from quantities before
rounding.
|
Table 3: Inferred Mineral Resources1
|
December 31,
2018
|
December 31,
2019
|
|
Tonnes
(millions)
|
Grade
(g Au/t)
|
Oz Au
(000's)
|
Tonnes
(millions)
|
Grade
(g Au/t)
|
Oz Au
(000's)
|
Underground
|
|
|
|
|
|
|
Inferred
|
10.45
|
4.90
|
1,645
|
19.45
|
4.20
|
2,640
|
|
|
|
|
|
|
|
Open
Pit
|
|
|
|
|
|
|
Inferred
|
4.00
|
1.40
|
180
|
4.73
|
1.20
|
180
|
|
|
|
|
|
|
|
Grand
Total
|
14.45
|
3.93
|
1,825
|
24.19
|
3.60
|
2,820
|
|
1 All
figures are rounded and use significant figures. Subtotals, totals,
and weighted averages are calculated from quantities before
rounding.
|
Open Pit Mineral Reserves and Resources
The open pit Reserves and Resources are for Hermes, Hermes South and Plutonic East only. The
estimations for the Workshop, Salmon and Trout pits are
ongoing.
Technical Reports
An updated NI 43-101 Technical Report effective December 31, 2019 will be available on the
Company's SEDAR profile at www.sedar.com within 45 days of
this press release.
Qualified Persons
Stephen Hyland is a Fellow of the
Australasian Institute of Mining and Metallurgy (FAusIMM) and a
member of the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) and a "qualified person" within the meaning of
NI 43-101, and has approved disclosure of the 'Mineral Resource
estimates' and related technical information and data. Mr. Hyland
is employed by Hyland Geological and Mining Consultants (HGMC) and
has been engaged on the basis of professional association between
client and independent consultant. He is independent of the Company
within the meaning of NI 43-101.
Matthew Keenan (BEng BCom MSc) is
a member of the AusIMM (CP) and a "qualified person" within the
meaning of NI 43-101, has approved disclosure of the underground
Mineral Reserve estimates' technical information and data. Mr.
Keenan is an employee of Entech Pty Ltd who were engaged by the
Company to assist in the estimate and design of the Mineral
Reserves for the underground Plutonic Gold Mine based on the
Mineral Resource estimates as of December
31, 2019. He is independent of the Company within the
meaning of NI 43-101.
Ashutosh Srivastava B. Tech.
(Mining Engineering), is a Fellow of the Australasian Institute of
Mining and Metallurgy (FAusIMM) and a "qualified person" within the
meaning of NI 43-101, has approved disclosure of the open pit
Mineral Reserve estimates' technical information and data. Mr.
Srivastava is an employee of Superior Gold Inc. as Alternate Quarry
Manager who was tasked by the Company to assist in the estimate and
design of the Mineral Reserves for the open-pit Plutonic Gold Mine
based on the Mineral Resource estimates as of December 31, 2019. He is not independent of the
Company within the meaning of NI 43-101.
As detailed above, with the exception of the open pit Mineral
Reserve estimates, The Qualified Persons who have approved the
disclosure of the sections of the Technical Report referred to
above and the scientific and technical information elsewhere in
this press release are independent of the Company within the
meaning of NI 43-101.
Reliability of Reserve and Resource Estimates
The Technical Report does not form the basis of a feasibility
study or a pre-feasibility study under the Canadian Institute of
Mining, Metallurgy and Petroleum's "CIM Definition Standards for
Mineral Reserves and Mineral Resources" incorporated by reference
into NI 43-101. As an operating mine, the Plutonic Gold Mine is
supported by information that exceeds the accuracy expected from a
feasibility study.
Statements relating to Mineral Reserves or Mineral Resources are
deemed to be forward-looking information as they involve the
implied assessment, based on certain estimates and assumptions that
the Mineral Reserves and Mineral Resources described can be
profitably mined in the future. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability. The
Company's Mineral Resources and Mineral Reserves estimates
described in this press release are only estimates and no assurance
can be given that the anticipated tonnages and grades will be
achieved, that the indicated level of recovery will be realized or
that Mineral Reserves will be mined or processed profitably.
Mineral Reserve and mineral Resource estimates may require downward
adjustments or revisions based on gold price fluctuations, grades,
further development activity, increased production costs or reduced
recovery rates, new information or modelling adjustments, changes
to laws and regulations affecting operating costs and the fiscal
environment. If actual Mineral Reserves and Mineral Resources are
less than current estimates, the Company's results of operations or
financial condition may be materially and adversely affected.
About Superior Gold
Superior Gold is a Canadian based gold producer that owns 100%
of the Plutonic Gold Operations located in Western Australia. The Plutonic Gold
Operations include the Plutonic underground gold mine, which is a
producing underground operation with a central mill, the Hermes
open pit projects and an interest in the Bryah Basin joint venture.
Superior Gold is focused on expanding production at the Plutonic
Gold Operations and building an intermediate gold producer with
superior returns for shareholders.
Forward Looking Information
This press release contains "forward-looking information" within
the meaning of applicable securities laws that is intended to be
covered by the safe harbours created by those laws.
"Forward-looking information" includes statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and
unknown risks, uncertainties and other factors which may cause the
actual plans, intentions, activities, results, performance or
achievements of the Company to be materially different from any
future plans, intentions, activities, results, performance or
achievements expressed or implied by such forward-looking
information. See "Risk Factors" in the Company's prospectus dated
February 15, 2017 filed on SEDAR at
www.sedar.com for a discussion of these risks. In addition, The
Company is exposed to outbreaks or threats of outbreaks of viruses,
other infectious diseases or other similar health threats,
including the novel coronavirus ("COVID-19") outbreak, which could
have a material adverse effect on the Company by causing
operational and supply chain delays and disruptions, labour
shortages, shutdowns, the inability to sell gold, capital markets
volatility or other unknown but potentially significant impacts.
The Company cannot accurately predict what effects these conditions
will have on the Plutonic Gold Operations or the financial results
of the Company, including uncertainties relating to travel
restrictions to the Plutonic Gold Operations or otherwise and
business closures that have been or may be imposed by governments.
If an outbreak or threat of an outbreak of a virus or other
infectious disease or other public health emergency occurs, it
could have a material adverse effect on the Company's business,
financial condition and results of operations.
The Company cautions that there can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, investors should not
place undue reliance on forward-looking information. Except as
required by law, the Company does not assume any obligation to
release publicly any revisions to forward-looking information
contained in this press release to reflect events or circumstances
after the date hereof.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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SOURCE Superior Gold