INTERSECTIONS INCLUDE 13.7 G/T OVER 8.8
METRES and 52.7 G/T OVER 1.0 METRE
TORONTO, March 1, 2021 /CNW/ - Superior Gold
Inc. ("Superior Gold" or the "Company") (TSXV: SGI) is pleased
to announce positive drill results from its new underground diamond
drill program which commenced in December
2020 at its 100%-owned Plutonic Gold mine in Western
Australia.
Results are provided for seven drill holes for a total of 1,372
metres of drilling. Drilling during December 2020 and January
2021 was focused on the northwest of the Baltic zone which has yet to be fully drill
tested.
KEY FINDINGS
- Drill hole UDD23656 intersected 13.7 g/t gold over 8.8
metres
- Drill hole UDD23653 intersected 52.7 g/t gold over 1.0
metre
- Mineralization extended 100 metres outside of current Mineral
Resources, but within 50 metres of existing infrastructure
- Results support the Company's strategy of opening a new Western
Mining Front at Plutonic underground
The location of this drilling is shown in Figures 1-3
below. The intersections are shown in Table 1 below.
Reported intersections are over a minimum downhole width of
0.30 metres (0.20 metres true width).
Tamara Brown, Interim CEO of
Superior Gold stated: "Today's drill results are very promising.
We believe they demonstrate the continuation of a high-grade
mineralized zone extending along the western front of the Plutonic
orebody from the Indian zone, 350 metres down to the Baltic zone. These intercepts are
outside of existing Mineral Resources, but are within only 50
metres of existing infrastructure and can therefore be accessed
with minimal capital. Encouragingly, it is worth noting that
all of the drill holes completed to target depth hit significant
intercepts.
It is also important to note that these results support a new
theory that mineralization at Plutonic is controlled by northwest
trending faults, both at a macro and micro level, and specifically
that these faults control where the concentration of high-grade
gold is deposited. Drilling was completed over a strike length and
vertical extent of approximately 100 metres by 200 metres,
respectively. Mineralization remains open both up and down dip and
along strike. These results continue to illustrate the
prospectivity at Plutonic and highlight the potential to expand
mineralization west of the Indian and Baltic zones and further extend the mine
life.
The western extensions of the Indian and Baltic zones are key components of our current
strategy to expand into new mining fronts, improve our mining
grades and productivity, and reduce our reliance on remnant
mining. Although assays have been delayed due to backlogs at
local laboratories, we look forward to releasing ongoing results
from our revitalized exploration program throughout the course of
2021."
EXTENSION OF THE WESTERN MINING FRONT
Superior Gold's mine exploration program is designed to target
extensions of known high-grade mineralization, close to existing
infrastructure but outside of existing Mineral Resources, in order
to open new mining fronts and reduce reliance on remnant
mining. Although there exist significant historical
high-grade intercepts across the large mineralized system, the
Company is currently focused on expanding two key areas to open new
mining fronts, being: 1) The Western Mining Front (along the
Caspian, Indian and Baltic zones) and 2) The Baltic Gap as shown
in Figure 4.
The Western Mining Front extends approximately 1.2 kilometres
along the western edge of the Caspian, Indian and Baltic zones of the Plutonic underground mine
and remains open, with several historic high-grade intercepts
confirming mineralization continuity outside of Mineral Resources,
as shown in Figure 4.
Drilling in 2020 identified significant high-grade
mineralization in the northwest of the Indian zone, including 56.3
g/t gold over 15.1 metres (hole UDD22011) (refer to the News
Release dated June 17, 2020).
The Company believes that today's drill results demonstrate
the northwest extension of these high-grade bands of mineralization
100 metres along the western extension of the Baltic zone (Figure 2). This opens an
area approximately 100 metres by 200 metres of potential new
high-grade, stacked lode mineralization. Multiple downhole
intercepts confirm typical Plutonic mineralization, being a
high-grade stacked lode system providing for more ounces per square
metre in the area with all holes hitting significant intercepts.
These results are in close proximity to existing infrastructure
(i.e. within 50 metres) which translates to minimal capital
expenditures required to infill drill and develop the area.
The Company has also recently completed a drilling program
in the Baltic Gap (with assays expected within a quarter)
and will shortly commence a drill program to follow up on
previous intercepts along the Western Mining Front including in the
Indian zone in the vicinity of hole UDD22011 which intersected 56.3
g/t gold over 15.1 metres, as previously indicated.
Table 1: Drill Results
Drill Hole
#
|
Easting (Mine
Grid)
|
Northing (Mine
Grid)
|
Drill
hole
collar
RL
(Mine Grid)
|
Dip
(degrees)
|
Azimuth
(degrees,
Mine
Grid)
|
End of
hole
depth
(m)
|
Downhole
From
(m)
|
Downhole
To
(m)
|
Downhole
Intersection
(m)
|
Au
(gpt)
uncut
|
Est True
Thickness
(m)
|
UDD23652
|
3595
|
11937
|
899
|
-25
|
195
|
201
|
173.5
|
174.1
|
0.6
|
6.6
|
0.4
|
UDD23653
|
3595
|
11937
|
899
|
-35
|
195
|
201
|
126.8
|
127.1
|
0.3
|
6.6
|
0.2
|
|
|
|
|
|
|
|
166.4
|
167.4
|
1.0
|
11.3
|
0.7
|
|
|
|
|
|
|
|
183.4
|
184.4
|
1.0
|
52.7
|
0.7
|
UDD23654
|
3595
|
11937
|
900
|
-25
|
205
|
200
|
165.1
|
167.0
|
1.9
|
20.2
|
1.7
|
UDD23655
|
3595
|
11937
|
900
|
-35
|
205
|
201
|
146.9
|
147.9
|
1.0
|
1.7
|
0.5
|
|
|
|
|
|
|
|
166.3
|
170.2
|
3.9
|
6.2
|
2.8
|
|
|
|
|
|
|
|
185.3
|
186.8
|
1.5
|
25.0
|
1.0
|
|
|
|
|
|
|
|
188.8
|
189.7
|
0.9
|
41.3
|
0.6
|
UDD23656
|
3595
|
11937
|
900
|
-26
|
214
|
201
|
151.6
|
160.5
|
8.8
|
13.7
|
7.7
|
UDD23657
|
3595
|
11937
|
899
|
-36
|
214
|
200
|
151.2
|
153.7
|
2.5
|
17.0
|
1.4
|
|
|
|
|
|
|
|
157.9
|
158.4
|
0.5
|
20.9
|
0.3
|
UDD23658
|
3594
|
11937
|
899
|
-44
|
214
|
167
|
Hole
Abandoned
|
Qualified Person
Scientific and technical information in this news release has
been reviewed and approved by Keith Boyle, P.Eng., Chief
Operating Officer of the Company, who is a "qualified person" as
defined by National Instrument 43-101 (NI 43-101).
Quality Control Protocols
Core is drilled NQ2 core diameter (50.7 mm). A combination of
whole core and half core (38%) were sampled. Gold results were
determined by ALS Minerals (Perth)
using fire assay fusion (40g charge, lead collection method with an
ICP finish). Drill program design, Quality Assurance/Quality
Control and interpretation of results are performed by qualified
persons employing a Quality Assurance/Quality Control program
consistent with NI 43-101 and industry best practices.
Standards, blanks and duplicates are included in approximately
every 20 samples for Quality Assurance/Quality Control purposes by
the Company as well as the laboratory.
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 and central
mill, numerous open pit projects including the Plutonic Main Pit
push-back project, 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 news 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 includes information with respect to
guidance as to projections, outlook, guidance, forecasts,
estimates, and other statements regarding future or estimated
financial and operational performance, gold production and sales,
revenues and cash flows, and capital costs (sustaining and
non-sustaining), including projected cash operating costs and
all-in sustaining costs) as well as statements with respect to the
mine-plan, exploration, drilling, operating and organizational
matters and activities relating to the Plutonic Gold Operations and
the Company generally, including its liquidity and capital
requirements and financial results. Such Forward-looking
information also includes information related to the Company's
previously announced strategic review process, the potential
outcome of such process and the intended maximization of
shareholder value that the Company believes may result from such
process. By identifying such information in this manner, the
Company is alerting the reader that such information is subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information.
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. Readers are encouraged to refer to the Annual
Information Form of the Company for a discussion of other risks
including outbreaks or threats of outbreaks of viruses, other
infectious diseases or other similar health threats, such as the
novel coronavirus 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 as no assurance
can be given that any of the events anticipated by the
forward-looking information will transpire or occur, and if any of
them do so, what benefits the Company will derive therefrom. Except
as required by law, the Company does not assume any obligation to
release publicly any revisions to forward-looking information
contained in this news release to reflect events or circumstances
after the date hereof.
Neither the TSX Venture Exchange not 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