PRODUCTION INCREASED BY 21% OVER PRIOR
QUARTER
(In US Dollars unless
otherwise stated)
TORONTO, Jan. 15, 2020 /CNW/ - Superior Gold
Inc. ("Superior Gold" or the "Company") (TSXV:SGI) announces
detailed production results for the fourth quarter and full year
2019 from the Company's 100%-owned Plutonic Gold operations,
located in Western Australia.
FOURTH QUARTER AND FULL YEAR 2019 PRODUCTION DETAILS
Production details are summarized in the table below.
Operating
Parameters1
|
Three Months
Ended
December 31,
2019
|
Twelve Months
Ended
December 31,
2019
|
Stope material mined
(Tonnes)
|
144,754
|
537,868
|
Stope grade mined (g
Au/t)
|
3.22
|
3.10
|
Development material
mined (Tonnes)
|
68,839
|
270,238
|
Development grade
mined (g Au/t)
|
1.95
|
1.77
|
Hermes material mined
(g Au/t/)
|
Nil
|
695,946
|
Hermes grade mined
(Tonnes)
|
Nil
|
1.03
|
Hermes waste mined
(Tonnes)
|
Nil
|
1,595,027
|
Surface material
milled (Tonnes)2
|
201,945
|
891,309
|
Surface material
grade (g Au/t)2
|
0.66
|
0.98
|
Total material milled
(Tonnes)
|
418,208
|
1,681,151
|
Grade milled (g
Au/t)
|
1.77
|
1.78
|
Gold recovery
(%)
|
84
|
86
|
Gold Produced
(ounces)
|
20,084
|
83,035
|
Gold Sold
(ounces)
|
18,899
|
83,241
|
1
|
Numbers may not
add due to rounding.
|
2
|
Surface material
milled in Q4 consists of low grade stockpile from Hermes and other
low grade material and surface material milled for the full year is
primarily from Hermes but includes additional material totalling
63,534 tonnes at 0.57 g Au/t.
|
Chris Bradbrook, President and
CEO of Superior Gold stated: "During the quarter, our focus
remained on completing the development work required to execute our
five year underground Life of Mine ("LOM") plan that was announced
in October 2019. In order to achieve
this goal, we maintained the increased development rates which
commenced in the third quarter of this year. The total amount of
development increased close to 30% in the second half of 2019
compared to the total development completed in the first half of
the year. This significant improvement in development rates was the
result of our continued emphasis on scheduling, improved
maintenance and equipment availability.
We were pleased with the improvement in production for the
fourth quarter compared to the prior quarter, which also
demonstrated our ongoing focus on operating efficiencies and higher
stope grade. Significant improvements in stope material mined,
stope grade, and development grade resulted in a 21% increase in
gold production compared to the third quarter. With production of
20,084 ounces during the fourth quarter, we have achieved our full
year revised guidance of between 80,000 ounces and 85,000 ounces.
Looking forward and as we execute our LOM plan, we anticipate
further improvements over the course of 2020 and beyond."
The Company will be releasing its complete financial and
operating results for the fourth quarter and full year 2019 before
market open on March 10, 2020.
2020 GUIDANCE
Details of production, cost and capital expenditure guidance for
2020 are summarized in the table below. It is anticipated that the
first quarter will be the weakest as operations begin to focus
towards the areas included in the LOM plan later in the
quarter.
Operating
Parameters
|
Low
|
High
|
Production (oz of
Gold)
|
80,000
|
90,000
|
Cash Costs
($/oz)1
|
$975
|
$1,075
|
All In Sustaining
Costs ($/oz)1
|
$1,075
|
$1,175
|
Exploration
Expenditure (millions of $)2
|
$6.5M
|
Sustaining Capital
Expenditures (millions of $)
|
$7.0M
|
Non Sustaining
Capital Expenditures (millions of $)3
|
$2.5M
|
1
|
This is a Non-IFRS
measure. Refer to Non-IFRS measures section of the Company's prior
MD&A's for a description of these measures.
|
2
|
Exploration
expenditures could increase with positive exploration
results.
|
3
|
Non sustaining
capital expenditures are primarily related to the decline
development to open up the new Baltic and Baltic Deeps
zones.
|
POTENTIAL OPEN PIT PRODUCTION IN 2020
Detailed work continues to optimize the additional potential
open pit sources and to finalize resources and scheduling. These
pits comprise the Plutonic East/Perch, Salmon and Workshop pits on
the Plutonic Mine property (Figure 1), along with the
Hermes and Hermes South pits to the southwest (Figure 2).
With the update of the reserves and resources to be released near
the end of the first quarter, the Company will be in a position to
provide more detailed information. Currently, it is anticipated
that production from the Plutonic East/Perch pit could commence
during the second half of 2020, once final mining permits have been
received. The aim is to utilize the production from the open pits,
along with operational improvements from the underground, to
establish Superior Gold as a stable 100,000 ounce per year
producer.
Qualified Person
Scientific and technical information in this news release has
been reviewed and approved by Pascal Blampain, who is a
member of the AusIMM and the Australian Institute of Geoscientists
(AIG) and a "qualified person" within the meaning of NI 43-101. Mr.
Blampain is an employee of the Company and serves as Chief
Geologist.
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, the Hermes open pit gold 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 in this news release includes, but is
not limited to, the Company's objectives, goals or future plans,
and statements regarding exploration results and exploration
plans.
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.
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