INTERSECTIONS INCLUDE 27.9 G AU/T OVER 4.10
METRES, 22.2 G AU/T OVER 2.60 METRES, AND 57.7 G AU/T OVER 0.75
METRES
(In US Dollars unless otherwise
stated)
TORONTO, Feb. 10, 2020 /CNW/ - Superior Gold
Inc. ("Superior Gold" or the "Company") (TSXV:SGI) is pleased
to announce results from the ongoing underground diamond drill
program focused on reserve and resource expansion at its 100%-owned
Plutonic Gold mine in Western
Australia. The drilling targeted potential extensions to the
gold mineralization within the Indian Zone.
Results are provided for 14 drill holes for a total of more than
2,600 metres of drilling.
KEY FINDINGS
- 19 intersections encountered more than 5g Au/t
- 13 intersections encountered more than 10g Au/t
- 7 intersections encountered more than 25g Au/t
- 5 intersections encountered more than 50g Au/t
The drilling was focused on the area to the northwest of the
Indian Zone within an area which extends approximately 500 metres
between the Indian and Baltic Zones and which has not been
tested.
The location of this drilling is shown in Figures 1-3.
All intersections are shown in Table 1 below. Reported
intersections are over a minimum downhole width of 0.30 metres
(0.20 metres true width).
Chris Bradbrook, President and
CEO of Superior Gold stated: "We are very pleased with these drill
results, which we believe illustrate the potential to connect the
Indian and Baltic Zones. The drilling was completed over a strike
length of more than 150 metres and a vertical extent of more than
100 metres. Mineralization remains open both up and down dip and
along strike. The Indian and Baltic Zones are key components of the
recently announced five year underground Life of Mine ("LOM") plan
that was announced in October 2019,
and consequently, these results illustrate the potential to extend
this plan beyond five years. We will continue to release drill
results in some of the the other key areas of the LOM plan,
including Timor, Indian and Baltic
in the near future."
HIGHLIGHTS
Intersections are summarized in Table 1 below:
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)
|
UDD21655
|
3771
|
11633
|
1042
|
-37
|
130
|
171
|
130.00
|
133.80
|
3.80
|
4.9
|
3.5
|
|
|
|
|
|
Including
|
132.00
|
132.70
|
0.70
|
19.2
|
0.5
|
|
|
|
|
|
|
|
145.50
|
147.40
|
1.90
|
8.0
|
1.3
|
|
|
|
|
|
Including
|
146.50
|
147.40
|
0.90
|
14.4
|
0.6
|
|
|
|
|
|
|
|
151.30
|
156.30
|
5.00
|
6.8
|
3.5
|
|
|
|
|
|
|
|
164.20
|
164.75
|
0.55
|
4.9
|
0.4
|
UDD21656
|
3775
|
11633
|
1042
|
-47
|
128
|
178
|
123.50
|
127.60
|
4.10
|
27.9
|
2.9
|
|
|
|
|
|
Including
|
123.50
|
125.00
|
1.50
|
73.2
|
1.1
|
|
|
|
|
|
|
|
140.70
|
150.60
|
9.90
|
3.9
|
6.9
|
|
|
|
|
|
Including
|
144.15
|
146.50
|
2.35
|
11.9
|
1.6
|
UDD21657
|
3770
|
11632
|
1042
|
-33
|
137
|
174
|
No Significant
Intersections
|
UDD21658
|
3774
|
11632
|
1042
|
-40
|
146
|
165
|
139.30
|
139.70
|
0.40
|
4.2
|
0.3
|
|
|
|
|
|
|
|
141.85
|
142.60
|
0.75
|
57.7
|
0.5
|
|
|
|
|
|
|
|
147.00
|
147.45
|
0.45
|
4.6
|
0.3
|
UDD21659
|
3770
|
11632
|
1042
|
-32
|
157
|
179
|
124.20
|
125.30
|
1.10
|
7.3
|
0.8
|
|
|
|
|
|
|
|
161.00
|
161.50
|
0.50
|
4.7
|
0.4
|
UDD21660
|
3770
|
11632
|
1042
|
-45
|
160
|
171
|
68.90
|
69.90
|
1.00
|
38.6
|
0.7
|
|
|
|
|
|
|
|
136.80
|
139.30
|
2.50
|
5.0
|
1.8
|
UDD21661
|
3770
|
11632
|
1042
|
-56
|
165
|
156
|
121.50
|
122.40
|
0.90
|
4.3
|
0.6
|
|
|
|
|
|
|
|
130.30
|
131.80
|
1.50
|
5.7
|
1.1
|
UDD21662
|
3769
|
11632
|
1042
|
-29
|
178
|
211
|
148.65
|
151.50
|
2.85
|
11.3
|
2.0
|
|
|
|
|
|
Including
|
148.65
|
149.20
|
0.55
|
4.4
|
0.4
|
|
|
|
|
|
and
|
150.95
|
151.50
|
0.55
|
53.8
|
0.4
|
UDD21663
|
3769
|
11632
|
1042
|
-35
|
185
|
226
|
136.20
|
137.00
|
0.80
|
15.0
|
0.6
|
|
|
|
|
|
|
|
147.60
|
148.10
|
0.50
|
6.4
|
0.4
|
UDD21664
|
3769
|
11632
|
1043
|
-10
|
190
|
450
|
No Significant
Intersections
|
UDD21665
|
3775
|
11633
|
1042
|
-37
|
122
|
168
|
No Significant
Intersections
|
UDD21666
|
3769
|
11632
|
1042
|
-23
|
175
|
203
|
147.10
|
148.00
|
0.90
|
54.3
|
0.6
|
|
|
|
|
|
Including
|
154.10
|
156.70
|
2.60
|
22.2
|
1.8
|
|
|
|
|
|
and
|
154.10
|
154.70
|
0.60
|
93.5
|
0.4
|
UDD21667
|
3771
|
11632
|
1042
|
-56
|
135
|
171
|
119.30
|
120.10
|
0.80
|
3.1
|
0.6
|
|
|
|
|
|
|
|
122.10
|
123.10
|
1.00
|
4.0
|
0.7
|
UDD21668
|
3775
|
11633
|
1042
|
-50
|
121
|
174
|
No Significant
Intersections
|
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 BTW core diameter (42 mm). Core intervals are
whole core sampled. All 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. Approximately 5% of sample pulps are sent to
secondary laboratories for check assays.
Settlement of Consultant Services
The Company also announces that it has agreed to issue an
aggregate of 152,000 Common Shares at C$0.71 per Common Share (the "Issue Price") to
settle debt in the amount of C$107,920 owing to two consultants for services
rendered to the Company's wholly-owned subsidiary, Billabong Gold
Pty Ltd ("Billabong") (the "Share Issuances"). The Issue Price was
calculated by using the volume weighted average price for the
Common Shares for the five trading days immediately prior to
January 28, 2020. The Share Issuances
will be subject to the terms of certain shares for services
agreements entered into by and among the Company, Billabong and
each of the consultants (the "Agreements"). Pursuant to the
Agreements, it was agreed that the debt owing for the services
would be settled by a combination of cash and issuance of Common
Shares and the Share Issuances represent the portion of the debt
which was to be settled by issuance of Common Shares to the
consultants.
The Share Issuances have been approved by TSX Venture Exchange.
All Common Shares issued in connection with the Agreements will be
subject to a four month and one day hold period under applicable
Canadian securities laws.
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 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.
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