(In Australian Dollars unless otherwise
stated)
TORONTO, Dec. 30, 2020 /CNW/ - Superior Gold Inc.
("Superior Gold" or the "Company") (TSXV: SGI) today announced the
filing of an independent technical report in accordance with
Canadian Securities Administrators' National Instrument 43-101 ("NI
43-101") to support the Preliminary Economic Assessment ("PEA") of
a push-back of the previously producing main pit as well as an
updated Mineral Resource estimate at its 100%-owned Plutonic Gold
Operations located in Western Austrlia.
The technical report is entitled, "2020 Mineral Resource and
Reserve Estimate for the Plutonic Gold Operations Including Main
Open Cut Pit Area", is dated December 30,
2020, is effective December 31,
2019 and is available under Superior Gold's profile on SEDAR
at www.sedar.com and on the Company's website at
www.superior-gold.com.
PEA Highlights:
- Robust economics with after-tax Net Present Value (5% discount
rate) ("NPV5%") of $120
million and an after-tax Internal Rate of Return ("IRR") of
35% at $2,150 per ounce of gold
(US$1,505 per ounce)
- Low capital intensity project with only $82 million pre-production capital cost net of
$22 million of pre-production
revenue
- Average production of 60,000 ounces gold per year over six
years for 357,000 ounces of total production
- Low life-of-mine ("LOM") All-In Sustaining Cost ("AISC") of
US$863 per ounce gold
- Technically simple project based on a push-back of the existing
Plutonic Main Pit utilising existing processing and other existing
infrastructure
- Significant leverage to gold price: $265
million NPV5% at recent spot price of
$2,850 per ounce of gold
(US$2,000 per ounce)
- Value enhancement potential available through removing open pit
constraints, resource expansion and exploration drilling
- Proceeding to a PFS expected to be completed in the first half
of 2022
Updated Mineral Resource Highlights:
- Updated Measured and Indicated Mineral Resources of 1.89
million ounces of gold (16.26 million tonnes at a 3.6 g/t Au
grade)
- Updated Inferred Mineral Resources of 3.07 million ounces of
gold (30.55 million tonnes at a 3.1 g/t Au grade)
The updated Mineral Resource estimate and PEA were completed
under the supervision of Stephen
Hyland, FAusIMM who is a "qualified person" as defined by NI
43-101 and is independent of the Company. Mr. 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. 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.
The PEA was prepared under the supervision of the Qualified
Person, Mr. Hyland by the following individuals at RPM Advisory
Services Pty Limited ("RPM Global"), all of whom are Qualified
Persons under the terms of NI 43-101:
- Mining: Mr Igor Bojanic,
FAusIMM
- Processing and Infrastructure: Dr Andrew Newell, MAusIMM (CP), MIE (CP)
Though the RPM Global team were not designated Qualified Persons
for the purposes of the PEA, they do meet the requirements for
Qualified Persons under the terms of NI 43-101.
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 NI 43-101. Mr. Boyle is not
independent of the Company within the meaning of NI 43-101.
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. The
forward-looking information contained herein includes, without
limitation, information related to: the Plutonic Main Pit having
the potential to be a robust open pit gold mine with compelling
project economics; the results of the PEA, including, but not
limited to, the NPV5%, IRR, estimated costs, average
production, production rate, LOM and AISC; the expectation that the
Plutonic Main Pit will be a robust operation and profitable at a
variety of prices and assumptions; the expected high quality of the
Plutonic Main Pit concentrates; the potential impact of the
Plutonic Main Pit in the Western
Australia, including but not limited to the potential
generation of tax revenue and contribution of jobs; value
enhancement of the Plutonic Main Pit having the potential through
removing open pit constraints, resource expansion and exploration
drilling; and the expectation of proceeding to a PFS in respect of
the Plutonic Main Pit. These statements are subject to risks and
uncertainties, including, but not limited to: the reasonability of
the economic assumptions at the basis of the results of the PEA and
technical report; changes in interpretations of geological,
geostatistical, metallurgical, mining or processing information and
interpretations of the information resulting from future
exploration, analysis or mining and processing experience; declines
in general economic conditions; fluctuations in exchange rates and
changes in political conditions, in tax, royalty, environmental and
other laws in Western Australia
and financial market conditions; new information from drilling
programs or other exploration or analysis; unexpected variations in
mineral grades, types and metallurgy; fluctuations in silver and
gold prices; and failure of mined material to meet
expectations. 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 filed on SEDAR (www.sedar.com) for a discussion of
other risks including risks related to 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 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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content:http://www.prnewswire.com/news-releases/superior-gold-inc-files-technical-report-to-support-previously-released-preliminary-economic-assessment-for-the-plutonic-main-pit-push-back-project-and-updated-mineral-resource-estimate-301199509.html
SOURCE Superior Gold