COMMENCMENT OF OPEN PIT MINING AT PERCH ON
SCHEDULE
(In US Dollars unless otherwise
stated)
TORONTO, Oct. 12, 2021 /CNW/ - Superior Gold Inc.
("Superior Gold" or the "Company") (TSXV:S GI) (OTCQX: SUPGF)
announced detailed production results for the third quarter of 2021
for the Company's 100%-owned Plutonic Gold operations, located in
Western Australia.
Third Quarter Highlights
- Recorded zero incidences of COVID-19 infection for a seventh
consecutive quarter
- Production of 19,379 ounces, a marginal increase over the prior
quarter and 23% increase over the prior year period
- Stope grade of 2.95 g/t gold in the third quarter and 3.23 g/t
year to date as the Company continues to target an average stope
grade of 3.0 g/t gold
- Commenced open pit mining at Perch on schedule
- Mill throughput for the quarter increased by 13% to 405,315
tonnes relative to the second quarter
- Continued exploration success including 42.2 g/t over 5.6
metres and 17.7 g/t over 6.4 metres as the 1.6km long Western
Mining Front is opened at Plutonic1
- Improved financial position with cash and cash equivalents
increasing by $3.1 million to
$20.5 million at the end of the third
quarter
Chris Jordaan, President and CEO
of Superior Gold stated: "We are pleased that the actions we have
taken on the operational front have led to a fifth consecutive
quarter of improving production at our Plutonic Gold
Operations. Our third quarter production of 19,379 ounces,
represents a slight increase quarter-over-quarter and 23%
year-over-year increase (Figure 1). Year to date production
is 56,338 ounces and we are tracking towards the upper end of our
2021 production guidance. The strategic projects and
operational initiatives that we put in place last year have
resulted in a steady improvement in our performance as we continue
to target and sustain an average underground stope grade of 3.0 g/t
gold as well as increase our surface grades by optimizing and
mining our open pits. In addition, the Company is also reaping
benefits from the block model improvements in progress to better
predict the spatial positioning of the ore. As a result, larger
more productive stopes are now being identified and mined. This is
evidenced by the increased tonnage production from underground
stopes, up 12.3% on the previous quarter augmenting feed to the
mill and combined with additional open pit feed being available,
mill throughput increased 12.8% quarter over quarter.
An operational review of a number of growth projects is ongoing
in order to enhance Plutonic's sustainable, long-term success.
These projects include, in part, a continued focus on our open pit
operations with the mining at Plutonic East and the commencement of
mining at Perch. The higher-grade open pit feed replacing low
grade legacy stockpiles in conjunction with opening new high-grade
and more productive underground mining fronts are expected to
result in a continued improvement in our ounce profile moving
forward. Over the course of the year, we have provided a number of
important exploration updates that continue to point towards the
identification of higher-grade stopes on the operational front in
the near future. Ongoing geological initiatives have improved our
understanding of the mineralization at Plutonic and specifically
the northwest trending faults that control the concentration of
higher-grade gold mineralization.
The operational improvements implemented plus our improved
understanding of the mineralization at Plutonic, combined with the
full repayment of our gold loan in the second quarter, has resulted
in a significant improvement in our ability to generate free cash
flow in the third quarter. It is expected that increased production
from higher-grade underground mining areas, continued feed from the
Perch open pit as well as increased milling rates will enable an
increase in cash flow over the course of 2021 and
beyond."
The Company expects to release its complete financial and
operating results for the third quarter in November 2021.
Third Quarter Production Details
Preliminary production details are summarized in the table
below.
Operating
Parameters1
|
Three Months
Ended
September 30,
2021
|
Nine Months
Ended
September 30,
2021
|
Stope material mined
(Tonnes)
|
175,143
|
468,339
|
Stope grade mined
(g/t Au)
|
2.95
|
3.23
|
Development material
mined (Tonnes)
|
35,668
|
141,601
|
Development grade
mined (g/t Au)
|
1.15
|
1.39
|
Surface material
milled (Tonnes)2
|
198,268
|
509,877
|
Surface material
grade (g/t Au)2
|
0.75
|
0.58
|
Total material milled
(Tonnes)
|
405,315
|
1,120,396
|
Grade milled (g/t
Au)
|
1.72
|
1.80
|
Gold recovery
(%)
|
86
|
87
|
Gold Produced
(ounces)
|
19,379
|
56,338
|
Gold Sold
(ounces)
|
19,282
|
55,918
|
Cash and Cash
Equivalents ($ million)
|
20.5
|
20.5
|
1
|
Numbers may not add
due to rounding
|
2
|
Surface material
milled in Q3 2021 is feed from Plutonic East.
|
Commencement of Open Pit Production on Schedule
As part of the Company's strategy to expand production and fully
utilize the existing infrastructure at the Plutonic Gold
Operations, work continued during the third quarter of 2021 on
optimizing several potential future open pit sources and finalizing
resources and scheduling for Perch and Hermes South. The Company commenced mining of
the Plutonic East open pit in the second quarter as scheduled and
continued mining activities through the third quarter. The Company
aims to utilize the production from these open pits plus the
potential Main Pit push-back, along with operational improvements
from the underground, to maximize the Plutonic Gold Operations'
ability to generate significant free cash flow.
Expanding into New Mining Fronts
During the third quarter of 2021, the Company continued with its
underground exploration drilling program. It provided an
exploration update for the Western Mining Front containing
important high-grade drill results from its underground drill
program which is a key component of the Company's strategy to
expand into new underground mining fronts, improve mining grades
and productivity, and reduce reliance on remnant mining.
The drill results released on August 17,
2021, showed continued extensions of the Western Mining
Front from the Caspian zone, down
through the Indian and Baltic
zones to the Baltic extension -
covering up to a 1.6 kilometre long northwest extension of the
Western Mining Front. The results support the hypothesis that the
highest grades at Plutonic are controlled by the northwest trending
faults. In addition, the results are adjacent to existing
underground infrastructure, thus requiring minimal capital
expenditures to infill drill and develop the area. Key results
such as drill hole UDD23656, which intersected 13.7 g/t gold over
8.8 metres, drill hole UDD24342, which intersected 14.8 g/t gold
over 13.4 metres, and drill hole UDD24141, which intersected 42.2
g/t gold over 5.6 metres, give the Company further confidence in
mining higher grades at Plutonic in the future.2 These
results announced in each of the past 3 quarters support our view
that the Western Mining Front is potentially an important new area
for future production at Plutonic. The Company expects to provide
additional exploration updates over the coming months.
Upcoming Corporate Presentation
Chris Jordaan, President and CEO
of Superior Gold will provide a corporate update during a live
seminar hosted by 6ix on Monday, October
25 at 12:00pm ET.
Registration link https://my.6ix.com/vCZiENzZ
Qualified Person
Scientific and technical information in this news release has
been reviewed and approved by Ettienne Du Plessis, who is a
"qualified person" as defined by NI 43-101. Mr. Du Plessis 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.
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.
_______________________________
1
|
Refer to the Press
Release dated August 17, 2021 for additional
information.
|
2
|
Refer to the Press
Releases dated March 1, 2021, June 23, 2021 and August 17, 2021,
for additional information.
|
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SOURCE Superior Gold