SGI Superior Gold Inc

TORONTO, May 31, 2022 /CNW/ - Superior Gold Inc. ("Superior Gold" or the "Company") (TSXV: SGI) (OTCQX: SUPGF) is pleased to announce additional high-grade drill results from its ongoing underground diamond drill program at its 100%-owned Plutonic Gold mine in Western Australia. 

Plutonic is a world-class Archean lode-style gold mineralized system that has produced close to six million ounces of gold over 32 years of continuous operation and encompasses a Measured and Indicated Mineral Resource of 1.92 million ounces together with an Inferred Mineral Resource of 3.97 million ounces (December 2021 Mineral Resource and Reserve).  The Company's continuous exploration effort underpins a commitment to reserve and resource growth.

Results are provided for 57 underground exploration drill holes, drilled from October 2021 to March 2022, for a total of  7,397 metres of drilling.  Drilling was focused on extending and infilling known mineralization in the Indian Access area, located between the existing Caribbean and Indian mining areas at Plutonic.  The Indian Access mining area is under-explored and remains open along strike and both up and down dip as it is yet to be fully drill tested. The Indian Access mining area increased in priority following a reinterpretation of mineralization controls particularly given its proximity to existing infrastructure and the surface. This area of interest represents a footprint of approximately 500 metres by 300 metres as a possible future new mining front in an area that has limited historical mining as seen in Figure 2. Drilling results from this statement were not included in the recent Mineral Resource estimates, however, it is the Company's intention to reflect these results in the planning for the 2022 mine plan as well as future iterations of the mine plans pending results from the resource model updates.

HIGHLIGHTS

• Drill hole UDD25437 intersected 58.9 g/t gold over 2.7 metres including 0.7 metre at 204.7 g/t gold
• Drill hole UDD25332 intersected 17.6 g/t gold over 7.7 metres including 0.7metre at 23.6 g/t gold and 26.7 g/t gold over 1.8 metres including 1.0 metre 51.7 g/t gold
• Drill hole UDD25073 intersected 20.5 g/t gold over 5.1 metres including 1.0 metre at 98.8 g/t gold
• Drill hole UDD24898 intersected 12.1 g/t gold over 6.5 metres including 1.0 metre at 58.6 g/t gold
• Drill hole UDD25076 intersected 10.2 g/t gold over 6.9 metres including 0.8 metre at 36.9 g/t gold
• Drill hole UDD25079 intersected 20.9 g/t gold over 3.0 metres including 1.0 metre at 34.7 g/t gold

The results announced today expand the Caribbean and Indian zones, directly adjacent to existing underground infrastructure, which should require minimal capital to develop. The location of this drilling is shown in Figures 1 to 5 below. The intersections are shown in Table 1 below.  Reported intersections are over a minimum downhole length of 0.30 metres (~0.20 metres true width).

Chris Jordaan, President and CEO of Superior Gold stated: "These excellent drill results continue to support the Company's strategy of re-interpreting and re-evaluating historical areas of Plutonic to support future production with new mining fronts and reducing our reliance on remnant mining areas.

These results announced today give us further confidence that high-grade extensions of the Plutonic orebody can be systematically targeted.  Results such as hole UDD25437 which intersected 58.9 g/t gold over 2.7 metres, and hole UDD25332 which intersected 17.6 g/t gold over metres indicate that significant mineralization can still be discovered. These drilling results have 26 intercepts containing over 20-gram meters (downhole intersection times Gold value uncut) and 64 intercepts containing over 4.5-gram metres on a total of 57 holes. The high drill success rate from this project area reflects the effectiveness and accuracy of the reinterpretation and remodelling approach currently applied. Our investment in re-interpreting historical data, with this recent success as an example, will further assist our strategy to extend Plutonic's mine life. The close proximity to the adit and the ease of access to this area is a favourable location for the current portal at the Plutonic Mine.

INDIAN ACCESS

The Indian Access intercepts such as 58.9 g/t gold over 2.7 metres in hole UDD25437, 17.6 g/t gold over 7.7 metres in hole UDD25332, 20.5 g/t gold over 5.1 metres in hole UDD25073, and many more significant intercepts demonstrates great potential in an under-explored area of the mine. These targets have been identified through careful re-interpretation of late crosscutting dykes and earlier Northwest faults. The grade intercepts are down dip extensions of known mineralization and also include a "new" zone approximately 100 metres from existing mining infrastructure. These high-grade zones are interpreted to coincide with a similar northwest control on stacked lodes that extend throughout the entire mine from the surface through to the Baltic Extension area.

Table 1: Highlights of Drill Results from Indian Access area 

Mineral Resource and Technical Report

The technical report supporting the mineral resources identified in this press release 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.

Qualified Person

The 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.

Quality Control Protocols

Drilling is completed with NQ2 core diameter (50.7 mm) and samples are from whole core. Gold results were determined by Aurum Laboratories (Perth) and/or Plutonic laboratory using fire assay fusion. 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.

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Forward Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws that are 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. 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, inflationary pressures on operating or capital costs, 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) accept responsibility for the adequacy or accuracy of this release.

SOURCE Superior Gold