Superior Resources shares surge 70% following 47.5 g/t gold assay at Steam Engine

By Trevor Hoey. Published at Sep 30, 2020, in Mining

Superior Resources Limited (ASX:SPQ) has released the second batch of assays from the resource drilling program at the Steam Engine Gold Deposit in North Queensland.

The results further boost the consistently strong first batch of assays from both the Steam Engine and Eastern Ridge Lodes that returned extensive high-grade intercepts in all holes.

Such were the quality of the results, the company’s shares were up 70% in the first 15 minutes of trading.

The drilling to date, including historical drilling, has demonstrated the potential for the Steam Engine system to deliver a significant and sizeable deposit.

The second batch of assay results are from a total of 16 reverse circulation (RC) drill holes from the Steam Engine and Eastern Ridge lodes for a total of 568 metres of drilling.

These holes have ranged in total depths from 11 metres (terminated in historic stope workings) to 65 metres at the Steam Engine Lode and from 20 to 35 metres at the Eastern Ridge Lode.

Barely 30% of the known 2.5 kilometre outcropping strike extent has been drill-tested in any detail, and only to near-surface depths.

A total of approximately 2,000 samples from the drilling program have been submitted for gold and multi-element analysis, and approximately 1,000 samples have been assayed while 1,000 remain outstanding.

This indicates that there could be further good news in the near term.

The following shows gold assay results from the second batch of samples from both the Steam Engine and Eastern Ridge lodes.

Steam Engine Lode extends to considerable depth

Indications so far are that the northern and southern extents of the Mineral Resource are strongly mineralised and a couple of historic holes demonstrate that the Steam Engine Lode extends down-dip to considerable depth.

Superior’s managing director Peter Hwang was buoyed by the exceptionally high grades delineated, and on this note he said, “We are pleased, although not surprised with the high grade result in SRC034, a 14 metre intersection at 4.9 g/t gold from surface that included 1 metre at 47.5 g/t gold from 7 metres (this implies 1.5 ounces of gold).

"Steam Engine is of a similar deposit style to the large Charters Towers goldfield, which produced 6.6 million ounces of gold with an average grade of 34 g/t gold.

"We are however, a little surprised that the high grade result in SRC034 came from the southern part of the Steam Engine Lode, as our resource modelling had identified the start of a broad high-grade zone at the northern end of the current Mineral Resource. Assays from this northern high-grade zone are yet to be received.’’

The following map highlights Hwang’s commentary regarding the better than expected returns from the southern zone.

Steam Engine Lode extends to considerable depth

Indications so far are that the northern and southern extents of the Mineral Resource are strongly mineralised and a couple of historic holes demonstrate that the Steam Engine Lode extends down-dip to considerable depth.

Superior’s managing director Peter Hwang was buoyed by the exceptionally high grades delineated, and on this note he said, “We are pleased, although not surprised with the high grade result in SRC034, a 14 metre intersection at 4.9 g/t gold from surface that included 1 metre at 47.5 g/t gold from 7 metres (this implies 1.5 ounces of gold).

"Steam Engine is of a similar deposit style to the large Charters Towers goldfield, which produced 6.6 million ounces of gold with an average grade of 34 g/t gold.

"We are however, a little surprised that the high-grade result in SRC034 came from the southern part of the Steam Engine Lode, as our resource modelling had identified the start of a broad high-grade zone at the northern end of the current Mineral Resource. Assays from this northern high-grade zone are yet to be received.’’

The following map highlights Hwang’s commentary regarding the better than expected returns from the southern zone.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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