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

|

Published 30-SEP-2020 10:22 A.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

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.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X