Superior Resources poised to extend strike length at Steam Engine
Superior Resources Limited (ASX:SPQ) has released further promising assay results from recent drilling at the Steam Engine Gold Deposit, approximately 200 kilometres west of Townsville, Queensland.
The assays are from a total of six reverse circulation (RC) drill holes that targeted an area immediately north of the current Steam Engine Lode Mineral Resource.
The six holes are testing the potential to extend the Steam Engine Lode along strike.
The impressive results included 5 metres at 4.1 g/t gold from 35 metres and 6 metres at 2.7 g/t from 71 metres.
Further assays and scoping study to drive shares higher
Commenting on the significance of these results, Superior’s managing director Peter Hwang said, “Although the latest batch of assays represent just six holes, these are the most significant results received so far from the recent drilling program as they confirm a northwards extension of the Steam Engine Lode from 400 metres to 550 metres in strike length.
‘’A series of historic drill holes that extend for about 400 metres along strike and to the north of the mapped Steam Engine Lode are known to have intersected low levels of very shallow gold mineralisation.
‘’Our recent holes were drilled at slightly deeper levels beneath the historic holes and demonstrate that the northwards continuation of the high-grade Steam Engine Lode was clearly missed by previous explorers.
‘’The growth-potential presented by the Steam Engine Lode together with the Eastern Ridge Lode is significant.’’
Scoping study a key share price catalyst
As the Steam Engine Lode accounts for 75 percent of the currently modelled Mineral Resource, management will continue exploratory drilling to expand the mineralisation down-dip and further along strike.
With the Mineral Resource at the Eastern Ridge Lode only at an early stage of development, the company will also be focusing on a rapid expansion of this lode.
The strike length has already been increased by 150 metres as a result of drilling undertaken by Superior, and these results along with upcoming assays should add further metres.
Further assays and the results of the soon-to-be-released scoping study are potential near-term share price catalysts, suggesting the company could continue the strong momentum that has seen its share price increase five-fold in the last 6 months.