Superior Gold Inc. Announces Initial High Grade Gold Mineralization from Underground Resource Expansion Drilling

Press Release

INTERSECTIONS INCLUDE 42.4 G AU/T OVER 2.40 METRES, 41.1 G AU/T OVER 2.00 METRES, AND 15.5 G AU/T OVER 5.05 METRES

TORONTO, November 19, 2018 – Superior Gold Inc. (“Superior Gold” or the “Company”) (TSXV:SGI) is pleased to announce the first set of results from the ongoing underground diamond drill program focused on reserve and resource expansion at its 100%-owned Plutonic Gold mine in Western Australia. The drilling was conducted from May to October 2018.

The Company currently has three diamond drills operating underground. Two are focused on grade control and infill drilling (resource conversion), while the third is focused entirely on reserve and resource expansion. The results presented in this press release are from the third diamond drill.

Results are provided for 51 drill holes for a total of more than 9,700 metres into the Indian Zone.

KEY FINDINGS

• 67 intersections encountered more than 5g Au/t
• 38 intersections encountered more than 10g Au/t
• 15 intersections encountered more than 20g Au/t
• 6 intersections encountered more than 50g Au/t
• Numerous historic intersections up to 300m outside of resource – up to 17.35g Au/t over 1.00m

The location of this drilling is shown in Figures 1- 4. The key intersections are highlighted in Table 1 below and the details of all holes are summarized in Table 2. Reported intersections are over a minimum downhole width of 0.30 metres (0.20 metres true width).

Figures 1 and 2 illustrate that numerous anomalous historic intersections are present outside of the existing resource but within the host mine mafic unit. Some of these intersections are as far as 300 metres from the existing resource with grades up to 17.35g Au/t over 1.00m. The Company believes this indicates the potential to expand the resource with additional drilling.

The current drilling has focused on mineralization outside of the resource and close to infrastructure where gaps of more than 100 metres are present in multiple areas as indicated in Figures 3 and 4. Such areas have the best potential to contribute to near term increases in reserves.

Chris Bradbrook, President and CEO of Superior Gold stated: “We are very pleased with these initial results and believe that they show we are achieving the goal of our exploration program as they indicate the potential to expand reserves and resources, which will ultimately support a longer mine life and our goal of maximizing grade. The results also indicate the strength of the mineralized system at the Plutonic Gold mine. Additionally, the anomalous historic intersections outside of and up to 300 metres from the existing resource illustrate the potential for longer term resource additions. We will be releasing aditional results for this third diamond drill rig in the near future for other zones that are currently being drill tested. Our goal is to provide an updated reserve and resource estimate in the first quarter of 2019 using drill results to the end of 2018.”

Read More: https://superior-gold.com/investors/news/superior-gold-inc-announces-initial-high-grade-go-122550/

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