Superior Resources reports further strong drill results at Steam Engine

by Leena Thomas
Image: Superior Resources Limited

Superior Resources Limited (ASX: SPQ) has announced an encouraging fourth batch of assay results including 18m @ 2.4 g/t gold from 21m from the Phase 1 Drilling Program at the Steam Engine Gold Deposit in Queensland.

The company reported strong intersections in drill core from Steam Engine Lode – likely to upgrade lower grade portion of the current Mineral Resource.

Highlights included 18m @ 2.4 g/t gold from 21m incl 6m @ 4.6 g/t gold from 33m incl 1m @ 10.9 g/t gold from 37m; and 7m @ 3.8 g/t gold from 43m incl 1m @ 5.9 g/t gold from 48m.

SPQ said that the results from deeper drilling at Steam Engine Lode confirmed continuation of mineralisation down dip outside current Mineral Resource envelope.

Significant intersections included 8m @ 2.5 g/t gold from 133m incl 1m @ 6.1 g/t gold from 133m; and 5m @ 2.0 g/t gold from 195m.

The company said that the assays from historically overlooked Southern Zone Lodes (south of Steam Engine and Eastern Ridge lodes) returned significant intersections of high grade coarse gold.

Major hits included 3m @ 6.0 g/t gold from 58m incl 1m @ 11.3 g/t gold from 59m; and 1m @ 8.1 g/t gold from 75m.

The company said that the reporting of assays from the Phase 1 program has been completed.

SPQ said that the phase 2 Drilling Program is expected to commence next week and will focus on expanding the Mineral Resource along strike and down dip at the Steam Engine and Eastern Ridge Lodes.

The company said that the upcoming revised Mineral Resource Estimate is expected to be upgraded, and the results of the initial Scoping Study is expected to be delivered later this month.

Steam Engine gold deposit

The Steam Engine Gold Deposit is an extensive mesothermal gold lode system on which an Indicated and Inferred Mineral Resource Estimate of 1.27 million tonnes at 2.3 g/t for 94,000 ounces of gold has been established. The current total Mineral Resource is based on only 30% of at least 2.5 kms of outcropping lode strike at Steam Engine and eastern Ridge lodes and only to shallow depths.

There are three gold lode zones identified: the Steam Engine Lode; the Eastern Ridge Lode; and the Southern Zone of lodes.

Drilling at Steam Engine deposit

The company had recently commenced the Phase 1 Drilling Program at the Steam Engine Gold Deposit.

SPQ has now reported the fourth batch of assay results from the Phase 1 Drilling Program. The assays were reported from a total of 22 reverse circulation (RC) and diamond core drill holes comprising down-dip exploration and infill diamond core holes at Steam Engine Lode; exploration and infill RC and diamond core holes at Eastern Ridge Lode; and exploration RC holes at the Southern Zone Lodes.

This comprised of a total 1,309 metres of drilling that included 14 RC drill holes for 612 metres of drilling; 6 diamond core drill holes for 302 metres of drilling; and 2 diamond-tailed drill holes with RC pre-collars targeting the deeper portions of the Steam Engine Lode for 395 metres of drilling (including 258 metres of RC and 137 metres of diamond core).

Strong drill results

SPQ said that significant intersections were reported from the current batch of assays on the Steam Engine, Eastern Ridge, Eastern Ridge North, and Southern Zone lodes.

Steam Engine lode

The company said that core drilling at the Steam Engine Lode intersected good widths and grades. SPQ said that diamond core hole SDD006 intersected 18 metres @ 2.4 g/t Au from 22 metres downhole, including 6m @ 4.6 g/t from 33 metre downhole. This lies close to previously reported RC drill hole SRC024 that intersected 15m @ 2.3 g/t from 40 metres downhole.

The company said that another high-grade intersection was intersected in Hole SDD004 that intersected 7m @ 3.8 g/t Au from 43 metres downhole.

SPQ reported that the results from deeper drilling at Steam Engine lode confirmed continuation of mineralisation down dip outside current Mineral Resource envelope.

The company said that SRD001 intersected 8 metres @ 2.5 g/t gold from 133 metres downhole (approximately 100m vertical below surface), while SRD002 intersected 5 metres @ 2.0 g/t gold from 195 metres downhole (approximately 160m vertical below surface).

Southern Zone lode

The company reported a new significant intersection at the Southern Zone Lode.

The company said that the drilling carried out in the Southern Zone and targeting a lode zone near historic drill hole LSRC010, returned a high-grade intersection in Hole SRC063 (3m @ 6.0 g/t Au) at depth beneath the historic drill hole LSRC010, while another hole shallower than LSRC010 returned a lower width and grade (SRC062: 2m @ 1.5 g/t Au).

SPQ said that further splits of all the original RC chips over the mineralised intervals will be undertaken on all intersections on the Southern Zone lode to better estimate the grade of these intersections.

Eastern Ridge lode

Superior reported some further intersections at Eastern Ridge Lode. The company said that the recent assays received include some of the remaining holes for infill at Eastern Ridge including Reverse circulation and Diamond Core drill holes.

Best intersections from these holes included 4m @ 2.1g/t Au in hole SRC055 from 6 metres downhole, 4m @ 1.8 g/t Au in core hole SDD003 from 22 metres downhole, 3m @ 1.8 g/t Au in core hole SDD 002 from 13 metres downhole, 3m @ 1.6 g/t Au in hole SRC056 from 21 metres downhole, 4m @ 1.4 g/t Au in core hole SDD001 from 29 metres downhole, and 6m @ 1 g/t Au from 17 metres downhole.

Eastern Ridge North lode

SPQ reported positive results from the exploration Holes at Eastern Ridge North Lode. The company said that the assays returned included four exploration holes.

Superior said that three of these holes encountered significant widths of low-grade gold mineralisation, the best of these being SRC059 that intersected 5m @ 0.9 g/t Au from 15 metres downhole. This intersection lies up dip from historical drill hole SERC005 (5m @ 1.3 g/t Au) that was the basis for this exploration drilling program.

Updates and next steps

The company reported that an additional exploration drilling program is about to commence aimed at further extending the current mineral resource.

SPQ said that after the completed Phase 1 program, additional work programs now include metallurgical studies; geotechnical studies; toll treating negotiations; preliminary mining and rehabilitation planning; and preliminary environmental studies.

Management statements

Superior’s Managing Director Peter Hwang said: “We are very pleased with the latest batch of assays which continues to return robust high grade intersections as well as further confirming the growth potential of the Steam Engine and Eastern Ridge lodes. The Phase 1 drilling has clearly demonstrated the robustness of the deposit and the significant potential for Resource expansion along strike as well as down dip.

This fourth batch of assays is expected to be the final batch relating to the mineralised zones. However, we won’t be slowing down at Steam Engine with plans being on track for the commencement of the Phase 2 Drilling Program next week.

We are also advancing the initial Scoping Study, which we plan to deliver later this month.”