Oct 15, 2020

New results back Steam Engine northern stretch

New results back Steam Engine northern stretch

Six holes drilled to test a potential extension to the Steam Engine gold lode have come up trumps for Superior Resources.

Strong assay results from the latest drilling at northern end of the lode extended gold mineralisation a further 150m along strike, the company 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 400m
to 550m in strike length,” managing director Peter Hwang said.

“A series of historic drill holes that extend for about 400m 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.and remains open along strike and down dip.”

Superior expects to release initial scoping study results shortly into the viability of mining the Steam Engine deposit, part of its Greenvale project about 210km west of Townsville.

Assays from the six recent reverse circulation (RC) drill holes included 5m at 4.1 g/t gold from 35m, including 1m grading 12.7 g/t gold.

The drill holes sit outside the current Steam Engine mineral resource of 1.27 million tonnes at 2.3 g/t gold for 94,000 ounces of gold. Superior said an upcoming revised Mineral Resource Estimate was expected to upgrade that figure.

Mr Hwang described the growth-potential presented by the Steam Engine lode together with the Eastern Ridge lode at the site as significant.

“As the Steam Engine Lode accounts for 75 per cent of the currently modelled mineral resource, we will continue exploratory drilling to expand the mineralisation down-dip and further along strike,” he said.

“With the mineral resource at the Eastern Ridge Lode only at an early stage of development, we will also be focusing on a rapid expansion of this
lode.”

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