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Superior Gold Inc. Marks First Anniversary by Commencing Open Pit Mining Activity at Hermes


News provided by

Superior Gold

Oct 17, 2017, 06:00 ET

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FIRST PRODUCTION ANTICIPATED BY YEAR END

TORONTO, Oct. 17, 2017 /CNW/ - Superior Gold Inc. ("Superior Gold" or "The Company") (TSX.V:SGI) is pleased to announce that it has commenced pre-stripping activities at its 100% owned Hermes development project, which is located approximately 65 kilometres southwest of the Company's Plutonic Gold Mine, 800 kilometres northeast of Perth, in Western Australia (Figure 1).

Figure 1 – Location of Hermes Project (CNW Group/Superior Gold)
Figure 2 – Initial Hermes Pit Locations (CNW Group/Superior Gold)
VIDEO: Hermes – Trapper 1st Blast farfield
VIDEO: Hermes – Trapper 1st Blast farfield
Figure 3 – Blast Hole Drilling (CNW Group/Superior Gold)
Figure 4 – First Blast (CNW Group/Superior Gold)
Figure 5 – Initial Removal of Waste Material (CNW Group/Superior Gold)
Figure 1 – Location of Hermes Project (CNW Group/Superior Gold) Figure 2 – Initial Hermes Pit Locations (CNW Group/Superior Gold)
VIDEO: Hermes – Trapper 1st Blast farfield
Figure 3 – Blast Hole Drilling (CNW Group/Superior Gold) Figure 4 – First Blast (CNW Group/Superior Gold) Figure 5 – Initial Removal of Waste Material (CNW Group/Superior Gold)

The first pre-stripping activities were initiated on October 12, the first anniversary of the Company's completion of the acquisition of the Plutonic Gold Operations. This initial blast was the start of the Trapper pit which, along with two other pits, Klinger and Hawkeye, will supply initial production from Hermes (Figure 2).

The Hermes deposit will be mined as a conventional open pit operation. Mined material will be transported by truck along a 65 kilometre haul road to the Plutonic Gold Mine where it will be processed. The haul road, now connects Hermes with the Plutonic Gold Mine, with final surfacing approximately 95% complete.

A video of the first blast can be viewed here. The Company is also providing photographs of blast hole drilling (Figure 3), the first blast (Figure 4), and initial removal of waste material from the site (Figure 5). 

Chris Bradbrook, President and CEO of Superior Gold stated: "This is a significant milestone for the Company and a tremendous achievement to have commenced mining (pre-stripping activities) at Hermes, our second operation, feeding a central mill, only a year after taking ownership of the Plutonic Gold Operations. I would like to take this opportunity to thank the team at the site who have worked tirelessly to reach this milestone.

I am pleased to announce that we are on track with development activities and continue to expect initial production by year end, with the achievement of commercial production in the first quarter of 2018. The contribution of the ore from Hermes is anticipated to allow us to reach our objective of increasing annual production to 100,000 ounces of gold."

Qualified Person

Scientific and technical information in this press release has been reviewed and approved by Simon Lawson who is a member of the AusIMM and a "qualified person" within the meaning of NI 43-101.  Mr. Lawson is an employee of the Company and serves as the Chief Geologist.

Quality Control Protocols

Reverse circulation chip samples are collected onsite via a rig-mounted cyclone splitter at 1m intervals. Nominal 3.0kg samples are bagged at the rig in pre-numbered calico bags and sent off-site for assay at an independent assay lab. All gold results were determined by ALS Minerals (Perth) using fire assay fusion (50g charge, lead collection method) with an ICP finish. Drill program design, Quality Assurance/ Quality Control and interpretation of results are performed by qualified persons employing QAQC practices consistent with NI 43-101 guidelines and to industry best practice standard. Standards, blanks and duplicates are included at a nominal 1:20 ratio for QAQC purposes by the Company as well as the offsite independent laboratory. Approximately 5% of sample pulps are sent to a secondary laboratory for check assay comparison.

About Superior Gold

Superior Gold Inc. (www.superior-gold.com) is a Canadian based gold producer that owns 100% of the Plutonic Gold Operations located in Western Australia. The Plutonic Gold Operations include the Plutonic Gold Mine, which is a producing underground operation with a central mill, the Hermes open pit development project and an interest in the Bryah Basin joint venture.  Superior Gold is focused on expanding production at the Plutonic Gold Operations and building an intermediate gold producer with superior returns for shareholders.

Full details of the mineral reserves and mineral resources, and production targets, for the Plutonic Gold Mine and Hermes project are included in a NI 43-101 Technical Report dated February 13, 2017 (with an effective date of September 30, 2016) that can be found under the Corporation's profile on SEDAR (www.sedar.com) which was filed on February 15, 2017.

Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, and statements regarding exploration results and exploration plans.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's prospectus dated February 15, 2017 filed on SEDAR at www.sedar.com for a discussion of these risks.

The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Superior Gold

For further information: Superior Gold Inc., Chris Bradbrook, President, CEO & Director, [email protected], Tel: 416-716-8235

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