Superior Gold – Company Introduction To Production Expansion And Exploration Growth
Chris Jordaan, President and CEO of Superior Gold (TSX.V: SGI) (OTC: SUPGF) joins us introduce the expansion strategy at Company’s producing Plutonic Gold Operations in Western Australia. We start off with a look back to the challenges that the company was having 2 years ago, and review how the new team has executed in stabilizing the current production profile to 77,321 ounces in 2021, (a 23% increase over the 63,065 ounces produced in 2020).
Management plans to increase throughput to their first 1.8 million tpa mill taking production to 100,000 ounces per annum, by supplementing underground ore from the Plutonic Mine with several satellite pits from surface including Perch, East, and a 2 year development project for a main Plutonic pit pushback. There is another phase of production expansion to 150,000 ounces per annum, that will utilize the second 1.2 million tpa mill and will be supported by a secondary open pit project at Hermes South, as well as the potential of sourcing ore from nearby mining companies on toll-milling basis.
We wrap up by getting a Chris to expand on the exploration potential both underground and at open pit Projects, as well as some background on the management team, share structure, key stakeholders, and financials.
If anyone has any questions for Chris regarding Superior Gold, then please email us at either fleck@kereport.com or shad@kereport.com
It is only a 14 day shut down in Q1 on the Mill optimization. Here is that passage from the recent presser:
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“It is anticipated that the first quarter will be the weakest due to a planned 14-day maintenance shutdown on the SAG mill foundation. It is however expected that production will progressively improve as the Company increases production tonnages from the underground and accesses higher grade open pit material from Main Pit Deeps. Main Pit Deeps will bring forward ounces from the Preliminary Economic Assessment (completed in December 2020) without jeopardizing the full Main Pit Pushback project. As a result, the Company aims to increase the annualised production rate to 100,000 ounces/annum in the second half of 2022.”
“With improved production, costs are expected to reduce further. In addition, exploration investment is expected to increase as the Company accelerates its exploration in new mining fronts as well as surface targets. Capital spend is set to increase relative to 2021 as the Company proceeds with investments in operations to unlock additional value.”
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https://superior-gold.com/news/superior-gold-exceeds-production-guidance-in-2021-122631/
Here is a link to the (SGI) Superior Gold Corporate Presentation in January:
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https://superior-gold.com/site/assets/files/6391/superior_gold_-_corporate_presentation_january_2022_-short.pdf
Right, that’s the piece I saw. This company fits in very well with the group of smaller producers I’m focusing on right now. I don’t have time to wait for explorers to develop so these smaller producers are the fat pitch I’m looking for.
Yeah, I’ve been steadily building a position in SGI and consider Superior Gold a turn-around story and growth-oriented producer, very similar to other companies like Karora Resources, Calibre Mining, I-80 Gold Corp, Steppe Gold, and Minera Alamos.
Yeppee……….. gold up today…………. will be down tomorrow…………..
Haha! OOTB that has been the way it’s been lately. Can’t we just have a mini-celebration that the PMs had a good day? 😉
Kool & The Gang – Celebration (Official Music Video)
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https://youtu.be/3GwjfUFyY6M
SGI looks good although it doesn’t appear to be participating in the price increases seen generally in the pm’s today. Looking at the company news which states that a mill will be shut for maintenance in first half of 2022 and the bulk of the increase in production for 2022 will not be happening until the second half of the year.