Superior Gold – Q1 Operations Review, Path Towards Production Expansion, And Exploration Update
Chris Jordaan, President and CEO of Superior Gold (TSX.V: SGI) (OTC: SUPGF) joins us review the Q1 operations, production expansion and cost reduction strategy, and exploration update at Company’s producing Plutonic Gold Operations in Western Australia. We start off with a review of the production metrics from the 1st quarter of 16,747 ounces, a 5% decrease over the comparative quarter of 2021 due to the planned 15-day mill maintenance shutdown in the first quarter of 2022. It was messaged that this 2 week optimization of the mill would cause Q1 to be the softest quarter of the year and had a related increase in costs, but we discussed how those metrics would be improving as things ramp up for the balance of the year.
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 the 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 other open pit and underground sources at Plutonic, as well as the potential of sourcing ore from nearby 3rd party mining companies on a toll-milling basis.
Next we reviewed the recently released update to the Mineral Resource and Mineral Reserve Estimates where the proven and probable mineral reserves increased by 66% to 630,000 ounces of contained gold, with measured and indicated mineral resources, inclusive of Mineral Reserves, increased by 2% to 1.92 million ounces of contained gold, and where inferred mineral resources increased by 29% to 3.97 million ounces of contained gold. This gives the company near 6 million ounces of gold in all categories and there has been further exploration work completed not yet factored into these figures. We wrap up by getting a Chris to expand on the exploration potential both underground and at open pit Projects, noting the recent success at Indian Access with headline drill hole UDD25437 intersecting 58.9 g/t gold over 2.7 metres including 0.7 metre at 204.7 g/t gold, and drill hole UDD25332 intersecting 17.6 g/t gold over 7.7 metres.
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