Further Positive Results From Phase Two Drill Program At Hermes South

 

TORONTO, ON - Superior Gold Inc. reported results from the recently completed phase two reverse circulation drill program at its Hermes South project. Hermes South is located approximately 20 kilometers south southwest of the Hermes open pit gold mine, which in turn is located 65 kilometers southwest of the Company's 100%-owned Plutonic underground gold mine in Western Australia.

The Hermes South project is within the Bryah Basin joint venture with Alchemy Resources Ltd. The Company's interest is up to 80% in the joint venture. The Company has previously announced (on April 3, 2018) an initial inferred mineral resource estimate for Hermes South of 1.29 million tonnes at an average grade of 1.54 g Au/t for 64,000 ounces (100% basis).

The phase two reverse circulation program was completed in October and totaled approximately 7,500 meters over 51 holes, including two holes that were deepened from the phase one program. The phase one reverse circulation program was completed in May and totaled approximately 6,900 metres over 45 holes. The goal of both programs was to expand the existing resource and to explore for additional zones of mineralization. The location of drill holes in the current program are shown in relation to prior drilling and the existing resource in both plan and long section, respectively. 

Chris Bradbrook, President and CEO said, "These results are once again extremely encouraging and suggest the potential to increase the existing resource. The purpose of these drill programs is to determine the potential for the Hermes South project to become a second open pit mining operation. The project is strategically well located and can be readily connected to the main Hermes haul road. This work is part of our near term growth strategy to focus on reestablishing the Plutonic Gold operations at a sustainable production level of at least 100,000 ounces of gold annually. Our goal is to provide an updated reserve and resource estimate in the first quarter of 2019 using drill results to the end of 2018."

Hermes South drilling has been completed using Reverse Circulation drilling. Samples are collected for every meter directly off the cyclone using a cone splitter, set to approximately 3kg sample size. All gold results were determined by ALS Minerals (Perth) using fire assay fusion (40g 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 a Quality Assurance/Quality Control program consistent with NI 43-101 and industry best practices. Standards, blanks and duplicates are included in approximately every 20 samples for Quality Assurance/Quality Control purposes by the Company as well as the laboratory. Approximately 5% of sample pulps are sent to secondary laboratories for check assays.