Superior Gold drills Hermes South in Australia
Superior Gold (TSXV: SGI; US-OTC: SUPGF) recently announced results from a phase two reverse circulation drill program at its Hermes South gold project in Western Australia. The company is trying to expand the existing resource at Hermes South and determine if it could become another open pit mine.
Highlights from the program include 3 grams gold over 16 metres from 137 metres downhole, 4.4 grams gold over 9 metres from 98 metres downhole and 10.9 grams gold over 3 metres from 85 metres downhole.
Superior drilled 7,500 metres over 51 holes in October 2018 as part of the phase two program. It completed phase one in May 2018, drilling 6,900 metres across 45 holes.
In early April 2018, the company tabled an initial resource for Hermes South. The project contains 1.29 million inferred tonnes grading 1.54 grams gold for 64,000 oz. gold. It is located 20 km south west of the company’s Hermes open pit gold mine and 85 km southwest of its Plutonic underground gold mine. It is part of the company’s Bryah Basin joint-venture with Alchemy Resources (ASX: ALY).
Earlier in November 2018, the company announced results from 9,700 metres across 51 holes at Plutonic. Highlights included 42.4 grams gold over 2.4 metres from 21 metres downhole and 70.2 grams gold over 1 metre from 171 metres downhole.
The company is trying to expand its projects to become a 100,000 oz. gold per year producer. It sold more than 25,800 oz. gold in 2018’s third quarter, a 24% increase over the same period of the previous year. However, it reduced its 2018 production guidance from 100,000-110,000 oz. gold to 92,500-97,500 oz. gold, citing a weaker than anticipated first quarter.
Shares of Superior Gold are currently trading at 87¢ with a 52 week range of 67¢ to $1.62. The company has an $83 million market capitalization.