Superior Gold Inc. Announces Initial High Grade Gold Mineralization from Underground Resource Expansion Drilling

INTERSECTIONS INCLUDE 42.4 G AU/T OVER 2.40 METRES, 41.1 G AU/T OVER 2.00 METRES, AND 15.5 G AU/T OVER 5.05 METRES

TORONTO, Nov. 19, 2018 /PRNewswire/ - Superior Gold Inc. ("Superior Gold" or the "Company") (TSXV:SGI) is pleased to announce the first set of results from the ongoing underground diamond drill program focused on reserve and resource expansion at its 100%-owned Plutonic Gold mine in Western Australia. The drilling was conducted from May to October 2018.

View PDF

View PDF

The Company currently has three diamond drills operating underground. Two are focused on grade control and infill drilling (resource conversion), while the third is focused entirely on reserve and resource expansion. The results presented in this press release are from the third diamond drill.

Results are provided for 51 drill holes for a total of more than 9,700 metres into the Indian Zone.

KEY FINDINGS

• 67 intersections encountered more than 5g Au/t
• 38 intersections encountered more than 10g Au/t
• 15 intersections encountered more than 20g Au/t
• 6 intersections encountered more than 50g Au/t
• Numerous historic intersections up to 300m outside of resource – up to 17.35g Au/t over 1.00m

The location of this drilling is shown in Figures 1- 4. The key intersections are highlighted in Table 1 below and the details of all holes are summarized in Table 2. Reported intersections are over a minimum downhole width of 0.30 metres (0.20 metres true width).

Figures 1 and 2 illustrate that numerous anomalous historic intersections are present outside of the existing resource but within the host mine mafic unit. Some of these intersections are as far as 300 metres from the existing resource with grades up to 17.35g Au/t over 1.00m. The Company believes this indicates the potential to expand the resource with additional drilling.

The current drilling has focused on mineralization outside of the resource and close to infrastructure where gaps of more than 100 metres are present in multiple areas as indicated in Figures 3 and 4. Such areas have the best potential to contribute to near term increases in reserves.

Chris Bradbrook, President and CEO of Superior Gold stated: "We are very pleased with these initial results and believe that they show we are achieving the goal of our exploration program as they indicate the potential to expand reserves and resources, which will ultimately support a longer mine life and our goal of maximizing grade. The results also indicate the strength of the mineralized system at the Plutonic Gold mine. Additionally, the anomalous historic intersections outside of and up to 300 metres from the existing resource illustrate the potential for longer term resource additions. We will be releasing aditional results for this third diamond drill rig in the near future for other zones that are currently being drill tested. 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."

HIGHLIGHTS

The most significant intersections are summarized in Table 1 below:

Table 1 – Key Intersections

Qualified Person

Scientific and technical information in this news release has been reviewed and approved by Pascal Blampain, who is a member of the AusIMM and the Australian Institute of Geoscientists (AIG) and a "qualified person" within the meaning of NI 43-101. Mr. Blampain is an employee of the Company and serves as Chief Geologist.

Quality Control Protocols

Core is drilled BTW core diameter (42 mm).  Core intervals are whole core sampled. 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.

About Superior Gold

Superior Gold 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 underground gold mine, which is a producing underground operation with a central mill, the Hermes open pit gold mine and up to a 80% 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.

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 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