Superior Gold Announces New Intersection at Hermes South

Superior Gold Inc. (TSXV:SGI) announced the discovery of a new intersection at its Hermes South project, which is located approximately 20 kilometres south southwest of the Hermes mining operation in Western Australia.

As quoted in the press release:

The Hermes South project is within the Bryah Basin joint venture with Alchemy Resources Ltd. (ASX:ALY). The Company’s interest in the joint venture is an earn-in option which, upon completion of the earn in (requiring expenditures of AUS$1.2 million over three years), will give the Company an interest of up to 80% in the joint venture. In early 1988, it was the site of trial open pit mining (to a maximum depth of 20 metres) by Esmerelda Exploration Ltd. which processed approximately 2,722 ounces at the Horseshoe Lights operation 65 kilometres to the north. Reverse circulation and diamond core drilling was completed by Alchemy Resources in 2010 and additional air core and reverse circulation drilling was completed in 2012.

As part of the preparation for the calculation of an updated model for Hermes South, the Company conducted a review of the diamond drill core in order to obtain accurate specific gravity measurements. This work identified a number of holes (WGDC series) which had not been previously sampled. The first of these to be analyzed by the Company was hole WGDC006 which returned 9.30 g Au/t over 9.00 metres from 136.20 metres downhole. Holes WGDC003, 4, and 5 are also currently being sampled for analysis.

The location of these holes with respect to prior drilling is shown in plan and section in

Chris Bradbrook, president and CEO of Superior Gold, commented:

This is an exciting discovery for the Company as it raises the potential importance of Hermes South to our long term production profile. We are currently calculating a preliminary resource for the project using historic drilling and planning further drilling within the next month in order to determine the potential for the project to become a second open pit operation. It is strategically well located and can be readily connected to the main Hermes haul road. The preliminary resource will be included in the Company’s reserve and resource update for the Plutonic mine, which we expect to release early in the second quarter of 2018. Holes WGDC003, 4, 5, and 6 will not be included in the preliminary resource. 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.

Click here to read the full Superior Gold Inc. (TSXV:SGI) press release.