Superior Gold Announces Q1 Production Results

Superior Gold Inc. (TSXV:SGI) announced detailed production results for the first quarter of 2018 from the company’s 100 percent-owned Plutonic Gold operations, located 800 kilometres north east of Perth, in Western Australia. The Plutonic Gold operations include the Plutonic underground gold mine, and the Hermes open pit gold mine. During the quarter, the Hermes mine was in pre-production, commercial production was declared on March 26, 2018.

Highlights are as follows:

QUARTER HIGHLIGHTS

• Ramp up of quarterly production to achieve 2018 guidance
• Recoveries continue to increase, averaging 86 percent for the quarter and rising to 90% during April
• Commercial production declared on schedule at the Hermes open pit gold mine
• By quarter end, the mill was at full capacity achieving the Company’s “Fill The Mill Strategy”. This strategy has now been updated to “Fill The Mill at the Best Possible Grade”.

Chris Bradbrook, president and CEO, commented:

We are pleased to provide detailed production results for the first quarter of 2018 and to highlight a number of key achievements accomplished during the quarter. The ramp up of quarterly production towards annual guidance proceeded as expected, with the first quarter anticipated to be the weakest of the year. Underground stope grade was lower than previously experienced as we mined through lower grade material before reaching anticipated higher grades during the second quarter.

Recoveries continued to increase, averaging 86 percent for the quarter (compared to 84 percent in the fourth quarter of 2017), with a further increase after quarter end, averaging 90 percent in April. It is important to note that this increase in recoveries was achieved without the anticipated benefit from the gravity circuit which is being constructed during the first six months of 2018.

Commercial production at the Hermes gold mine was declared on schedule by quarter end. Initial production from the mine averaged below reserve grade as lower grade near surface ore was extracted first. Hermes waste mined included completion of the pre-strip.

The “Fill The Mill Strategy” was achieved ahead of schedule as the mill throughput averaged approximately 5,000 tonnes per day by quarter end. This throughput was maintained subsequently throughout April and was achieved by processing material from Hermes below reserve grade, but above the cut-off grade of 0.6 g Au/t. This strategy has now been updated to “Fill The Mill” at the Best Possible Grade.

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