Superior Gold Announces Q3 Production Results

Superior Gold Inc. (TSXV:SGI) announced its production results for the third quarter of 2018 from the company’s 100 percent-owned Plutonic Gold operations, located 800 kilometres northeast of Perth, in Western Australia. The Plutonic Gold operations include the Plutonic underground mine and the Hermes open pit mine.

Highlights are as follows:

Operating Parameters1	Q1	Q2	Q3	YTD Nine month period ended September 30, 2018
Stope material mined (Tonnes)	152,101	157,479	176,068	485,649
Stope grade mined (g Au/t)	2.61	3.18	2.75	2.84
Development material mined (Tonnes)	55,401	35,483	49,219	140,103
Developmentgrade mined (g Au/t)	1.58	1.79	1.96	1.76
Hermes material mined (Tonnes)	157,179	252,521	245,672	655,373
Hermes grade mined (g Au/t)	1.58	1.51	1.40	1.49
Hermes waste mined (Tonnes)	2,517,823	2,269,357	2,789,275	7,576,455
Surface material milled (Tonnes)2	133,741	199,315	216,797	549,853
Surface material grade (g Au/t)\2	1.52	1.64	1.45	1.53
Total material milled (Tonnes)	343,932	388,513	437,067	1,169,512
Grade milled (g Au/t)	2.01	2.27	2.02	2.10
Recovery (%)	86%	90%	87%	88%
Gold Produced (ounces)3	19,232	25,608	24,719	69,559
Gold Sold (ounces)3	18,940	25,797	25,842	70,579

Chris Bradbrook, president and CEO, commented:

We are pleased to have achieved record quarterly gold sales for the second successive quarter at our Plutonic Gold operations. The ounces sold in the third quarter of 2018 represent a 24 percent year over year increase. Of particular significance is the fact that, with cumulative production of 50,327 [ounces] from the second and third quarters, we have now maintained an annualized production rate of more than 100,000 ounces for the past six months.

During the quarter, we commissioned the gravity circuit and saw the positive benefits from its operation. A scheduled tank reline was expected to negatively affect recoveries, but this was offset by the beneficial impact of the gravity circuit. Recently announced site changes are achieving the intended improvements, which we believe will lead to improved operating performance.