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Superior Gold announces Q1 2019 production results

Mining News - Published on Mon, 22 Apr 2019

Image Source: superior-gold.com
Superior Gold Inc announced detailed production results for the first quarter from the Company's 100%-owned Plutonic Gold operations, located in Western Australia. Chris Bradbrook, President and CEO of Superior Gold stated "The first quarter of 2019 was important for the Company as we put in place measures to improve operational performance relative to both the fourth quarter and full year of 2018. These included improving both equipment availability and the underground stope grade and minimizing dilution. Despite the challenges from 2018 continuing into January, we saw improvements in all key areas as a result of implementing these changes. Relative to the fourth quarter of 2018, grades of stope and development ore increased by more than 10%. The grade of surface material milled increased by almost 30% and the grade of material milled increased by 18%. As a result, we were able to realize an improvement in gold production relative to the previous quarter.”

For the first half of April, the stope grade has averaged in excess of 3 g Au/t which is the highest level since 2017. We finished the quarter with a strong cash balance of $16.2 million and during the quarter we halted the cash burn; both outcomes reflecting the effects of our ongoing operational improvements.

Mining at Hermes substantially exceeded the amount of material milled as we have built up a substantial stockpile of ore which enhances future operational flexibility. The lower grade of the Hermes material mined is reflective of this as the lower grade material was stockpiled, whilst higher grades were milled from Hermes relative to the previous quarter.

By the second half of the quarter, we were able to reestablish an annualized production rate in excess of 100,000 ounces.

During the first quarter of 2019, we attained cumulative production of more than 200,000 ounces of gold since we acquired the asset in October 2016. This is a significant achievement and is a testament to both the Company's commitment to the Plutonic Gold operations and the strength of the mineralized system at the Plutonic Gold mine. We are anticipating being able to provide a further reserve and resource update in the near future.

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Posted By : Rabi Wangkhem on Mon, 22 Apr 2019
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