Superior Resources commences QLD gold drilling

Aerial view of opencast mining quarry with lots of machinery at work - view from above.This area has been mined for copper, silver, gold, and other minerals,Thailand

Gold is breaking out. In fact, you could argue it has broken out.

The spot gold price has climbed significantly this year, reaching a record high of $US1977 ($2719) per ounce: some analysts predict gold will climb even higher, with Bank of America setting its price target to a record $US3000 per ounce.

Investors looking at gold stocks would do well to consider those that offer potential near term cash flow assets with Tier 1 potential.

Superior Resources is a gold and base metals explorer that ticks all of these boxes and more. SPQ has either defined resources or is exploring for large lead-zinc-silver, copper, gold and nickel-copper-cobalt deposits in northern Queensland.

Superior has assets located in world class mining districts. It boasts a highly experienced management team and, importantly, offers investors a low cost entry into gold and potential Tier 1 base metal targets.

The company holds three 100 per cent-owned projects: Greenvale (gold, copper-gold, nickel-cobalt, zinc), Nicholson (lead- zinc-silver with copper and cobalt) and Victor (lead- zinc-silver with copper).

The flagship Greenvale project is a low capital expenditure (capex), potentially high return project in trucking distance to several toll treatment facilities.

This project is located within the Ordovician Macquarie Arc, home to the $27 billion capped Newcrest Mining’s Cadia Mine as well as North Parkes porphyry copper-gold mines.

The Greenvale Ordovcian rocks are at the northern remnant of the Macquarie Arc but are underexplored.

Today, the company announced that resource drilling has now commenced at the Greenvale project, specifically at its highly prospective Steam Engine deposit.

The Greenvale project spans 891 square kilometres and is prospective for gold, copper-gold, nickel-cobalt and zinc. The four most active prospects include:

  • Steam Engine where a scoping study is under way to investigate near-term gold production potential
  • Wyandotte where a copper mineral resource estimate is soon due
  • Bottletree, which is progressing towards a Tier 1-sized copper deposit and
  • Big Mag, a ~80 square kilometres mag anomaly that is prospective for nickel-copper-cobalt and copper-gold

Steam Engine has an indicated and inferred mineral resource Estimate of nearly 1.3 million tonnes at 2.3 grams per tonne for 94,000 ounces of gold.

Highlights of the upgrade include:

  • Indicated resources: 370,000 tonnes at 2.5 grams per tonne of gold (approximately 33,000 ounces); and
  • Inferred resources: 900,000 tonnes at 2.2 grams per tonne of gold (approximately 64,000 ounces).

Phase one of this resource drilling program follows the recently announced upgraded mineral resource estimate.

The company will undertake a program of 50 reverse circulation (RC) and diamond core holes for a total of 2500 metres to enable the completion of a scoping study.

Commenting on the commencement of drilling, managing director Peter Hwang said, “We are very pleased to be kicking off the next stage of Steam Engine just as the gold price begins to test its record highs. Earlier this year we started evaluating the deposit on the basis of an Aussie $2,000 gold price and fundamentals appeared attractive at the time. On the back of the current outlook for gold, we are doubling our efforts to expedite completion of a scoping study and investigate our toll treatment options.”

Potential revenue from gold sales would assist in further developing Steam Engine as well as expediting exploration initiatives at Tier 1 and certain other projects, with the company particularly identifying Bottletree, Big Mag and the Nicholson project.

Drilling is expected to continue for at least two months.

Looking at its other projects, SPQ also has a prominent exploration position within the Carpentaria zinc province, which contains an estimated 20 per cent of the world’s zinc inventory.

This is one of the world’s richest mineral producing regions, and the company is focused on multiple Tier-1 equivalent exploration targets at various sites.

This region includes the company’s Nicholson project and Victor project where recent drilling has resulted in an upgrade of its prospectivity for base metals.

The Nicholson Project is a lead-zinc-silver (copper, cobalt) project with several drill-ready Tier 1-equivalent targets, with potential to be a McArthur River-size deposit.

The company has already drilled 3176m in the first half of last year as part of its joint venture with the $10.9 billion-capped South32. The project spans 312 square kilometres and the area also hosts a battery metals project and a uranium project.

The Victor project is a lead-zinc (copper) project with several Tier 1 equivalent targets, spanning 717 square kilometres.

However, all focus is now on the Greenvale project with drilling expected to attract positive investor attention.

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