Superior Gold Inc. (TSXV: SGI) has released a significantly updated Mineral Resource and Mineral Reserve estimates as at December 31, 2021, for its Plutonic Gold Operations located in Western Australia.
The project is comprised of the 100%-owned Plutonic underground and open pit gold mines, 100%-owned Hermes, and 80%-owned Hermes South open pit projects along with the company’s interest in the Bryah Basin joint venture.
Highlights of the 2021 Mineral Resource and Mineral Reserve Estimates:
- Proven and Probable Mineral Reserves increased by 66% to 630 thousand ounces of contained gold
- Measured and Indicated Mineral Resources, inclusive of Mineral Reserves, increased by 2% to 1.92 million ounces of contained gold
- Inferred Mineral Resources increased by 29% to 3.97 million ounces of contained gold
- Further refined geological model utilising three-dimensional modelling that now incorporates all historical geological data
“We are extremely pleased to provide these updated Mineral Resource and Mineral Reserve estimates, which continue to deliver on our stated goal of further improving the quality of our resources and reserves, extending the mine life and maximising the potential of the Plutonic Gold Operations,” President and CEO, Chris Jordaan, said.
“The Mineral Resource and Mineral Reserve estimates for the Plutonic Gold Operations incorporate all available data from an expanded two-year exploration programme in conjunction with historical geological data in a newly interpolated block model.
“We believe this objective approach to Mineral Resource estimation is an improved indicator of the future opportunities at Plutonic and is continued evidence that Plutonic is a large mineralised system with long-term potential at current assumptions.
We believe that the new interpolation methodology, described herein, better predicts the spatial distribution of the mineralisation and grade estimation. As a result, Mineral Resources and Mineral Reserves have been identified in areas previously disregarded. Our underground drilling continues to add Mineral Reserves and Inferred Mineral Resources and outlines new areas of mineralisation in the Western Mining front, Baltic gap, and Indian access as reported during 2021.”
Mineral Reserve Estimate
Mineral Reserves as at December 31, 2021 were estimated using a long-term gold price of A$1,950 per ounce. Cut-off grades for the Mineral Reserves for Plutonic underground averaged 1.8 Au g/t (depending on the stoping area), and 0.5 Au g/t for the open pit areas located within a 40-kilometre radius of the Plutonic mill. Variable dilution rates averaging 20% were factored into the estimation of underground Mineral Reserves.
The increase in underground Mineral Reserves is predominantly a result of the inclusion of all relevant data in the updated resource block model and less constraining stope dimension criteria that identified more ore to be planned and scheduled in old remnant areas that had previously been disregarded.
Mineral Reserves for Plutonic East were removed as a mine plan does not exist with updated modifying factors. Management expects that such a mine plan will be completed in 2022.
The open-pit Mineral Reserves have decreased since the previous December 31, 2019 estimates, because of the removal of Hermes and Hermes South open pits which have become uneconomic at today’s costs and assumptions. Further work is required for these deposits, which management intends to conduct in 2022.
The Main Pit extension was added to the Mineral Reserves this year from the Mineral Resources previously reported on December 31, 2019. The remaining Mineral Reserves which have been added this year were added from the conversion of the previously reported Inferred Mineral Resources to Measured and Indicated Resources then mined in 2021 from the A4 and Perch pits.
For further information please visit: https://superior-gold.com/
