Superior Resources Completes Phase 2 Drilling at Steam Engine Gold Project
SUPERIOR RESOURCES LIMITED (SPQ) Share Update November 2024 Sunday 17th
Superior Resources Announces Completion of Phase 2 Drilling at Steam Engine Gold Project
Superior Resources Limited has successfully completed its Phase 2 drilling program at the Steam Engine Gold Project, revealing a new footwall alteration zone that may significantly enhance the project's potential.
Instant Summary:
- Phase 2 drilling completed with 37 holes totaling approximately 2,700 meters.
- Discovery of a new footwall alteration zone east of the main Steam Engine Lode.
- Potential for a new gold lode to the east of Steam Engine.
- Scoping Study indicates financial upsides with increased gold resources.
- Feasibility Study work is ongoing, focusing on ore beneficiation and environmental studies.
Completion of Phase 2 Drilling
Superior Resources Limited has announced the completion of its Phase 2 reverse-circulation (RC) drilling program at the Steam Engine Gold Project. The program involved drilling 37 holes for a total of approximately 2,700 meters, adding to the 69 holes drilled in both Phase 1 and Phase 2, totaling 5,282 meters.
Discovery of New Footwall Alteration Zone
A significant outcome of the Phase 2 drilling was the extension of one hole beyond its planned depth, leading to the discovery of a new footwall alteration zone at the northern end of the Steam Engine Lode. This zone is located approximately 50 meters east of the main lode and exhibits similar characteristics, potentially representing a previously unknown gold lode.
Implications for Resource Expansion
The discovery of multiple stacked alteration zones during Phase 2 further reinforces the potential for resource expansion. The program focused on expanding open-pittable resources by following up on new gold shoot discoveries from Phase 1 and testing geophysical targets at the Eastern Ridge Lode.
Financial and Development Prospects
A recently completed Scoping Study has indicated substantial financial upsides from modest increases in gold resources. The study suggests that revising the Mineral Resource Estimate and financial model could enhance the project's economic viability. Feasibility Study work is progressing, including ore beneficiation testing and environmental assessments.
The discovery of a new footwall alteration zone could significantly impact Superior Resources' stock by potentially increasing the project's resource base. This discovery aligns with the company's strategy to expedite the development of the Steam Engine Gold Project, potentially transforming its scale and enhancing its value proposition.
Investor Reaction:
Analysts are likely to view the discovery of the new alteration zone positively, as it suggests further potential for resource expansion. Investors may respond favorably to the news, anticipating increased project value and potential future returns.
Conclusion:
Superior Resources' completion of Phase 2 drilling and the discovery of a new alteration zone at the Steam Engine Gold Project marks a significant milestone. Investors should watch for updates on assay results and feasibility studies, which will provide further insights into the project's potential.