CEO.CA Chairman's Briefing

TORONTO, Aug. 17, 2021 /CNW/ - Superior Gold Inc. ("Superior Gold" or the "Company") (TSXV: SGI) is pleased to announce high-grade drill results from its ongoing underground diamond drill program at its 100%-owned Plutonic Gold mine in Western Australia.  Plutonic is a world-class Archean lode-style gold mineralized system that has produced close to six million ounces of gold to date and encompasses a Measured and Indicted Mineral Resource of 1.89 million ounces together with an Inferred Mineral Resource of 3.07 million ounces.  The Company's continuous exploration effort underpins a commitment to resource growth.

Results are provided for 52 underground exploration drill holes for a total of 8,451 metres of drilling.  Drilling was focused on extending and infilling the Western Mining Front which remains open along strike and both up and down dip as it is yet to be fully drill tested.

HIGHLIGHTS

• Drill hole UDD24141 intersected 42.2 g/t gold over 5.6 metres in the Caspian zone
• Drill hole UDD24376 intersected 17.7 g/t gold over 6.4 metres in the Baltic Extension zone
• The new Western Mining Front now extends an estimated 1,600 metres by 60 metres outside of the current Mineral Resource envelope
• The new Western Mining Front is directly adjacent to existing underground infrastructure, thus requiring minimal capital to develop the area
• Today's drill results continue to support the Company's strategy of opening new high-grade mining fronts at the Western Mining Front at Plutonic underground

The location of this drilling is shown in Figures 1-4 below. The key intersections are shown in Table 1 and Table 2 below and all intersections are provided in Table 3.  Reported intersections are over a minimum downhole length of 0.30 metres (0.20 metres true width).

Chris Jordaan, President and CEO of Superior Gold stated: "We are delighted to announce today's drill results, clearly extending the new high-grade Western Mining Front.  Today's drill results extends the western edge of the Plutonic deposit a further approximately 60 metres along the entire Western Mining Front currently estimated to be 1.6 kilometre long from surface to Baltic West.  They also support our view that this new northwest high-grade trend, known as the Guppy Trend, continues through an area not previously drilled, opening a much larger target area than previously considered.

Results to date support our view that the Western Mining Front has excellent potential to be an important new gold production zone at Plutonic.  In addition, today's results are not included in our current Mineral Resource estimate.

The expansion into new mining fronts is a key component of our current strategy to extend Plutonic's mine life and increase production by further improving our mining grades and efficiencies.  Our ongoing drill program, utilizing our dedicated exploration drill rig, will continue to infill the Western Mining Front with the aim of including parts of this area in the 2022 mine plan."

EXTENSION OF THE WESTERN MINING FRONT

Superior Gold's mine exploration program is designed to open new mining fronts by targeting extensions of high-grade mineralization that are close to existing infrastructure but outside of the current Mineral Resources.  Numerous significant historical high-grade intercepts, both throughout and peripheral to the large mineralized Plutonic system, have yet to be followed up. The immediate focus is on expanding two key areas to open new mining fronts, these being: 1) The Western Mining Front (along the Caspian, Indian and Baltic zones); and 2) The Baltic Gap as shown in Figure 4.

The Western Mining Front extends approximately 1.6 kilometre along the western edge of the Caspian, Indian and Baltic zones of the Plutonic underground mine and remains open, with several historic high-grade intercepts confirming mineralization continuity outside of Mineral Resources, as shown in Figure 4. 

Drilling in 2020 identified significant high-grade mineralization in the northwest of the Indian zone, including 56.3 g/t gold over 15.1 metres (hole UDD22011) (refer to the News Release dated June 17, 2020).  Drilling in the first quarter of 2021 identified the northwest extension of these high-grade bands of mineralization, 350 metres down dip in the Baltic zone, including 13.7 g/t gold over 8.8 metres (hole UDD23656) (refer to the News Release dated March 1, 2021).

Today's Western Mining Front drill results extend from the Caspian zone, down through the Indian and Baltic zones to the Baltic Extension zone – covering up to a 1.6 kilometre long northwest extension of the Western Mining Front.  Results are clustered in three general areas 1) Caspian zone, 2) Baltic West zone and 3) Baltic Extension zone as shown in Figures 1 and 2.

The Caspian zone results include 42.2 g/t gold over 5.6 metres (hole UDD24141), extending the Caspian zone along the northwest Guppy Trend, which is now thought to extend the entire 1.6 kilometre length of the Western Mining Front.

The Baltic West zone also includes results along the Guppy Trend, located between the Indian zone and Baltic zone results (noted above), approximately 50 metres up dip from the March 2021 Baltic zone results and 170 metres west of the current Mineral Resource envelope.  Consistent grade bearing intersections, including 140.4 g/t gold over 1.4 metres (grade control hole UDD23993) and 10.1 g/t gold over 4.0 metres (hole UDD24191), further demonstrate continuity of the typical Plutonic mineralization system, being a high-grade stacked lode system. 

The Baltic Extension zone results include 17.7 g/t gold over 6.4 metres (hole UDD24376) and 6.4 g/t gold over 5.9 metres (hole UDD 24379), up to 100 metres northwest of the existing Mineral Resource envelope.  These results support continuity with historical high-grade step out intercepts, such as 6.7 g/t gold over 6.8 metres (hole PEDD0221), which demonstrates a 620 metre strike of high-grade mineralization, including today's results.

Today's results also support the hypothesis that the highest grades at Plutonic are controlled by the northwest trending faults.  These results are also adjacent and in close proximity to existing infrastructure which translates to minimal capital expenditures required to infill drill and develop the area.

Figure 1: Mineralized Zones at Plutonic Underground with Drill Hole Locations (Plan View)

Figure 2: Western Mining Front Extension Third Quarter 2021 Drill Hole Locations (Plan View)

Figure 3: Western Mining Front Significant Intercept Location (Cross Section – Looking South)

Figure 4: Plutonic Historical Significant Intercepts and Targeted New Mining Fronts (Plan View)

Table 1: Highlights of Expansion Drill Results from Western Mining Front

Table 2: Highlights of Infill Drill Results from Western Mining Front

Table 3: Complete Expansion Drill Results from Western Mining Front