Superior Resources Share Price Climbs on ‘Spectacular’ Results
Queensland-focused explorer Superior Resources Ltd [ASX:SPQ] has watched its share price storm upwards today on the release of its first assays from its drilling program at the Steam Engine Gold Project.
Steam Engine, located 210 kilometres west of Townsville, sent SPQ shares flying in late October last year when the explorer announced the beginning of its second drill program at the site.
At time of writing the SPQ share price is up 28.57% to trade at 1.8 cents per share.
Full steam ahead for Superior Resources?
The past several months have been a bit of a roller coaster ride for some of Australia’s gold stocks with volatility returning to the gold price.
SPQ’s latest drill results seem to have outweighed the drop in the gold price overnight.
Highlights from first batch of assays from Stage 2 drilling include:
- 5m at 38 grams of gold per tonne (g/t) from 49m, including 1m at 184 g/t Au from 51m
- 7m at 20.6 g/t from 54m, including 1m at 135 g/t from 55m
- 15m at 2.3 g/t from 33m, including 3m at 7.5 g/t from 43m
Today’s results come from 15 of 40 holes drilled in the Stage 2 program.
REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.
However, what might have contributed heavily to today’s share price action is that these 15 holes are from a large modelled ‘low-grade’ zone of the Revised Mineral Resource released last year.
An estimate that reported 1,600,000 tonnes at 2.2 g/t for 112,000 ounces of gold.
SPQ’s Managing Director Peter Hwang commented on the potential to upgrade the system:
‘We are very pleased to have met one of the objectives of the Stage 2 program in the first batch of Stage 2 assays, which was to identify new high-grade ore shoots in the Steam Engine Lode. Infill drilling from the Stage 1 program showed potential to convert a large low-grade zone to high grade.’
What’s next for SPQ?
The explorer said it has yet to receive the remaining 25 holes, which are designed to extend the mineralisation envelope at the Steam Engine and Eastern Ridge lodes.
Once compiled, SPQ say results will be incorporated into a planned Pre-Feasibility Study.
This is expected to commence immediately after the delivery of the Steam Engine Project Scoping Study, anticipated in early February 2021.
So, there’s a lot to look out for in the coming months.
Mr Hwang is also very upbeat about the company’s outlook:
‘With the resources outlook extremely bright, 2021 promises to be an eventful year for Superior. Activities at Steam Engine will be ramping up with an accelerated resource and mining assessment program in conjunction with further resource expansion drilling programs and drilling to test the recently identified Dinner Creek Lode.’
Our resident gold expert, Shae Russell, shares Mr Hwang’s outlook on gold. In her report, Shae details why Aussie gold stocks could be set to spike as Australia becomes the next ‘gold epicentre’. If you want to learn more, download your free report here.
For The Daily Reckoning Australia