MILL 15-DAY MAINTENANCE SHUTDOWN WAS
SUCCESSFULLY COMPLETED WITH FURTHER GROWTH BEING TARGETED FOR THE
REMAINDER OF 2022
(In US Dollars unless otherwise
stated)
TORONTO, April 19,
2022 /CNW/ - Superior Gold Inc.
("Superior Gold" or the "Company") (TSXV: SGI) (OTCMKTS: SUPGF)
announces detailed production results for the first quarter of 2022
for the Company's 100%-owned Plutonic Gold operations, located in
Western Australia.
First Quarter Highlights
- Production of 16,747 ounces, a 5% decrease over the comparable
prior-year period and on-plan due to the two-week mill preventative
maintenance shut down
- Safety performance improved recording a 21% reduction in total
injury frequency rate during the period. Our safety improvement
program is progressing and on track
- COVID-19 impacting Western Australian operations as cases spike
with the opening of borders. Controls are in place to help minimize
the impact at Plutonic
- Planned, 15-day mill maintenance shutdown completed safely and
on time
- Production guidance of 80,000 to 90,000 ounces maintained with
increased production targeted for the remainder of 2022 as
originally planned
- Cash and cash equivalents of $20
million, above plan but a decrease of $4 million from the end of the fourth quarter,
due to the timing of gold sold versus produced, the planned
two-week shutdown in March, and the buildup of open-pit stockpiles
during the mill shutdown
Chris Jordaan, President, and CEO
of Superior Gold stated: "Despite completing the planned and
scheduled preventative maintenance mill shut down, we still
delivered a strong quarter, maintaining a solid cash position of
$20 million that surpassed
management's expectations. We had planned for the first quarter to
be our softest this year, as noted in previous news releases.
However, stope grades were in line with plan, and tonnes hoisted
from underground exceeded our plan for the quarter, with increases
expected for the remainder of the year as we develop into newly
defined mineralized zones and enter Main Pit Deeps.
The health and safety of our employees is paramount to
Management, the Board, and the Company. In late 2021 we instituted
a program to improve safety awareness and ensure a safe working
environment with the goal of reducing injuries and risk at the
Plutonic Mine operation. The program has delivered early success,
and we have noted a marked reduction in the injury frequency rate
in the first quarter. COVID-19 cases and exposures increased during
the first quarter as Western Australian borders opened. COVID-19 is
expected to continue to challenge Western Australian operations
into the next quarter. In-transit and on-site controls are in place
to ensure cases on-site are minimized to reduce the
impact.
We are targeting production and cash flow increases in the three
subsequent quarters of 2022 and are confirming our annual guidance
of 80,000-90,000 ounces.
The mill shutdown was a success and consistent with the
Company's strategy to invest in the fixed plant for long-term
reliable and sustainable operations, providing the opportunity to
increase throughput to the mill to its installed capacity. This
will be considered as the Company moves toward increased
underground tonnage in the latter half of 2022 and through the
addition of higher-grade open pit feed from the early entry into
Main Pit Deeps.
The Company also continues to benefit from block model
improvements designed to better predict the spatial positioning of
the ore at Plutonic and the identification of larger more
productive stopes to be developed and mined. This is evidenced by
the continued increase in tonnage mined from underground stopes in
each quarter of 2021 as well as a 35% increase in stope tonnage
production over the same period in 2020. Tonnages available to
be milled from the open pits continue to augment underground
tonnages with the first quarter tonnes mined being 38% higher than
the same period in 2020.
In 2021, the Company delivered on the first goal of its growth
strategy, namely a safe and sustainable operation between
70,000-85,000 ounces per annum. In 2022 the Company will progress
towards delivering the second goal of its growth strategy to
deliver an operation of scale. The first phase of this goal is to
increase production to an annualized rate of approximately 100,000
ounces per annum in the second half of the year by increasing
production from the underground mine and identifying and mining
higher grade open-pit targets in Main Pit Deeps and other near-mill
open pits.
Our 2022 guidance reflects additional investment to open new
underground mining fronts identified from our successful 2021
exploration program, plus the continued development and mining of
open pit targets, which is expected to result in an improvement in
our grade profile. In 2022, 30% of ore from the Plutonic
underground mine is expected from new mining fronts as compared to
100% remnant mining in 2021. These investments are designed to
improve on the Company's strategy to fully optimize the underground
operation and when combined with the addition of new sources of
open-pit feed, are expected to positively contribute to the
Company's overall profitability."
The Company will be releasing its complete financial and
operating results for the first quarter of 2022 in May 2022.
First Quarter 2022 Production
Details
Preliminary production details are summarized in the table
below.
Operating
Parameters1
|
Three Months
Ended
March 31,
2021
|
Three Months
Ended
March 31,
2022
|
Stope material mined
(Tonnes)
|
137,191
|
185,540
|
Stope grade mined (g/t
Au)
|
3.54
|
2.58
|
Development material
mined (Tonnes)
|
49,771
|
34,306
|
Development grade mined
(g/t Au)
|
1.30
|
1.06
|
Surface material milled
(Tonnes)2
|
154,089
|
143,149
|
Surface material grade
(g/t Au)2
|
0.41
|
0.65
|
Total material milled
(Tonnes)
|
355,678
|
359,872
|
Grade milled (g/t
Au)
|
1.78
|
1.71
|
Gold recovery
(%)
|
86
|
85
|
Gold Produced
(ounces)
|
17,603
|
16,747
|
Gold Sold
(ounces)
|
17,538
|
15,823
|
Cash and Cash
Equivalents ($ million)
|
17.9
|
19.9
|
|
1Numbers may
not add due to rounding.
|
2Surface
material milled in Q1 2022 is primarily the processing of open pit
material from Perch.
|
Qualified Person
The scientific and technical information in this news release
has been reviewed and approved by Ettienne Du Plessis, who is a
"qualified person" as defined by NI 43-101. Mr. Du Plessis is not
independent of the Company within the meaning of NI 43-101.
About Superior Gold
Superior Gold is a Canadian-based gold producer that owns 100%
of the Plutonic Gold Operations located in Western Australia. The Plutonic Gold
Operations include the Plutonic underground gold mine and central
mill, numerous open-pit projects including the Plutonic Main Pit
push-back project, the Hermes open pit projects, and an interest in
the Bryah Basin joint venture. Superior Gold is focused on
expanding production at the Plutonic Gold Operations and building
an intermediate gold producer with superior returns for
shareholders.
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Forward Looking Information
This news release contains "forward-looking information" within
the meaning of applicable securities laws that are intended to be
covered by the safe harbours created by those laws.
"Forward-looking information" includes statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology.
Forward-looking information includes information with respect to
guidance as to projections, outlook, guidance, forecasts,
estimates, and other statements regarding future or estimated
financial and operational performance, gold production and sales,
revenues and cash flows, and capital costs (sustaining and
non-sustaining), including projected cash operating costs and
all-in sustaining costs) as well as statements with respect to the
mine plan, exploration, drilling, operating, and organizational
matters and activities relating to the Plutonic Gold Operations and
the Company generally, including its liquidity and capital
requirements and financial results. By identifying such information
in this manner, the Company is alerting the reader that such
information is subject to known and unknown risks, uncertainties,
and other factors that may cause the actual results, level of
activity, performance, or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and
unknown risks, uncertainties, and other factors which may cause the
actual plans, intentions, activities, results, performance, or
achievements of the Company to be materially different from any
future plans, intentions, activities, results, performance or
achievements expressed or implied by such forward-looking
information. Readers are encouraged to refer to the Annual
Information Form of the Company for a discussion of other risks
including outbreaks or threats of outbreaks of viruses, other
infectious diseases, or other similar health threats, such as the
novel coronavirus outbreak, which could have a material adverse
effect on the Company by causing operational and supply chain
delays and disruptions, labour shortages, shutdowns, inflationary
pressures on operating or capital costs, the inability to sell
gold, capital markets volatility or other unknown but potentially
significant impacts. The Company cannot accurately predict what
effects these conditions will have on the Plutonic Gold Operations
or the financial results of the Company, including uncertainties
relating to travel restrictions to the Plutonic Gold Operations or
otherwise and business closures that have been or may be imposed by
governments. If an outbreak or threat of an outbreak of a virus or
other infectious disease or other public health emergency occurs,
it could have a material adverse effect on the Company's business,
financial condition, and results of operations.
The Company cautions that there can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, investors should not
place undue reliance on forward-looking information as no assurance
can be given that any of the events anticipated by the
forward-looking information will transpire or occur, and if any of
them do so, what benefits the Company will derive therefrom. Except
as required by law, the Company does not assume any obligation to
release publicly any revisions to forward-looking information
contained in this news release to reflect events or circumstances
after the date hereof. Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Exchange) accept responsibility for the adequacy or
accuracy of this release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accept responsibility for the adequacy or accuracy of this
release.
SOURCE Superior Gold