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Superior Resources has kicked off a 2500m reverse circulation and diamond core resource drilling program at its Steam Engine project in North Queensland.

Fifty holes are planned to enable completion of a scoping study for the project in a program expected to last at least two months.

“We are very pleased to be kicking off the next stage of Steam Engine just as the gold price begins to test its record highs,” managing director Peter Hwang said.

“Earlier this year we started evaluating that deposit on the basis of an Aussie $2000 gold price and fundamentals appeared attractive at the time.

“On the back of the current outlook for gold we are doubling our efforts to expedite completion of a scoping study and investigate our toll treatment options.”

The mineral resource estimate for Steam Engine stands at 1.27 million tonnes at 2.3g/t gold (about 94,000 ounces).

Mr Hwang said that resource was based on only 30 per cent of at least 2.5km of historically identified strike length and only to shallow depths.

“We have also identified a substantial amount of additional lode potential from existing data and field observations,” he said.

“Additionally we recognise that a more significant high-grade ore shoot system may exist as a feeder system beneath the known lodes.

“This represents significant upside potential for Steam Engine, which we will be testing during the current program.”