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Superior Resources has lifted the mineral resource estimate for its Steam Engine deposit, 210km west of Townsville, to 122,000 ounces of gold.

Completion of the resource upgrade programs meant the company could now to finalise its scoping study for the North Queensland project, Superior managing director Peter Hwang said.

“We are pleased that the 2020 Resource upgrade programs have been successful in reinforcing the quality and robustness of the Steam Engine gold deposit,” he said.

“The programs have delivered on our primary objective of upgrading the geological confidence of the mineral Resource, resulting in an overall 123 per cent increase in the total measured and indicated ounces since commencement of drilling in July last year.

“In addition, our expectations of identifying high-grade ore shoots were greatly exceeded by the delineation of at least two high-grade shoots, including a multiple-ounce grade shoot carrying values of up to 184 grams per tonne.

“The high-grade shoots and the consistency of the lodes is a developing characteristic of the Steam Engine deposit, which elevates the potential for identifying larger zones of mineralisation within the system”

The mineral resource, updated to include Stage 2 drilling results from late last year, stands at 1.73 million tonnes at 2.2 g/t gold for 122,000 ounces.

This includes a measured and indicated resource of 850,000 tonnes grading at 2.5 g/t gold (about 67,000 ounces) and an inferred resource of 880,000 tonnes grading at 1.9 g/t gold (about. 55,000 ounces).

The scoping study is expected to be finalised during April, followed by pre-feasibility study (depending on scoping study results).

“In parallel with the mining studies, we are preparing significant drilling programs for the coming field season targeting the high grade ore shoots, expansion of the current mineralisation envelope and a maiden drilling program on the new Dinner Creek Lode Zone,” Mr Hwang said.

Superior believes the newly identified Dinner Creek Lode zone has potential to add an additional 2 km gold lode and have greater thicknesses than the Steam Engine lode.

Gold lodes are open to the north and at depth (Steam Engine Lode) and open in all directions at Eastern Ridge Lode.