Superior Gold (TSXV: SGI; US-OTC: SUPGF) has announced results for 9,700 metres drilled across 51 holes aimed at expanding the reserves and resources at the Indian zone on its 100% owned Plutonic gold mine in Western Australia.
The company currently has three diamond drills operating underground at the project. It has focused two on grade control and infill drilling and the third on resource and reserve expansion.
Highlights from the project include 42.4 grams gold over 2.4 metres from 21 metres downhole and 70.2 grams gold over 1 metre from 171 metres downhole.
The company found more than 50 grams gold in six intersections and more than 20 grams gold in 15 intersections.
The company has so far targeted areas outside the current resource but close to infrastructure. It believes these areas have the most potential increase reserves in the near term.
The company will continue drilling at the Plutonic mine until the end of the year. It will include all the results in an updated reserve and resource estimate it plans to table in the first quarter of 2019.
The company sold more than 25,800 oz. gold in 2018's third quarter, a 24% increase over the same period of the previous year. It reduced its 2018 production guidance, however, from 100,000-110,000 oz. gold to 92,500-97,500 oz. gold, attributing the decline to a weaker first quarter.
Shares of Superior Gold are currently trading at 83 ? with a 52-week range of 67 ? to $1.62. The company has a $79 million market capitalization.