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Superior goes full throttle at Steam Engine

27th April 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – A scoping study into the Steam Engine gold deposit, in Queensland, has found that the project could be developed into a financially and technically robust openpit operation.

ASX-listed Superior Resources told shareholders that the scoping study, which was based on a mineral resource estimate of 1.73-million tonnes at 2.2 g/t gold for 122 000 oz of contained gold, could produce some 70 000 oz of gold from an openpit operation.

The project is expected to have a 21-month mine life and would require a capital investment of some A$5.1-million.

The scoping study estimated an overall cash flow of A$24.2-million, a post-tax net present value of A$21.2-million and an internal rate of return of 242%, based on a gold price of A2 200/oz.

Superior MD Peter Hwang said on Tuesday that the company was pleased with the outcome of the scoping study, which was a significant step forward for the Steam Engine project.

“The study has demonstrated the economic robustness of the project and highlights the low-cost start-up opportunity to generate early cash flow. The upside potential is substantial and presents a compelling case to commence a feasibility study and the regulatory approvals process to enable the commencement of mining.”

Hwang said that as the company progressed through the feasibility study phase in 2021, Superior would also work to expand the total gold resource through an aggressive drilling campaign.

Edited by Creamer Media Reporter

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