(In US Dollars unless otherwise stated)
TORONTO, February 25, 2019 - Superior Gold Inc. ("Superior Gold" or the "Company") (TSXV:SGI) is pleased to announce its full year 2019 operational guidance for the Company's 100%-owned Plutonic Gold operations, located in Western Australia.
Details of production and expenditure guidance for 2019 are summarized in the table below.
Production (oz of Gold)
Cash Costs ($/oz)1,2
All In Sustaining Costs ($/oz)1,2
Exploration Expenditure (millions of $)1,3
Sustaining Capital Expenditures (millions of $)1
Non Sustaining Capital Expenditures (millions of $)1,4
Assumes an AU$:US$ exchange rate of 0.73:1.
This is a Non-IFRS measure. Refer to Non-IFRS measures section of the Company's prior MD&A's for a description of these measures.
Exploration expenditures could increase with positive exploration results.
Non sustaining capital expenditures are primarily related to plant upgrades and expansion drilling that is capitalized.
Chris Bradbrook, President and CEO of Superior Gold stated: "We are targeting production of 100,000 ounces in 2019. The unforeseen challenges encountered in the fourth quarter of 2018 (now resolved and detailed in the February 5th, 2019 press release) continued into January of this year which will have an impact on production in the first quarter of 2019. This included limited availability of key underground and open pit equipment (resulting from mechanical and contractor issues) and a weather related event which resulted in power to the borefields being interrupted and limiting water supply to the mill necessitating a lower processing throughput. However, we remain focused on working towards improving the stope grade and a progressive increase in quarterly production at the Plutonic underground mine as we continue to mine towards reserve grade and maximize cash generation.
Our sustaining capital for the year is similar to last year's level which illustrates the low capital intensity of the underground operations at Plutonic as we take advantage of the extensive infrastructure that we already have in place. Finally, on the exploration front, we will continue to focus on expanding reserves and resources and extending the mine life of our assets."
The Company will be releasing complete financial and operating results for the fourth quarter and full year 2018 before market open on March 13, 2019.
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 Gold mine and central mill, the Hermes open pit gold mine 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.
Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws that is 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 in this news release includes, but is not limited to, the Company's objectives, goals or future plans, and statements regarding exploration results and exploration plans.
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. See "Risk Factors" in the Company's prospectus dated February 15, 2017 filed on SEDAR at www.sedar.com for a discussion of these risks.
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. Except as required by law, the Company does not assume any obligation to release publicly any revisions to
forward-looking information contained in this press 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) accepts responsibility for the adequacy or accuracy of this release.