Superior Resources Unveils 194,000 oz Gold Resource with 10km Growth Upside
Superior Resources has updated its Mineral Resource Estimate for the Steam Engine Gold Project, confirming a substantial 194,000 oz gold resource and revealing significant exploration potential along an additional 10 kilometres of prospective lodes.
- Updated 2025 Mineral Resource Estimate totals 4.40 Mt at 1.37 g/t Au for 194,000 oz
- Two operational scenarios – owner-operated plant (0.25 g/t cut-off) and toll treatment (1.0 g/t cut-off)
- Resource strike length extended from 1.3 km to 1.5 km with new lode structures identified
- Significant upside potential with 10 km of additional prospective lode extensions
- Metallurgical tests show strong gold recoveries, especially for Eastern Ridge lode
Resource Update and Operational Scenarios
Superior Resources Limited (ASX – SPQ) has released an updated Mineral Resource Estimate (MRE) for its 100%-owned Steam Engine Gold Project in Queensland. The 2025 MRE incorporates drilling data from 2024 and employs Ordinary Kriging for resource modeling, marking a methodological shift from the previous inverse distance cubed approach. The updated resource totals 4.40 million tonnes at 1.37 grams per tonne gold, equating to 194,000 ounces under a 0.25 g/t cut-off grade scenario tailored for an owner-operated processing plant. Alternatively, a higher cut-off grade of 1.0 g/t Au, suitable for a toll treatment operation, yields 2.40 million tonnes at 2.06 g/t Au for 159,000 ounces.
Geological Insights and Resource Expansion
The resource envelope has been extended from 1.3 to 1.5 kilometres along strike, with the northern end of the Steam Engine lode revealing new multi-stacked lodes and a distinct westerly-oriented gold trend. These findings suggest a more complex mineralisation system than previously understood. Importantly, recent geological mapping and geochemical surveys have identified an additional 10 kilometres of prospective lode extensions, presenting substantial growth opportunities beyond the current resource footprint.
Drilling and Metallurgical Performance
The updated estimate is supported by 317 drill holes totaling over 24,000 metres, predominantly reverse circulation drilling supplemented by diamond core. While the 2024 drilling program was modest and focused on northern extensions, it provided critical data to refine the geological model. Metallurgical test work indicates excellent gold recoveries for the Eastern Ridge lode, averaging 97-98%, while the Steam Engine lode shows more moderate recoveries around 73-84%, highlighting an area for further optimisation.
Economic and Development Outlook
Superior’s Managing Director, Peter Hwang, emphasised that the updated MRE provides a robust platform for advancing the feasibility study and accelerating development planning. With gold prices currently buoyant, approximately double the assumptions used in the 2024 Scoping Study, the project’s economics appear increasingly attractive. The company plans to initiate further drilling to test the extensive strike extensions and aims to complete a feasibility study by mid-2026, alongside progressing regulatory approvals and establishing a maiden Ore Reserve.
Cautious Optimism Amidst Technical Nuances
Despite the encouraging resource base and exploration upside, some caution is warranted. The 2024 drilling was limited in scale and depth, leaving parts of the resource classified as Inferred with lower geological confidence. Additionally, metallurgical recoveries for the Steam Engine lode lag behind those of Eastern Ridge, necessitating further test work. Economic viability remains to be demonstrated through Ore Reserve declaration and detailed mining studies.
Bottom Line?
Superior Resources’ Steam Engine update sets the stage for a pivotal feasibility phase, with exploration upside and gold price strength underpinning optimism.
Questions in the middle?
- How will further drilling along the 10 km prospective strike impact resource confidence and size?
- What strategies will be employed to improve gold recovery in the Steam Engine lode?
- When can investors expect the maiden Ore Reserve and detailed economic assessments?
