Steam Engine’s Future Hinges on New Drilling and Processing Deals, Risks Remain

• Updated Mineral Resource Estimate incorporating 2024 strike-extension drilling underway
• New high-grade gold lodes identified, including Windmill East target
• Metallurgical assessment and haulage contractor discussions progressing
• 2025 drilling program planned to test SAM geophysical anomalies and extend resources
• Updated MRE expected next quarter, potentially improving project economics

Updated Resource Modelling Signals Growth

Superior Resources Limited (ASX, SPQ) has provided a significant update on its Steam Engine Gold Project in northern Queensland, revealing that an updated Mineral Resource Estimate (MRE) is in the final stages of preparation. The revised MRE will incorporate results from an extensive 2024 drilling program that successfully extended the known gold lodes along strike and identified multiple stacked high-grade ore shoots.

Mining Associates, an independent consultancy, has been engaged to complete the block modelling and resource declaration, building on geological and wireframe models developed internally by Superior's geologists. The company expects to release the updated MRE within the next quarter, a milestone that could materially enhance the project's valuation and development prospects.

Encouraging Drilling Results and New Targets

The 2024 drilling campaign confirmed extensions to both the Steam Engine and Eastern Ridge lodes, with high-grade mineralisation also discovered at the Windmill East prospect. These findings suggest the potential for a meaningful increase in contained gold ounces and improved project economics due to strike extensions above pre-determined grade cut-offs.

Further excitement stems from a recent sub-audio magnetics (SAM) geophysical survey, which has highlighted previously unrecognised gold lode targets, including a possible southern extension of the Steam Engine Lode. These SAM anomalies, which correlate with zones of intense mineralisation, will be a priority for drill testing in 2025 once cultural heritage clearances are secured.

Progressing Towards Development

On the development front, Superior Resources is advancing metallurgical assessments with a potential toll processing partner, aiming to confirm ore compatibility with existing processing facilities. Concurrently, discussions with haulage contractors have yielded an indicative proposal from a prominent mining logistics company, confirming the feasibility of transporting high tonnage payloads efficiently between the project site and processing locations.

Preparations are also underway for mining lease applications and native title and Aboriginal cultural heritage procedures, signaling a comprehensive approach to project advancement beyond exploration.

Looking Ahead, 2025 Drilling and Catalysts

Superior Resources plans at least two drilling programs in 2025, one targeting the SAM geophysical anomalies to uncover new gold lodes, and another focused on resource extension drilling along at least five kilometres of untested geochemical anomalies. These campaigns could significantly expand the Mineral Resource base and enhance the project's economic outlook.

Managing Director Peter Hwang expressed optimism about the progress, noting the multiple workstreams converging towards project development and promising updates expected in the coming quarters.

Bottom Line?

With an updated resource estimate imminent and promising new targets on the horizon, Superior Resources is poised for a pivotal phase in unlocking Steam Engine’s full potential.

Questions in the middle?

• How substantial will the increase in gold ounces be from the updated MRE incorporating 2024 drilling?
• Will the SAM geophysical targets reveal new high-grade lodes that could transform project economics?
• How will toll processing and haulage agreements impact the timeline and cost structure of project development?