Superior Resources Updates Steam Engine Gold Resource to 194,000oz, Plans 3,000m Drill Program
Superior Resources has refreshed its Steam Engine Gold Project resource estimates and secured $2 million in funding to advance drilling and feasibility studies, while also progressing high-grade copper exploration at Greenvale.
- Updated Mineral Resource Estimate for Steam Engine Gold Project incorporating 2024 drilling
- Planned 3,000m RC drilling program in Q1 2026 to expand gold resources along strike
- Positive coarse grind metallurgical test results supporting toll treatment pathway
- Design underway for drilling at high-grade Halls Reward and Telegraph copper prospects
- Secured $2 million equity placement to fund exploration, feasibility, and working capital
Steam Engine Gold Project Update
Superior Resources Limited (ASX, SPQ) has released a comprehensive update on its flagship Steam Engine Gold Project, located within the Greenvale Project in Queensland. The company has completed an updated Mineral Resource Estimate (MRE) that integrates drilling results from the latter half of 2024, enhancing the resource base and underpinning near-term production ambitions.
The updated MRE outlines two operational scenarios, a toll treatment approach with a higher cut-off grade of 1.0 g/t gold, and an owner-operated processing plant scenario with a lower cut-off of 0.25 g/t gold. The total contained gold ranges from 159,000 ounces under the toll treatment scenario to 194,000 ounces for the owner-operator model, reflecting a solid foundation for development.
Advancing Exploration and Metallurgical Insights
Looking ahead, Superior plans a 3,000-metre Reverse Circulation (RC) drilling program in the first quarter of 2026, subject to weather and landholder access. This program aims to test approximately 1.5 kilometres of mineralised strike extensions beyond the current resource envelopes at both the Steam Engine and Eastern Ridge lodes, potentially expanding the resource footprint significantly.
Complementing the resource update, recent metallurgical test work focusing on coarse grind samples has yielded encouraging gold recovery rates; averaging between 78% and 91% across different lodes. The inclusion of a gravity recovery stage notably improved overall recoveries by up to 8.3%, bolstering the case for a toll treatment processing pathway and informing ongoing feasibility studies.
Copper Prospects and Corporate Developments
Beyond gold, Superior is advancing its copper exploration at the Halls Reward and Telegraph prospects, both featuring exceptionally high-grade surface samples. The company has commenced designing a combined RC and diamond drilling program of up to 3,000 metres to test these targets, including a significant 1.5 km by 0.5 km soil-copper anomaly at Telegraph that remains untested by drilling.
On the corporate front, Superior successfully secured $2 million in binding commitments through an equity placement led by GBA Capital. These funds are earmarked to support the upcoming drilling programs, feasibility studies, and general working capital needs. Additionally, the company continues preliminary discussions with well-funded third-party resource companies regarding potential joint ventures on the Greenvale Project, though no agreements have been finalised.
Financial Position and Outlook
Superior’s quarterly cash flow report reveals operating cash outflows consistent with exploration and development activities, offset by financing inflows from the recent placement. The company ended the quarter with a robust cash position of approximately $1.9 million, providing a runway of over seven quarters at current expenditure levels.
With a clear focus on advancing the Steam Engine Gold Project towards production and unlocking value from its copper prospects, Superior Resources is positioning itself for a pivotal year ahead. The combination of resource growth, metallurgical validation, and strategic funding sets the stage for potential near-term production and further exploration success.
Bottom Line?
Superior’s upcoming drilling and feasibility milestones will be critical to translating resource potential into production reality.
Questions in the middle?
- Will the Q1 2026 drilling program confirm significant resource extensions at Steam Engine and Eastern Ridge?
- How will ongoing toll treatment negotiations shape the project’s development timeline and economics?
- What progress will be made in joint venture discussions for the Greenvale Project, and how might this impact Superior’s strategy?
