Superior Mining Corporation Inc. (SUI-TSX:V) is an active, Canadian-based gold and uranium exploration company with its headquarters in Vancouver, Canada. The company aims to deliver shareholder value by focusing on advancing its highly prospective Mangalisa gold project in the prolific Witwatersrand Basin of South Africa to define a mineral resource.
Superior Mining directly and indirectly owns 87% of Turquoise Moon Trading 403 (Pty) Limited, which holds the exploration rights to the company's flagship Mangalisa property, a high potential gold and uranium property located within the Witwatersrand's Free State (or Welkom) Goldfield of South Africa immediately north of Harmony Gold's Masimong 5 mine.
The company has a highly regarded and experienced executive and management team and directors, with over 31 years of experience in Africa, and an extremely successful track record in gold project discovery and development. Superior Mining has already successfully completed two phases of drilling on the property, intersecting a conglomerate reef with encouraging anomalous gold and uranium grades, potentially being a new discovery of an "Elsburg" type gold deposit named the Erfenis Reef Zone. Elsburg reefs can have very high gold values, and the drilling to date suggests that the Mangalisa Property presents one of the most favourable exploration targets in the Free State Goldfield and the overall Witwatersrand Basin today.
Superior Mining has also signed a Heads of Agreement with Reinhold Resources Limited to earn-in a 51% interest in the Redcastle gold project located in the Leonora-Laverton district of Western Australia. The Redcastle project comprises thirteen prospecting licences covering an area of 24 km2 in the prospective Yilgarn Craton region, which is host to many multi-million ounce gold deposits. The company has completed two drilling programs on the property and is awaiting the results from the Phase 2 drilling.
South Africa has the world's largest natural resources of gold, platinum group metals, chrome ore and manganese ore, and the second largest resources of zirconium, vanadium and titanium. South Africa's mining sector accounts for one third of the country's GDP.
The Witwatersrand Basin of South Africa is an area that contains by far the largest known extent of gold mineralization of any coherent geological entity in the world. Historically, over 1.8 billion ounces of gold have been produced from the Witwatersrand Basin since 1886, or about 98% of the country's output. Mines are located in South Africa's 6 major goldfields: Evander, East Rand, Central Rand, Carletonville, Klerkdorp and the Free State: (see Map of Witwatersrand goldfields and simplified geology). Current mine head grades at Harmony Gold's Free State Goldfield mines are 6 to 10 g/t gold.
The Mangalisa Property
Superior Mining's Mangalisa property is located about 20 km east of Welkom in the Free State Goldfield of the Witwatersrand Basin. The Free State Goldfield has produced over 320 million ounces of gold at an average grade of 8.4 g/t as well as substantial quantities of uranium byproduct. The gold and uranium ore has been recovered principally from the Basal Reef (a reef generally less than 1 metre thick) which is widespread in its distribution across the goldfield. A number of other reefs located above the Basal Reef, with more local or confined distribution, have also been mined in places. The other reefs include the Leader, "B", "A", and Beatrix reefs.
The Mangalisa property is located just north of Harmony Gold's Masimong 5 Mine, which in FY2011 was reported to have produced 137,605 oz of gold at an average grade of 4.93 g/t. The Basal, "B" and "A" reefs are all reported to be mined at the Masimong 5 mine.
In 2009, Superior Mining completed a systematic diamond drilling program on the 19,585.62-ha Mangalisa property, which confirmed 45.8 g/t gold and 3.79 kg/t uranium over 0.45 m and 51.1 g/t gold and 4.27 kg/t uranium over 0.32, at a depth of 776 m. Subsequent to this significant discovery, Superior Mining completed a second drilling program consisting of six more holes, of which a number returned similarly high gold and uranium grades (see news release).
These encouraging results represent an important discovery for Superior Mining, highlighting the presence of significant gold and uranium mineralization at much shallower depths than that found in the majority of mines currently operating within the Witwatersrand Basin. The highest gold and uranium grades typically are contained within a thin, small pebble conglomerate band and the associated carbon seam at its base.
The strata intersected during the Phase 2 drilling program confirmed both the stratigraphic continuity of the Erfenis Reef Zone and the presence of significant gold and uranium values in this zone, in particular to the south of PG1 in borehold ERF-7. Boreholes ERF-5 and ERF-6 also intersected gold and uranium mineralization, giving a clear indication that gold and uranium concentration has occurred in the system.
The Mangalisa project represents one of the last, high-potential gold exploration properties within the Witwatersrand's Free State Goldfield. Very high grades were reported in several of these reefs intercept in Super Mining's two drilling programs, which provide a good exploration model for the newly discovered Erfenis Reef Zone. The Erfenis Reef Zone occurs at the comparatively shallow depth of 780 m. As such, the Erfenis Reef probably presents one of the most favourable exploration targets in the Free State Goldfield today.
The Company has executed a sale agreement with Castlehill Trading CC (“Castlehill”) a private energy Investment Company based in Johannesburg, South Africa for the purchase of Superior’s ownership in Mangalisa. (see News Release). The Agreement is for the complete purchase of all shares of Turquoise Moon for a total sum of US$3 million. This agreement is subject to a number of conditions, including:
Australia has vast mineral resources, with the mining industry playing a very significant role in the country's economy and wealth. Currently, Australia is the world's second largest producer of gold, after China. Australia has mining activity in all of its states and territories. One of the mineral-rich regions of the country is the Yilgarn Craton in Western Australia, where Superior Mining's Redcastle project is located.
The Yilgarn Craton is Australia's premier mineral province, which is host to many multi-million ounce gold deposits. It attracts more than half of Australia's minerals exploration expenditure, and produces two thirds of all gold and most of the nickel mined in Australia. The craton contains some 30% of the world's known gold reserves, about 20% of the world's nickel reserves, 80% of the world's tantalum reserves, considerable iron ore,copper, zinc and some lead reserves.
Mining is carried out mostly in the greenstone belts around mining centres such as Kalgoorlie, Kambalda, Noresman, Meekatharra and Wiluna and minor centres such as Laverton, Leinster, Leonora and Southern Cross.
The Redcastle property comprises thirteen prospecting licences in the Leonora-Laverton district of Western Australia. Significant alluvial gold has been extracted from the prospecting licences over a 20-year period. No systematic exploration has been undertaken by any previous operators, which presents a unique opportunity to carry out virgin exploration in a strategic location.
The company has completed preliminary geological mapping and two soil sampling programs (see news release for assay results). Subsequently, during the last week of February 2013 a shallow, 52-hole drilling program was completed on the northern part of the property with anomolous gold values intersected in the western portion of the drilled area (see news release of drilling program results). Superior then undertook a 50+ drillhole program in early May 2014, with drilling results expected to be returned in June.
Major mines in the Redcastle property area include Minara Resources, Murrin Murrin nickel and cobalt mine and Barrick’s Granny Smith gold mine.
Superior Mining continues to engage in the evaluation of new large, prospective concessions in areas surrounded by existing mining operations in order to identify new opportunities to acquire additional properties for company growth and return value to its shareholders. The current focus of this search and evaluation is Australia and Asia.