Superior Mining Corporation Inc. (SUI-TSX:V) is an active gold explorer in New Zealand and South Africa. The aim in New Zealand is to bring the company's projects to alluvial gold production.
New Zealand
Superior Mining is carrying out a comprehensive exploration program at the historic Ross Goldfield on the west coast of New Zealand's South Island, where the first major gold discoveries were made in the area in 1865. The West Coast has contributed approximately 25% of New Zealand’s annual gold production over the last 10 to 15 years. Total reported placer production is in excess of 9.0 million ounces.
Superior Mining's objective in New Zealand is to acquire alluvial gold resources with a view to establishing moderately-scaled, low-cost, efficient and industrially safe alluvial gold production.
The Company has acquired three large, prospective concessions in the area surrounded by existing mining operations. It has acquired a resource permit for the Victory North property and entered into option agreements for the Victory and Ross South properties, all located in the Ross Goldfield.
Superior mining has also entered into an option agreement for the Otama property, a Cu-Au mineralized property located in Southland, New Zealand (see news release).
Ongoing exploration programs on the Ross South, Victory and Victory North properties has included drilling 61 reverse circulation holes and a trenching and test pit program during 2009, which has revealed rich, layered, alluvial auriferous horizons on the properties.
The Victory and Victory North properties bear gold-magnetite beach standlines over 18.5 km. The 2009 61-hole drilling program defined a number of mineralized zones, all of which are open along and across strike. The more significant of these RC drill hole intersections include:
- PRC032 graded 2.47 g/t over 8 m from surface,
- PRC033 graded 3.24 g/t over 9 m from surface
- PRC039 graded 0.46 g/t over 8 m from surface.
Up to 8 bulk samples are under way (four at the north end of the Victory property and four at the south end). A mobile gold bulk sample plant is being used for evaluation. Production decisions will be made following completion of the bulk samples at the north end of the Victory property. At this time there is no certainty yet that such an operation by the Company would be economically viable.
The Ross South property includes numerous historical sunken shafts, one of which was sunk to a depth of 125 m. Gold leaders immediately to the north have resulted in historical gold production of 168,000 oz (1890-1920) and 130,000 oz (1985-2002).
Superior Mining entered into an option agreement to acquire an 80% interest in the Otama Property (see news release). The Otama Property is comprised of a single elongate block encompassing 1,784 ha of Cu-Au mineralization. The prospective gold-copper mineralization is associated with the Permian Otama complex and shear-hosted gold mineralization. Sampling by historical explorers reported significant Cu-Au values. Channel sampling with a goal of 200 samples is currently under way to vector-site appropriate drill targets, for which about 500 m of drilling is planned.
Superior Mining continues to engage in the evaluation of new large, prospective concessions in areas surrounded by existing mining operations in order to identify additional opportunities.
South Africa
Superior Mining directly and indirectly owns 87% of Turquoise Moon Trading 403 (Pty) Limited, which holds the exploration rights to the Mangalisa property, a high potential gold and uranium property located within the Witswatersrand Welkom Goldfield of South Africa.
This is an area that contains by far the largest known extent of gold mineralization of any coherent geological entity and of historic gold production. The Mangalisa Project represents one of the last remaining, high potential gold and uranium exploration properties within the Witwatersrand's Welkom Goldfield, where a large area of prospective ground was still open for acquisition.
In 2009, Superior Mining completed a systematic diamond drilling program on the 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, both at a depth of 776 m. The results from the progam represent an important discovery for Superior, 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.
Subsequent to this significant discovery, Superior Mining completed an agreement with Minco Mineral Holdings (see news release) of Midrand, South Africa wherein Minco will provide significant financing for exploration on the Mangalisa property. Pursuant to the agreement, Minco has the option to acquire 90 percent of Superior's directly controlled shares in Turquoise Moon Trading by spending US$10 million on the development of the property. Minco made a firm commitment to spend $5 million on the Mangalisa property within 18 months of the agreement's closing date.
