Significant Near Surface Gold Results Encountered In Drilling Of New Zealand Victory Property
October 9, 2009
Vancouver, British Columbia: Superior Mining International Corporation, (the “Company”) is pleased to announce results from reverse circulation (RC) drilling of its Victory placer gold property on the West Coast of the South Island of New Zealand (previously announced in the press release dated December 03, 2007). The Victory property comprises gold-magnetite bearing Pleistocene beach strandlines known as “blacksand leads” peripheral to current or historical mining operations.
Significant high grade gold intercepts were reported from a number of shallow reverse circulation (RC) drill holes. The most impressive of these included:
PRC14 graded 5.97 g/t over 6 metres from surface,
PRC 01 graded 6.15 g/t over 1 metre from 15.0 metres,
Drilling results are detailed in Table 1. Elevated results are caused by extremely fine and uniform gold particles. This is further evidenced by trenches excavated across auriferous beach dunes (strandlines) immediately to the northeast, where fine gold concentrations have reported values of 0.63-4.38 g/t. In the first five metres of drilling core recoveries were only 30% or less due to unconsolidated sandy material.
The majority of West Coast placer gold mining operations appear to be profitable at 0.13 g/t to 0.16 g/t (based upon personal communications with five private operating mining companies). Grades both on the property and along strike in current mining operations are often in excess of 0.60 g/t and thus suggest potential for “high grade” placer deposits (based upon personal communications with two private companies who have encountered grades as high as 5 g/t in prospecting trenches along the same beach strandline that is being investigated on the Victory ground – a Qualified Person has not verified these numbers on behalf of Superior). With the current well established mining infrastructure the potential exists for the Company to quickly establish operations in order to generate cash flow. There is no certainty such an operation would be economically viable.
Table 1: Victory Property – Significant Reverse Circulation (RC) Drill Hole Results
Interval 15.0-16.0 m: 1.0 m @ 6.15 g/t
|10.0||0.0||10.0||10.0||0.28||Interval 0.0-6.0 m: 6.0 m @ 5.97 g/t|
|13.0||0.0||13.0||13.0||0.28||Interval 0.0 – 7.0 m: 7.0 m @ 0.50 g/t|
The Company is particularly encouraged by these preliminary drilling results, considering that the obvious linear magnetic feature (and inferred higher gold potential) immediately to the east and directly below the glacial moraine embayment has yet to be tested.
The property comprises 2,906 Ha of Pleistocene blacksand leads, which form part of raised beach deposits, buttressing up against moraine outwash terraces. Gold, along with ilmenite, magnetite, garnet, zircon and other heavy minerals (Minehan, 1989) is concentrated into lenticular beach placers of which a number are currently being exploited by mining operations along strike to the northeast and southwest. An airborne helimag survey flown in 2008 by Southern Geoscience Consultants identified a number of magnetic lineaments coincident with Quaternary-aged strandlines. In the northern portion of the property ground truthing of shallow linear magnetic anomalies identified two distinct target types:
- localized higher-grade embayment type strandline mineralization where moraine terraces have created lower energy depositional regimes, and
- large tonnage potential exposed long-drift derived strandlines. Based on inspections of current mining operations and obvious implications for the Company a decision was made to undertake a limited RC drilling program (see Figure 1) targeting an obvious embayment target and shallow magnetic strand line deposits. Some terrain access restrictions influenced the sighting of drill hole locations.
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. All of the gold produced in this region since the 1950s has come from placer deposits. The West Coast is a long narrow region confined between steep mountain ranges to the east and the Tasman Sea to the west. In between are foothills to the main ranges, terraced river valleys and a narrow, discontinuous coastal plain. Beach placers are found in present day beaches, older postglacial beach deposits, and the raised beach deposits of successive marine interglacials which underlie the remnants of coastal terraces (Crown Minerals, 2008). Gold, always very fine, is concentrated with other heavy minerals into lenticular beach placers. Since 1980 there have been a large number of successful small and medium scale gold recovery operations using hydraulic excavators and mobile gold recovery plants
Qualified Person and Quality Control and Assurance
The information in this release has been compiled under the supervision of Hamish Campbell B.Sc.Geology, MAusIMM. Mr. Campbell has over 24 years of international mineral exploration experience during which he has held such positions as Exploration Manager, Senior Geologist and Consulting Geologist. Mr. Campbell has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined in terms of NI 43-101.
On behalf of the Board of Directors of
Superior Mining International Corporation
President & CEO
For more information please contact:
Superior Mining International Corporation
1500-885 West Georgia Street,
Vancouver, B.C., Canada V6C 3E8
Telephone: (604) 601-2005 Fax: (604) 488-0319
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release..This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.