Superior Mining Restructures Victory Agreement and Commences Drilling and Test Pitting on Victory Property
November 30, 2009
Vancouver, British Columbia: Superior Mining International Corporation, (the “Company” or “Superior”) is pleased to announce that it has restructured its agreement on the Victory Property, New Zealand (Figure 1) and has started a new shallow drilling program and a test pitting program on the Victory Property.
The Company has amended its option agreement with Placer Gold Resources Limited (“Placer”) regarding the Victory Property in order to advance the project more rapidly. Under the terms of the amended and restated option agreement (the “Agreement”), Placer and its shareholders have granted the Company a 24 month option to acquire a 100% interest in the permits comprising the Victory Property by carrying out an exploration program, constructing a placer mining facility (the “Plant”) on that property, and processing 10,000 cubic meters of material through the Plant.The Agreement is structured as an option to purchase all of the issued and outstanding shares in the capital of Placer Gold, a New Zealand company.
Upon exercise of the option, Superior will grant to the Victory Shareholders a 7% net smelter royalty on the Property. In contrast to the previous option agreement, the Company is no longer required to complete a bankable feasibility study nor pay any advance royalty prior to commencing production on the property. This will permit Superior to advance the project quickly. Subject to the results of the aforementioned work program, the Company can proceed to build the Plant for the purpose of exercising the option and advancing the project to production.
During the option period the Company will be entitled to manage all of the required exploration and development work on the Victory Property.
Pursuant to the Agreement, and in addition to the initial drilling program reported in the Oct 9, 2009 news release, Superior has made a firm commitment to infill drill approximately 20 holes to 20 meter depth and 20 additional holes to 20 meter depth (approximately 800 m of total new drilling) along 8 km of the old railway bed, including sampling and assaying of results. 12 holes have been completed to date. In order to exercise the option, in addition to constructing the Plant, Superior must (a) perform between 3 and 4 bulk sample tests, (b) apply for resource consents as needed and mining permits as warranted, and (c) process 10,000 cubic meters of material through the Plant.
Additional areas of interest on the Victory Property
The Company will excavate 2 to 5 test pits (each 1,000 cubic meters) on the area known as Butler’s Land Fill (refer to attached aerial photo, Figure 2) and Cook Farm. The excavation and evaluation of the test pits has begun using a mobile gold processing plant. 1 test pit has been completed and a second test pit is currently being excavated.
The Company would like to thank Placer, its shareholders and Mr. Barry MacDonell, a principal of Placer, for their efforts in restructuring the Agreement which Superior believes will expedite the development of the Victory Property. Superior has agreed to engage Mr. MacDonell, to obtain resource consents from the region and the district in order to conduct drilling on the Victory Property. Mr. MacDonell has agreed to assist with the design of the bulk sample program described below and the application for a mining permit as required.
Mr. MacDonell has been a geologist for over 26 years. He has a B.Sc.(Hons) (Geology, First Class), University of Otago – 1982; a Master of Regional and Resource Planning (with Credit), University of Otago – 1994; and a Post Graduate Diploma in Business Administration, Massey University – 2003. In addition to his technical expertise, Mr. MacDonell specializes in preparing resource consent applications, reviewing statutory planning documents and preparing applications for mining permits.
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.