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Option Agreement To Acquire Up To 80% Of Otama Copper-Gold Property In New Zealand


May 5, 2010

Vancouver, British Columbia:  Superior Mining International Corporation, (the “Company”) is pleased to announce that it has entered into an agreement with Lodestar Resources Limited (“Lodestar”) to acquire an option to purchase an 80% interest in the Otama Property (EPA 52315) (the “Property”), northern Southland – New Zealand. The Property comprises a single elongate block encompassing 1,784 hectares (Figure 1).

The Property is prospective for Au-Cu mineralization associated with the Permian Otama complex and for shear-hosted gold mineralization. Sampling of gossanous outcrops on the Property by historical explorers reported significant Cu-Au values of:

  • Waikaka Hill quartz-pyrite lode (Galvin, 1906) assayed 6 g/t Au, 4.5 g/t Ag and 2.0% Cu
  • Australian Mining & Oil Investments (1972-73): grab samples from fault shears, mylonites, quartz lodes and disseminated sulfide types ranged from 0.15-0.3 g/t Au and 1.85-7.8% Cu.
  • Lodestar (2005): grab and channel samples (n=45) from mylonite, gossan and quartz lodes  ranged from 0.14-1.47% Cu

Substantial historical alluvial gold workings occur immediately north and east of the Otama Complex, included the King Solomon Mine which averaged 1.0 oz gold per cubic metre. Careful examination of the alluvial tailings revealed that the host rocks are those of the Otama Complex.

The Property covers parts of a Permian igneous complex, located within the regional Dun Mountain Ophiolite Belt. A wide variety of altered felsic and mafic plutons, along with their volcanic equivalents are present within the igneous complex. The Property covers two north-south trending horst fault blocks, with severe structural dislocation resulting in a series of metre- to kilometre-sized fault mélanges of intrusive and volcanic facies rocks, along with associated mylonization. Hydrothermal silica, argillic to advanced argillic and magnetite alteration is widespread. Copper and associated gold mineralization occurs in i) zones of bleached and silicified breccias/shear zones impregnated by up to 25% pyrite and trace to minor amounts of chalcopyrite; and ii) sulfide disseminations within diorite and keratophyre intrusives. In outcrop mineralization of the former are highly weathered and interpreted as semi-gossans.

 Agreement Summary

  1. Payment of up to NZ$20,000 covering previous Lodestar expenses. (earns a 20% property interest);
  2. The undertaking by the Company (the Operator) of a reverse circulation drilling program of approximately 500 metres, at a cost of no less than NZ$50,000. (earns cumulative 51% property interest);
  3. Exploration expenditure by the Company of a further CDN$1,000,000 over a maximum of five (5) years. (earns cumulative 80% property interest); and
  4. Should Lodestar elect not to contribute to on-going project funding once the Company has reached the 80% threshold its interest will be converted to a 7% net smelter royalty.

 

On behalf of the Board of Directors of
Superior Mining International Corporation

“John Proust”

John Proust
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.

All of Superior Mining International's news releases made prior to January 2007 can be found on the System for Electronic Document Analysis and Retrieval (SEDAR) at http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00007879

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