Superior Resources (SPQ)

Shares / Stock Code

SPQ

Stock Exchange / Sharemarket

ax

Superior Resources (SPQ) is an ASX listed public Australian company that is exploring for copper and lead-zinc-silver deposits in north-west Queensland, Australia. The Company also holds seven million shares in Deep Yellow Limited an Australian ASX listed uranium explorer. Under a prospectus dated 29 August 2007, Superior raised a total of $4.4 million and successfully applied for listing on the Australian stock exchange (ASX). The company was listed on Australian Stock Market on 12 November, 2007.

Superior's principal objective is the discovery of a major Mount Isa style copper or lead-zinc-silver deposit in the Proterozoic rocks of north-west Queensland. To meet this objective Superior holds 15 exploration permits (12 granted and 3 applications) totalling 3480 square kilometres. These 15 exploration permits are grouped into six separate project areas.

The Company holds 15 exploration permits (13 granted and 2 applications) totaling 3710 square kilometers. These 15 exploration permits are grouped into six separate project areas. The Dajarra Project, located 150 kilometer south-southwest of Mount Isa, encompasses six granted exploration permits. The Nicholson Project, which is situated 350 kilometer northnorthwest of Mount Isa, consists of one granted exploration permit and one exploration permit application.

The Victor Project is situated 180 kilometer north-northwest of Mount Isa. One granted exploration permit (EPM 16028) comprises this project. The Inca Project is made up of three granted exploration permits including the Buckley River exploration permit. The Buckley Prospect lies in the southeast corner of the Buckley River exploration permit.

Myally Project

The Myally Project lies 170 km north of Mount Isa and consists of one granted exploration permit (EPM15043) totalling 75 square kilometres. The project is located at the northern end of the structural domain known as the Leichhardt River Fault Trough in which the Mount Isa deposits occur.

The Myally Project contains both outcropping and covered Proterozoic rocks that are equivalent to those of the lower Mount Isa Group. They are folded and down-faulted into older rocks which are basement to the Mount Isa Group. Airborne magnetics indicate that basic volcanics of the Haslingden Group exist at various depths in the area and form a ‘floor’ to the area.

Initial work in the area suggested that there was potential for copper and lead-zinc-silver deposits in the northern portion of the area where there was the possibility of upper Mount Isa Group rocks existing under shallow cover. Magnetic anomalies in this area offered the possibility of these upper Mount Isa Group rocks being faulted against basic volcanics. A previous airborne EM survey was processed in detail to provide targets for drilling in this area. Unfortunately the extensive very conductive cover in the area did not allow the delineation of deeper basement conductive targets for drilling. In the absence of identified targets it was decided to relinquish this area and focus work on an identified uranium target.

Anomalous uranium and molybdenum values in soil and rock chip samples at the Lagoon Creek Uranium Prospect were followed up with drilling of 52 aircore and percussion holes for 2596m of drilling in May and June 2008. The drilling showed anomalous but subeconomic uranium values associated with the Cretaceous Toolebuc Formation and indicated that no further work was required on this formation.

Beneath the claystone which enclosed the Toolebuc Formation a permeable horizon of sandstone, clayey sandstone and conglomerate was intersected by the drilling. This permeable zone contained pyrite and lignite (wood). This permeable horizon represents a target zone for sandstone uranium deposits and further drilling is warranted further up the channel which contains this permeable horizon. A partner to fund this drilling is being sought.

Wonomo Project

The Wonomo Project is located some 150 km south-south-east of Mount Isa and immediately to the east of Superior's Dajarra Project. It consists of an exploration permit application (EPM17012) which totals 1200 square kilometres and cover Proterozoic rocks .

The area was applied for to hold while an assessment of the area was completed for base metals and uranium deposits. The time between application and granting of an exploration permit in north-west Queensland is now at least 12 to 18 months and this is sufficient time to compile all the data and to review this data. The area will be accepted if the assessment of the compiled data indicates sufficient potential to warrant exploration.