The Dajarra copper (and lead-zinc-silver) project is situated south of the small township of Dajarra and approximately 150km south-south-west of Mount Isa. The project is made up of three granted exploration permits (EPM15040, EPM15046, and EPM15329) and three exploration permit applications (EPM16995, EPM17012 and EPM18542) which total 1430 square kilometres. The Dajarra area is interpreted by Superior to be offset from the Mount Isa area (Southern Isa Offset). If so the Dajarra area may contain the original southern extensions of the Mount Isa host rocks.

Many of the elements of Superior's copper exploration model exist in this project area. The favourable features of this project area include:

• The presence of extensive areas of basic volcanics in outcrop and in covered areas as evidenced in the airborne magnetics in the covered southern portion of the project area.
• The existence of areas of magnetite destruction which is apparent in the airborne magnetics over outcropping basic volcanics and also over basic volcanics in covered areas.
• The presence of substantial blocks of sediment faulted against basic volcanic sequences. Most of the prospective sediment blocks lie beneath covered areas.
• The presence of outcropping fine grained pyritic dolomitic shales probably equivalent to the host rocks of the Mount Isa deposits
• The interpretation that the rocks in the area are the faulted offset of those that host the Mount Isa deposits (the Southern Isa Offset).
• The lack of serious base metal exploration in the area previously.
• The possibility of ‘leakage’ of lead and zinc into the Cambrian rocks.

The prospective Proterozoic rocks in much of the Dajarra Project area lie under shallow Mesozoic and Cambrian sedimentary cover. Superior's approach to exploration of this area has been to use high-quality airborne magnetics, radiometrics and other datasets to identify areas of possible Mount Isa Group (host of the Mount Isa deposits) equivalents in the area. These areas have been reconnaisance mapped in the field to determine whether they contain Proterozoic outcrops and to identify the more prospective parts of the tenement areas. A heliborne electromagnetic (EM) (VTEM) survey was completed over the more prospective areas in July 2007 both to confirm that prospective rocks were present and to locate potentially mineralised areas for drill testing.

The results from this work program were that two new areas of outcropping Mount Isa Group equivalents, which had not previously been identified, were located (Elizabeth Prospect and RFZ Prospect). As well as these areas a number of other areas with potential were also identified.

Elizabeth Prospect

The Elizabeth EM Anomaly, which lies within EPM15040, is considered a high-priority target area. It was originally outlined on five consecutive flight lines spaced at 500m intervals in the July 2007 VTEM survey. Geotech Airborne Pty Ltd completed more detailed VTEM (100m spacing) over the Elizabeth Anomaly in December 2007 to better detail the anomaly and to determine its full extent. The anomaly has a length in excess of 2000m, a width up to about 400m and it lies at a depth in excess of 100m. It does not outcrop.

Most of the area of the Elizabeth Anomaly is covered by red sandy soil derived from weathering of the basal sandstone unit of the Cambrian sedimentary cover. In the northern portion of the anomaly subdued outcrops of strongly ferruginous (iron-rich) Proterozoic siltstones indicate that the host sediments of the anomaly are probably Mount Isa Group sediment equivalents. Scattered outcrops of ferruginous sandstone which belong to the Cambrian cover sequence indicate that iron is enriched on the Cambrian unconformity. It is uncertain at this stage if the iron in the strongly ferruginous Proterozoic siltstones is due to iron enrichment on the unconformity or is derived from original pyrite in the siltstones.

Broadly the geological setting of the Elizabeth Anomaly is similar to that at Mount Isa where the Mount Isa Group sediments containing the Mount Isa deposits are faulted against basalts and quartzites along a major north-south fault.

Exploration completed at Elizabeth to date, in addition to the VTEM survey, includes geological mapping, geochemical sampling, gravity, drilling and down-hole electromagnetic surveying.

Drilling to date has intersected a sequence of siltstones and shales, which are graphitic in part, as well as dolomites. These rocks correlate with the Mount Isa Group rocks at Mount Isa. Some low grade copper, lead and zinc values have been obtained from the drilling.

RFZ Prospect

The RFZ VTEM Anomaly lies in the eastern portion of the RFZ Prospect. The anomaly exists on six of the flight lines from the July 2007 VTEM survey. The flight lines were spaced at 250m intervals and therefore the anomalous area has a length of 1.5km. The stronger part of the anomaly occurs on two lines. Modelling of the anomaly indicates that the conductive source is an easterly dipping body.

The geology of the area consists of Proterozoic siltstones and shales with some surficial ironstone bodies which may reflect pyritic sediments.

Soil sampling at a spacing of 200m X 50m has been completed over the RFZ Prospect. This has outlined two low order copper anomalies over fine grained Proterozoic sediments. One of the anomalies corresponds with the RFZ EM Anomaly and one is in the south-western corner of the prospect area.

Drilling of four holes into the RFZ EM anomaly was completed in December 2007 and a further hole was completed in 2009. Assay results do not indicate significant base metal results.

The RFZ prospect remains as a moderate-priority target area. It is a large area of prospective sediments which are interpreted to be equivalent to the Mount Isa Group. Work on the area has been suspended while exploration is carried out on higher-priority prospects.

Wills Phosphate Prospect

The Wills Phosphate Prospect is located in the eastern portion of the Dajarra Project and just east of the Mount Isa to Boulia road.

Shallow scout drilling targeting Cambrian sediments in a soil covered area in the southern part of the Wills Prospect has intersected moderate-grade phosphate at a shallow depth in one of the drill holes. Hole WCS003 intersected moderate-grade phosphorite averaging 8.8% P2O5 over 13 metres from a depth of 8m. This broad intersection contained a 10m section from 8m averaging 10.3% P2O5.

Given that hole WCS003 was a scout hole in a soil covered area, the broad intersection of moderate grade phosphate is an encouraging result. While higher phosphate grades would be required for a resource there is apparently scope for this in the larger interpreted fault block of prospective Cambrian sediments in this area.

The interpreted block of Cambrian sediments in this southern area lies both within a granted exploration permit and an application for an exploration permit held by Superior. It is uncertain when the exploration permit application will be granted and therefore it is unclear at this stage when a more comprehensive program of mapping and drilling can be completed on this prospective area.

The area is reasonably well located with regard to infrastructure being about 40km west of the Phosphate Hill phosphate mine.