Greenvale Project

Greenvale Project Location - Click to Enlarge The Greenvale Project (previously the Cockie Project) is located some 210 km west-northwest of Townsville in northeast Queensland, Australia. The project consists of a granted mining lease (ML6750), two granted exploration permits (EPM18987 and EPM19247) and two exploration permit applications (EPM25659 and EPM25691). EPM18987 surrounds the granted mining lease. EPM19247 is situated well to the northwest of the Greenvale area but is included in the project area.

The eastern portion of the area covers a belt of volcano-sedimentary and intrusive rocks of Cambro-Ordovician age with potential for copper-zinc-silver-gold deposits of the volcanogenic massive sulphide (VMS) type and porphyry copper-gold deposits. The western area (Cassidy Creek) covers portion of a higher grade metamorphic belt of Proterozoic age with potential for volcanogenic massive sulphide (VMS) and Broken Hill type deposits.

The principal prospect of the VMS type within the project area is the One Mile Prospect. This prospect lies within the granted One Mile Mining Lease (ML6750) held by Superior.

The surrounding area (EPM18987) contains the Cockie Creek Porphyry Copper Prospect. Recent work by Superior indicates that the rocks containing this prospect are part of a northern remnant of the central New South Wales porphyry copper belt which contains the Cadia and North Parkes porphyry copper deposits.

Additional prospects within the Greenvale Project include the Riesling and Burgundy prospects in the western (Cassidy Creek) area (VMS style) and the Wyandotte, Halls Reward and Bottletree copper prospects in the areas under application.

The total package of tenements and promising copper prospects make Greenvale one of the best copper projects in eastern Australia.

One Mile Prospect

One Mile Gossan - Click to Enlarge The granted mining lease (ML 6750 “One Mile”) has an area of 128ha and covers a gossan outcrop with a total strike length of about 800m. The area is deeply weathered and has partial laterite cover. Records indicate that nine drill holes were drilled into the mining lease area prior to Superior's exploration. Two of these holes intersected a disseminated to massive pyrite zone at depth below the gossan. Assay results from the historical drilling and surface rock-chip sampling of the gossan showed only low-grade copper and gold values (maximum 1.74 g/t Au) but the area was poorly drilled.

Superior has drilled an additional 32 holes into the mining lease area and these show a substantial massive and semi-massive sulphide body containing low-grade copper, gold, zinc and silver values. The sulphide body has a southerly plunge and it extends many hundreds of metres to the south of the outcropping gossan. The best drillhole intersection in Superior's drilling is 5.2m @ 0.51% Cu, 0.64g/t Au, 1.77% Zn and 7.3g/t Ag in hole SPOM023 which is located towards the southern end of the area drilled and on local grid section 1850N.

Modelling and interpretation of historical geophysical surveys of the One Mile and surrounding area has identified a number of high-priority geophysical targets which have not previously been drilled.

The prime prospect outside of the mining lease is the One Mile Dam Prospect which is situated 1km northwest of the gossan outcrop on the mining lease. Recent modelling work on ground EM and IP surveys as well as reinterpretation of the VTEM data shows this to be a prime target area. The potential is further enhanced by its proximity to a major massive and semi-massive sulphide body. Drilling of the area is proposed when funding allows.

ONE MILE SECTIONS AND PLANS

One Mile Prospect - Section 1850N - Click to Enlarge

One Mile Prospect - VTEM Conductivity - Click to Enlarge

One Mile Prospect - Chargeability 504RL - Click to Enlarge

One Mile Prospect - VTEM Channel 4460 - Click to Enlarge

Cockie Creek Copper Prospect

The Cockie Creek Copper Prospect is located 5km northeast of the One Mile mining lease and within exploration permit (EPM) 18987. This prospect has previously been drilled with broad low-grade primary copper intersections reported (eg Hole CRC017 - 94m @ 0.53% Cu from 121 to 215m).

Using the results from 6638m of previous drilling in 63 drillholes, an inferred resource for the prospect has been estimated in accordance with the 2004 JORC Code of 13Mt @ 0.42% Cu.

Recent modelling of Induced Polarisation (IP) data indicates a second mineralised body situated 100m west of the area containing the inferred resource. This area and the area below the inferred resource are proposed for drilling when funding is available.

COCKIE CREEK SECTIONS AND PLANS

Cockie Creek Prospect - Section 1950N - Click to Enlarge

Cockie Creek Prospect - Section 1950N Detail - Click to Enlarge

Cockie Creek Prospect - Geology - Click to Enlarge

Cockie Creek Prospect - Copper Geochemistry - Click to Enlarge

Riesling Prospect

The Cassidy Creek exploration permit (EPM19247) of 90 square kilometres covers an area containing gahnite (zinc spinel) quartzites and gossans with surface lead grades to 24% Pb extending over a strike length of approximately 6km. The area called the Burgundy, Riesling and Chablis prospects was explored by CRAE and BHP with limited drilling reporting only narrow low-grade lead and zinc intersections.

Soil sampling of the Riesling Prospect indicates a substantial high-order zinc anomaly with values over 1% Zn. Results for copper, lead, molybdenum, silver and bismuth show a central high-order soil anomaly with a coincident magnetic anomaly that has not been drilled. This strongly anomalous prospective area is proposed for drilling when funding allows.

Soil sampling of the Burgundy Prospect to the south of the Riesling Prospect located a prominent zinc anomaly associated with gossanous material. One drill hole is proposed into this area.

RIESLING PROSPECT SOIL GEOCHEMISTRY AND MAGNETICS

Riesling Prospect - Soil Zn - Click to Enlarge

Riesling Prospect - Soil Cu - Click to Enlarge

Riesling Prospect - Soil Ag - Click to Enlarge

Riesling Prospect - Magnetics (RTP) - Click to Enlarge

Wyandotte and Halls Reward Prospects

The Wyandotte and Halls Reward prospects lie within EPM application EPM25691.

Compilation of all available data on the prospects in digital form has been completed.

At the Wyandotte Prospect previous drilling has reported high-grade copper intersections up to 13.4m @ 3.6% Cu (Hole 8) in a shallow north-plunging shoot associated with magnetite alteration in metamorphosed basic volcanics. Interpretation of the ground and airborne magnetics of the area indicates additional potential for further mineralisation.

The Halls Reward Prospect is an old copper mine which produced high-grade secondary copper which was shipped to various smelters during the period 1933 to 1957. More recent exploration has identified a second copper lode which parallels the mined lode and which has potential for Cyprus style VMS mineralisation. A fuller assessment of the prospect's potential will be undertaken when the area is granted.