Superior Canadian Resources Inc.

Superior Canadian Resources Inc.

September 06, 2005 09:30 ET

Superior Canadian Resources Inc.: News Release

CALGARY, ALBERTA--(CCNMatthews - Sept. 6, 2005) - SUPERIOR CANADIAN RESOURCES INC. (TSX-V:CAD) (the "Company") is pleased to provide an update on its current activities.

The summer field program of prospecting and sampling at Sim Lake has identified potential host rocks for PGE, Nickel and Copper mineralization. The program was focused on evaluating the airborne electromagnetic anomalies defined in the recent TEM survey.

A total of 30 grab samples were taken of mafic intrusive rocks. The highlights of the sampling included one sample that assayed 227 ppb platinum, 58 ppb palladium and 29 ppb gold. Four other samples reported platinum numbers of between 24 and 52 ppb. Standard fire assay methods were used for platinum, palladium and gold detection by Accurassay Laboratories, Thunder Bay Ontario an ISO 17025 certified lab.

The Company has commenced the summer exploration program on its 100 % wholly-owned optioned lands at the Aurum Prospect (Au, Ag, Cu) with a systematic evaluation of the recommendations provided by Paterson, Grant Watson Limited regarding specific anomalies resulting from the recent TEM survey. Based on the summer field findings this will allow the planning of a possible early fall diamond drilling program to further evaluate the various gold targets.

Both properties are located approximately 350 km, north east of Thunder Bay Ontario and are accessible via a local road network.

Con-currently Koro Energy Inc., the 100% wholly-owned oil and gas subsidiary of the Company, thru it's US subsidiary, is negotiating a joint venture arrangement with a major US independent oil and gas firm for the pooling of contiguous land holdings in South Central Montana, that encompass a 9 section (5,760 acres) area, for the development of a gas and heavy oil project. It is anticipated that drilling will occur prior to year end.

To assist in the aforementioned negotiations, the firm has entered into a letter of intent with a non-arms length party to acquire a twenty five (25 %) percent working interest in a further 2,100 acres of contiguous land holdings increasing the Company's total land interest to 3,200 acres. These new landholdings currently contain three shut-in gas wells that the Company expects will be put on production shortly, given that state approval has been granted to commence construction of a gas sales pipeline.

Payment for the 25% working interest is $ 1,300,000 US Funds, which purchase price would be satisfied through the issuance of a one year convertible debenture at 6 % per annum interest, convertible into common shares at $ 0.175 cents for a value of $ 300,000 US Funds ($ 366,000 Canadian) and the issuance of 6,971,000 shares at a deemed value of $ 0.175 cents per common share for a value equaling $ 1,000,000 US Funds ($ 1,220,000 Canadian). The purchase price is subject to confirmation, and adjustment if required, based on an independent third party engineering report expected to be completed in the next three weeks.

The Sim Lake and Aurum Property portions of this press release have been reviewed and approved by J. Garry Clark, P. Geo., a Qualified Person pursuant to National Instrument 43-101.

"On Behalf of the Board"

D.A. Sim President

This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements.

Shares issued & outstanding: 16,037,682

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Superior Canadian Resources Inc.
    David Sim
    CEO and Director
    (403) 232-8555
    (403) 262-1169 (FAX)
    Superior Canadian Resources Inc.
    Jeff Shier
    (416) 550-9857