March 20, 2006 07:30 ET
CALGARY, ALBERTA--(CCNMatthews - March 20, 2006) - SUPERIOR CANADIAN RESOURCES INC. (TSX VENTURE:CAD) (The Company) SIGNS $7+ MILLION DEAL WITH STILLWATER MINING COMPANY, (NYSE:SWC), ONE OF THE WORLD'S LEADING PRODUCERS OF PLATINUM GROUP METALS (PGMS) AND THE MOST SIGNIFICANT PRIMARY PRODUCER OF PALLADIUM AND PLATINUM IN THE WESTERN HEMISPHERE.
The Company has entered into an agreement with Stillwater Mining Company of Billings, Montana to explore its drill ready Sim Lake nickel-copper-PGM project. The project area is located approximately 340 kilometers north east of Thunder Bay Ontario and is accessible via a local road network.
Under the exploration agreement, Stillwater has the right to earn, incrementally through three phases, a 50% interest by making cash payments to Superior Canadian of $40,000 and funding $750,000 in exploration expenditures over a two (2) year period, increasing to 60% on a further $1.5M in expenditures during years three and four and increasing to 70% by funding a pre-feasibility study that would commence by the end of the fifth year.
Superior and Stillwater personnel will work together on the exploration programs for the first two years under Superior's management and direction and upon Stillwater earning a 50 % interest after the second year, a joint venture, will be formed to further develop the project.
The Company's 2005 summer program confirmed the occurrence of coincident geophysical and geochemical anomalies and prospective host rocks for PGE, nickel and copper mineralization (News Release 08-05).
Six priority drill targets have been identified for an initial drill test to evaluate specific TEM and/or geochemical anomalies. Drilling is tentatively scheduled to commence in the middle of March dependent on weather conditions and drill rig availability.
This press release has been reviewed and approved by J. Garry Clark, P. Geo., a Qualified Person pursuant to National Instrument 43-101.
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.
Superior Canadian Resources Inc.David SimPresident and Director(403) 232-8555orSuperior Canadian Resources Inc.Jeff ShierDirector(416) 550-9857orStillwater Mining CompanyJohn PearsonInvestor Relations(406) 373-8742(406) 373-8701 (FAX)
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