Northern Superior Resources Inc. enjoyed a successful 2010 highlighted by a significant discovery of gold mineralization made on the Company’s flagship gold property, Ti-pa-haa-kaa-ning (TPK) in northwestern Ontario (announced December 13th, 2010). Financings during 2010 and early 2011 built the Company’s treasury to the strongest position it has ever been with over $20 million available for future exploration. In addition, the Company has secured a number of very promising exploration opportunities which have the potential for additional success. As a result of all these activities, the Company’s share price increased significantly from about $0.12/share in June to over $0.80/share by year end.
Important agreements were made with Lake Shore Gold Corp. and Rainy River Resources Ltd. in 2010. First, we acquired Lake Shore’s 50% interest in the TPK gold property. This was followed by completing an option agreement with Rainy River, whereby Rainy River could earn a 51% interest in the eastern half of the TPK gold property by incurring expenditures of $9.4 million over three years, and by making cash payments and private placements of $2.1 million over three years. These agreements enabled Northern Superior to advance exploration on TPK aggressively in 2010 which lead to a discovery hole on this gold property late in 2010. Hole TPK-10-004 cut a strong zone of alteration and mineralization and returned 25.6 g/t Au over 13.5 m. Rainy River is currently diamond drilling on the TPK Property and has indicated they plan to accelerate exploration expenditures on the Project.
The Company intends to aggressively explore the 100% owned, western half of the TPK old property, now referred to as the New Growth gold property. The objective of the planned exploration program will be to define and test the westward extension of the gold-bearing shear zones identified on the TPK gold property. The major intersection of gold mineralization associated with the TPK shear zones was an important step forward in understanding the gold-bearing system responsible for the large gold grain-in-till apron on the property, and what we believe is the extension of this system onto the New Growth gold property. The gold intersection on the TPK property is the first of many that the Company believes will be found and which would be necessary to form such a large gold grain-in-till apron.
Northern Superior maintains an aggressive generative program and has expanded its gold property portfolio by acquiring seven new gold projects in Ontario and Quebec through its proprietary geological data base. The Company is well funded to carry out planned exploration programs on these seven new gold properties in 2011. In addition, the Wachigabau gold property in Québec, a 50/50 joint venture partnership with Matamec Explorations Inc., will also be explored in 2011.
Northern Superior’s solid foundation, formed from the exploration and administrative efforts of previous years, and in particular 2010, has setup 2011 to be an exciting and promising year for our shareholders. Northern Superior has a motivated company (Rainy River) further exploring the gold discovery on the eastern half of the TPK gold property. Northern Superior intends to aggressively explore the 100 % owned New Growth gold property this year- as the best place to look for additional mineralization is right beside known mineralization! In addition the Company will continue to develop, explore and harvest gold exploration projects from it s invaluable in-house data base, some of which have already been acquired and which Northern Superior will continue to develop over 2011.
The completed financing put the Company in a position of strength, enabling Northern Superior to maintain its obligations in each of its joint ventured relationships while continuing to bring forward new and exciting gold exploration projects. All this effort and success has not only lead to a significant increase in the Company’s share price over 2010, but industry recognition of the Company’s achievements by being selected to the 2011 TSX-Venture Top 50.
I would like to thank our shareholders for their continued support, and encourage everyone to follow the development of the Company in 2011 through our news flow and new web site.
Thomas F. Morris PhD., FGAC, PGeo.
President and CEO
Northern Superior Resources Inc.