I hope everyone has a prosperous 2010 and with all indications relating to SUI I think we will be pleased with the results. We are starting our new year on the right foot. We have completed our test pit trial on our Victory property in New Zealand. Now begins the discussion about financing so that we can go into production. Also we will be arranging for an operator to work our property. I have found out that the company that is doing our drilling on the old railway lines on the Victory property ( Addison Mines Limited) could be a strong candidate to work our property. They are a strong operator with a great track record and a lot of resources available to them. Below is a description of Alluvial gold mining. There is a six stage process to producing gold. We will require one or more processing plants to get us up and running. I hope to hear about our test pit results soon in 2010. I also hope to hear about a new partner for our New Zealand property.

We are making deals in Africa as well. Our December announcement states that Minco Minerals of South Africa is interested in working our property and are willing to put the cash on the table. This is great news that we are developing this asset. I look forward to learning more about this contract.

No matter what the price of gold is, the fact is that we are going to start producing gold on our properties. It is possible that we could hit a home run with Superior Mining International. It could be a golden opportunity for all concerned. I am still watching all the permits applied for in New Zealand and I just received a lot of information directly from New Zealand. Further studying will be required. Have a great year and lets get this investment on the road. Cheers.



Alluvial Gold Mining

Most of the gold deposits in the South Island were first formed by erosion from glaciers over millions of years, then the rivers carried the gold further and deposited it downstream. While the rocks that are the source of the gold may contain only very small amounts of the metal, this erosion over long periods of time has trapped and concentrated the heavy mineral grains. Over time the gold-bearing rock is eroded and water deposits the gold downstream. Gold is very heavy, and so is deposited in places where the current slows down, on bends, and in depressions in the river bed. These are called alluvial or placer deposits, or placer gold.

Alluvial miners had success in the South Island with gold discoveries at Collingwood, Nelson in 1857, at Gabriels Gully in Otago in 1861 and along the West Coast of the South island in 1864. .

The early prospectors with their gold pans and simple sluicing equipment were replaced by larger scale operations that maintained a high level of gold output for the next 60 years. In 1881 the first steam powered dredge the Dunedin was launched at Alexandra on the Clutha River. Dredges would operate in Otago and along the West Coast for the next 60 years and produce most of New Zealand's gold. The last of the old dredges stopped working in 1982 The Grey River Dredge worked until 2004 The dredge has completed work in its current mining licence area and is being readied to cross the river to a new site.

Alluvial gold is relatively easy to extract from its surroundings as the hard work has already been done over time by natural forces.

The alluvial mining process consists of six stages:

1• excavating the gold-bearing sand and gravel
2• transporting this material to a plant to recover the gold
3• washing the gravel to remove clay and separate out large boulders
4• treating the material to produce a small amount of material rich in gold (called concentrate)
5• disposing of the alluvium after the gold has been removed
6• rehabilitating the area

A hydraulic excavator supplying gravel directly to a transportable plant carries out the first two stages. The recovery plant processes the material. The gold is recovered by physical (as opposed to chemical) methods. Gold is very dense, up to five to seven times heavier than the material which makes up the sand and gravel. then the tailings are replaced and rehabilitated.
The recovery plant is designed to promote the settling out of grains of gold while the lighter material is washed away. The gold pan and sluice widely used by early alluvial miners works on the same principle. Several methods are currently employed.

Riffle tables consist of a box set at a gentle slope and lined with matting such as artificial turf. A grid of metal bars called riffles are set on top of the matting. In the turbulence caused by the sand and water slurry passing over the riffles the lighter particles are washed away and the gold and other dense materials remain trapped in the matting. Course grains of gold can easily be recovered in this way.

Fine grained alluvial deposits require different methods. Some plants use vibrating diaphragms to keep the material moving while water passes through it. The heavy minerals settle through a screen at the base of the unit.

Other plants use centrifuges to separate materials of different density. Heavy minerals are thrown to the side of the centrifuge bowl and trapped in grooves in its lining while the water overflows and carries away the unwanted lighter material