TSX-V: SMP
Frankfurt: 5RE
OTC: SMPEF
VANCOUVER, BC, Jan. 13, 2021 /CNW/ - Southern Empire Resources
Corp. (Southern Empire) (TSXV: SMP) (Frankfurt: 5RE) (OTCQB: SMPEF) announces that
it has completed road and drill pad construction for its fully
permitted Phase 1 sonic drill program at the Oro Cruz Gold Project,
located in Imperial County,
California.
Southern Empire's contractor, Canyon State Earthworks,
LLC of Yuma, Arizona is now
demobilizing from site and the drill contractor, Yellow Jacket
Drilling Services, LLC, is expected to arrive at the Oro Cruz
Property on January 19, 2021; please
see Southern Empire's news releases dated November 17, 2020, for details concerning the
Phase 1 Sonic Drill Program.
Oro Cruz Gold Project – Phase 1 Sonic Drill Program
Highlights:
- Road construction and drill pad preparation completed for Phase
1
- Fully permitted for 27 sonic drill holes
- Approximately 470 metres (1,542 feet) of sonic drilling is
expected to start in mid-January
- Gold assay results from 2020 surface sampling of the historical
heap materials ranged from 0.128 grams gold per tonne to 2.078
grams gold per tonne (0.004 ounce per ton to 0.061 ounce per ton
gold); for details, please see Southern Empire's news release of
July 7, 2020
- Sonic drilling is intended to confirm and determine the
consistency of gold mineralization remaining in the historical
American Girl and Padre y Madre heap leach pad materials
- American Girl historical heap leach pad covers approximately
24.7 hectares (61 acres)
- Padre y Madre historical heap leach pad covers approximately
8.9 hectares (22 acres)
- Samples collected will provide for metallurgical testwork to
optimize possible gold extraction methods
- Sonic drill program is expected to be completed approximately
two weeks after starting
David Tupper, Southern Empire's
VP Exploration stated: "After enduring repeated Covid-19 related
disruptions and delays, we are extremely pleased to start our first
drill program at Oro Cruz. This program will enhance our
understanding of the gold mineralization in the historical heap
leach pads at both Padre y Madre and American Girl.
Assessment of Historical Heap Leach Pads - Objectives and
Background
At Oro Cruz, historical mining of the American Girl, Padre y
Madre, Queen and Cross oxide gold deposits by the American Girl
Mining Joint Venture (AGMJV; then owned 53 per cent by MK Gold
Company and 47 per cent by Hecla Mining Company) occurred between
1987 and 1996. At that time, gold was recovered by either heap
leaching of lower-grade materials or milling of higher-grade
materials. AGMJV operations ceased in late 1996 because of
declining gold prices, leaving the American Girl and the Padre y
Madre historical heap leach pads.
Southern Empire believes that the gold-bearing material
comprising the two historical heap leach pads may contain
significant residual gold amenable to reprocessing and, as an
initial assessment, collected 26 surface grab samples (12 samples
from the Padre y Madre and 14 samples from the American Girl
historical heap leach pads). Gold assay results for these samples
ranged from 0.128 grams per tonne to 2.078 grams per tonne gold
(0.004 ounce gold per ton to 0.061 ounce gold per ton) and averaged
0.775 grams gold per tonne and 0.535 grams gold per tonne for the
American Girl and Padre y Madre, respectively; for details, please
see Southern Empire's news release of July
7, 2020.
For the first phase of sonic drilling on the Oro Cruz Gold
Project, Southern Empire received two notice-level acceptances from
the Bureau of Land Management (BLM; an agency within the U.S.
Department of the Interior) for road construction, pad preparation
and the completion of 27 sonic drill holes. BLM acceptance is valid
for two years, expiring in 2022, extendible to 2024. The
required permit bonding has been lodged with the BLM. In addition,
Southern Empire has received two requisite Conditional Use Permits
from Imperial County Planning & Development Services.
Qualified Person (QP)
The scientific and technical information contained in this news
release has been prepared, reviewed and approved by David Tupper, P.Geo. (British Columbia), Southern Empire's VP
Exploration and a Qualified Person within the context of Canadian
Securities Administrators' National Instrument 43-101; Standards of
Disclosure for Mineral Projects.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and
development of gold deposits in North
America.
In the Cargo Muchacho mountains of Imperial County, California, Southern Empire
owns 100 per cent of the historical gold-producing American Girl
mine property and also holds options to acquire a 100-per-cent
interest in the adjacent 2,160-hectare (5,338-acre) Oro Cruz
property located approximately 22.5 kilometres (km; 14 miles)
southeast of the operating Mesquite gold mine of Equinox Gold
Corp.
With a history that includes extensive drilling and large-scale
open-pit and underground mining by the American Girl Mining Joint
Venture (53 per cent owned by MK Gold Company, then a subsidiary of
Morrison-Knudsen Corp., and 47 per cent owned by Hecla Mining
Company), which was suspended during the gold market downturn in
1996, the Oro Cruz Gold Project hosts many gold exploration targets
in addition to a high-grade oxide gold zone that, based on the
historical mine operation records, is amenable to conventional heap
leach extractive processing.
In 2011, Lincoln Mining Corp. reported a historical inferred
resource estimate at Oro Cruz totalling 341,800 ounces gold based
on 4,386,000 tonnes averaging 2.2 grams gold per tonne at a cut-off
grade of 0.68 g/t Au (4,835,000 tons at 0.07 ounce gold per ton).
This historical inferred resource estimate is disclosed in a
technical report dated April 29,
2011, prepared for Lincoln Mining Corp. by Tetra Tech Inc.
and filed on SEDAR.
The historical mineral resource estimate, termed inferred
mineral resource, which is a category set out in NI 43-101, was
based on previous reverse circulation and core drill hole sample,
underground channel sample, and blasthole sample assays, and
calculated using ordinary kriging to estimate gold grades in
10-foot-by-10-foot-by-five-foot blocks. Accordingly, Southern
Empire considers this historical estimate reliable as well as
relevant as it represents key targets for future exploration work.
However, a Qualified Person has not done sufficient work to
classify the historical estimate as a current mineral resource and
Southern Empire is not treating this historical estimate as current
mineral resources.
Southern Empire is well financed, having completed two
oversubscribed, non-brokered private placement financings during
2020; see Southern Empire's news releases dated March 18 and June 12,
2020, for details. With its strong working capital position,
which also includes a significant equity holding in Bullfrog Gold
Corp., Southern Empire has the financial resources to continue
exploration and development programs at Oro Cruz and consider new
opportunities.
On behalf of the Board of Directors of Southern Empire
Resources Corp.,
Dale Wallster, CEO and
Director
Cautionary Notice on Forward-Looking Information
Information provided in this news release may contain
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. Southern Empire cautions that
all forward-looking statements are inherently uncertain and that
actual performance may be affected by a number of material factors,
many of which are beyond its respective control. Such factors
include, among other things: risks and uncertainties relating to
Southern Empire limited operating history, the need to comply with
environmental and governmental regulations, results of exploration
programs on its projects and those risks and uncertainties
identified in its annual and interim financial statements and
management discussion and analysis. Accordingly, actual and
future events, conditions and results may differ materially from
the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Southern Empire undertakes
no obligation to publicly update or revise forward-looking
information.
Work Programs During the COVID-19 Pandemic
Timing of Southern Empire's exploration programs will be
contingent on governmental regulations regarding the COVID-19
pandemic and also the availability of exploration-related
personnel, drill contractors, equipment, lodging, et cetera.
Southern Empire will adhere to COVID-19 directives regarding safe
working practices putting worker, community and national safety
first and will proceed with exploration and development work
programs only if potential COVID-19 risks can be effectively
managed.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Southern Empire Resources Corp.
