TSX-V: SMP
Frankfurt: 5RE
OTC: SMPEF
VANCOUVER, BC, Jan. 19, 2021 /CNW/ - Southern Empire Resources
Corp. (Southern Empire) (TSXV: SMP) (Frankfurt: 5RE) (OTC: SMPEF) announces that it
has received a positive decision letter from the United States
Department of the Interior's Bureau of Land Management (BLM)
regarding a Plan of Operations (Plan) for exploration at the Oro
Cruz Gold Project located in Imperial
County, California.
Dale Wallster, Southern Empire's
CEO stated: "Receipt of the BLM's decision letter regarding our
Oro Cruz exploration Plan of Operations is a key step forward for
us, one that brings us much closer to achieving our goal of
drilling the high-grade, oxide gold zone this year."
The BLM determined that Southern Empire's Plan is
consistent with U.S. federal surface management regulations and
meets the requisite content requirements. Although it does not
constitute authorization for Southern Empire to start the
operations proposed in the Plan, the BLM decision allows for the
initiation of the environmental review process as required by the
National Environmental Policy Act (NEPA). A public comment period
is a component of the NEPA environmental review process
and must occur before the BLM makes a final decision regarding
the Plan.
Highlights of Oro Cruz Gold Project Surface Exploration as
Proposed in the Plan of Operations:
- The establishment of up to 65 drill pads in seven drill target
areas
- Reverse Circulation (RC) and/or core drilling of up to 65 drill
holes
- Construction of approximately 2.94 kilometres (km; 1.83 miles)
of new, permanent access roads, ~9.98 km (6.2 miles) of temporary
drill site access roads and ~4.21 km (2.62 miles) of improvements
to existing roads
- Creation of a 2.6-acre staging area at the Cross Mine
underground portal for infrastructure related to future underground
and surface exploration
The Plan, which was initially submitted to the BLM's El Centro
Field Office on September 28, 2020,
proposes that Southern Empire conduct mining exploration activities
in a manner to avoid unnecessary and undue degradation within
a 257 hectare (ha; 635 acre) area of the Oro Cruz property that
specifically occurs within the 184,500 acre Picacho Area of
Critical Environmental Concern (ACEC).
On Oro Cruz Gold Project lands occurring outside of the Picacho
ACEC, Southern Empire has previously received notice-level
acknowledgement from the BLM for two independent drill projects
together with associated permits from Imperial County for road construction, pad
preparation and the completion of 27 sonic drill holes on
historical heap leach pads of the formerly producing Padre y Madre
and American Girl mines. These drill programs are expected to start
imminently; please see Southern Empire's news release of
January 13, 2021.
Highlights of Oro Cruz Gold Project Permitting:
- Received BLM notice-level acknowledgement for two independent
surface drill projects together with associated permits from
Imperial County allowing for 27
sonic drill holes on Oro Cruz Gold Project lands outside of the
Picacho ACEC
- Exploration Plan of Operations accepted for Oro Cruz Gold
Project lands within the Picacho ACEC
- BLM has determined that the environmental review process
required by NEPA can begin through the solicitation of public
comment on the Plan of Operations
- Baseline biological and archaeological studies to support
California Environmental Quality Act (CEQA) requirements have
started
- Design of a requisite Reclamation Plan for compliance with
California's Surface Mining and
Reclamation Act (SMARA) has started
- Additional permits for Oro Cruz surface exploration are
expected within six months, co-ordinating well with the start of
the fall 2021 field season
At a time specified by the BLM, Southern Empire will have to
submit a reclamation cost estimate consistent with federal
regulations and post environmental bonding.
Southern Empire's environmental, permitting and regulatory team
efforts are co-ordinated by Del Fortner Consulting. The team also
includes:
- Sespe Consulting, Inc. of Ventura,
California; specialists regarding SMARA and CEQA
requirements who will provide baseline studies and documents for,
and liaise with, the State of
California and Imperial
County
- Stantec Consulting Services Inc.; an international firm that
will conduct baseline environmental studies and provide NEPA
documents for, and liaise with, the BLM, the State of California and Imperial County
- WestLand Resources, Inc. of Tucson,
Arizona; specialists in environmental permitting and
planning, who will perform baseline archaeological and
environmental studies and provide documentation necessary to comply
with NEPA and CEQA permitting and liaise with the regulatory
bodies, including the BLM, California and Imperial County.
Qualified Person
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 (QP) within the
context of Canadian Securities Administrators' National Instrument
43-101; Standards of Disclosure for Mineral Projects (NI
43-101).
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.
At Oro Cruz, extensive historical drilling and large-scale
open-pit and underground mining of the American Girl, Padre y
Madre, Queen and Cross oxide gold deposits by the AGMJV (ultimately
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 or milling of
higher-grade ores until AGMJV operations ceased in late 1996
because of declining gold prices leaving the Oro Cruz Gold Project
with many gold exploration targets in addition to the historical
inferred resource estimate, reported In 2011 by Lincoln Mining
Corp., 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; please refer to the
Cautionary Notice Regarding Historical Resource Estimate
below).
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 information or 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.
Cautionary Notice Regarding Historical Resource
Estimate
The historical 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 and is termed inferred mineral resource, which
is a category set out in NI 43-101. It was based on historical
reverse circulation and core drill hole sample, underground channel
sample, and blasthole sample assay results 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 QP has not done sufficient work to verify or classify
the historical estimate as a current mineral resource and Southern
Empire is not treating this historical estimate as current mineral
resources.
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.
