VANCOUVER, BC, April 22, 2021 /CNW/ - Southern Empire Resources
Corp. (Southern Empire) (TSXV: SMP) (Frankfurt: 5RE) (OTC: SMPEF) is pleased to
provide an update on its recent exploration activities at the Oro
Cruz Project, including:
- The collection of 10 line-kilometres of DC Resistivity/Induced
Polarized (DC/IP) geophysical data, by Zonge International Inc., in
the area of the Cross gold deposit
- Submittal of sample materials totaling 630 kilograms (kg; 1,388
lbs) from our recent sonic drilling of the historical American Girl
and Padre y Madre heaps (see Southern Empire news release of
March 3, 2021) to Blue Coast Research
Ltd. and SGS Canada Inc. for metallurgical testing
- Submittal of grab samples collected from the American Girl,
Padre y Madre and Oro Cruz waste
rock dumps for gold analysis by the Saskatchewan Research Council
(SRC) geoanalytical laboratories
- Submittal of rock grab samples and stream sediment samples
collected from the Colorado Mine Fault area in the northern part of
the Oro Cruz Property for gold and multi-element geochemical
analysis by the SRC
DC/IP Geophysical Survey
The Cross DC/IP survey grid was designed to provide control data
relative to the known Cross gold deposit, as well as to test for
previously unrealized and unexplored gold targets. The geophysical
survey grid, comprised of five, two-kilometre (km) grid lines
spaced 300 metres (m) apart and oriented at a 065o
azimuth, overlays the area of the Cross gold deposit and its
potential southeast extension to depth.
Zonge International crews used a receiver dipole-length of
100 m in the pole-dipole
configuration, utilizing Zonge's 32-bit ZEN receivers and a signal
source provided by a 30kW, GGT-30 Transmitter.
The DC/IP survey work was completed pursuant to the Bureau of
Land Management's (BLM) Casual Use protocols. Processing of
collected data is underway.
Metallurgical Test Work
Blue Coast Research Ltd. (Blue Coast) of Parksville, British Columbia has been
contracted to undertake metallurgical testing of composite samples
derived from approximately 157 kilograms (346 lbs) and 101 kg (222
lbs) of select sonic drill sample materials from each of the
American Girl and Padre y Madre historical heap leach pads.
The Blue Coast metallurgical test work will include:
- Composite head analysis
- A cyanidation study to determine amenability of pad material to
heap leaching and gold recovery
- Heap leach simulation tests, including column tests to
determine gold extraction at different crush sizes, is planned
dependent on the results of the cyanidation study.
SGS Canada Inc. (SGS) in Lakefield,
Ontario has also been contracted to provide additional
metallurgical scoping level test analysis on similar composite
samples derived from approximately 214 kg (472 lbs) and 143kg
(316lbs) of select sonic drilling sample materials from each of the
American Girl heap and the Padre y Madre heap respectively.
The SGS scoping level metallurgical test program will
provide:
- Sample characterization including assaying, particle size
analysis and mineralogy
- Diagnostic leach results identifying the main gold
associations
- Coarse ore bottle roll gold recoveries and reagent consumption
data
- Copper recoveries and cyanide regeneration data using the SART
process (Sulphidization, Acidification, Recycling and Thickening of
precipitate)
All sample materials have now been received at both the Blue
Coast and SGS labs.
Waste Rock Dump Characterization
In a preliminary effort to characterize the gold potential of
the large historical waste rock dumps located at each of the
formerly producing American Girl, Padre y Madre and Oro Cruz mine areas, Southern Empire
field crews have collected 25m to
50m spaced rock grab samples from the
waste rock dump surfaces and perimeter slopes. Results will be used
to design a follow-up program of Reverse Circulation (RC) or sonic
drilling to map out potential gold-enriched areas within the dumps
that could be amenable to heap leach processing.
To date, rock samples collected from the American Girl, Padre y
Madre and Oro Cruz waste dumps have
been submitted for gold analysis by the SRC Geoanalytical
laboratories in Saskatoon,
Saskatchewan. If warranted, additional multi-element Induced
Coupled Plasma (ICP) geochemical analysis will be performed.
Colorado Mine Fault Trend Reconnaissance Prospecting
Recent airborne magnetic data collected by Southern Empire over
the entire Cargo Muchacho Mountains area was analyzed by Condor
Consultants of Denver, Colorado,
and that review, combined with a revised understanding of the
structural framework of the Oro Cruz Cross mine as provided by
Tarryn Cawood's Ph.D. dissertation,
has led Southern Empire crews to examine the Colorado Mine Fault
(CMF) area in the northern portion of the Oro Cruz Property.
Preliminary field work included the submittal of prospected rock
grab samples and stream sediment samples collected in the area to
SRC for gold and multi-element geochemical analysis. Copper and
iron oxide mineralization, commonly associated with gold in the
Cargo Muchacho Mountains, was identified in multiple locations
along the CMF.
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 (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 (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 American Girl
Mining Joint Venture (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).
With its strong working capital position, which also includes a
significant equity holding in Augusta 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. Such
information or statements reflect management's current estimates,
beliefs, intentions and expectations and 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 outlined above is disclosed in
a technical report dated April 29,
2011, prepared for Lincoln Mining Corp. by Tetra Tech, Inc.
and filed on Canadian Securities Administrators' System for
Electronic Document Analysis and Retrieval (SEDAR). It is termed an
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.
