Sacre-Coeur Completes Initial Assessment of Its Guyana Exploration Portfolio and Prioritizes Advancement of the Million Mountain
November 12 2008 - 3:24PM
Marketwired
SACRE-COEUR MINERALS, LTD. (the "Company") (TSX-V: SCM) (FRANKFURT:
S5N) today announced a strategic restructuring of its exploration
programs in Guyana to prioritize development of its advancing
Million Mountain Project, as well as a series of steps to conserve
cash. Exploration will continue on a more limited basis on other
priority targets within its portfolio in Guyana. The restructuring
reflects management's assessment of the optimal strategy for
increasing shareholder value in the present difficult world
economic environment, based upon information developed in its
Guyana exploration program over the past three years.
In September, 2008, the Company released its NI 43-101 compliant
interim resource estimate of 451,397 measured and indicated tr oz
Au contained in Zone 1 near surface at its Million Mountain Project
in Guyana. In the same release, the Company also announced
identification of seven additional highly prospective mineralized
zones in close proximity, along a trend with the original Zone 1
discovery. These seven additional zones of anomalous gold cover a
surface area in aggregate more than 20 times the mineralized target
area defined by Zone 1. Together, these eight zones comprise a
mineralized target with world class potential. In addition to its
potential to host a commercial deposit of significant size, the
project exhibits relative ease of access from the capital city of
Georgetown, has a large and well developed permanent work camp, has
a minimum of environmental complexities, and is the subject of a
large body of technical data which the Company has now developed.
As such, the Million Mountain Project is considered by management
to be the Company's highest priority for immediate development and
the focus for its expenditures in the next year.
Given the very difficult state of the world economy, and of the
junior resource equity market in particular, the Company's
management and Board have revised its strategy to maximize
opportunities for near term success while conserving cash through
the expected period of downturn. In addition to prioritizing
development of the Million Mountain Project, the Company is
suspending grassroots exploration and target generative programs
elsewhere in its portfolio. This strategic shift will permit the
Company to reduce its exploration staff in Guyana by some 194
persons to 27 % of past level. The reduction in staff will include
not only local support workers but expatriate geologists as well,
which will be reduced 64% from 14 to 5 effective January 1, 2009.
Field work will be consolidated out of the Company's main Lower
Puruni District Camp, located at the Million Mountain Project, to
further reduce operating costs. Two core drills which have recently
been operating on the Company's properties by third party
contractors will be demobilized, leaving two Company-owned rigs
available for operation in 2009 by our own drillers.
Over the past three years, the Company has conducted extensive
studies of its seven regional blocks in Guyana, comprising
approximately 2360 sq km of property. These studies have included
broadbased geochemical and geophysics studies, mapping, sampling
and other field reconnaissance work, together with desk-top
studies. Based on this work, the Company has prioritized its
holdings which it believes to have sufficient resource potential to
justify further investigation, while segregating those holdings
which it does not believe have significant potential to host a
commercial deposit. As a result of this work, the Company will be
relinquishing before yearend nearly 50% of its existing property
portfolio in Guyana. Further details will be provided after
finalization of the property reductions and filing with the Guyana
Geology and Mines Commission.
According to Greg Sparks, P.Eng., Senior V.P and head of the
Company's Guyana program, "While retrenchments are never pleasant,
this market driven situation has provided the opportunity for us to
rationalize our program to ensure that we are going about our
business as efficiently as possible. As a result of the excellent
exploration work by our technical team over the past three years,
we have been able to make some difficult but informed decisions
concerning downsizing of our overall portfolio and prioritization
of the Million Mountain Gold Project. We are one of the fortunate
junior companies with ample cash to continue to advance its key
project and continue to add intrinsic value to its stock. We are
taking all steps necessary to meet the current market conditions
proactively by reducing our total burn rate to approximately CAD
$250,000 per month. With cash on hand of approximately CAD $5.7
million management expects that though this down turn could be
protracted, the Company will emerge intact and with greater
value-added."
About Sacre-Coeur
The Company is engaged in the acquisition, exploration and
development of properties for the potential mining of gold, metals
and diamonds in South America, initially focussing on exploration
for gold on its properties in Guyana. The Company presently has an
interest in approximately 850 square miles of mineral properties in
Guyana, including the Million Mountain Property. The Company has
offices in Vancouver, Canada and Georgetown, Guyana. More
information about the Company is available at
www.scminerals.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SACRE-COEUR MINERALS, LTD.
"Irwin A. Olian"
Irwin A. Olian
CEO and Chairman
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of the
information contained herein. The statements made in this press
release may contain certain forward-looking statements that involve
a number of risks and uncertainties. Actual events or results may
differ from the Company's expectations.
Distributed by Filing Services Canada and retransmitted by
Marketwire
For further information, contact: Irwin Olian President and CEO
Email: Email Contact Phone: 604-899-0100 Fax: 604-899-0200 Lee
Dunston Corporate Communications Email: Email Contact Phone:
604-899-0100 Fax: 604-899-0200 Carrie Howes Corporate
Communications - London Email: Email Contact Phone: 7780-602-788
SACRE-COEUR MINERALS, LTD Sacre-Coeur Minerals, Ltd Suite 1925, Box
11553 650 West Georgia Street Vancouver, BC V6B 4N8
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