VANCOUVER, BC, Aug. 24, 2020 /CNW/ - Southern Empire Resources
Corp. (Southern Empire) (TSXV: SMP) (Frankfurt: 5RE) announces that it has received
a second "Notice Level" acceptance from the U.S. Bureau of Land
Management (BLM) regarding its Oro Cruz Gold Project in
southeastern California. This new
acceptance, for road construction, pad preparation and sonic
drilling of the American Girl historical heap leach pads, is in
addition to the previous BLM acceptance allowing for sonic drilling
of the Padre y Madre historical heap leach pad area; see Southern
Empire's news releases dated August 5,
2020 for details.
Dale Wallster, Southern Empire's
CEO stated: "Kudos to our team as they continue to achieve our
California permitting goals in a
timely manner. We are on track to start our sonic drilling in
mid-September and we're very excited about the potential for
the historical heap leach pads to host a significant amount of
gold."
Highlights:
- Second BLM "Notice Level" acceptance of planned exploration
program received in a timely manner
- BLM acceptance allows for sonic drilling of the American Girl
historical heap leach pad
- A minimum of 518 metres (1700 feet) of sonic drilling is
planned for the American Girl and Padre y Madre historical heap
leach pads, which cover approximately 61 and 22 acres,
respectively
- Sonic drill program anticipated to begin in mid-September
- Selected surface grab samples taken from both pads ranged from
0.128 to 2.078 grams gold/tonne
- Sonic drill contract calls for tender issued
- Permit bonding lodged with the BLM
- BLM acceptance valid for two years expiring in 2022, extendible
to 2024
Historical mining of the American Girl, Padre y Madre, Queen and
Cross gold deposits by the American Girl Mining Joint Venture
(AGMJV; MK Gold Company and Hecla Mining Company) occurred between
1987 and 1996. At that time, processing was either by heap leaching
of lower-grade or milling of higher-grade, gold-mineralized oxide
materials. AGMJV operations ceased in late 1996, due to declining
gold prices, leaving both the American Girl and Padre y Madre
historical heap leach pads, covering approximately 61 and 22 acres,
respectively.
Southern Empire believes that the gold-bearing oxide material in
these two historical heap leach pads may contain significant
residual gold. As a first phase of assessment, 26 surface grab
samples were collected: 12 from the Padre y Madre and 14 from the
American Girl historical heap leach pads. Southern Empire
previously released gold assay results for these samples that
ranged from 0.128 to 2.078 grams gold/tonne (g Au/t; 0.004 to 0.061
oz gold/ton); all gold assay results are presented in Southern
Empire's news release of July 7,
2020.
Sonic drilling of these heap leach pads is necessary in order to
establish an industry compliant mineral resource and provide
samples for future extractive metallurgical test
work.
Southern Empire is well-financed to start its Oro Cruz exploration programs, having recently
completed two oversubscribed, non-brokered private placement
financings (see Southern Empire's news releases dated March 18 and June 12,
2020 for details).
Work programs during the COVID-19 pandemic
Although BLM, state and county offices are currently closed,
their staff have established measures to provide services remotely.
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.
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, southeast California, Southern Empire holds options to
acquire a 100% interest in the 2,160 hectares (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.
The history of Oro Cruz includes
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 Corporation, and 47 per cent owned
by Hecla Mining Company), operations which ceased during the gold
market downturn in 1996. The Oro Cruz Gold Project covers the
decommissioned Padre y Madre and American Girl historical heap
leach pads, and has many exploration targets including the
high-grade oxide Cross underground gold zone that, based on the
historical mine operation records, is amenable to conventional heap
leach extractive methods.
Southern Empire also owns an 85% interest in 101 unpatented BLM
lode mining claims covering the 817 hectares (2,020 acres) Eastgate
Gold Project, located in Churchill
County, Nevada approximately 81 km (50 miles) southeast of
the city of Fallon and 42 km (26
miles) from the Bell Mountain gold project currently undergoing
final mine permitting by Eros Resources Corp. Southern Empire has
recently completed six HQ-size core drill holes at Eastgate, that
targeted high-grade gold/silver epithermal vein systems that were
previously drilled by reverse circulation methods. Selective core
samples have been submitted to ALS USA Inc.'s laboratories in Reno, Nevada and assay results will be
released after they become available. Permitting for the next phase
of drilling has been initiated.
Pursuant to a definitive arrangement agreement dated
August 18, 2020, Southern Empire is
in the process of acquiring all of the issued and outstanding
shares of MAS Gold Corp. (TMX-V: MAS), an exploration company
having road-accessible projects located in the La Ronge Gold Belt
of Saskatchewan, Canada. Please
refer to Southern Empire's news release dated July 13, 2020 and August
18, 2020 available on SEDAR.
MAS Gold's Greywacke North gold deposit, one of several known
stratabound, high-grade gold-bearing zones on the Greywacke Lake
Property, has an estimated Indicated Mineral Resource of 255,500
tonnes at a grade of 9.92 g Au/t, plus an Inferred Mineral Resource
of 59,130 t at 7.42 g Au/t, at a cut-off grade of 5 g Au/t; see MAS
Gold's NI 43-101 Technical Report of June 1,
2016 available on SEDAR.
The North Lake gold deposit,
located on the Preview-North property, 33 kilometres southwest of
Greywacke North, has an Inferred Mineral Resource estimated at
417,000 ounces of gold contained in 14,110,000 t grading 0.92 g
Au/t; see MAS Gold's News Release dated March 25, 2020 and their NI 43-101 Technical
Report dated April 10, 2020.
Qualified Person
The scientific and technical information contained in this news
release has been prepared, reviewed, verified 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.
On behalf of the Board of Directors of Southern Empire
Resources Corp.,
Dale
Wallster, CEO and Director
Cautionary Notice on Forward-Looking
Information
Information set forth in this news release contains
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 and 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 their respective control. Such
factors include, among other things: risks and uncertainties
relating to Southern Empire's limited operating history, ability to
complete the proposed MAS Gold transaction (including obtaining all
necessary shareholder and regulatory approvals), the need to comply
with environmental and governmental regulations, results of
exploration programs on their projects and those risks and
uncertainties identified in each of their 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.
Neither 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.