TSX-V: SMP
Frankfurt: 5RE
VANCOUVER, BC, Aug. 27, 2020 /CNW/ - Southern Empire Resources
Corp. (Southern Empire) (TSXV: SMP) (Frankfurt: 5RE) announces that, pursuant to a
definitive Arrangement Agreement dated August 18, 2020 allowing Southern Empire to
acquire all of the issued and outstanding shares of MAS Gold Corp.
(MAS Gold) (TSXV: MAS), Southern Empire has agreed to advance funds
to MAS Gold so that permitting and consultation for their
2020-2021 La Ronge Gold Belt exploration drill program can be
initiated.
Highlights:
- 5,500 metres (m; 18,045 feet) of drilling proposed for the
Greywacke North and North Lake
gold deposits
- Permitting and consultation process has been initiated for core
drill program slated to start in fall 2020
- Permits are expected within 60 days
- Drilling is expected to increase gold resource estimates for
Greywacke North and North Lake
deposits
- Drilling is expected to increase the level of resource
qualification for Greywacke North and North Lake
- An additional 3,800 m of core
drilling targeting other exploration targets on the Greywacke Lake
Property (the Greywacke Central and Lyons Zones) and on the
Preview-North Property (the Point gold deposit and Joe
occurrence)
Andrew Davidson, Southern
Empire's CFO stated: "Centered around the La Ronge Gold Belt,
where the Seabee and Santoy mining camp has been operating for
almost 30 years, Saskatchewan is
one of the more prospective regions in Canada for gold exploration and is one of the
most mining friendly jurisdictions in the world. Following
completion of the MAS Gold acquisition, Southern Empire intends to
quickly expand on the already established gold
resources."
MAS Gold's road-accessible gold projects are located in the La
Ronge Gold Belt of Saskatchewan,
Canada. Following consultation with the local communities and
stakeholders, and the granting of requisite permits from the
Government of Saskatchewan, an
initial 5,500 metres (18,045 feet) of core drilling planned for the
Greywacke Lake and Preview-North Properties can begin. This drill
program is intended to expand and upgrade the known Mineral
Resource estimates for the Greywacke North and North Lake gold deposits.
The 2020-2021 work program expands upon the positive results of
MAS Gold's successful 2019 La Ronge gold exploration program that
concluded with:
- the establishment of an Inferred Mineral Resource for the
North Lake gold deposit, located
on the Preview-North property about 33 kilometres southwest of
Greywacke North, that is estimated at 417,000 ounces of gold
contained in 14,110,000 tonnes (t) grading 0.92 grams gold/tonne (g
Au/t); see MAS Gold's News Release dated March 25, 2020 and their NI 43-101 Technical
Report dated April 10, 2020
- confirmation of a significant gold system at the Point deposit
with the potential to establish a resource
- establishment of the probable metallurgical compatibility of
gold-mineralized materials from the North
Lake, Point and Greywacke North gold deposits.
The 2019 exploration work builds on MAS Gold's established
resource base established for the Greywacke North gold deposit, one
of several known stratabound, high-grade gold-bearing zones on the
Greywacke Lake Property. The Greywacke North deposit, which remains
open to depth, has a current 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.
MAS Gold's 2020-2021 La Ronge Gold Belt work program is designed
to:
- establish the groundwork for a long-term, working-level
relationship with the Lac La Ronge Indian Band, the Metis Local and
the greater community of La
Ronge
- increase the gold resource and definition confidence of the
current resource estimates for each of the Greywacke North and the
North Lake gold deposits
- enable the definition of a gold resource for the Point gold
deposit
- systematically drill test the Greywacke South and Lyons Zone of
the Greywacke Lake Property
- undertake required assessment work for the Elizabeth Lake and
Henry Lake properties
A proposed concurrent exploration program also
includes:
- preliminary geochemical surveys to the northeast and southwest
of the North Lake gold
deposit;
- re-processing historical VTEM geophysical data,
- relogging and resampling historical drill core (stored in the
government's La Ronge core
library
- prospecting at the Elizabeth Lake copper-gold massive sulphide
deposit property; and
- geochemical survey work and prospecting on the Henry Lake gold
property.
Certain of MAS Gold's properties were subject to the La Ronge
South Gold Joint Venture (LRSGJV) with Golden Band Resources Inc.
(Golden Band). The current status of
the LRSGJV, is outlined in the MAS Gold's news releases dated
September 23, 2019, January 8, 2020, and June
25, 2020. As summarized from the January 8th, 2020 news release, MAS Gold
delivered to Golden Band notice that
Golden Band's LRSGJV interest was
diluted to a royalty position in the LRSGJV properties. Golden
Band may challenge this position, but Southern Empire and MAS Gold
are confident that the dilution status will be upheld.
Southern Empire is well-financed to fund the MAS Gold La Ronge
area 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
Timing of Southern Empire's exploration programs will be
contingent on governmental regulations regarding the COVID-19
pandemic and the availability of exploration-related personnel,
drill contractors, equipment and services. 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.
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.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and
development of gold deposits in North
America.
Regarding the acquisition of MAS Gold Corp., a Canadian mineral
exploration company focused on road-accessible gold projects in
Saskatchewan located approximately
60 km west of the producing Seabee mill operations and the Santoy
gold mine of SSR Mining Inc., please refer to Southern Empire's
news release dated July 13, 2020 and
August 18, 2020 available on SEDAR.
Including the Elizabeth Lake copper-gold VMS deposit, MAS Gold
controls four properties totaling 45,660 hectares (105,414 acres)
along geologically prospective sections of the La Ronge, Kisseynew and Glennie Domains of the
La Ronge Gold Belt.
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), which was suspended during the gold
market downturn in 1996., The Oro Cruz Gold Project hosts many
exploration targets, the Padre y Madre and American Girl
decommissioned heap leach pads, and a high-grade oxide 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.
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. Each of Southern Empire and
MAS Gold 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 each of Southern Empire and MAS
Gold's limited operating history, ability to complete the proposed
Transaction (including obtaining all necessary shareholder and
regulatory approvals), risks relating to the outcome of
arbitration or court action concerning the dilution to Golden Band's interest in the La Ronge South
Gold Joint Venture, 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, neither Southern Empire
nor MAS Gold 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.
