VANCOUVER, BC, May 27, 2021 /CNW/ - Southern Empire
Resources Corp. ("Southern Empire") (TSXV: SMP) is pleased to
announce the exercise of 100% of its Augusta Gold Corp. ("Augusta")
(TSX: G) share purchase warrants. After giving effect to the
exercise, Southern Empire holds 2,750,001 shares of Augusta,
representing approximately 3.9% of the issued and outstanding
shares of Augusta.
With a current fair value of approximately $5.67 million, Southern Empire's holdings in
Augusta equate to approximately 48% of the market capitalization of
Southern Empire.
Southern Empire intends to be a long-term holder of Augusta as
they further explore and develop their 3,157-hectare (7,800-acre)
land package that includes the Bullfrog and Montgomery-Shoshone
gold deposits in the prolific Bullfrog mining camp located near
Beaty, Nevada. For further information on Augusta and their
Bullfrog Gold Project, please visit: https://www.augustagold.com/
.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and
development of metals and minerals 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 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. During 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 property 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.
