Southern Empire Completes Successful Safety Appraisal of Oro Cruz Underground Mine Southern Empire Resources Corp. (Southern Empire;
Southern Empire Completes Successful Safety Appraisal of Oro Cruz Underground Mine
Southern
Empire
Resources
Corp.
(Southern
Empire;
TSX-V:
SMP;
Frankfurt:
5RE;
OTCQB:
SMPEF)
announces
that
it
has
received
a
positive
assessment
regarding
the
current
conditions
of
the
historical
underground
workings of the Cross Mine located on Southern Empire’s Oro Cruz Gold Project in southeastern California.
American
Mine
Services,
Inc.
(AMS),
an
engineering
company
specializing
in
the
evaluation,
design
and
construction
of
mines,
completed
an
on-site
inspection
on
September
29-30,
2020.
Joe
Cooper,
President
of
AMS stated:
“
I
have
been
personally
involved
with
the
Oro
Cruz
underground
mine
since
before
we
began
the
decline
excavation
in
April
of
1995.
Our
recent
Southern
Empire
trip
was
the
second
time
that
I
have
completed
an
underground
inspection
there
in
the
last
10
years.
Given
this
extensive
background,
I
can
say
without
hesitation
that
the
current
conditions
underground
are
as
good
as
anything
I
have
ever
reviewed,
especially
when
considering
the
original
excavation
was
completed,
and
unused
for
most
of
the
last
25
years.
Costs
associated
with
re-opening
and
rehabilitating
this
mine
for
exploration
and/or
production
would
be
very
minimal.
This
is
not
only
unusual
but
it
is
also
extremely
encouraging
as
most
of
the
high-cost
mine
development,
depending
upon
final
mine
plan,
has
already
been
completed
and
is
presently
in
place
and
suitable
for
utilization
as
an
underground
mine.”
The
historical
Cross
Mine
comprises
both
open
pit
and
underground
workings
that
were
developed
in
the
early
1990’s
by
the
American
Girl
Mining
Joint
Venture
(AGMJV),
which
was
53%
owned
by
MK
Gold
Company,
then
a
subsidiary
of
Morrison-Knudsen
Corporation,
and
47%
owned
by
Hecla
Mining
Company.
Soon
after
achieving
commercial
production
and
producing
61,000
oz
of
gold,
AGMJV
operations
ceased
on
November
1,
1996
due
to
declining
gold
prices,
leaving
behind
in
excess
of
2.4
kilometres
(1.5
miles)
of
underground
development
accessing
a
high-grade,
oxide
gold
zone
that,
based
on
the
historical
mine
operation records, is amenable to conventional heap leach extractive methods.
The objectives of the AMS inspection were to determine:
●
the
ground
conditions
and
safety
status
of
all
stable
existing
Cross
Mine
underground
excavations
including the mine portal, vent raises, main decline and crosscuts
●
the
regulatory
compliance
of
existing
surface
access
to
support
future
underground
exploration
and
mining
Highlights of the AMS mine inspection were:
●
Ground
conditions
in
the
primary
underground
openings
are
excellent;
essentially
unchanged
from
the
last inspection, also conducted by AMS personnel, in 2010
TSX-V: SMP
Frankfurt: 5RE
OTC: SMPEF
NEWS RELEASE
November 30, 2020
●
Re-entry
and
re-activation
of
underground
mining
for
future
exploration
purposes
could
be
quick
and
cost
effective
●
No
noxious
gases
or
areas
of
low
oxygen
were
encountered,
indicating
adequate
natural
ventilation
throughout the mine
●
Natural ventilation quantity is approximately 15,000 cubic feet per minute (cfm)
●
Two
vent
raises
and
furnishings
were
found
to
be
in
excellent
condition,
virtually
the
same
as
at
the
time
of
mine
closure
in
1996,
with
all
ladders
and
landings
still
in
place,
and
suitable
for
secondary
egress
or
access
●
Although
ground
conditions
in
and
near
the
high-grade,
oxide
gold
zones
are
not
as
stable
as
the
wall
rock
that
the
main
decline
was
excavated
in,
ground
conditions
are
generally
good
to
excellent
with
very
little
fallen material present in any of the underground openings
AMS
is
of
the
opinion
that
the
overall
condition
of
the
mine
could
be
considered
good
to
excellent
and
remedial
work
to
provide
safe
passage,
via
the
main
decline,
to
the
raises
and
major
drifts
could
be
accomplished
with
a
5-
to
6-man
crew
over
a
three
week
period.
These
mine
rehabilitation
efforts
would
be
primarily
limited
to
scaling
of
loose
material,
installation
of
minimal
ground
support,
removal
of
loose
rock
in
the
wire
mesh
baskets
and
minimal
replacement
of
bolts,
matts,
and
plates.
This
work
would
not
provide
rehabilitation
to
all
drifts,
crosscuts
and
stopes,
as
areas
off
the
main
decline
will
be
somewhat
more
labor
intensive to make safe for re-entry.
While
on
site,
the
AMS
team
performed
improvements
to
the
surface
raise
collar
barricade
that
were
needed
to prevent either intentional or accidental access into the mine via the surface vent raise.
Pathway to Underground Exploration and Mining at Oro Cruz
To
conduct
future
underground
exploration
and
limited
mining
programs,
including
bulk
sampling
for
metallurgical test work, the following is planned or in process:
●
Using
LiDAR
(light
detection
and
ranging)
technology,
complete
an
underground
mine
survey
to
tie
in
known openings, drill holes, sample sites, survey monuments, etc. and create a base map
●
Obtain
permits
(in
process)
for
surface
lay
down
and
mine
support
facilities
such
as
a
mine
dry,
shop,
air plant, electrical plant, fuel storage and a water recirculation / filtration system
●
Obtain
permits
(in
process)
for,
and
complete,
access
road
improvements
to
provide
safe,
regulatory-compliant ingress or egress to and from the mine
●
Develop
and
submit
to
the
Mine
Safety
and
Health
Administration
(MSHA)
district
office
all
required
training
and
operating
plans
including
the
establishment
of
both
on-site
and
backup
Mine
Rescue
Teams
●
Beginning
at
the
mine
portal,
scale
all
loose
rock
from
the
backs
and
ribs
of
the
main
decline
and
access
to
the
bottoms
of
both
vent
raises
and
install
ground
support
as
needed;
estimated
by
AMS
to
be a minimal undertaking
●
Reinstall
compressed
air
lines,
service
water
and
electrical
distribution
systems,
the
size
of
which
would
be
dictated
by
the
work
planned.
AMS
suggests
that
the
existing
compressed
air
lines
could
possibly
be
utilized
for
either
compressed
air
or
for
drill
/
service
water
if
adequately
flushed
and
a
filtration system was installed at the points of use
●
Install a mechanical ventilation system underground to minimize surface disturbance
●
Install
a
single-phase
electrical
power
generation
plant
to
operate
ventilation
systems
and
any
electrical drilling or mining equipment utilized
●
Install two 375 cfm air compressors, operating one at a time unless air consumption requires both
Qualified Person (QP)
The
scientific
and
technical
information
contained
in
this
news
release
was
prepared,
reviewed,
verified
and
approved
by
David
Tupper,
P.Geo.
(British
Columbia),
Southern
Empire’s
VP
Exploration
and
a
Qualified
Person
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
the
Americas.
In
the
Cargo
Muchacho
mountains
of
Imperial
County,
California,
Southern
Empire
owns
100%
of
the
historical
gold
producing
American
Girl
Mine
property
and
also
holds
options
to
acquire
a
100%
interest
in
the
adjacent
2,160
hectare
(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.
With
a
history
that
includes
extensive
drilling
and
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
in
addition
to
a
high-grade
oxide
gold
zone
that,
based
on
the
historical
mine
operation
records,
is
amenable
to
conventional heap leach extractive methods.
In
2011,
Lincoln
Mining
Corporation
reported
a
historical
inferred
resource
estimate
at
Oro
Cruz
totaling
341,800
ounces
gold
based
on
4,386,000
tonnes
averaging
2.20
grams
gold
per
tonne
at
a
cutoff
grade
of
0.68
g
Au/t
(4,835,000
tons
at
0.07
ounces
gold
per
ton).
This
historical
inferred
resource
estimate
is
disclosed
in
a
technical
report
dated
April
29,
2011,
prepared
for
Lincoln
Mining
Corporation
by
Tetra
Tech,
Inc. and filed on SEDAR).
The
historical
mineral
resource
estimate,
termed
“inferred
mineral
resource”,
which
is
a
category
set
out
in
NI
43-101,
was
based
on
previous
reverse
circulation
and
core
drill
hole
sample,
underground
channel
sample
and
blasthole
sample
assays,
and
calculated
using
ordinary
kriging
to
estimate
gold
grades
in
10
foot
x
10
foot
x
5
foot
blocks.
Accordingly,
Southern
Empire
considers
this
historical
estimate
reliable
as
well
as
relevant
as
it
represents
key
targets
for
future
exploration
work.
A
Qualified
Person
has
not
done
sufficient
work
to
classify
the
historical
estimate
as
a
current
mineral
resource
and
Southern
Empire
is
not
treating
this
historical estimate as current mineral resources.
Southern
Empire
is
well-financed,
having
completed
two
oversubscribed,
non-brokered
private
placement
financings
during
2020;
see
Southern
Empire's
news
releases
dated
March
18
and
June
12,
2020
for
details.
With
its
strong
working
capital
position,
which
also
includes
a
significant
equity
holding
in
Bullfrog
Gold
Corp.,
Southern
Empire
has
the
financial
resources
to
continue
exploration
and
development
programs
at
Oro Cruz and also consider new opportunities.
On behalf of the Board of Directors of Southern Empire Resources Corp.,
Dale Wallster, CEO and Director
For
further
information
on
Southern
Empire
please
visit
both
www.smp.gold
and
SEDAR
or
contact:
Lubica Keighery, (778) 889-5476,
.
Cautionary Notice on Forward-Looking Information
Information
provided
in
this
news
release
may
contain
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
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.
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.