Southern Empire Fully Permitted for Drilling at Eastgate Gold Project, Nevada
Southern Empire Fully Permitted for Drilling at
Eastgate Gold Project, Nevada
VANCOUVER
,
March 26, 2020
/CNW/ -
Southern Empire Resources Corp.
("Southern Empire";
TSX-V: SMP) announces that it is fully permitted to begin confirmation and exploration core drilling
on its Eastgate Gold Project located in
Churchill County, Nevada
and that it has started the
permitting process for exploration programs at its Oro Cruz Gold Project located in
Imperial County,
California
.
Highlights
permits established for drilling and land preparation at Eastgate Gold Project,
Nevada
permitting process started for Oro Cruz Gold Project,
California
Southern Empire
is well-funded for future exploration having just completed an
oversubscribed
$3.27 million
financing
For the Eastgate Gold Project in
Nevada
,
Southern Empire
has received Notice level permits, from
the Bureau of Land Management ("BLM"), for road construction, surface clearing / pad preparation
and the completion of five core drill holes. The permits are valid for two years expiring in 2022,
extendible to 2023.
At its Oro Cruz Gold Project in southeastern
California
,
Southern Empire
has started the permitting
process for the first phase of exploration that will include exploration and confirmation drilling in the
area of the historical Oro Cruz open pit and sonic drill sampling of the decommissioned, historical
American Girl and Padre y Madre heap leach pads.
Westland Resources Inc. of
Tucson, Arizona
, specialists in environmental permitting and planning,
have been contracted to spearhead
Southern Empire's
California
permitting efforts and to liaise with
the regulatory bodies, including the BLM,
State of California
and
Imperial County
. Permits for Oro
Cruz are expected in four to six months, co-ordinating well with the start of the field season in the fall
of 2020.
Work Programs During the Coronavirus Pandemic
Southern Empire
is well-funded to start its proposed Oro Cruz and Eastgate exploration programs,
having recently completed an oversubscribed, non-brokered private placement financing for gross
proceeds of
$3.27 million
(see
Southern Empire's
News Release dated
March 18, 2020
for details).
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
equipment, lodging, etc. Although BLM and state offices are currently closed, their staff have
established measures to provide services remotely.
Southern Empire
will adhere to COVID-19
directives regarding safe working practises putting worker, community and national safety first.
Although mining has been declared an Essential Business in
Nevada
,
Southern Empire
plans only to
proceed with work if potential COVID-19 risks can be effectively managed.
Eastgate Gold Project,
Nevada
The Eastgate Gold Project is located approximately 90 kilometers (55 miles) east of the city of
Fallon in
Churchill County
, Nevada and comprises 101 unpatented BLM lode mining claims covering
roughly 817 hectares ("ha"; 2,020 acres). Eastgate features a well-developed hydrothermal quartz
vein system hosting precious metals.
Southern Empire's
goal is to define a high-grade, low-
sulphidation epithermal gold-silver deposit at Eastgate. Multiple, steeply east dipping, north striking,
sub-parallel quartz-adularia veins occur throughout the Eastgate Property. Between 1908-20 and
1935-57, several gold and silver producers operated on the property, including the small-scale,
narrow vein Double Eagle and Gold Ledge mines, which reported historical production from 1935-57
of 3,247 oz gold and 38,152 oz silver. Eastgate is located roughly 42 kilometres (26 miles) from the
Bell Mountain Gold Project currently undergoing final mine permitting by Eros Resources Corp.
Oro Cruz Gold Project,
California
The Oro Cruz Gold Project is in the Cargo Muchacho Mountains gold district of
Imperial County
,
southeast
California
, approximately 22.5 kilometres (14 miles) southeast of the Mesquite gold mine
of Equinox Gold Corp.
The most recent gold production at Oro Cruz was during 1995 and 1996 when, over the period of
about a year approximately 61,000 troy ounces were produced from oxide material extracted by
both open pit and underground mining operations. The American Girl Mining Joint Venture (53%-
owned by MK Gold Company, a subsidiary of Morrison Knudsen Corporation, and 47%-owned by
Hecla Mining Company) subsequently ceased operations in 1996 due to low gold prices. Episodic
gold mining between 1877 and 1941 in the Cargo Muchacho gold district, which included in order of
importance, the Tumco (Oro Cruz), American Girl, Cargo Muchacho and Padre y Madre mines,
produced an estimated 145,000 troy ounces of gold.
Extensive historical drilling at the Oro Cruz Gold Project has outlined exploration targets over an
existing high-grade gold zone as well as nearby satellite deposits. Based on historical mining, Oro
Cruz oxide gold mineralization is amendable to conventional heap leach extractive methods. The Oro
Cruz Gold Project is currently comprised of a total of 271 unpatented lode mining claims totaling
roughly 2,160 ha (5,338 acres), 13 unpatented placer mining claims totaling roughly 105 ha (260
acres) and two State of California Mineral Prospecting Permits covering approximately 518 ha
(1,280 acres).
Qualified Person
David Tupper
, P.Geo., is a qualified person within the context of National Instrument 43-101
Standards of Disclosure for Mineral Projects
and has prepared, read and approved the technical
aspects of this news release.
On behalf of the Board of Directors of Southern Empire Resources Corp.,
Dale Wallster
, CEO and Director
Cautionary Notice on Forward-Looking Statements
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
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
Southern
Empire's
control. Such factors include, among other things: risks and uncertainties relating to
Southern Empire's
limited operating history and the need to comply with environmental and
governmental regulations. 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 TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE
Southern Empire Resources Corp.
View original content:
http://www.newswire.ca/en/releases/archive/March2020/26/c6545.html
%SEDAR: 00044214E
For further information:
please visit our website at www.smp.gold or contact: Lubica Keighery,
phone: (778) 889-5476, e-mail: [email protected]
CO: Southern Empire Resources Corp.
CNW 12:08e 26-MAR-20