Southern Empire Options Centauro Gold Project, Chihuahua, México; Starts Field Exploration Programs
Southern Empire Options Centauro Gold
Project, Chihuahua, México; Starts Field
Exploration Programs
VANCOUVER, BC
,
Dec. 12, 2022
/CNW/ - Southern Empire Resources Corp. (Southern Empire)
(TSXV: SMP) (
Frankfurt
: 5RE) (OTC: SMPEF) announces that it has expanded its mineral property
portfolio in México by entering into an Option Agreement to acquire a 100% interest in the Centauro
property ("Centauro") located in southeastern Chihuahua State, approximately 100 kilometres ("km")
northwest of its Pedro Gold Project located in northern Durango State.
"The acquisition of Centauro directly ties into our thesis that certain geological terrains of
northcentral México are highly prospective to host "Carlin-style" and/or low sulphidation epithermal
gold deposits. The many Carlin-style geological features we see at both Centauro and Pedro
strongly support this concept," stated
David Tupper
, Southern Empire's VP of Exploration.
The Centauro property is a near analogue to Southern Empire's Pedro Gold Project, located in the
Mapimí area of Durango State. Centauro's significant potential to host "Carlin-style" and/or
epithermal precious metal mineralization is exhibited by:
extensive brecciation, silicification and argillization of the Tertiary-age Ahuichila Formation
limestone-dominated conglomerate unit over an area of approximately 2.5 by 1.5 km
a gold ("Au"), arsenic ("As"), antimony ("Sb"), mercury ("Hg"), thallium, silver, barium soil
geochemical signature associated with a silicified mesa "cap" covering 2.5 km along the strike
of the main zone
outcrops containing Carlin-style indicator minerals including arsenopyrite, realgar, orpiment and
stibnite, in a black, silicified limestone-dominated conglomerate
low to non-anomalous base metal values throughout the property
Photos 1: Tertiary-age, silicified limestone conglomerate breccia with arsenopyrite, pyrite, realgar
and orpiment mineralization located on the Centauro Gold Project. (CNW Group/Southern Empire
Resources Corp.)
Photos 2: Tertiary-age, silicified limestone conglomerate breccia with arsenopyrite, pyrite, realgar
and orpiment mineralization located on the Centauro Gold Project. (CNW Group/Southern Empire
Resources Corp.)
Photos 1 & 2:
Tertiary-age, silicified limestone conglomerate breccia with arsenopyrite, pyrite,
realgar and orpiment mineralization located on the Centauro Gold Project.
Figure 1: Centauro Property location, Chihuahua, Mexico (CNW Group/Southern Empire Resources
Corp.)
The Centauro Gold Project currently comprises two core mineral claims, totalling 500 hectares,
(approximately 1236 acres) located in southeastern Chihuahua State immediately north of the
Durango State border and approximately 70 km south of the city of Jiménez (see
Figure 1
).
The highly anomalous Hg, As, Sb values, low base metal values coupled with the anomalous Au and
Ag, suggest that the level of more significant precious metals deposition remains at depth below the
currently exposed part of the system.
Work Programs Initiated
Accurate alteration mineral maps are an essential guide to successful exploration when working on
hydrothermal-associated mineral deposit systems. For Centauro, Southern Empire, contracted
PhotoSat Information Ltd. ("PhotoSat") to provide maps of alteration mineral suites typically
associated with epithermal precious metal deposits, using their proprietary processing methods for
16 band WorldView-3 and high-resolution ASTER satellite optical spectral data. Results of the
PhotoSat studies show significant trends highlighting argillic, sericite, and chlorite alteration. The
strong silica cap present at Centauro is highlighted by the ASTER silica plot shown in
Figure 2
.
Southern Empire has completed the collection of an initial 396 soil samples at 50-metre ("m")
spacings along east-west lines, spaced 100 to
200m
apart, that infill and expand upon a 2008
geochemical survey on lines having 400 and
600m
spacing that covered a zone of prospective
alteration and mineralization over four km strike length. Samples collected will be submitted to ALS
Laboratories Ltd. in Chihuahua for analyses.
Figures 2 & 3: Oblique view of the Centauro Property from the northwest (CNW Group/Southern
Empire Resources Corp.)
Figures 2 & 3
: Oblique view of the Centauro Property from the northwest showing:
Satellite image (
March 2007
) of interpreted silica alteration (PhotoSat,
December 2022
)
Induced Polarization (IP) apparent chargeability at true depth
260m
, highlighting a potential drill
target on the north area (Geofísica TMC, S.A. de C.V., 2013)
Exploration History of the Centauro Property
The primary area of exploration interest on the Centauro property is a 2.5 by 1.5 km corridor that
was subject to preliminary, low-density investigations completed by previous operators Silver Spruce
Resources Inc. (2007 to 2009) and Mundoro Capital Inc. (2012 and 2013). Their past work included:
Geological mapping and prospecting
Surface alteration mapping using TerraSpec spectrometer mineral analysis
Collection of 211 soil samples at
50m
centres on six widely-spaced (
300m
to
700m
), 060
o
azimuth lines with subsequent analysis by multielement Induced Coupled Plasma ("ICP")
techniques
A 73.0 line-km ground magnetic geophysical survey over twenty-four
200m
spaced lines
8.6 line-kilometres (line-km) of Induced Polarisation/Resistivity ("IP") geophysical surveys over
four 500 to
700m
spaced lines by Geofísica TMC, S.A. de C.V. (see
Figure 3
)
Completion of 27 NQ core drill holes totaling
5,824.5m
on
200m
to
700m
spaced section lines;
100% of this drill core was split, sampled and analyzed for Au and indicator elements by ICP
Although based on a limited, widely spaced line density, the 2013 IP/Res survey work highlights a
potential chargeability anomaly on the north end of the grid that occurs below the depth of the
historical drilling and remains untested.
The 2008 and 2009 drilling completed by Silver Spruce Resources Inc. was at very wide drill hole
spacings (200 to 400 metres) and outlined significant areas of anomalous gold mineralization within
extensive zones of silica and argillic alteration, the latter exhibited in multiple drill holes including hole
CEN08-10 (NAD27 (13R) 555443 mE / 2945041 mN); see
Photo 3
.
Photos 3: Core interval from drill hole CEN08-10 with intense argillic alteration (kaolinite) averaging
232 ppb Au, 5.5 ppm Ag, 1,328 ppm As, 102 ppm Hg, 50.8 ppm Sb & 4.4 ppm Mo over 6.7 m
starting at 88.4 m (weighted average of samples 7859 through 7862). (CNW Group/Southern
Empire Resources Corp.)
Photos 3:
Core interval from drill hole CEN08-10 with intense argillic alteration (kaolinite) averaging
232 ppb Au, 5.5 ppm Ag, 1,328 ppm As, 102 ppm Hg, 50.8 ppm Sb & 4.4 ppm Mo over
6.7 m
starting at
88.4 m
(weighted average of samples 7859 through 7862).
TABLE 1
Centauro Property core drilling – 2008/2009 Composite Analyses
Hole
From
To
Length
Au (ppb)
Ag (ppm)
Hg (ppm)
As (ppm)
Sb (ppm)
Mo (ppm)
CEN-08-07
9.0
59.0
50.0
284
2.4
100
565
66
19
incl.
55.2
57.2
2.0
4340
13.4
57
689
16
32
CEN-08-10
3.0
91.1
88.1
237
8.4
2718
1178
15
239
incl.
3.0
10.5
7.5
1922
62.8
2554
1358
1.3
486
CEN-09-15
12.0
82.9
70.9
145
6.5
21
1098
202
10
CEN-09-16A
36.0
148.4
112.4
125
7.5
20
968
124
8
CEN-09-27
9.0
43.4
34.4
232
5.7
23
1127
272
2
Planned Exploration Work
Southern Empire plans to undertake exploration work programs in 2023, including:
Relogging all drill core, which is now securely stored by the property vendor in Ciudad de
Durango
Re-assaying some key drill core intervals to cross-check the reported results from the
2008/2009 analytical work, which shows no record of a Quality Control program
Hyperspectral imaging of key drill holes to assist in determining alteration
Completion of a higher-density IP survey
A core drilling program to 400 metre depth of penetration
Key Business Terms of the Option Agreement
A comprehensive Option Agreement regarding Southern Empire's acquisition of Centauro property
mineral rights has been entered into with the owner, a Mexican geologist, and registered with the
General Bureau of Mining of México. Pursuant to this agreement, Southern Empire can earn a 100%
interest in the Centauro property claims, subject to a 3% Net Smelter Return interest ("NSR"), by
making cash payments totalling US
$750,000
, issuing 1,500,000 common shares of Southern
Empire, and completing work commitments of US
$800,000
over a 5-year period. Southern Empire
has the right to a 2% buyback of the NSR for US
$2 million
. The Option Agreement is subject to
approval by the TSX Venture Exchange.
Dale Wallster
, CEO of Southern Empire commented, "We
are fortunate to have the option agreement relatively back-weighted with cash payments totaling
US$595,000
and the issuance of 900,000 shares not occurring until years four and five."
The surface rights covering the Centauro Gold Project area are privately held by local ranchers who
have worked with the claim owner for more than 30 years. Southern Empire has initiated
negotiations to secure surface access rights.
Qualified Person (QP)
The scientific and technical information contained in this news release has been prepared, reviewed
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 (NI 43-101). The historical analytical data
contained in this news release was obtained from the files of the vendor and public disclosures of
Silver Spruce Resources Inc. and Mundoro Capital Inc. and has not been verified by the Qualified
Person.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and development of metals and minerals
deposits in
North America
.
In northeastern Durango State, México, Southern Empire has an option to acquire a 100-per-cent
beneficial interest in the 1,750-hectare Pedro Gold Project. At Pedro, in the spring of 2022,
Southern Empire drilled gold mineralization approximately 800 metres from 2014 drilling by a
subsidiary of Newmont Mining Corporation. Gold mineralization, associated with highly anomalous
arsenic (orpiment and realgar common), antimony, mercury and thallium, has been identified hosted
in permeable basal conglomerates deposited during Oligocene extensional deformation, the
latter forming widespread Basin and Range physiography along the easter part of Sierra Madre
Occidental. Gold is present in 12 of the 17 holes drilled at Pedro to date. Please see Southern
Empire's news releases posted on
SEDAR
for further details.
In the Cargo Muchacho mountains of
Imperial County, California
, Southern Empire owns 100 percent
of the historical gold-producing American Girl mine property and holds options to acquire a 100
percent 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") 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 a historical inferred resource estimate, reported In 2011 by Lincoln
Mining Corp., totaling 341,800 ounces gold based on 4,386,000 tonnes averaging 2.2 grams gold
per tonne (g Au /t) at a cut-off grade of 0.68 g Au/t (4,835,000 tons at 0.07 ounce gold per ton;
please refer to the Cautionary Notice Regarding the Oro Cruz Property Historical Resource Estimate
below).
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 many material factors, many of
which are beyond its respective control. Such factors include, among other things: risks and
uncertainties relating to Southern Empire's 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 Oro Cruz Project historical resource estimate 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.
Cautionary Notice Regarding Exploration
Work Programs
The timing and the ability to conduct Southern Empire's exploration programs are, among other
things, contingent on: governmental regulations allowing for the issuance of permits; affects of the
COVID-19 pandemic; and the availability of exploration personnel, drill contractors, equipment,
lodging, etc. Southern Empire will adhere to COVID-19 directives regarding safe working practices
putting worker and community health and 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) accept responsibility for the adequacy or accuracy
of this release.
SOURCE
Southern Empire Resources Corp.
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For further information:
For further information on Southern Empire please visit: www.smp.gold
and SEDAR or contact: Lubica Keighery, (778) 889-5476, [email protected].
CO: Southern Empire Resources Corp.
CNW 14:13e 12-DEC-22