Southern Empire Receives Approval for Second Area of Sonic Drilling at the Oro Cruz Gold Project
Southern Empire Receives Approval for
Second Area of Sonic Drilling at the Oro Cruz
Gold Project
VANCOUVER, BC
,
Aug. 24, 2020
/CNW/ - Southern Empire Resources Corp. (Southern Empire)
(TSXV: SMP) (
Frankfurt
: 5RE) announces that it has received a second "Notice Level" acceptance
from the U.S. Bureau of Land Management (BLM) regarding its Oro Cruz Gold Project in
southeastern
California
. This new acceptance, for road construction, pad preparation and sonic
drilling of the American Girl historical heap leach pads, is in addition to the previous BLM acceptance
allowing for sonic drilling of the Padre y Madre historical heap leach pad area; see Southern
Empire's news releases dated
August 5, 2020
for details.
Dale Wallster
, Southern Empire's CEO stated: "
Kudos to our team as they continue to achieve our
California
permitting goals in a timely manner. We are on track to start our sonic drilling in mid-
September
and
we're very excited about the potential for the historical heap leach pads to host a
significant amount of gold."
Highlights:
Second BLM "Notice Level" acceptance of planned exploration program received in a timely
manner
BLM acceptance allows for sonic drilling of the American Girl historical heap leach pad
A minimum of 518 metres (1700 feet) of sonic drilling is planned for the American Girl and
Padre y Madre historical heap leach pads, which cover approximately 61 and 22 acres,
respectively
Sonic drill program anticipated to begin in mid-September
Selected surface grab samples taken from both pads ranged from 0.128 to 2.078 grams
gold/tonne
Sonic drill contract calls for tender issued
Permit bonding lodged with the BLM
BLM acceptance valid for two years expiring in 2022, extendible to 2024
Historical mining of the American Girl, Padre y Madre, Queen and Cross gold deposits by the
American Girl Mining Joint Venture (AGMJV; MK Gold Company and Hecla Mining Company)
occurred between 1987 and 1996. At that time, processing was either by heap leaching of lower-
grade or milling of higher-grade, gold-mineralized oxide materials. AGMJV operations ceased in late
1996, due to declining gold prices, leaving both the American Girl and Padre y Madre historical heap
leach pads, covering approximately 61 and 22 acres, respectively.
Southern Empire believes that the gold-bearing oxide material in these two historical heap leach
pads may contain significant residual gold. As a first phase of assessment, 26 surface grab samples
were collected: 12 from the Padre y Madre and 14 from the American Girl historical heap leach
pads. Southern Empire previously released gold assay results for these samples that ranged from
0.128 to 2.078 grams gold/tonne (g Au/t; 0.004 to 0.061 oz gold/ton); all gold assay results are
presented in Southern Empire's news release of
July 7, 2020
.
Sonic drilling of these heap leach pads is necessary in order to establish an industry compliant
mineral resource and provide samples for future extractive metallurgical test work.
Southern Empire is well-financed to start its
Oro Cruz
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
Although BLM, state and county offices are currently closed, their staff have established measures
to provide services remotely. 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.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and development of gold deposits in
North
America
.
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), operations which ceased
during the gold market downturn in 1996. The Oro Cruz Gold Project covers the decommissioned
Padre y Madre and American Girl historical heap leach pads, and has many exploration targets
including the high-grade oxide Cross underground 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.
Pursuant to a definitive arrangement agreement dated
August 18, 2020
, Southern Empire is in the
process of acquiring all of the issued and outstanding shares of MAS Gold Corp. (TMX-V: MAS), an
exploration company having road-accessible projects located in the La Ronge Gold Belt of
Saskatchewan, Canada
. Please refer to Southern Empire's news release dated
July 13, 2020
and
August 18, 2020
available on
SEDAR
.
MAS Gold's Greywacke North gold deposit, one of several known stratabound, high-grade gold-
bearing zones on the Greywacke Lake Property, has an 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
.
The
North Lake
gold deposit, located on the Preview-North property, 33 kilometres southwest of
Greywacke North, has an Inferred Mineral Resource estimated at 417,000 ounces of gold contained
in 14,110,000 t grading 0.92 g Au/t; see MAS Gold's News Release dated
March 25, 2020
and their
NI 43-101 Technical Report dated
April 10, 2020
.
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.
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.
Southern Empire and 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
Southern Empire's limited operating history, ability to complete the proposed MAS Gold transaction
(including obtaining all necessary shareholder and regulatory approvals), 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, 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 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/August2020/24/c6710.html
%SEDAR: 00044214E
For further information:
on Southern Empire please visit both www.smp.gold and SEDAR or
contact: Lubica Keighery, (778) 889-5476, [email protected]
CO: Southern Empire Resources Corp.
CNW 07:30e 24-AUG-20