Southern Empire to Advance Funds for Exploration in Saskatchewan's La Ronge Gold Belt
Southern Empire to Advance Funds for
Exploration in Saskatchewan's La Ronge Gold
Belt
TSX-V: SMP
Frankfurt
: 5RE
VANCOUVER, BC
,
Aug. 27, 2020
/CNW/ - Southern Empire Resources Corp. (Southern Empire)
(TSXV: SMP) (
Frankfurt
: 5RE) announces that, pursuant to a definitive Arrangement Agreement
dated
August 18, 2020
allowing Southern Empire to acquire all of the issued and outstanding shares
of MAS Gold Corp. (MAS Gold) (TSXV: MAS), Southern Empire has agreed to advance funds to
MAS Gold so that permitting and consultation for their 2020-2021 La Ronge Gold Belt exploration
drill program can be initiated.
Highlights:
5,500 metres (m; 18,045 feet) of drilling proposed for the Greywacke North and
North Lake
gold deposits
Permitting and consultation process has been initiated for core drill program slated to start in fall
2020
Permits are expected within 60 days
Drilling is expected to increase gold resource estimates for Greywacke North and
North Lake
deposits
Drilling is expected to increase the level of resource qualification for Greywacke North and
North
Lake
An additional
3,800 m
of core drilling targeting other exploration targets on the Greywacke Lake
Property (the Greywacke Central and Lyons Zones) and on the Preview-North Property (the
Point gold deposit and Joe occurrence)
Andrew Davidson
, Southern Empire's CFO stated:
"Centered around the La Ronge Gold Belt,
where the Seabee and Santoy mining camp has been operating for almost 30 years,
Saskatchewan
is one of the more prospective regions in
Canada
for gold exploration and is one of
the most mining friendly jurisdictions in the world. Following completion of the MAS Gold
acquisition, Southern Empire intends to quickly expand on the already established gold
resources."
MAS Gold's road-accessible gold projects are located in the La Ronge Gold Belt of
Saskatchewan
,
Canada. Following consultation with the local communities and stakeholders, and the granting of
requisite permits from the Government of
Saskatchewan
, an initial 5,500 metres (18,045 feet) of
core drilling planned for the Greywacke Lake and Preview-North Properties can begin. This drill
program is intended to expand and upgrade the known Mineral Resource estimates for the
Greywacke North and
North Lake
gold deposits.
The 2020-2021 work program expands upon the positive results of MAS Gold's successful 2019 La
Ronge gold exploration program that concluded with:
the establishment of an Inferred Mineral Resource for the
North Lake
gold deposit, located on
the Preview-North property about 33 kilometres southwest of Greywacke North, that is
estimated at 417,000 ounces of gold contained in 14,110,000 tonnes (t) grading 0.92 grams
gold/tonne (g Au/t); see MAS Gold's News Release dated
March 25, 2020
and their NI 43-101
Technical Report dated
April 10, 2020
confirmation of a significant gold system at the Point deposit with the potential to establish a
resource
establishment of the probable metallurgical compatibility of gold-mineralized materials from the
North Lake
, Point and Greywacke North gold deposits.
The 2019 exploration work builds on MAS Gold's established resource base established for the
Greywacke North gold deposit, one of several known stratabound, high-grade gold-bearing zones on
the Greywacke Lake Property. The Greywacke North deposit, which remains open to depth, has a
current 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
.
MAS Gold's 2020-2021 La Ronge Gold Belt work program is designed to:
establish the groundwork for a long-term, working-level relationship with the Lac La Ronge
Indian Band, the Metis Local and the greater community of
La Ronge
increase the gold resource and definition confidence of the current resource estimates for each
of the Greywacke North and the
North Lake
gold deposits
enable the definition of a gold resource for the Point gold deposit
systematically drill test the Greywacke South and Lyons Zone of the Greywacke Lake Property
undertake required assessment work for the Elizabeth Lake and Henry Lake properties
A proposed concurrent exploration program also includes:
preliminary geochemical surveys to the northeast and southwest of the
North Lake
gold deposit;
re-processing historical VTEM geophysical data,
relogging and resampling historical drill core (stored in the government's
La Ronge
core library
prospecting at the Elizabeth Lake copper-gold massive sulphide deposit property; and
geochemical survey work and prospecting on the Henry Lake gold property.
Certain of MAS Gold's properties were subject to the La Ronge South Gold Joint Venture (LRSGJV)
with Golden Band Resources Inc. (
Golden Band
). The current status of the LRSGJV, is outlined in
the MAS Gold's news releases dated
September 23, 2019
,
January 8, 2020
, and
June 25
, 2020. As
summarized from the
January 8th, 2020
news release, MAS Gold delivered to
Golden Band
notice
that
Golden Band's
LRSGJV interest was diluted to a royalty position in the LRSGJV
properties. Golden Band may challenge this position, but Southern Empire and MAS Gold are
confident that the dilution status will be upheld.
Southern Empire is well-financed to fund the MAS Gold La Ronge area 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
Timing of Southern Empire's exploration programs will be contingent on governmental regulations
regarding the COVID-19 pandemic and the availability of exploration-related personnel, drill
contractors, equipment and services. 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.
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.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and development of gold deposits in
North
America
.
Regarding the acquisition of MAS Gold Corp., a Canadian mineral exploration company focused on
road-accessible gold projects in
Saskatchewan
located approximately 60 km west of the producing
Seabee mill operations and the Santoy gold mine of SSR Mining Inc., please refer to Southern
Empire's news release dated
July 13, 2020
and
August 18, 2020
available on
SEDAR
. Including the
Elizabeth Lake copper-gold VMS deposit, MAS Gold controls four properties totaling 45,660
hectares (105,414 acres) along geologically prospective sections of the
La Ronge
, Kisseynew and
Glennie Domains of the La Ronge Gold Belt.
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), which was suspended
during the gold market downturn in 1996., The Oro Cruz Gold Project hosts many exploration
targets, the Padre y Madre and American Girl decommissioned heap leach pads, and a high-grade
oxide 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.
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.
Each of Southern Empire and MAS Gold 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 each of Southern Empire and MAS Gold's limited operating history, ability to
complete the proposed Transaction (including obtaining all necessary shareholder and regulatory
approvals), risks relating to the outcome of arbitration or court action concerning the dilution to
Golden Band's
interest in the La Ronge South Gold Joint Venture, 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, neither
Southern Empire nor MAS Gold 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/August2020/27/c8556.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 08:00e 27-AUG-20