Southern Empire Updates its Méxican Operations
Southern Empire Updates its Méxican
Operations
VANCOUVER, BC
,
Dec. 30, 2021
/CNW/ - Southern Empire Resources Corp. (Southern Empire)
(TSXV: SMP) (
Frankfurt
: 5RE) (OTC: SMPEF) has received preliminary high-resolution, airborne
magnetic and radiometric geophysical data covering the Pedro Gold Project, located in northeastern
Durango State, México.
The Pedro Gold Project has the potential to host epithermal, bonanza-grade precious metal vein
deposits as indicated by the HP Breccia Zone that was discovered in 2012 by regional grassroots
prospecting.
In
December 2021
, Terraquest Ltd. of
Markham, Ontario
, collected 393.2 line-kilometers (km; ~244
line-miles) of airborne geophysical data on flight lines that were flown at azimuth 060
o
/ 240
o
with 50
metre spacings. This data has been delivered to Condor Consulting, Inc. of
Lakewood, Colorado
;
experts in geophysical processing, analysis and inversion modeling.
David Tupper
, P.Geo., Southern Empire's Vice President of Exploration stated,
"The results of our preliminary airborne magnetic data provide some strong clues
about the structural setting and underlying 'plumbing system' of the HP Breccia gold
zone. Together with the regional government magnetics, we see evidence for a
deeper intrusive body that could be linked to the hydrothermal fluids and related
potential for epithermal vein systems that are the target of Southern Empire's
upcoming drill campaign
."
Servicios de Ingeneria Ambiental y Seguridad S.A. de C.V. of
Durango
, México has mobilized a
diamond drill rig to the Pedro Property and is scheduled to start a 2,000 metre (m; 6,560 feet), nine-
hole core drill program in January of 2022.
Pedro Gold Project Highlights:
Outcropping epithermal gold targets with potential for bulk mineable and bonanza-grade vein
deposits
4,000 m
by
1,000 m
gold-in-soil anomaly coincident with gold-bearing, silica-rich breccia
outcrops
Additional gold targets identified beneath post-mineral cover by 2020 geochemical survey
Historical reverse circulation and core drilling by Newmont in 2014 that confirmed the presence
of gold
In 2019, a 70 line-kilometer IP survey identified vertical, feeder vein targets that are not yet drill
tested
Permits established for up to 25 drill holes
Mineral concessions cover ~1,750 hectares ("ha"; 4,324 acres) of private ranch lands
Located in
Durango
, a mining-friendly state in north-central México
Good access to the project area, ~80 km (50 miles) west-northwest of the city of
Torreón
Local infrastructure available in the nearby town of Mapimí
Nine proposed Phase 1 drill locations are projected onto the preliminary airborne magnetic data in
Figure 1 and the historical Induced Polarization (IP) chargeability and gold geochemistry in Figure 2.
Figure 1. Preliminary Airborne Magnetic Data (1st Vertical Derivative) for the Pedro Gold Project
and Proposed Phase 1 Core Drill Hole Locations (green dots) (CNW Group/Southern Empire
Resources Corp.)
Southern Empire holds the Pedro Gold Project through an agreement with Commander Resources
Ltd. (TSX-V: CMD) allowing Southern Empire to acquire a 100% beneficial interest. Please see
Southern Empire's news release of
July 27, 2021
, for further information about the Pedro Gold
Project.
Qualified Person
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 (QP) within the context of Canadian Securities Administrators' National Instrument
43-101; Standards of Disclosure for Mineral Projects (NI 43-101).
Figure 2. Gold in Soil Geochemical Anomalies, IP Anomalies and Phase 1 Core Drill Hole Locations
(CNW Group/Southern Empire Resources Corp.)
Other Corporate Developments
Southern Empire has entered into an option agreement with Riverside Resources Inc. (
Riverside
;
TSX-V: RRI) that grants Southern Empire the opportunity to acquire a 100% interest in the 647 ha
(~ 1600 acres) VLM Project located in northwestern México. Southern Empire may acquire the VLM
Project by paying a total of
CAD$137,500
and issuing a total of 1,625,000 common shares over a
period of two years from the approval of the TSX Venture Exchange (TSX-V). Future production will
be subject to net smelter return royalties, payable to
Riverside
, of 2.5% on precious metals and
1.75% on base metals. These royalties may be reduced to 1% on precious metal production and
0.5% on base metal production by payments of an additional CAD
$4 million
within ten years of the
TSX-V approval date.
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 where 2014 drilling by a subsidiary of
Newmont Mining Corporation encountered epithermal gold mineralization within basal conglomerates
of the Ahuichila Formation. Please see Southern Empire's news release of
July 27, 2021
, 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; ultimately owned 53 percent by MK Gold Company and 47 percent by Hecla
Mining Company) 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 the 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/t Au) at a cut-off grade of 0.68 g/t Au (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
For further information on Southern Empire please visit:
www.smp.gold
and
SEDAR
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 outlined above 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.
Work Programs During the COVID-19 Pandemic
The 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) accept responsibility for the adequacy or accuracy
of this release.
SOURCE
Southern Empire Resources Corp.
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For further information:
Lubica Keighery, (778) 889-5476, [email protected]
CO: Southern Empire Resources Corp.
CNW 09:57e 30-DEC-21