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.