Sunergy, Inc (the "Company") (PINKSHEETS: SNEY) reports that due
diligence on the planned acquisition of Allied Mining and Supply,
LLC (Nevada) has shown that substantial Rare Earth Elements (REEs)
are contained in the 140.1 sq. km. Pampana river concession in
Sierra Leone, West Africa.
Assays of heavy black sand concentrates containing rare earths
(REEs) in 2009 and 2010, showed quantities of rare earths and other
valuable minerals in commercially exploitable grades. Recent assays
by ALS Chemex in Sparks, Nevada identified several of these rare
earths contained in the heavy black sands along with gold as
follows: Lanthanum, Scandium, Thallium, Cerium, Dysprosium,
Hafnium, Lutetium, Niobium, Neodymium,
Praesodymium, Tantalum and Zircon.
Final documents are being prepared to close this acquisition and
plans are underway to finance operations in Sierra Leone
immediately thereafter. Substantial gold has also been determined
to be contained in the concession. Data indicates gold
concentrations ranging from 1 to 18 grams per tonne of material.
Fire assays conducted in Freetown by the Company show the gold
purity at 89%. Over 500,000 ounces are contained in reports in the
top 28% of the 140 sq. km. concession and further testing shows
continuity.
The following information is from a recently published article
in the UK's The Independent:
"Neodymium is one of 17 metals crucial to green
technology. There's only one snag -- China produces 97% of the
world's supply. And they're not selling."
Britain and other Western countries risk running out of supplies
of certain highly sought-after rare metals that are vital to a host
of green technologies, amid growing evidence that China, which has
a monopoly on global production, is set to choke off exports of
valuable compounds.
Failure to secure alternative long-term sources of rare earth
elements (REEs) would affect the manufacturing and development of
low-carbon technology, which relies on the unique properties of the
17 metals to mass-produce eco-friendly innovations such as wind
turbines and low-energy light bulbs. Worldwide, the industries
reliant on REEs, which produce anything from fibre-optic cables to
missile guidance systems, are estimated to be worth £3 trillion, or
5 per cent of global GDP.
Once extracted and refined, the rare earth metals can be put to
a dizzying range of hi-tech uses. Neodymium, one of the most common
rare earths, is a key part of neodymium-iron-boron magnets used in
hyper-efficient motors and generators. Around two tonnes of
neodymium are needed for each wind turbine. Lanthanum, another REE,
is a major ingredient for hybrid car batteries (each Prius uses up
to 15kg), while terbium is vital for low-energy light bulbs and
cerium is used in catalytic converters.
China, whose mines account for 97 per cent of global supplies,
is trying to ensure that all raw REE materials are processed within
its borders. During the past seven years it has reduced by 40 per
cent the amount of rare earths available for export.
Jack Lifton, an independent consultant and a world expert on
REEs, said: "A real crunch is coming. In America, Britain and
elsewhere we have not yet woken up to the fact that there is an
urgent need to secure the supply of rare earths from sources
outside China. China has gone from exporting 75 per cent of the raw
ore it produces to shipping just 25 per cent, and it does not
consider itself to be under any obligation to ensure supplies of
rare earths to anyone but itself. There has been an effort in the
West to set up new mines but these are five to 10 years away from
significant production."
After decades in which they were considered little more than
geological oddities, rare earths have recently become a boom
industry after the invention of a succession of devices, including
iPhones and X-ray machines, which rely on their specific
properties.
Dr Ian Higgins, general manager of Birkenhead-based Less Common
Metals, which specialises in rare earth products, said: "There is a
threat that in the next 12 to 18 months, there might be some quite
severe shortages of these rare earths. That is certainly going to
impact those hi-tech green industries outside China."
Beijing announced last month that it was setting exports at
35,000 tonnes for each of the next six years, barely enough to
satisfy demand in Japan. From this year, Toyota alone will produce
annually one million of its hybrid Prius cars, each of which
contains 16kg of rare earths. By 2014, global demand for rare
earths is predicted to reach 200,000 tonnes a year as the green
revolution takes hold.
In October, an internal report by China's Ministry of Industry
and Information Technology disclosed proposals to ban the export of
five rare earths and restrict supplies of the remaining metals.
Beijing strenuously denied that the document was an accurate
reflection of its strategy, saying it had no desire to reduce trade
in rare earths. But The Independent understands that the level of
demand in China means that supplies of at least two crucial REEs --
terbium and dysprosium -- are likely to be curtailed by as early as
next year.
Both Western countries and China are already dashing to secure
new sources of rare earths. Last year, Australian regulators
imposed restrictions on the purchase of one of the country's
richest rare earth mines, causing a Chinese company to walk away
from a £400m deal to buy its operator.
European and North American companies are meanwhile racing to
open or re-open mines in Canada, South Africa and Greenland amid
calls in the US for government-backed loans to secure supplies of
some REEs which are used in the guidance systems of missiles and
laser-guided munitions. Toyota has effectively bought its own rare
earth mine in Vietnam by signing an exclusive supply deal.
The Department for Business, Industry and Skills acknowledged
the growing concern in Western capitals. A spokesman said: "We are
monitoring the situation, particularly with regard to World Trade
Organisation rules. We are working with UK industry to assess the
long-term demand for strategically important resources, including
rare earth elements."
About Sunergy: The Company is an aggressive junior mining
exploration and development Company that is production oriented at
the earliest possible profitable opportunity. We control 100% of
the 150 SQ. Km. Nyinahin mining concession with a full prospecting
license. The concession is surrounded by several operating mines
and is adjacent to Newmont Mining's property. This concession has
the Ofin river flowing through our eastern portion and there are
numerous artisan pits ready for testing and evaluation for near
term production. The Ofin river is known for good alluvial gold
production. We are acquisition oriented and are considering several
projects suitable for near term production.
Further information is available on the Company's website
www.sunergygold.com
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as
that term is defined in Section 27A of the United States Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Statements in this press release which are not purely historical
are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future,
including but not limited to, any mineralization, development or
exploration of the Nyinahin Mining Concession
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
mineral exploration and difficulties associated with obtaining
financing on acceptable terms. We are not in control of metals
prices and these could vary to make development uneconomic. These
forward-looking statements are made as of the date of this news
release, and we assume no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and
intentions contained in this press release are reasonable, there
can be no assurance that such beliefs, plans, expectations or
intentions will prove to be accurate. Investors should consult all
of the information set forth herein and should also refer to the
risk factors disclosure outlined in our most recent annual report
for our last fiscal year, our quarterly reports, and other periodic
reports filed from time-to-time with the Securities and Exchange
Commission.
Contact: Steve Parent Investor Relations Sunergy, Inc.
480.399.7222 cell 480.477.5810 office steve@sunergygold.com
www.sunergygold.com