Southridge Enterprises Inc. (PINKSHEETS: SRGE) ("Southridge" or the
"Company") is pleased to announce today that Southridge Minerals,
Inc., its wholly owned subsidiary, announces today it has signed a
definitive agreement to acquire a 100% interest in the Cinco Minas
and and Gran Cabrera Gold properties in Mexico. The Purchase Price
for the assets comprising the mineral concessions "Gran Cabrera"
shall be $2,500,000. The Purchase Price for the assets comprising
the mineral concessions "Cinco Minas" shall be $5,000,000.
The Cinco Minas site covers roughly 10,750 hectares and is
located approximately 100 kilometres northwest of the City of
Guadalajara. The Gran Cabrera site covers roughly 4,300 hectares
and is located approximately 35 kilometres northwest of Cinco
Minas. Both sites are on strike to a major regional left lateral
fault system that hosts many historical areas such as the old Santo
Domingo mine site, currently the subject of extensive exploration
drilling by Stroud Resources Ltd., which is midway between the two
historical sites.
Cinco Minas property was mined between 1922 and 1928 and
reported 1,083,000 tonnes of ore averaging 3.17 g/t gold and 476
g/t silver. This equates to 97,364 oz. of gold (2,760 kilograms)
and 15,095,915 oz. of silver (427,954 kilograms). The Cinco Minas
and Gran Cabrera properties both host epithermal systems with
adularia-sericite type quartz veins with gold-silver
mineralization. The main zone system at Cinco Minas has an
identified strike length of approximately 5 kilometres with
additional parallel to sub-parallel veins. Past mining has produced
several bonanza grade veins with high gold credits. These types of
structures have also been reported in the recent exploration
drilling at Cinco Minas.
In 2004 a resource estimate was prepared on the Cinco minas
property that was based on work by independent consulting firm of
Behre Dolbear de Mexico (www.dolbear.com). This estimate was based
on the drilling, trenching and field exploration since 2003. Based
on their examinations and calculations they reported the
following:
- An indicated resource of 2.27 million tonnes of 171.9 gram
silver containing 12.5 million oz. of silver and 1.22 gram gold
containing 89,100 of gold
- An inferred resource of 400,000 tonnes of 137.9 gram silver
containing 1.8 million oz. silver and 1.07 gram gold containing
13,800 oz. of gold.
The Cinco Minas vein systems are classic epithermal precious
metal deposits with brecciated ore hosts flooded with
quartz/sulphide pulses. The mineralization is varied along strike
but generally is represented with argentite, miargyrite, native
silver, gold, sphalerite, and galena. Literature and recent
drilling supports that additional sources of very high-grade
mineralization should be encountered along strike. The historical
reports indicate that bonanza grades of silver with gold were
encountered randomly during the development of both mine sites. The
geology supports that potential as volcanic hosted massive
sulphides are commonly concentrated and enriched when proximal to
major fault systems.
INFRASTRUCTURE
The Hostotipaquillo regional infrastructure is moderately
sophisticated. The town of Magdalena is roughly 20 kilometres south
of Cinco Minas and Tequila is another 20 kilometres southeast of
Magdalena. These will be the two primary sources for material for
the project. Tequila has a population of some 50,000 persons while
Magdalena is roughly 25,000. The two towns have a corresponding
ability to provide supplies and manpower to the project both short
and long term. Whatever cannot be obtained in Tequila will have to
come from Guadalajara, which is a further 80 kilometres southeast.
Guadalajara is the capital of the state of Jalisco, and a custom
steel centre with an estimated population of 6.3 million people in
2008.
All three towns are linked with a good highway system. Modern
trucking systems should be able to deliver any required bulk
materials, steel, and plant equipment. The infrastructure is
suitable for immediate mill tests on site with the installation of
new equipment. Water storage around the pad system and other mill
facilities can easily be controlled by well-engineered containment
facilities. The 200 metre drop from the old mine to the old mill,
town and proposed leach pad site provides for an excellent material
flow for ore and water.
The local population of Cinco Minas is roughly 300 persons. From
that group the initial work force has been established. As the
project expands, training in mine related jobs, safety and other
worker skills can be undertaken. However, at the outset, additional
workers will be required to provide technical expertise on site.
Housing for those workers will be established by the construction
of a camp situation that can be controlled with respect to
services, security, and expansion.
There are no extraordinary infrastructure costs or hurdles as
roads, power and water are all present onsite the Cinco Minas
property. The remnants of the old mill site could be quickly
refitted as the land package includes the historical Cinco Minas
mine and 60 Tonne mill.
HISTORY
The Hostotipaquillo region is steeped in a rich mining history.
The original mines were small adit enterprises begun in the 1530s
by the conquering Spanish, looking for high-grade silver and gold.
Sporadic workings were developed where easily hand-cobbed
high-grade ore could be obtained. Where large deposits of ore could
be worked, the communities would develop around them to support the
mine. This model of development is not much different in today's
mine industry.
In many cases old workings were abandoned simply because they
were too remote to continue operations or the ore began to run into
silicified materials. In the vicinity of Hostotipaquillo, ore was
discovered in 1605 and several mines were developed. The town soon
became the administrative centre for the region and later the
Municipal capital. However in the Gran Cabrera region, 10-20
kilometres northwest of the town, mining had already begun and many
operations were developed. The rugged terrain made working these
properties difficult and would qualify as models of excellence in
mine development in rugged conditions. In examining the ruins of
the Monte de El Favor and Gran Cabrera mine camps, the sheer
magnitude of the regional historical development is simply amazing.
While the environment has overtaken many of the roads, rail and
cable footprints, the evidence still exists. The degree of adit and
shaft development done in the individual mines is remarkable.
While mining was growing in the Cabrera area, it was also
advancing to the east towards and into Cinco Minas. In the early
1900s, a series of independent mine operations became the critical
mass for the development of the town of Cinco Minas. Power was
brought into the area and extensive mill operations were
established. It became the local mine centre for the area and the
reported 10,000 person camp resulted. The Cinco Minas deposit was
developed to its peak by Marcus Daly with the Cinco Minas Mining
Company. He transformed the random mining operation into a 500
tonne per day producer by 1922.
Cinco Minas and and Gran Cabrera Work
Program
Over the next several weeks, Southridge is planning to review
all the historical information, resample some of the drill core
from previous operators. We also plan to digitize the drilling and
underground data to confirm the historical estimated tonnages and
to confirm the known drill targets. It is expected that the next
surface drill program should be underway in Q1 2011.
For Cinco Minas and and Gran Cabrera Youtube video visit:
http://www.youtube.com/watch?v=C03I_ojnRFM
For further information on the Company's Gold and Silver
projects, visit our website, www.southridgeminerals.com.
About Southridge Minerals Inc. (PINKSHEETS: SRGE) Southridge
Minerals, Inc. is a U.S.-based mineral exploration company
dedicated to acquiring and developing mineral resources in
geologically permissible and politically stable areas of the world.
The Company seeks out on early state opportunities with good
mineralization indicators that can carry plenty of blue-sky
potential. Southridge progresses these projects that are or will be
of interest to mid-size and major producers.
By forming ventures on individual projects, the Company expects
to grow and maintain an interest in mines operated by its partners,
allowing it to continue to build value through continued
exploration. Southridge is currently focused on projects in
Mexico.
What sets Southridge apart is its vast experience in Mexico, the
geology conditions of formation of known large gold deposits that
up until now have received very little attention. This way it can
focus geographically and on a couple of commodities to give its
shareholder return on their investment in the most efficient way
possible.
Forward-Looking Statements This news release contains
"forward-looking statements," as that term is defined in Section
27A of the Act 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.
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
the development of an early stage company in the alternative energy
industry, its products, and the entry into new markets for such
products. These forward-looking statements are made as of the date
of this news release, and the Company assumes 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 the Company believes that the
beliefs, plans, expectations, and intentions contained in this
press release are reasonable, there can be no assurance those
beliefs, plans, expectations or intentions will prove to be
accurate. Investors should consider all of the information set
forth herein and should also refer to the risk factors disclosed in
the Company's current and periodic reports filed from time to time
with the Securities and Exchange Commission.
For further information please contact: Investor Relations Tel.
(877) 712-2144 Email: ir@southridgeminerals.com
http://www.southridgeminerals.com
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