Sungro Minerals, Inc. (OTCBB: SUGO) announced today the highlights
of its first National Instrument 43-101 (NI 43-101) technical
report (the "February Report") authored by Randall L. Moore, RPG,
of Eugene, Oregon a Registered Professional Geologist (RPG) and
Qualified Person in accordance with the Canadian standards.
A full copy of the report can be found on our website:
www.sungrominerals.com.
The Conglomerate Mesa Project includes 331 unpatented lode
claims covering approximately 6,800 acres of mining claims in the
southern Inyo Mountains in Inyo County, California administered by
the Bureau of Land Management.
"The completion of this report is a significant milestone for
our Company," stated Mr. Fred Pucillo, CEO, "it provides the
foundation on which we can move forward with our exploration
program and sets a base-line on expectations for the kinds of
resources that can be confirmed through that exploration."
Below are highlights of some of the comments contained in the
report:
"The Conglomerate Mesa hosts multiple large-scale hydrothermal
gold-silver systems that are similar in style, geology, and
geochemistry to the highly productive Carlin-type systems of
northern Nevada," and "Gold-silver mineralization is known to occur
within a zone that is over 8 kilometers long and 4 kilometers
wide."
"Based on previous historical data compiled by several mining
companies (including: BHP Billiton, Newmont Exploration, Asamera,
Anaconda Minerals, and Mobil Exploration) dating back to 1984, the
Conglomerate Mesa could host bulk mineable gold deposits in excess
of 2,000,000 ounces (as stated in an inter-company report)...
Sungro also controls unpatented lode claims that cover a portion of
the historic Santa Rosa Zinc-Lead-Copper-Sliver-Gold skarn that was
explored by Anaconda and considered to have the potential to host a world-class deposit" as stated in a
1991 report by James Dixon (PG). This target has some restrictions
due to the Malpais Mesa Wilderness area.
"Conglomerate Mesa is a quality prospect that should be drilled
on a grid system and several +2,000 foot drill holes should be
placed in strategic locations based on geology, geochemistry and
geophysics" to test for both shallow and deeper high-grade
mineralization. If this prospect was in Nevada, it would have
hundreds of drill holes, as properties of this quality are
difficult to find. Significant, shallow oxide gold mineralization
has been defined at Conglomerate Mesa. These areas remain open with
substantial additions conceivable. Beyond the expansion of known
zones of mineralization, there is excellent
potential for the discovery of new mineralized zones. It is clear
that Conglomerate Mesa warrants significant additional expenditures
to move targets forward and develop NI 43-101 resources."
"Further drilling at Conglomerate Mesa should focus on three
objectives: (i) the expansion of known gold zones; (ii)
identification of additional zones of mineralization within new
structural/stratigraphic settings; and (iii) upgrading known zones
of gold mineralization to resource categories."
"Significant exploration drilling is justified.
While several areas have already been defined for drill testing,
additional detailed geologic mapping, systematic sampling of
outcrops, extensions of the existing soil grid, and geophysical
surveys should be used to identify new targets."
"Based on the results of this report, Sungro will be looking to
raise a minimum of $10,000,000 to cover the additional exploration
costs of $5,500,000 as indicated by Mr. Moore, cover working
capital needs, and to meet the requirements of up-listing to larger
exchange such as NASDAQ, NYSE, and/or the Toronto Venture
Exchange," stated Erwin Vahlsing, Jr., CFO. He continued,
"Permitting and Feasibility studies would begin immediately
following the completion of funding by one or more of our potential
strategic and financial partners."
About Sungro Minerals, Inc.
Sungro Minerals, Inc. is an early stage Mining and Exploration
Company seeking to acquire, develop, and manage various mineral
properties and resources.
Cautionary Note to U.S. Investors
This press release may use the terms "measured resources,"
"indicated resources," "inferred resources," and "historical
resources" which are calculated in accordance with the Canadian
National Instrument 43-101 and the Canadian Institute of Mining,
Metallurgy and Petroleum Classification system. The United States
Securities and Exchange Commission (the "SEC") does not recognize
these terms and the SEC guidelines (Industry Guide 7) provide that
such terms shall not be included in a registrant's filings with the
SEC (unless required to be disclosed by foreign or state law). The
SEC permits U.S. mining companies, in their filings with the SEC,
to disclose only those mineral deposits that a company can
economically and legally extract or produce. "Inferred resources"
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an "inferred mineral resource"
will ever be upgraded to a higher category. U.S. investors are
cautioned not to assume that any part or all of a measured,
indicated or inferred resource exists or is economically or legally
mineable. U.S. investors are urged to consider closely the
disclosure in our Form 10-K which may be secured from us, or from
the SEC's website at http://www.sec.gov.
Forward-Looking Statements
This press release and any related calls or discussions may
contain forward-looking statements. All statements, other than
statements of historical facts, are forward-looking statements.
Forward-looking statements include statements about matters such
as: future prices and sales of and demand for our products; future
industry market conditions; future changes in our exploration
activities, production capacity and operations; future exploration,
production, operating and overhead costs; recapitalization and
balance sheet restructuring activities (including debt-for-equity
exchanges, land transactions, capital raising and other
activities); operational and management restructuring activities
(including implementation of methodologies and changes in the board
of directors); future employment and contributions of personnel;
tax and interest rates; capital expenditures and their impact on
us; nature and timing of restructuring charges and the impact
thereof; productivity, business process, rationalization,
restructuring, investment, acquisition, consulting, operational,
tax, financial and capital projects and initiatives; contingencies;
environmental compliance and changes in the regulatory environment;
offerings, sales and other actions regarding debt or equity
securities; and future working capital, costs, revenues, business
opportunities, debt levels, cash flows, margins, earnings and
growth.
The words "believe," "expect," "anticipate," "estimate,"
"project," "plan," "should," "intend," "may," "will," "would,"
"potential" and similar expressions identify forward-looking
statements, but are not the exclusive means of doing so. These
statements are based on assumptions and assessments made by our
management in light of their experience and their perception of
historical and current trends, current conditions, possible future
developments and other factors they believe to be appropriate.
Forward-looking statements are not guarantees, representations or
warranties and are subject to risks and uncertainties that could
cause actual results, developments and business decisions to differ
materially from those contemplated by such forward-looking
statements. Some of those risks and uncertainties include the risk
factors set forth in our SEC filings and the following: the current
global economic downturn and capital market weakness; the
speculative nature of gold or mineral exploration, including risks
of diminishing quantities or grades of qualified resources and
reserves; operational or technical difficulties in connection with
exploration or mining activities; contests over our title to
properties; our ability to cure defaults under our current
indebtedness; our substantial indebtedness and the impact such
indebtedness may have on us; the possibility that our operating
performance and operating prospects, and capital market conditions
will limit our ability to timely meet our debt service obligations,
comply with debt covenants, obtain necessary financing or
refinancing or restructure indebtedness or our debt service
obligations on acceptable terms or at all; potential dilution to
our stockholders from our recapitalization and balance sheet
restructuring activities; potential inability to continue to comply
with government regulations; adoption of or changes in legislation
or regulations adversely affecting our businesses; business
opportunities that may be presented to or pursued by us; changes in
the United States or other monetary or fiscal policies or
regulations in response to the recent capital markets and economic
crises; interruptions in our production capabilities due to
unexpected equipment failures; fluctuation of prices for gold or
certain other commodities (such as silver, copper, diesel fuel, and
electricity); changes in generally accepted accounting principles;
geopolitical events; potential inability to implement our business
strategies; potential inability to grow revenues organically;
potential inability to attract and retain key personnel;
interruptions in delivery of critical supplies and equipment raw
materials due to credit or other limitations imposed by vendors;
assertion of claims, lawsuits and proceedings against us; potential
inability to maintain an effective system of internal controls over
financial reporting; potential inability or failure to timely file
periodic reports with the SEC; potential inability to list our
securities on any securities exchange or market; and work stoppages
or other labor difficulties. Occurrence of such events or
circumstances could have a material adverse effect on our business,
financial condition, results of operations or cash flows or the
market price of our securities. All subsequent written and oral
forward-looking statements by or attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
these factors. We undertake no obligation to publicly update or
revise any forward-looking statement.
Neither this press release nor any related calls or discussions
constitutes an offer to sell or the solicitation of an offer to buy
any securities.
Contact: Sungro Minerals, Inc. Martin Bolodian Investor
Relations Phone: (401) 648-0805 ext. 350 Fax: (401) 648-0699
www.sungrominerals.com