Southridge Announces Major Multi-Million Dollar Expansion of Cinco Minas Mill to 500 Ton per Day (tpd)
September 10 2012 - 9:32AM
Marketwired
Southridge Enterprises Inc. (PINKSHEETS: SRGE) ("Southridge" or the
"Company") today announced it has begun a Multi-million Dollar
expansion of its Cinco Minas Mill (CMM) located at Cinco Minas,
Jalisco, Mexico. The new facility's high efficiency expansion will
raise full production capacity to 500 ton per day (tpd), a more
than 8 fold increase from the current 60 tpd production level, by
the end of 2013.
The expanded CMM design and layout is complete and foundations
are now under construction. All the major system components have
been requisitioned and are confirmed for transfer and delivery to
the Cinco Minas property. The required secondary facilities
including buildings, electrical power, water and road access, are
also nearing completion. Additionally, the CMM environmental
permitting processes are moving forward rapidly and the Mexican
Governmental Agencies have commented that they are satisfied with
the progress and the diligent care demonstrated in the Company's
environmental protocols and safety programs. The Company has taken
a critical success factor approach in the planning of this major
expansion of the Cinco Minas Mill by the commitment to maintaining
current Gold and Silver production levels during the construction
period. The CMM 500 ton per day (tpd) project, which will be
developed and implemented in various phases over the following
year, is scheduled for completion by November, 2013, at a total
budgeted cost of $21-$23 million.
Southridge's recent $15.6 million financing, arranged within the
European investment community through Duvernoi Capital Investments
Inc. ("DCII"), has begun with the advance of the first tranche of
$4.8 Million. The funds will be used exclusively for CMM 500 ton
per day (tpd) Mill construction.
The CMM expansion is being led by Southridge's Engineering
professionals and the Mill Assessment Committee (MAC). With Phase I
already well underway, the project team has been carefully ensuring
that quality, technology, safety and proficiency are incorporated
into every aspect of the expansion. Southridge has already begun
the hiring process to fulfill the construction manpower required
with 18 new employees now in place. The Company expects to add
another 35 employees, with a variety of skills and experience, to
complete the construction workforce over the next year of the CMM
expansion.
"We believe the factors driving long-term growth in Gold &
Silver demand are unlikely to reverse," said Company President and
CEO, Michael Davies. "The goal moving forward is to bring the
Company's shareholders added value by increasing revenues, using
economies of scale to reduce costs and expand our mineral resources
through exploration."
In conjunction with the mill expansion project, the Company
hosted a several day visit of two research and mining analysts at
the Cinco Minas -- Gran Cabreara Gold and Silver Mines. At Cinco
Minas, the analysts attended the ground-breaking ceremony that
officially launched the commencement of the 500 tpd mill expansion
construction.
Southridge recently announced that the 2012 4th Quarter Earnings
and Production values at Cinco Minas. In fiscal 2012, the Company
processed over 9,000 tons of ore and recorded revenues of $3.14
Million. Subsequent to the completion of the 500 tpd facility in
2013 and assuming full capacity operations and stable metal prices
and grades, the Company has projected its 2014 production revenues
to exceed $60 Million.
In other recent Company developments, the anticipated and
long-awaited public update at the Mexican Mining Registry of the
Cinco Minas mineral concession ownership being duly reflected in
Southridge's name is now complete. Also, the Company had now
engaged the necessary professional services to migrate and up-list
the Company's reporting status back to the Over-The-Counter
Bulletin Board. It is anticipated that this process will be
complete before the end of 2012.
Additionally, Mathers Research has initiated research coverage
of Southridge, with a "Speculative BUY" Opinion and a near term
price target of $0.20 cents per share.
The Mathers Research report is available as a free download on
the Mathers Research Website @
http://mathersresearch.com/srge-report.
For further information on the Company's Gold and Silver
projects, visit our website: http://www.southridgeminerals.com.
Southridge Investors can access the following Southridge
Minerals social media channels: YouTube Cinco Minas Mexico Project:
(http://youtu.be/R6P8oght4Ik) (http://youtu.be/o2LfLaSu8ww)
Facebook:
(http://www.facebook.com/pages/Southridge-Minerals-Inc/163457600376466)
Twitter: (http://twitter.com/SouthridgeSRGE)
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 early stage opportunities with good
mineralization indicators that exhibit significant blue-sky
potential. Southridge pursues and advances these projects that are
or will be of interest to mid-size and major producers. By forming
alliances on individual projects, the Company expects to develop
its interests 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 and
the knowledge of the geological conditions and formations
pertaining to known large gold deposits that have received very
little attention to date. This comparative advantage, combined with
a specific geographical and mineral focus, will allow for more
efficient asset and income growth in the future for the benefit of
shareholders' investments.
Forward-Looking Statements Although the Company believes that
the forward-looking statement of 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 published current and
periodic reports.
Contact: Southridge Enterprises Inc. Investor Relations Tel.
(214) 699-6255 Email: info@southridgeminerals.com
http://www.southridgeminerals.com
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