VANCOUVER, BC, Nov. 30, 2020 /CNW/ - Southern Empire Resources
Corp. (Southern Empire) (TSXV: SMP) (Frankfurt: 5RE) (OTCQB: SMPEF) announces that
it has received a positive assessment regarding the current
conditions of the historical underground workings of the Cross Mine
located on Southern Empire's Oro Cruz Gold Project in southeastern
California.
American Mine Services, Inc.
(AMS), an engineering company specializing in the evaluation,
design and construction of mines, completed an on-site inspection
on September 29-30, 2020.
Joe Cooper, President of AMS
stated:
"I have been personally involved with the Oro Cruz underground
mine since before we began the decline excavation in April of 1995.
Our recent Southern Empire trip was the second time that I have
completed an underground inspection there in the last 10 years.
Given this extensive background, I can say without hesitation that
the current conditions underground are as good as anything I have
ever reviewed, especially when considering the original excavation
was completed, and unused for most of the last 25 years. Costs
associated with re-opening and rehabilitating this mine for
exploration and/or production would be very minimal. This is not
only unusual but it is also extremely encouraging as most of the
high-cost mine development, depending upon final mine plan, has
already been completed and is presently in place and suitable for
utilization as an underground mine."
The historical Cross Mine comprises both open pit and
underground workings that were developed in the early 1990's by the
American Girl Mining Joint Venture (AGMJV), which was 53% owned by
MK Gold Company, then a subsidiary of Morrison-Knudsen Corporation,
and 47% owned by Hecla Mining Company. Soon after achieving
commercial production and producing 61,000 oz of gold, AGMJV
operations ceased on November 1, 1996
due to declining gold prices, leaving behind in excess of 2.4
kilometres (1.5 miles) of underground development accessing a
high-grade, oxide gold zone that, based on the historical mine
operation records, is amenable to conventional heap leach
extractive methods.
The objectives of the AMS inspection were to determine:
- the ground conditions and safety status of all stable existing
Cross Mine underground excavations including the mine portal, vent
raises, main decline and crosscuts
- the regulatory compliance of existing surface access to support
future underground exploration and mining
Highlights of the AMS mine inspection were:
- Ground conditions in the primary underground openings are
excellent; essentially unchanged from the last inspection, also
conducted by AMS personnel, in 2010
- Re-entry and re-activation of underground mining for future
exploration purposes could be quick and cost effective
- No noxious gases or areas of low oxygen were encountered,
indicating adequate natural ventilation throughout the mine
- Natural ventilation quantity is approximately 15,000 cubic feet
per minute (cfm)
- Two vent raises and furnishings were found to be in excellent
condition, virtually the same as at the time of mine closure in
1996, with all ladders and landings still in place, and suitable
for secondary egress or access
- Although ground conditions in and near the high-grade, oxide
gold zones are not as stable as the wall rock that the main decline
was excavated in, ground conditions are generally good to excellent
with very little fallen material present in any of the underground
openings
AMS is of the opinion that the overall condition of the
mine could be considered good to excellent and remedial work to
provide safe passage, via the main decline, to the raises and major
drifts could be accomplished with a 5- to 6-man crew over a three
week period. These mine rehabilitation efforts would be
primarily limited to scaling of loose material, installation of
minimal ground support, removal of loose rock in the wire mesh
baskets and minimal replacement of bolts, matts, and plates. This
work would not provide rehabilitation to all drifts, crosscuts and
stopes, as areas off the main decline will be somewhat more labor
intensive to make safe for re-entry.
While on site, the AMS team performed improvements to the
surface raise collar barricade that were needed to prevent either
intentional or accidental access into the mine via the surface vent
raise.
Pathway to Underground Exploration and Mining at Oro
Cruz
To conduct future underground exploration and limited mining
programs, including bulk sampling for metallurgical test work, the
following is planned or in process:
- Using LiDAR (light detection and ranging) technology, complete
an underground mine survey to tie in known openings, drill holes,
sample sites, survey monuments, etc. and create a base map
- Obtain permits (in process) for surface lay down and mine
support facilities such as a mine dry, shop, air plant, electrical
plant, fuel storage and a water recirculation / filtration
system
- Obtain permits (in process) for, and complete, access road
improvements to provide safe, regulatory-compliant ingress or
egress to and from the mine
- Develop and submit to the Mine Safety and Health Administration
(MSHA) district office all required training and operating plans
including the establishment of both on-site and backup Mine Rescue
Teams
- Beginning at the mine portal, scale all loose rock from the
backs and ribs of the main decline and access to the bottoms of
both vent raises and install ground support as needed; estimated by
AMS to be a minimal undertaking
- Reinstall compressed air lines, service water and electrical
distribution systems, the size of which would be dictated by the
work planned. AMS suggests that the existing compressed air lines
could possibly be utilized for either compressed air or for drill /
service water if adequately flushed and a filtration system was
installed at the points of use
- Install a mechanical ventilation system underground to minimize
surface disturbance
- Install a single-phase electrical power generation plant to
operate ventilation systems and any electrical drilling or mining
equipment utilized
- Install two 375 cfm air compressors, operating one at a time
unless air consumption requires both
Qualified Person (QP)
The scientific and technical information contained in this news
release was prepared, reviewed, verified and approved by
David Tupper, P.Geo. (British Columbia), Southern Empire's VP
Exploration and a Qualified Person within the context of Canadian
Securities Administrators' National Instrument 43-101; Standards
of Disclosure for Mineral Projects.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and
development of gold deposits in the Americas.
In the Cargo Muchacho mountains of Imperial County, California, Southern Empire
owns 100% of the historical gold producing American Girl Mine
property and also holds options to acquire a 100% interest in the
adjacent 2,160 hectare (5,338 acre) Oro Cruz Property located
approximately 22.5 kilometres (km; 14 miles) southeast of the
operating Mesquite gold mine of Equinox Gold Corp.
With a history that includes extensive drilling and large-scale
open pit and underground mining by the American Girl Mining Joint
Venture (53 per cent owned by MK Gold Company, then a subsidiary of
Morrison-Knudsen Corporation, and 47 per cent owned by Hecla Mining
Company), which was suspended during the gold market downturn in
1996, the Oro Cruz Gold Project hosts many exploration targets in
addition to a high-grade oxide gold zone that, based on the
historical mine operation records, is amenable to conventional heap
leach extractive methods.
In 2011, Lincoln Mining Corporation reported a historical
inferred resource estimate at Oro Cruz totaling 341,800 ounces gold
based on 4,386,000 tonnes averaging 2.20 grams gold per tonne at a
cutoff grade of 0.68 g Au/t (4,835,000 tons at 0.07 ounces gold per
ton). This historical inferred resource estimate is disclosed in a
technical report dated April 29,
2011, prepared for Lincoln Mining Corporation by Tetra Tech,
Inc. and filed on SEDAR).
The historical mineral resource estimate, termed "inferred
mineral resource", which is a category set out in NI 43-101, was
based on previous reverse circulation and core drill hole sample,
underground channel sample and blasthole sample assays, and
calculated using ordinary kriging to estimate gold grades in 10
foot x 10 foot x 5 foot blocks. Accordingly, Southern Empire
considers this historical estimate reliable as well as relevant as
it represents key targets for future exploration work. A Qualified
Person has not done sufficient work to classify the historical
estimate as a current mineral resource and Southern Empire is not
treating this historical estimate as current mineral resources.
Southern Empire is well-financed, having completed two
oversubscribed, non-brokered private placement financings during
2020; see Southern Empire's news releases dated March 18 and June 12,
2020 for details. With its strong working capital position,
which also includes a significant equity holding in Bullfrog Gold
Corp., Southern Empire has the financial resources to continue
exploration and development programs at Oro Cruz and also consider
new opportunities.
On behalf of the Board of Directors of Southern Empire
Resources Corp.,
Dale Wallster, CEO and
Director
Cautionary Notice on Forward-Looking Information
Information provided in this news release may contain
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 its respective control. Such factors
include, among other things: risks and uncertainties relating to
Southern Empire limited operating history, the need to comply with
environmental and governmental regulations, results of exploration
programs on its projects and those risks and uncertainties
identified in its annual and interim financial statements and
management discussion and analysis. 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.
Work Programs During the COVID-19 Pandemic
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 contractors, equipment, lodging, et cetera.
Southern Empire will adhere to COVID-19 directives regarding safe
working practices putting worker, community and national safety
first and will proceed with exploration and development work
programs only if potential COVID-19 risks can be effectively
managed.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Southern Empire Resources Corp.