Southern Empire Resources Corp. (Southern Empire; TSX-V: SMP; Frankfurt: 5RE; OTC: SMPEF) and Enduro Metals Corporation (Enduro; TSX-V: ENDR) are pleased to announce that they have agreed to close Southern Empire’s acquisition of the 1,750-hectare Pedro Gold Project (Pedro) in Durango State, México.
Pursuant to amendments of the original Option Agreement (see news release of July 27, 2021), Southern Empire will now, subject to TSX Venture Exchange approval, acquire a 100% interest in the Pedro mineral tenements by becoming the owner of a 100% beneficial interest in Minera BRG, S.A. de C.V. (currently the Mexican subsidiary of Enduro that owns Pedro) by issuing to Enduro 2,000,000 common shares of Southern Empire and committing to a future milestone payment of $2,000,000 upon commencement of commercial production. Enduro retains a 2% net smelter return (NSR) royalty interest from future Pedro production with no buydown provision.
The Pedro Gold Project is located 80 kilometres (~50 miles) from Torreon, México, in the northeastern part of the state of Durango and approximately 30 km west of the town of Mapimí. At Pedro, a gold exploration target is outlined at surface by a gold-in-soil geochemical anomaly (greater than 10 parts per billion) with dimensions of 4,000 metres (m) by 1,000 m. Outcrop exposure comprises prominent hematite-stained, silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within a coarse breccia. Historical sampling of these exposed zones has returned gold values (in rock) ranging from background levels to a maximum of 2.3 grams gold per tonne (g Au/t) with 58 samples greater than 0.25 g Au/t and 11 greater than 1 g Au/t). Induced Polarization ground geophysical surveys have defined zones of elevated chargeability and identified discreet deep target features. Southern Empire completed 856.3 m of core drilling at Pedro in 2022, returning a best interval of 15.23 m grading 0.577 g Au/t in hole P22-03, approximately 800 m from 2014 drilling by a subsidiary of Newmont Mining Corporation. Gold mineralization at Pedro is hosted in permeable basal conglomerates deposited during Oligocene extensional deformation, the latter forming widespread Basin and Range physiography along the easter part of Sierra Madre Occidental. This regional structural setting, together with a highly anomalous trace element association with arsenic (orpiment and realgar are common), antimony, mercury and thallium, and alteration indicate a possible “Carlin-style” mineral system.
Quality Assurance/Quality Control (QA/QC) Data Verification Statement
Historical samples mentioned in this release were prepared and analyzed at various times by ALS Chemex at its labs in Chihuahua, México, and Vancouver, Canada. See news dated September 16, 2012, and July 2, 2014 (historical drill results) posted on SEDAR under Bearing Lithium Corp., and news dated February 19th, 2020, March 30th, 2021 and July 27, 2021 for Commander Resources Ltd. for QA/QC details. Drill samples collected by Southern Empire were prepared at an ALS Geochemistry lab facility in Chihuahua, Chihuahua State, México and then shipped by ALS to its North Vancouver, British Columbia facility for gold and multielement analysis (see Commander and Southern Empire release dated April 27, 2022 for QA/QC details).
Qualified Person (QP)
The scientific and technical information contained in this news release has been prepared, reviewed 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 (NI 43-101).
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and development of metals and minerals deposits in North America.
On Southern Empire’s Pedro Gold Project in northeastern Durango State, México, gold mineralization is present in 12 of the 17 holes drilled to date. Please see Southern Empire’s news releases posted on SEDAR+ or www.smp.gold for further details.
In the Cargo Muchacho mountains of Imperial County, California, Southern Empire owns 100 percent of the historical gold-producing American Girl mine property and holds options to acquire a 100 percent interest in the adjacent 2,160-hectare (5,338-acre) Oro Cruz Property located approximately 22.5 kilometres (14 miles) southeast of the operating Mesquite gold mine of Equinox Gold Corp.
At Oro Cruz, extensive historical drilling and large-scale open-pit and underground mining of the American Girl, Padre y Madre, Queen, and Cross oxide gold deposits by the American Girl Mining Joint Venture (“AGMJV”) occurred between 1987 and 1996. During that time, gold was recovered by either heap leaching of lower-grade, or milling of higher-grade ores until AGMJV operations ceased in late 1996 because of declining gold prices leaving the Oro Cruz Property with many gold exploration targets in addition to a historical inferred resource estimate, reported In 2011 by Lincoln Mining Corp., totaling 341,800 ounces gold based on 4,386,000 tonnes averaging 2.2 grams gold per tonne (g Au/t) at a cut-off grade of 0.68 g Au/t (4,835,000 tons at 0.07 ounce gold per ton; please refer to the Cautionary Notice Regarding the Oro Cruz Property Historical Resource Estimate below).
On behalf of the Board of Directors of Southern Empire Resources Corp.,
Dale Wallster, CEO and Director
For further information on Southern Empire please visit: www.smp.gold and SEDAR+ or contact: Lubica Keighery, (778) 889-5476, [email protected].
Cautionary Notice on Forward-Looking Information
Information provided in this news release may contain forward-looking information or forward-looking statements that are based on assumptions as of the date of this news release. Such information or statements reflect management’s current estimates, beliefs, intentions, and expectations and 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 many material factors, many of which are beyond its respective control. Such factors include, among other things: risks and uncertainties relating to Southern Empire’s 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.
Cautionary Notice Regarding Historical Resource Estimate
The Oro Cruz Project historical resource estimate is disclosed in a technical report dated April 29, 2011, prepared for Lincoln Mining Corp. by Tetra Tech, Inc. and filed on Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (“SEDAR”). It is termed an inferred mineral resource, which is a category set out in NI 43-101. It was based on historical reverse circulation and core drill hole sample, underground channel sample, and blasthole sample assay results and calculated using ordinary kriging to estimate gold grades in 10-foot-by-10-foot-by-five-foot blocks. Accordingly, Southern Empire considers this historical estimate reliable as well as relevant as it represents key targets for future exploration work. However, a QP has not done sufficient work to verify or classify the historical estimate as a current mineral resource and Southern Empire is not treating this historical estimate as current mineral resources.
Cautionary Notice Regarding Proposed Exploration Work Programs
The timing and the ability to conduct Southern Empire’s planned or proposed exploration programs are, among other things, contingent on: governmental regulations allowing for the issuance of permits; affects of the COVID-19 pandemic; the availability of exploration personnel, drill contractors, equipment, lodging, etc; and the availability of capital required for exploration programs. Southern Empire will adhere to COVID-19 directives regarding safe working practices putting worker and community health and 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) accept responsibility for the adequacy or accuracy of this release.
Original Article: https://smp.gold/southern-empire-and-enduro-metals-finalise-smps-earn-in-of-the-pedro-gold-project-mexico/
