Southern Empire Fully Permitted for Drilling at Eastgate Gold Project, NV

March 26, 2020 – Southern Empire Resources Corp. (“Southern Empire”; TSX-V: SMP) announces that it is fully permitted to begin confirmation and exploration core drilling on its Eastgate Gold Project located in Churchill County, Nevada and that it has started the permitting process for exploration programs at its Oro Cruz Gold Project located in Imperial County, California.


  • permits established for drilling and land preparation at Eastgate Gold Project, Nevada
  • permitting process started for Oro Cruz Gold Project, California
  • Southern Empire is well-funded for future exploration having just completed an oversubscribed $3.27 million financing

For the Eastgate Gold Project in Nevada, Southern Empire has received Notice level permits, from the Bureau of Land Management (“BLM”), for road construction, surface clearing / pad preparation and the completion of five core drill holes. The permits are valid for two years expiring in 2022, extendible to 2023.

At its Oro Cruz Gold Project in southeastern California, Southern Empire has started the permitting process for the first phase of exploration that will include exploration and confirmation drilling in the area of the historical Oro Cruz open pit and sonic drill sampling of the decommissioned, historical American Girl and Padre y Madre heap leach pads.

Westland Resources Inc. of Tucson, Arizona, specialists in environmental permitting and planning, have been contracted to spearhead Southern Empire’s California permitting efforts and to liaise with the regulatory bodies, including the BLM, State of California and Imperial County. Permits for Oro Cruz are expected in four to six months, co-ordinating well with the start of the field season in the fall of 2020.

Work Programs During the Coronavirus Pandemic

Southern Empire is well-funded to start its proposed Oro Cruz and Eastgate exploration programs, having recently completed an oversubscribed, non-brokered private placement financing for gross proceeds of $3.27 million (see Southern Empire’s News Release dated March 18, 2020 for details).

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 equipment, lodging, etc. Although BLM and state offices are currently closed, their staff have established measures to provide services remotely. Southern Empire will adhere to COVID-19 directives regarding safe working practises putting worker, community and national safety first. Although mining has been declared an Essential Business in Nevada, Southern Empire plans only to proceed with work if potential COVID-19 risks can be effectively managed.

Eastgate Gold Project, Nevada

The Eastgate Gold Project is located approximately 90 kilometers (55 miles) east of the city of Fallon in Churchill County, Nevada and comprises 101 unpatented BLM lode mining claims covering roughly 817 hectares (“ha”; 2,020 acres). Eastgate features a well-developed hydrothermal quartz vein system hosting precious metals. Southern Empire’s goal is to define a high-grade, low-sulphidation epithermal gold-silver deposit at Eastgate. Multiple, steeply east dipping, north striking, sub-parallel quartz-adularia veins occur throughout the Eastgate Property. Between 1908-20 and 1935-57, several gold and silver producers operated on the property, including the small-scale, narrow vein Double Eagle and Gold Ledge mines, which reported historical production from 1935-57 of 3,247 oz gold and 38,152 oz silver. Eastgate is located roughly 42 kilometres (26 miles) from the Bell Mountain Gold Project currently undergoing final mine permitting by Eros Resources Corp.

Oro Cruz Gold Project, California

The Oro Cruz Gold Project is in the Cargo Muchacho Mountains gold district of Imperial County, southeast California, approximately 22.5 kilometres (14 miles) southeast of the Mesquite gold mine of Equinox Gold Corp.

The most recent gold production at Oro Cruz was during 1995 and 1996 when, over the period of about a year approximately 61,000 troy ounces were produced from oxide material extracted by both open pit and underground mining operations. The American Girl Mining Joint Venture (53%-owned by MK Gold Company, a subsidiary of Morrison Knudsen Corporation, and 47%-owned by Hecla Mining Company) subsequently ceased operations in 1996 due to low gold prices. Episodic gold mining between 1877 and 1941 in the Cargo Muchacho gold district, which included in order of importance, the Tumco (Oro Cruz), American Girl, Cargo Muchacho and Padre y Madre mines, produced an estimated 145,000 troy ounces of gold.

Extensive historical drilling at the Oro Cruz Gold Project has outlined exploration targets over an existing high-grade gold zone as well as nearby satellite deposits. Based on historical mining, Oro Cruz oxide gold mineralization is amendable to conventional heap leach extractive methods. The Oro Cruz Gold Project is currently comprised of a total of 271 unpatented lode mining claims totaling roughly 2,160 ha (5,338 acres), 13 unpatented placer mining claims totaling roughly 105 ha (260 acres) and two State of California Mineral Prospecting Permits covering approximately 518 ha (1,280 acres).

Qualified Person

David Tupper, P.Geo., is a qualified person within the context of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has prepared, read and approved the technical aspects of this news release.

On behalf of the Board of Directors of Southern Empire Resources Corp.,

Dale Wallster, CEO and Director

For further information please visit our website at or contact:

Lubica Keighery             phone: (778) 889-5476           e-mail:

Cautionary Notice on Forward-Looking Statements

Information set forth in this news release contains 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 Southern Empire’s control. Such factors include, among other things: risks and uncertainties relating to Southern Empire’s limited operating history and the need to comply with environmental and governmental regulations. 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.



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