Southern Empire Resources Corp. (Southern Empire; TSX-V: SMP; Frankfurt: 5RE; OTCQB: SMPEF) has started its first core drilling program on the Pedro Gold Project, located in northeastern Durango State, México.
Drill Hole P22-01 is the first core hole designed to test the Zona Oeste (West Zone) where multiple surface grab samples, which assayed between 0.33 gram gold per tonne (g Au/t) and 2.22 g Au/t, were collected from a silicified, heterolithic breccia zone that occurs in multiple surface exposures extending across a northwest trending linear of up to 300 metres (m) in length. The drill program targets this heterolithic breccia, which is coincident with Induced Polarization (IP) chargeability and resistivity geophysical anomalies, and is budgeted for up to 2,000 m (~6,562 feet) in 6 to 9 holes.
Sample No. Sample Description Gold (g/t)
198051 Surface Grab Silicified heterolithic breccia 2.22
152203 Surface Grab Silicified heterolithic breccia 1.33
198120 Surface Grab Silicified heterolithic breccia 0.33
198121 Surface Grab Silicified heterolithic breccia 0.48
About the Pedro Gold Project
At Pedro, an epithermal-style gold target is outlined at surface by a gold in soil geochemical anomaly (>10 ppb) with dimensions of 4,000 m by 1,000 m where outcrop exposure comprises prominent hematite-stained, silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular course breccia. Historical sampling of these exposed zones returned gold values (in rock) ranging from background levels to a maximum of 2.3 ppm (58 samples greater than 0.25 ppm and 11 greater than 1 ppm).
Southern Empire holds the Pedro Gold Project through an agreement with Commander Resources Ltd. (TSX-V: CMD) that allows Southern Empire to acquire a 100% beneficial interest. Please see Southern Empire’s news release of July 27, 2021 (posted on SEDAR) for further information about the Pedro Gold Project.
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 (QP) within the context of Canadian Securities Administrators’ National Instrument 43-101; Standards of Disclosure for Mineral Projects (NI 43-101).
Quality Assurance/Quality Control (QA/QC)
Historical samples mentioned in this release were prepared and analyzed by ALS Chemex Labs, Ltd. at its labs in Chihuahua, México, and Vancouver, Canada. Soil samples were analyzed as part of a multi-element inductively coupled argon plasma (ICP) package using aqua regia digestion with over-limit results being reanalyzed with assay procedures using ICP-AES. Gold analyses for rocks were performed on a 30-gram sub-sample by fire assay methods with an ICP-AES finish. For further details, please refer to Bearing Lithium Corp. news releases dated September 16, 2012 and July 2, 2014 and news releases of Commander Resources Ltd. dated February 19th, 2020, March 30th, 2021 and July 27, 2021, all as posted on SEDAR.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and development of metals and minerals deposits in North America.
In northeastern Durango State, México, Southern Empire has an option to acquire a 100-per-cent beneficial interest in the 1,750-hectare Pedro Gold Project where 2014 drilling by a subsidiary of Newmont Mining Corporation encountered epithermal gold mineralization within a permeable basal conglomerate related to extensional basin and range tectonics. Please see Southern Empire’s news release of July 27, 2021, 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; ultimately owned 53 percent by MK Gold Company and 47 percent by Hecla Mining Company) 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 the 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/t Au) at a cut-off grade of 0.68 g/t Au (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
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 outlined above 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.
Work Programs During the COVID-19 Pandemic
The 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) accept responsibility for the adequacy or accuracy of this release.