Southridge Plans Mill Expansion Program at Cinco Minas to 500 Tons Per Day
DALLAS, Feb. 23, 2012 /PRNewswire/ -- Southridge Enterprises Inc. (Pinksheets: SRGE.PK - News) ("Southridge" or the "Company") announced today that the Company has initiated a program to increase future output of the Cinco Minas mill in Jalisco, Mexico, to 500 tons per day (tpd). The Company is currently negotiating a contract with an engineering firm based in Mexico City to perform an assessment of the mill site at the Cinco Minas as a basis for the planned expansion to 500 tpd mill. As part of the previously announced Mill Production Program, Mr. Juan Eduardo Lopez Romero, the Company's geologist and advisory board member, will be coordinating the finalization of the engineering contract for the Cinco Minas mill expansion program.
"We are excited to announce our plans to increase the output of our Cinco Minas mill. This is a major step forward for both the Company and shareholders," says Southridge President Michael Davies, "as it has always been our goal to implement a production schedule that would increase both revenues and add to shareholder value. Our focus is to turn Cinco Minas into a world-class precious metals mining operation."
Currently, Cinco Minas hosts a 60 tpd mill and has a significant confirmed gold and silver resource of 235,000 oz. gold, and 23.3 million oz. silver with 80% of the known vein system at Cinco Minas has yet to be tested. Recently, Southridge announced rock sampling and testing of the surface ore at Cinco Minas. In 2007, International mining consulting firm Behre Dolbear released a report on gold and silver ore stock piles and waste dumps at Cinco Minas. The Behre Dolbear report recommends the expansion of Cinco Minas and suggests that there is 2 year supply of ore production currently on surface at Cinco Minas.
To the north of Cinco Minas is First Majestic Silver Corp.'s San Martin Mine, which hosts a major production operation in a 900 tpd cyanide mill with a Proven & Probable reserve of 6,790,782 Ag, a Measured and Indicated resource of 7,435,823 oz. Ag and a further 48,900,000 oz. Ag Inferred resource.
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
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About Southridge Minerals, Inc. (Pinksheets: SRGE.PK - News)
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.
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.
SOURCE Southridge Enterprises Inc.