SALT LAKE CITY, March 29, 2011 /PRNewswire/ -- Ensurge, Inc. (OTC Bulletin Board: ESGI), a U.S.-based resource company focused on developing gold properties in Brazil by applying modern technology to extract gold from tailings at existing and abandoned mines, provided an update on its gold recovery projects in Mato Grosso, Brazil.
Auger drilling and sample preparation has been completed on three projects: Nova Mineracao Esparansa, Rodui Transportes & Locacoes and Rondon. Work was performed by an independent third party geological consulting firm, Amazon GeoServices, and samples for assay were submitted to Bureau Veritas in Belo Horizonte Minas Gerais, Brazil. Although the assay laboratory cannot provide a precise schedule for completion of assays, the Company believes results may be available around mid-year. Upon receipt of these assays, Ensurge will then be able to comment on the gold content of the tailings.
Composite samples from each of the drilled projects have been prepared for metallurgical testing at G&T Metallurgical in Kamloops, British Columbia, Canada. Thus far, only the sample from Nova Mineracao Esparansa has been received by the testing laboratory. G&T Metallurgical cannot provide an exact timetable for completion of the metallurgical testing of the Nova Mineracoa Esparansa sample. When the testing is completed and results analyzed, Ensurge can better comment on the technological and economic feasibility of the project.
"We are pleased to report progress in these gold recovery projects," said Jordan Estra, President and CEO of the Company. "After assay and metallurgical sample results have been evaluated, we will have a better understanding of the next steps to be taken as we proceed toward constructing and operating our first gold recovery plant."
In addition, the company has reached a new gold development agreement with Nascimento to produce gold from tailings at an abandoned gold mine around 10 kilometers southeast of Pocone, Mato Grosso, Brazil. This site is in fairly close proximity to Ensurge's other projects. Under terms of the agreement, Ensurge may acquire the right to recover gold from these tailings. Ensurge will first conduct, at the Company's expense, a geological and metallurgical assessment of the tailings to determine the technological and economic feasibility of gold recovery. Analysis of these results will determine the viability of the project. Two drilling teams will commence work within the next few weeks and begin geological assessment by preparing a bulk composite sample for metallurgical testing. Extensive drilling of the tailings will also be performed to prepare numerous samples for assay to determine gold content.
The Company is also in discussions with a number of additional gold mine and tailings owners along the Cuiaba Gold Belt, a geological structure approximately 100 kilometers long between Cuiaba and Pocone in Mato Grosso, Brazil. Ensurge hopes to reach agreements with a number of owners for projects with terms similar to existing agreements in the Pocone area.
About Ensurge, Inc.
Ensurge, Inc. is a U.S. based resource company focused on developing gold properties in southwestern Brazil. This is a geographic area where crude techniques have historically been employed in traditional gold mining operations. Ensurge first obtains contractual agreements with owners of tailings at existing or abandoned mines to re-process the tailings. The company will then construct gold recovery plants applying both modern technology and capital to extract the gold. Initial projects are located in the Cuiaba Gold Belt region between Cuiaba and Pocone in the State of Mato Grosso.
(Ensurge is a fully reporting company currently traded on the OTC Bulletin Board under the symbol ESGI.OB.)
Forward Looking Statements
This press release contains forward-looking statements regarding the future results and performance of Ensurge, Inc. including statements regarding revenue, growth and market development. These forward-looking statements involve risks and uncertainties and actual results could differ materially from those predicted in any such forward-looking statements. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements. The realization of any or all of these expectations is subject to a number of risks and uncertainties and it is possible that the assumptions made by management may not materialize. Statements in this press release may involve risks and uncertainties; actual results may differ from the forward-looking statements. Sentences or phrases that use such words as "believes," "anticipates," "plans," "may," "hopes," "can," "will," "expects," "is designed to," "with the intent," "potential" and others indicate forward-looking statements, but their absence does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly release any revisions to forward-looking statements.
SOURCE Ensurge, Inc.