South American Minerals Inc. Purchases Cutter-Head Dredge
NEW YORK, Aug. 2, 2011 /PRNewswire/ -- SOUTH AMERICAN MINERALS, INC. (SAMM-TRADED OTC PINK SHEETS) The Company has been advised that its wholly owned subsidiary North American Resources Ltd. Inc. (NARIL), has formed a Limited Partnership for the purpose of purchasing a Cutter-head dredge and associated equipment to be placed in operation on the 25 square mile concession on which NARIL currently operates four hydraulic suction dredges in and adjacent to the Konawaruk River located in the Republic of Guyana, South America. Two of these dredges are owned by NARIL and 2 are owned by a Joint Venture in which NARIL holds a 65% interest.
The Limited Partnership has been funded with $600,000 provided by investors who will receive 50% of any profits of the partnership until they receive distributions equal to their investment and 36% of any profits thereafter.
The Cutterhead dredge will be moved to a location approximately 2 miles from where it is now situated on the river and is expected to commence operations during August.
The Cutterhead dredge is rated to process approximately 200 cubic yards of gold bearing gravels per hour compared to the approximately 100 cubic yards per hour processing capability of each of NARIL'S present hydraulic suction dredges. The Cutter-head dredge contains a drill-like component which enables it to break through cemented layers of gravel that have been formed over the years so as to permit processing of gravels below the layers. It is expected that additional gold bearing gravels will be located in these areas which cannot be reached by the hydraulic suction dredges.
The company believes the acquisition of this equipment represents an exciting advance in NARIL'S future gold production operations.
Additional data will be provided as warranted.
Contact: Saul Horing, President
212-668-0842
[email protected]
* Except for the historical information herein, certain matters discussed in this release include forward looking statements that may involve a number of risks and uncertainties, which projections and statements are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual risks may vary significantly based on a number of factors, including but not limited to: risks in production relating to weather and the prices of fuel and gold on the world market.
SOURCE South American Minerals, Inc.
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