CAMERON PARK, Calif., April 24, 2012 /PRNewswire/ -- Steele Resources Corporation (the "Company", "SRC") (OTCBB: SELR) reported today that it has executed formal documents for the acquisition of the Billali Gold and Silver Mine located in the Steeple Rock mining district in western New Mexico. The Billali Gold and Silver Mine is located adjacent to Santa Fe Gold's Summit Mine, which is a currently producing gold and silver mine. The ore reserves at the Summit Mine are reported by Santa Fe Gold to average 10.78 ounces per ton silver and 0.143 ounces per ton gold (0.35 ounces per ton gold equivalent).
CEO Scott Dockter stated, "SRC is now working to complete the transfer of the existing mine permit into the Company's name and begin development of the new mine workings. After a brief ramp up period, the Billali Gold and Silver mine is forecasted to operate at a rate of 200 tons per day. The total production values will be determined once the formal mine plan has been approved and financing is completed."
As part of its expedited mining effort, the mining will be subcontracted to White Pine Mining, which has been instrumental in the development of the mine plan. White Pine Mining has more than 30 years of operational experience and has laid out a very aggressive development plan which the Company has reviewed and accepted. SRC is working to close on $5M in debt financing that will finance the mining operation.
The operation is fully permitted in the state of New Mexico, although SRC will likely need to invest time and effort into ensuring the existing mining operation complies with all local, federal, and MSHA regulations before operation.
About Steele Resources
Steele Resources Corporation is a precious metals exploration and development company that is working to become an active gold producer through the development of its Billali Gold and Silver Mine in New Mexico and the development of the 1800 acre Mineral Hill Gold Project in Montana. There are also other mining property interests held by the Company.
Safe Harbor Statement
The matters discussed in this release do not comply with various SEC guides and regulations including SEC Guide 7 and contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended that involve risks and uncertainties. Although Steele Resources Corp. believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Steele Resources Corp. cautions investors that any forward-looking statements made by Steele Resources Corp. are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in forward-looking statements include, but are not limited to, risks and uncertainties regarding the actual mineralization of Steele Resources Corp.'s exploration properties, the unproven nature of and potential changes to Steele Resources Corp.'s business model, the risk that the capital and other resources that Steele Resources Corp. will need to exploit its business model will not be available, and the risks discussed in Steele Resources Corp.'s filings with the Securities and Exchange Commission.
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SOURCE Steele Resources Corporation