Sorry Cima, I must have misread, thought the news was supposed to be yesterday, humble apologies, here it is:
DENVER--(BUSINESS WIRE)--June 9, 1999 — SUN RIVER MINING, INC. (OTC BB:
SUNR), has entered into an agreement with Compañia Minera Cerros del Sur S.
de R.L. de C.V. to purchase the mineral company and its principal holdings,
including a mineral concession, a producing mine and a processing plant at
Clavo Rico, near the city of Choluteca, southern Honduras. The companies
have agreed for Sun River Mining to evaluate the company for a period of up
to 90 days, after which time Sun River has the option to acquire 100% of the
operating company. The assets include a mining concession of approximately
500 acres and approximately 23 acres of deeded surface. Total purchase
price is $350,000, payable in two equal installments within 90 days after
signing a definitive agreement to purchase. Gold production presently in
progress can be sustained and increased by Sun River from the date of
possession of the property (1st payment). For additional details regarding
Sun River Mining see the Company's web site <http://216.112.130.39/>.
While the Clavo Rico property has recorded production dating back to
Spanish operations, the oxide mineralization which has sustained the
present small-scale operation for the past 20 years is developed along only
350 feet of the 1500 foot known strike length of the mineralized shear zone.
No exploration or development work has been done along strike to the east
of the present workings although the mining concession extends over 3,500
feet in that direction.
Currently, Sun River's new management team estimates that in the developed
section of the oxide zone, there remains on the order of 10,000 ounces of
gold recoverable with the existing vat leaching process. Additional oxide
mineralization is anticipated to the east and in a recently discovered zone
north of the mine. If this mineralization is consistent with the presently
known mineral resource, an additional 30,000 to 50,000 ounces of gold could
be defined. Additional gold mineralization appears probable to the west of
the active workings in the vicinity of older mine workings, but development
would require special care due to the proximity of an adjacent small town
(village of Corpus). Additionally, Company Vice President of Exploration,
Mr Joseph Wojcik stated, “there is potential for high grade mineralization
in the deeper, unoxidized portions of the zone. This potential is
completely undeveloped and could run to hundreds of thousands of ounces.”
Surface and underground samples collected at Clavo Rico by Sun River
personnel in May, 1999 ranged from less than 0.002 ounce gold/ton (oz Au/t)
to 0.270 oz Au/t. The single low grade sample is from visibly fresh and
unaltered andesite collected from a road cut north of the mine. Samples
from the run-of-mine material being processed at that time range from 0.028
oz Au/t to 0.131 oz Au/t. These values are representative of the material
presently being leached by Compañia Minera Cerros del Sur. Of particular
interest to Sun River geologists is the sample containing 0.270 oz Au/t.
This is a surface sample from a recently exposed rock mass in a gully
approximately 1200 feet north of the mine. This new mineral exposure is the
product of last years heavy rains and erosion associated with Hurricane
Mitch, and has only recently been recognized as possibly representing a
previously unknown mineralized zone.
Preliminary studies by Sun River indicate that the present mining operation
and vat leaching recovery facility could be expanded incrementally without
interrupting the existing production. Current cost estimates indicate that
such increased production (to 300 tons/day) from the oxidized zone could be
achieved at a direct cash cost of less than $125 per ounce of gold produced.
These estimates will be refined and confirmed as more information is
developed during the evaluation and due diligence period. While the defined
mineral resource is limited, Clavo Rico is an excellent example of the type
of target presently sought by Sun River due to its extensive mineral zone,
historical high grade mineralization, considerable exploration potential,
and ongoing production.
Although the Company is presently working with representatives of the
mining industry and the financial sector to assure funding of the pending
evaluation and acquisition, the Company does not presently have adequate
funds secured to fulfill the contractual agreements discussed herein. The
Company does, however; have an oral commitment from an Arizona financial
group to assist with a restricted private placement to secure funds
necessary for the continued evaluation, acquisition and expansion effort.
ABOUT THE COMPANY
Sun River Mining, Inc. is a gold exploration and development company
seeking mineraln Colorado, will grow its asset base by acquiring properties
that have undergone geological studies and mineral evaluations sufficient to
indicate the presence of significant economic mineralization. Management's
position is to acquire select advanced projects with the goal of enhancing
the Company's profit potential and diversity. In addition, the Company is
seeking advanced projects of merit for joint venture participation. These
objectives are consistent with Sun River's business plan and the timing of
this acquisition strategy may be quite favorable in light of presently
depressed metal prices.
No Stock Exchange or Securities Commission has approved nor disapproved the
statements in this release. Any statements that are not strictly historical
are “forward-looking statements” made pursuant to the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 and
within the meaning of section 27A of the Securities Act of 1933 and section
21E of the Securities Exchange Act of 1934. Although the Company believes
that the expectations reflected in such forward looking statements are
reasonable, it can give no assurance that such expectations will prove to
have been correct. These statements are subject to a number of risks and
uncertainties that may affect actual events or results materially. These
include, but are not limited to: the Company's ability to obtain adequate
financing to further its current and future business strategies; the
Company's recent incorporation and historical lack of profitability; the
effects of business and economic conditions generally; and, other risks
associated with a development stage company. All such forward-looking
statements, whether written or oral, and whether made by or on behalf of the
Company are expressly qualified by these cautionary statements.
ON BEHALF OF THE BOARD OF DIRECTORS
Steven R. Davis, President & CEO
Contact: Sun River Mining, Inc.
Steven R. Davis, President & CEO
(303) 674-3071
E-mail: geosrdavis@att.net
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