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Gold/Mining/Energy : Sun River Mining (SUNR) -- Ignore unavailable to you. Want to Upgrade?

To: zenin who wrote (1533)	8/17/1999 2:41:00 PM
From: CIMA	Read Replies (1) \| Respond to of 1650

SUNR - I think it's worthy of a spot on the list as well. I'm hearing there's news this week, possibly concerning financing. The assays are apparently exceeding expectations. There's a good chance this will be a producing gold mine at >$100/oz next month. Sept. 8 is the magical date for acquiring the property: Wednesday June 9, 9:03 am Eastern Time Company Press Release Sun River Mining Announces Agreement to Purchase Mining Company and Active Gold Mine in Honduras DENVER--(BUSINESS WIRE)--June 9, 1999--SUN RIVER MINING, INC. (OTC BB:SUNR), has entered into an agreement with Compania 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 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 feet 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 3,300 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 will 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 Compania 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 mineral properties of merit throughout North and South America. The Company, headquartered in 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, 303/674-3071 E-mail: geosrdavis@att.net