Sunriver Mining Corp -
Gold in Bolivia - Sunriver Mining Corp:OTC:BB
Sunriver Mining Corp SUNR
Shares issued 0 1899-12-30 close $0
Monday Sep 28 1998
NEW LISTING ("SUNR" on OTC:BB)
Gold Production Projected to Begin in 1999
Projected Annual Production of > 150,000 oz/yr @ US$96/oz
SUN RIVER MINING, INC.
Suite 201, 5353 Manhattan Circle
Boulder, Colorado 80303 USA
Phone: (303) 543-8434 * Fax: (303) 543-8435
website: sunrivermining.com
e-mail: mailto:info@sunrivermining.com
INTRODUCTION
SUN RIVER MINING, INC. offers investors an incredible ground-floor investment opportunity in a company that is slated to begin producing gold during 1999 at a cash cost of less than US$100 per ounce!
Sun River Mining went public in September and trades on the NASDAQ OTC electronic bulletin board under the symbol "SUNR". Sun River Mining is tightly-held (insiders hold 7.8 million shares), has a limited float (approximately 1.5 million shares) and is not very widely known.
The Company's primary business is the acquisition, exploration and development of placer gold projects in Bolivia, with the goal of becoming Bolivia's largest and lowest-cost alluvial gold producer. The management team has over 60 years of placer mining experience.
THE COMPANY
Sun River Mining, through its Bolivian subsidiary, North Bolivian Investment S.A. has entered into a Letter of Understanding Agreement with Aluvion S.A. and its shareholders to acquire up to an 81% equity interest in Aluvion, which is a Bolivian company holding mineral concessions in the Tipuani River basin. Aluvion management has extensive dredging experience in alluvial/placer gold prospects and owns hydraulic excavation equipment.
The Company has obtained a report on the Tipuani River prospects of Aluvion from the respected mining and engineering firm in Denver, Colorado of Watts, Griffis & McOuat, Limited ("WGM"). The Report concluded that "there are indeed significant volumes of unmined auriferous gravels to justify interest in establishing commercial operations based on these deposits." WGM recommended additional drilling of prospects for evaluation purposes, and that negotiations to reduce royalty interests in the concessions begin.
The company is currently seeking funding sources and/or joint venture partners to provide capital for the pursuit of the Aluvion S.A. opportunities. The Letter of Understanding Agreement requires aggregate payments of $7,189,000 to complete a 74.324% equity interest acquisition of Aluvion, of which over $400,00 has been advanced to Aluvion with $5.57 million due January 31, 1999 and a further $1.2 million to be paid out of production. Further, $2.5 million additional paid in capital would increase SUNR's equity interest in Aluvion to 81%. There are on-going negotiations with several financing sources; however, the Company has not received a binding commitment for such funds at this time, nor are there guarantees or assurances that such a financing can be arranged on terms acceptable to Sun River Mining.
Sun River Mining's Denver-area location allows it to tap into a wealth of local technical, financial and operational expertise. Other Colorado-based firms with major property positions as well as operating and developing mines in Bolivia include: Orvana Resources (developing the Don Mario and Pederson gold projects), Granges, Inc. (undertaking feasibility studies on the Capa Circa and Amayapampa deposits), and Golden Eagle International.
MANAGEMENT
Among operating companies, a key component of success is the experience of the management team.
If Sun River Mining acquires Aluvion S.A., it will have the benefit of Gaston Fernandez (currently the President of Aluvion) who has 45 years of mining experience, mostly in dredging operations in South America. Mr. Fernandez was Chief Engineer on the Kaka River dredge operated by South America Placers, Inc. from 1957 - 1965, using the same dredge that Sun River Mining/Aluvion intends to acquire, refurbish and use on the Tipuani & Kaka River projects. His son, Marcelo Fernandez, is a mining engineer with over 20 years of placer mining experience (a graduate of the Colorado School of Mines), who is employed by Aluvion as technical and operations manager for the Lower Tipuani and Kaka River gold projects.
THE PROSPECTS
Lower Tipuani. The Lower Tipuani prospects cover approximately 8 km along the Tipuani River between the towns of Guanay and Tipuani. Guanay is located 105 kilometers north of LaPaz, Bolivia, and is connected with LaPaz by a 230-km paved, gravel and dirt road (a new paved road is under construction).
In the Lower Tipuani area, the river is 30 to 60 meters wide and up to 10 meters deep. All of the necessary infrastructure is in place, including a 100-man base camp, access roads and high voltage hydroelectric power lines.
An environmental impact study has been completed and approved by the Bolivian government. The one remaining permit necessary to begin construction, the "environmental operating license", takes about 60 days to receive (Aluvion needs to provide Bolivian government with information on the equipment to be used and a schedule for the exploitation phase).
Planned mining operations would involve dredging, washing and filtering river gravels to recover free particles of gold and produce dore bars (> 95% Au). With no chemical processes involved, mining and processing operations do not pose the risk of introducing into the environment the chemicals used to recover gold by many other mining projects.
The Lower Tipuani alluvials would be mined out over a four-year span (1999 - 2002). During this period, Aluvion projects recovering over 257,000 ounces of gold, or an average of 64,300 ounces per year. Cash operating costs are estimated at US$93 per ounce (these projections have been reviewed by Watts, Griffis & McOuat).
Kaka River. Subject to financing, operations are currently projected to begin in the year 2000; gravel deposits, if economically producable, could last for an estimated minimum 20 year mine life (this prospect is not subject to seasonal shutdowns during the rainy season).
Sun River Mining / Rio Del Sol have entered into a letter of intent with Central Cooperative Teoponte, which represents nine local cooperatives operating along the Kaka River. Subject to funding and performance requirements, the Kaka River properties are expected to be acquired in return for a production royalty (no cash/shares/debt).
WATTS, GRIFFIS & McOUAT REPORT
During 1997, Sun River Mining retained Watts, Griffis & McOuat Ltd. (one of the world's leading geologic and engineering consulting firms) to review and assess gold properties which Aluvion S.A. owns (or expects to acquire rights to) on the Tipuani and Kaka Rivers. WGM visited the location of the proposed dredging operations, examined exploration and production records, and reviewed Aluvion's capital and operating cost estimates for the proposed operations.
THE ENTIRE WGM REPORT CAN BE VIEWED AT SUNR's WEBSITE:
sunrivermining.com
CLOSING COMMENTS
Seldom do you see a company with all the fundamental elements in place. Sun River Mining has strong management, large auriferous gravel deposits and near-term production potential. It is totally unknown to retail and institutional investors at this time.
Sun River Mining has a very attractive and exciting story to tell, and in the coming months, it will begin to actively tell its story. An investor relations / marketing firm has been retained, and plans are being made for SUNR management to speak at upcoming gold investment conferences.
FOR MORE INFORMATION PLEASE CONTACT:
Sun River Mining, Inc.
Phone: (303) 543-8434
Fax: (303) 543-8435
E-mail: mailto:info@sunrivermining.com
Website: sunrivermining.com
Disclaimer
The information contained herein has been compiled or derived from sources believed reliable and contains information and opinions from Sun River's 504 Disclosure and the WGM Report. However, Gold Ridge Investment Corp. ("Gold Ridge") makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use or reliance upon this report or its contents. The information provided is for information purposes only and should not be construed as, and shall not form part of an offer or solicitation to but or sell any securities. Sun River Mining has paid Gold Ridge a fee of US$20,000 for preparing this document, and, prior to Gold Ridge disseminating this information, Sun River has reviewed and approved the contents hereof.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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