SUN RIVER MINING - 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: 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 E-mail: info@sunrivermining.com
Fax: (303) 543 - 8435 Website: sunrivermining.com
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