Downstream From Sunergy's 150 sq. km. Nyinahin Concession, 1.45 Million ozs of Gold Have Been Produced From the Offin River Valley, More Than From Any Other River System in Ghana

Press Release Source: Sunergy Inc. On Tuesday March 9, 2010, 5:49 pm EST

 

SCOTTSDALE, AZ--(Marketwire - 03/09/10) - Sunergy, Inc (the "Company") (OTC.BB:SNEY - News) is pleased to release a new report prepared by Robert Levich CPG, EurGeol, Director and Chief of West African Operations (See Press Release dated December 21, 2009) discussing the alluvial gold recovery potential along the Offin River and its tributaries that flow through the eastern portion of our 150 sq. km. Nyinahin mining concession in Ghana, West Africa. The report can be reviewed in its entirety on the Company's website http://www.sunergygold.com/

The report states: "'Downstream from Nyinahin, 1.45 million ozs of gold have been produced from the Offin River valley, more than from any other river system in Ghana. The Bonte-Jeni tributary system, which has produced more than 200,000 ozs of alluvial gold, and is the Offin's most productive tributary, enters the Offin River valley at the eastern edge of the Nyinahin concession. Below this confluence, the Offin River continues for ca. 10 km through the southeastern area of Sunergy's Nyinahin concession. In summary, there is excellent potential for economic recovery of gold from the alluvial deposits in the Offin River Valley within Sunergy's Nyinahin concession,' Robert Levich, Director."

There is no evidence of any large scale alluvial gold exploitation historically on the Nyinahin concession, however there are numerous artisan small scale pits along the Offin River and its tributaries on the concession that suggest alluvial gold is abundant there.

Sunergy's Nyinahin concession is located in Ghana's Ashanti Region, ca. 50 km southwest of Kumasi. The Kumasi-Bibiani road cuts NE-SW across the northwest part of the concession. The concession consists of 150 km2 of gently rolling secondary forest and slash-and-burn farming areas containing some cocoa farms and oil-palm plantations. The Offin River valley follows a roughly 10 km meandering NE-SW course through the southeastern part of the concession, approximately 60 km upstream from the Central Region town of Dunkwa-on-Offin (also known as Dunkwa).

Nyinahin lies 20 km northeast of the Bibiani mines, 50 km northwest of Anglo Gold-Ashanti's Obuasi mines, and 45 km southeast of Newmont's Kenyasi mine. Directly adjacent to the east side of the Nyinahin prospecting concession are the two mining concessions from which Bonte Gold recovered gold-bearing alluvial gravels along the Jeni and Bonte tributaries. A 2008 map published by Ghana's Minerals Commission indicates that a Newmont concession lies adjacent to the western side of the Nyinahin property.

In the first decade of the 20th Century, large alluvial mining operations were begun on several major river systems of the Gold Coast Colony, notably including the Offin, Pra, Tano, and Ankobra rivers. During the 20th Century, a total of 295 million cubic yards of gravel were processed and 1.45 million ozs of gold were recovered.

Dredging of the Offin River first began in 1904. Total gold production during this period was 100,000 ozs, and the highest recorded annual production was 14,000 ozs in 1909. During the 1950s and 1960s, Bremang placed four dredges along different sections of the Offin River valley. Bremang produced ca. 50,000 ozs annually during the 1950s and early 1960s, achieving a peak annual production of ca. 70,000 ozs.

Bonte Alluvial Placers: On Sunergy's Eastern Concession Boundary

Extensive historical alluvial workings, probably dating back several centuries to the Ashanti Kingdom, are found along the Jeni (Gyeni) and Bonte drainages. Beginning in the early 1990s, alluvial materials were mined from the Jeni and Bonte tributaries on the left bank of the Offin. The modern river channel contains high-grade zones of gold-bearing gravels and sands (800 - > 1000 mg/m3). Additional gravel deposits, 1 - 2 m thick lie along the channel margins and grade 400 - 800 mg/m3. These gravels are overlain by a clayey overburden, 1 - 3 m thick. The gravel deposit is 200 - 500 m in width and at least 14 km in length. Older terrace gravels are located along the edges of the river valleys.

Despite six years of mining, in 1997, gold reserves for the Bonte and upper Jeni floodplains and terraces were newly estimated at 6.83 million m3 at 0.92 g/m3, and totaled over 200,000 ozs.

Studies during the 1960s by the Ghana Geological Survey indicated 22 million m3 at a grade of 0.24 g/m3 and included zones of high-grade gravels. Starting in the 1980s, several companies were attracted to the area. In 1990, Bonte Gold defined 2.5 million m3 of gravels that averaged 0.6 g/m3, plus an additional 2 million m3 averaging 0.5 g/m3. Bonte Gold commenced mining in 1991 and continued into the 21st Century. Total estimated production is in excess of 200,000 ozs, and in 2000 alone, was in excess of 70,000 ozs.

The above information is largely derived from: Griffis, R.J., Barning, Kwesi, Agezo, F.L., and Akosah, F.K., 2002, Gold Deposits of Ghana, Minerals Commission, 432 p., plus the author's own geologic studies of the West African Precambrian shield.

About Sunergy: The Company is an aggressive junior mining exploration and development Company that is production oriented at the earliest possible profitable opportunity. We control 100% of the 150 sq. km. Nyinahin mining concession with a full prospecting license. The concession is surrounded by several operating mines and is adjacent to Newmont Mining's property. This concession has the Offin River flowing through our eastern portion and there are numerous artisan pits ready for testing and evaluation for near term production. The Offin River is known for good alluvial gold production. Artisans usually recover about 30% of the available gold through primitive hand methods, leaving 60-70% to be recovered by modern mechanical operations.

Further information is available on the Company's website http://www.sunergygold.com/

Notice Regarding Forward-Looking Statements

This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any mineralization, development or exploration of the Nyinahin Mining Concession and Sunergy's ability to make the required payments to General Metals as they become due.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Contact:

 
Contact:
Steve ParentInvestor Relations
480.399.7222
info@sunergygold.com 

 

SUNERGY, Inc.
Managements Plan With Budgets To Achieve Near Term Gold Production
Nyinahin Mining Concession near Bibiani, Ghana, West Africa

 

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