Sunergy Advances Due Diligence on Proposed Acquisition of 57 sq. km. Full Prospecting Licensed Mining Concession in Ghana, West Africa
Press Release Source: Sunergy, Inc. On Thursday March 11, 2010, 3:30 pm EST
SCOTTSDALE, AZ--(Marketwire - 03/11/10) - Sunergy, Inc. (the "Company") (OTC.BB:SNEY - News) reports it has completed two of the three stages of due diligence required for the Company to close the acquisition proposed in our February 25, 2010 Press Release to purchase a 57 sq. km. 2 year renewable full prospecting license for gold, silver, diamonds and base metals located along the Offin River about 25 miles NE of our Nyinahin concession. This acquisition, when finalized, will increase our land position to 207 sq. km. with substantial exploration/development area along the famous Offin River.
Today, the Ghana company received its official 2-year full prospecting license which remains in full force and effect until March 10, 2012 and allows for full operation for testing and bulk sampling and production of gold, diamonds and base metals during the operating period.
Director, Robert Levich, CPG, EurGeol has also investigated the area geology and has confirmed from his own previous work in the area that the anomalies present on the concession contain stockwork granites known to host gold. He is also very optimistic about the alluvial potential upstream on the Offin river area and the tributaries. As was previously noted in his recent report, 1.45 million ounces of gold have been recovered downstream on the Offin River.
Final due diligence is proceeding and the Company expects to finalize this acquisition in the next few weeks.
Evidence of past exploration and mining activities in the area exist in the form of pits. There is strong clustering of artisan pits located along the Esuaya River as well as the Offin River. Fragments of phyllite, metagreywacke and quartz are noted in the waste pile. The existence of these pits confirm alluvial gold was discovered and recovered by Artisan miners who usually recover about 30%, leaving the balance to be recovered by modern mechanized methods. An additional benefit of the pits is the overburden has also already been removed.
Northwards of the concession is the Fufuo concession belonging to Sika Resources Inc. (A Canadian Junior Exploration Company). To the south is the Owabi water works forest Reserve. Within the district, some 46 miles WNW is the Kenyasi -- Yamfo concessions belonging to Newmont Ghana Gold, where gold production is expected to begin by end of 2006; 60 km SE is the Konongo mine; about 64 km south is the famous AGC Obuasi mine and finally about 75 km SSW is also the AGC Bibiani mines. The strategic location of the concession indicates a high probability of finding a deposit.
Karl Baum, President, said: "This acquisition offers immediate additional gold recovery and cash flow opportunities for Sunergy and employs the identical exploration/development methods as our Nyinahin concession. The close location also adds to positive economics because we can utilize the same exploration and operations personnel. This is an initial step in the aggressive and dramatic growth that we intend to provide for our shareholders."
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.