Sunergy, Inc. Plans Expansion of Gold Operations to 140.1 Sq. Km. Pampana River Advanced Exploration/Development Concession in Sierra Leone, West Africa
Press Release Source: Sunergy Inc. On Tuesday September 7, 2010, 10:51 am EDT
SCOTTSDALE, AZ--(Marketwire - 09/07/10) - Sunergy, Inc (the
- News) reports that on September 1, 2010 we signed a Letter of Intent and Agreement in Principle with Allied Mining and Supply, LLC (Nevada) to acquire 100% of their Company. Allied is engaged in the licensed exploration and development of prime alluvial gold and diamond properties in Sierra Leone, West Africa. It has business and export licenses for Sierra Leone. It is exploring, dredging and bulk sampling in a number of areas within its concession territory of 140.1 square kilometers on the Pampana River, licensed in 2009.
The LOI contemplates a Definitive Written Agreement to be finalized within 30 days from execution and a total due diligence period of 90 days. The Company anticipates a prompt resolution to finalizing this transaction.
Sunergy Chairman P.K. Medhi says: "It is exciting to have the opportunity to expand our West African mining operations into Sierra Leone on an advanced property with management and a quality operations team already in place. Their vision is similar to ours, which is to grow by acquisition, and we welcome the Allied Team to the Sunergy Family. Having spent time with Allied's principals, integration into Sunergy's overall operations plan will be relatively easy and be accretive to shareholder value. We are targeting additional rapid growth in Ghana and Sierra Leone as well as other African near term gold production opportunities."
The property is in the heart of one of Sierra Leone's richest alluvial gold mining fields, South of the Sula Mountains in the Greenstone belt on the North Pampana River, around 120 miles east of the capital, Freetown. With gold over $1,200 per ounce, high tonnage alluvial mining is extremely attractive. Assay results from a recent sampling program (completed spring 2010) reveal widespread and commercially minable alluvial deposits of Rare Earth and transition metals in addition to gold values.
Allied recently obtained a NI 43-101 Technical Report on the Pampana North section of the prospect that states the property "... is a property of merit and should receive continued exploration efforts" and that "the northeastern portion of the mining property contains a known bedrock gold vein potential, which is 1,200 feet long, and located 9 km from the Yirisen gold deposit" (Past geological studies have indicated that Yirisen is one of the largest gold vein deposits in Sierra Leone).
Historical reports indicate recoverable alluvial gold on the Pampana North section (40.1 sq/km or 28% of concession area) at over 500,000 oz. with average grades of 0.12 ounces per tonne qualifying as superior grade deposits as defined by the US Bureau of Mines. The Company was also granted a boundary modification by the Sierra Leone Mines Ministry to include an adjacent 100 square kilometers immediately on the other side of the river. This adds an additional 72% land area in which recent testing has shown apparent continuity of gold and Rare Earths.
These sands are consistent and verified in the river channel and along the banks and benches. Allied geologists estimate 50kg/tonne rich black sands easily recoverable by dredging and land-based mining suggesting the likelihood of highly profitable and immediate placer mining. Inspection of artisanal mining and prospecting sites within the license area show black sands throughout the claims.
Canadian mining equipment manufacturer RMS Ross is in the process of designing recovery and separation circuits based on analysis and specific composition of heavy sands. Terry Plummer, RMS Ross President, says: "The black sands are quite probably worth as much or more as the free gold, especially since an average of 17g/ton of gold is still contained in the black sands concentrate after the free gold has been recovered."
Mr. Wilfred Ullrich, Allied's Operations Manager in Sierra Leone, regarding the recent (June 2010) Allied Au/Black Sands sampling program, says: "The Allied concession incorporates approximately 38 river km. The black sand deposit in the river starts from the center of the river and extends approximately 1km east and west. The area, designated as the 'strip,' has an average of 3.5 kilos of black sand per square meter, extending to the bedrock. Overburden ranges from 0 to 7 meters. In addition to the known mineralized material that is within the 200 meter wide strip of river, there is an additional kilometer on each side of the strip which is also very rich in black sand. We have samples from all over the concession and have the analysis from the concession northeast of us."
Testing and existing data indicate gold concentrations ranging from 1 to 18 grams per tonne of material. Fire assays conducted in Freetown by the Company show the gold purity at 89%. Assays of black sand concentrates in 2009 and 2010 showed quantities of rare earth metals and other valuable minerals in commercially exploitable grades.
Allied has retained local geologists and a mining manager with experience in the territory and extensive knowledge of its geography and mineral profiles. Near term bulk sampling is planned in order to ramp up for larger scale gold production. For operational security the Company has recruited a retired British Army Lieutenant Colonel who served in Sierra Leone with the U.N. and was also an advisor to the Sierra Leone Government. The Company has a land reclamation and community development plan in operation and has made great progress in fostering good relations with local chiefs, politicians and villagers.
Disclaimer: Sunergy is relying on information provided solely by Allied Mining and Supply, LLC and historical geological reports which it has not been involved in the preparation of. This information is not SEC Industry Guide 7 compliant and therefor should not be relied on by investors for investment purposes.
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 Ofin river flowing through our eastern portion and there are numerous artisan pits ready for testing and evaluation for near term production. The Ofin river is known for good alluvial gold production. We are acquisition oriented and are considering several projects suitable for near term production.
Further information is available on the Company's website 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.
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.