Sunergy Plans Dredging Operations to Commence for Gold, Diamonds and Rare Earths on Its 140 sq. km. Sierra Leone and Its 150.sq. km. Ghana Mining Concessions in January 2011
Press Release Source: Sunergy Inc. On Monday November 15, 2010, 7:37 am EST
SCOTTSDALE, AZ--(Marketwire - 11/15/10) - Sunergy, Inc (the
- News) reports that Management has determined to commence dredging operations on both its concessions in Sierra Leone and Ghana that offer over 45 km. of workable gold, diamond and rare earth recovery potential. Of the three 8" Custom Gold Grabber Dredges ordered last week, all will go to Sierra Leone to start operations on the Pampana River concession. Allied's existing 6" exploration dredge will go to Ghana in order to start operations on the Offin River concession. Given the impending holiday season, operations are now slated to begin early in January 2011.
These Custom dredges should process around 50-60 tons per hour each (150-180 Tons/hour) and are designed specifically to capture even the finest gold, gemstones and smaller diamonds as well as the light and heavy rare earths (REEs) known to exist in our Pampana concession. Additional dredges are planned to be deployed in both Sierra Leone and Ghana throughout the next year pending operations needs and available funding.
Dredge designer and Manufacturer Alan Trees says: "I have organized over 30 overseas dredging operations in 35 years and have designed these specialized 8 inch gold dredges for high yield of gold and rare earths as well as strategic metals. The old bucket dredges of yester year were called by most 'million dollar a mile' gold dredges. I always thought at $12.00 gold that meant they found a million dollars of gold per mile but most analysts and mining engineers really meant 'they covered up a million dollars of gold per mile' which at that time and era was an expectable loss.
"That's why I think in your African venture you will be very successful in capitalizing on these losses from old technology and gain even more from replenishing of gold from high water. My design in gold dredges that use the under sump design will out perform most low pay and poor recovery units of the day. I have turned around several marginal mining operations in South America, Australia, and Nome, Alaska with my technology and design.
"The Gold Grabber 8 inch gold dredge uses a sump system that reclassifies the materials... pulls them out of suspension into a 'low flow' recovery deck. This deck can be set to recover hard to recover rare earths, strategic metals and gold... as well as large and small diamonds. It is common knowledge in the gold mining industry that removing valuable minerals from high flowing water and controlling them from 'river to the recovery deck' is the key to a successful dredging operation that leads to higher profits."
Pampana River Concession, Sierra Leone
Assays of heavy black sand concentrates containing rare earths (REEs) in 2009 and 2010 showed quantities of rare earths and other valuable minerals in commercially exploitable grades. Recent assays by ALS Chemex in Sparks, Nevada identified several of these rare earths contained in the heavy black sands along with gold as follows: Lanthanum, Scandium, Thallium, Cerium, Dysprosium, Hafnium, Lutetium, Niobium, Neodymium, Praesodymium, Tantalum and Zircon (See attached Price List for several rare earth minerals).
Substantial concentrations of gold have also been determined to be contained in the concession. Data indicates gold concentrations ranging from 1 to 18 grams per tonne of material. Fire assays conducted in Freetown, Sierra Leone, indicate gold purity to be over 92%. Over 500,000 ounces are contained in reports in the north 28% of the 140 sq. km. Pampana concession.
Nyinahin Concession on Ghana's Offin River
ALLUVIAL GOLD MINING, OFFIN RIVER AREA, GHANA Robert A. Levich, Director, CPG/EurGeol/FSEG/FGSA -- 9th February, 2010 (See Link under Projects for a review of the complete report on www.sunergygold.com)
"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.
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 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.
Offin River Dredging Ghana
... The Gold Coast Selection Trust acquired mining leases during the 1930s and 1940s, however, major mining operations by its subsidiary, the Bremang Gold Dredging Company, did not begin until the 1950s. 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... During the 20th Century, a total of 295 million cubic yards of gravels were processed and 1.45 million ozs of gold were recovered.
Banka drills were used to collect samples and develop several estimates of Offin River alluvial gold reserves. These reserves range between 110 and 220 million yd3 at a grade of 0.11 - 0.12 g/yd3 that contain, roughly, between 400,000 and 800,000 fine ozs.
Bonte Alluvial Placers: Located on Our Eastern 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.
Throughout the 1990s, the Bonte mining operation was the only successful major alluvial gold producer in Ghana. The Bonte lies at the north end of the Manso Nkwanta district, and the deposits occur in the valleys of the Jeni River and its Bonte River tributary. The project consisted of two concessions: the Esaase license (upper Bonte River valley) and the Jeni River license, which, together, include 76 km2, from the upper Bonte valley to the Jeni River's confluence with the Offin River at the start of our concession.
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. 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."
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 in Ghana, West Africa and the 140.1 sq. km. Pampana River Rare Earth, Gold and Diamond concession in Sierra Leone, West Africa. We are production and acquisition oriented and are considering several projects suitable for near term production in West Africa.
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.
PRICES FOR RARE EARTH COMMODITIES ON SUNERGY/ALLIED PAMPANA RIVER CONCESSION, SIERRA LEONE November 2010
|1. LANTHANUM||96.99%||$40/kg (2008)||Oxide|
|99%||$42-45/kg (11-11-2010)||Metal FOB China|
|99%||$48,000-50,000/mt (11-11-2010)||Oxide FOB China|
|2. SCANDIUM||99.0%||$900/kg (2008/09)||Oxide|
|99.9%||$189/gm (2009)||dendritic metal|
|3. THALLIUM||99.999||$4,900/kg (2008)||Metal|
|4. CERIUM||96.00%||$50/kg (2008)||Oxide|
|99%||$50-53/kg (11-11-2010)||Metal FOB China|
|99%||$48,000-$50,000/mt (11/11/2010)||Oxide FOB China|
|5. DYSPROSIUM||99.00%||$160/kg (2008)||Oxide|
|99%||$385-415/kg (11-11-2010)||Metal FOB China|
|99%||$285-305/kg (11-11-2010)||Oxide FOB China|
|6. HAFNIUM||N/A||$343/kg (2008)||Unwrought|
|7. LUTETIUM||99.99%||$3,500/kg (2008)||Oxide|
|8. NIOBIUM||65%||$34,398/metric ton (2008)||Ferroniobium|
|65%||$39,000/metric ton (2009)||Ferroniobium|
|99%||$92-95/kg (11-11-2010)||Metal FOB China|
|99%||$75,000-78,000/mt (11-11-2010)||Oxide FOB China|
|99%||$84-87/kg (11-11-2010)||Metal FOB China|
|99%||$71,000-73,000/mt (11-11-2010)||Oxide FOB China|
|11. TANTALUM||N/A||$39/lb (2008)||Tantalite|
|30%||$80-95/lb (11-11-2010)||Tantalite Oxide (Ta2O5)|
|12. ZIRCONIUM||N/A||$788/metric ton (2008)||Zircon|
|N/A||$830/metric ton (2009)||Zircon|
|* Prices from USGS Minerals Information|
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