Western Sierra Resource Corporation acquires majority stake
STEAMBOAT SPRINGS, Colorado, June 30, 2021 (GLOBE NEWSWIRE) – WESTERN SIERRA RESOURCES CORPORATION (OTC: WSRC) is pleased to announce that it has completed negotiations and has fully signed an agreement with Silver State Mining Group, Inc. (“SSMG”) to acquire 70% of the common stock of SSMG in exchange for $ 10 million which will be used to immediately initiate development of the Sage Hen mineral claims in western Nevada.
The level of confidence of WSRC management in this project is such that the $ 10 million cost of the 100 ton / day plant will be invested directly by the officers and directors of WSRC to avoid dilution of the equity capital of the Society. Of this total of $ 10 million required to build the 100 ton / day plant and begin production and recovery operations, $ 1.5 million is needed within 60 days, $ 2 million within 60 days. , An additional $ 1.5 million within 90 days, and the balance of $ 5 million within 120 days. days.
The Sage Hen claims encompass 640 acres in the Oreana Trend, a cohesive ancient seabed that extends to depths of 1,000 feet in an active mining area known to contain significant precious metals and offers a unique development opportunity low risk. Numerous mining groups, including Newmont, Rye Patch, Pershing, Victoria, and others, have dug, mined and exerted considerable resources and efforts in the region. The principal of the Sage Hen mineral claims, Andy Kay and Lonnie Treadwell, have maintained active mineral claims for more than 20 years based on hundreds of assays over the trend’s 20,000 acres. The Sage Hen claims are located near the Relief Canyon mine in the Oreana Tend. In addition to gold and silver, analyzes of the enhanced recovery system indicated platinum, palladium and rhodium.
SSMG and WSRC will immediately begin the 90-day authorization process to obtain a five-acre disturbance permit on the 640-acre development site on which to build a $ 10 million, 100-ton / day pilot processing plant. This facility should be fully operational within 12 months. However, specific testing and limited development of the mineral claims will begin immediately. Once the 100 ton / day pilot plant is established on site, SSMG and WSRC intend to seek approval for a permit to expand the pilot plant to increase processing capacity up to 1 100 tons per day. It is estimated that it will take an additional six months to obtain the permit for this expansion.
Due to the extensive previous geological work completed in the area, including the claims in question, SSMG and WSRC determined that it was redundant to spend time and capital in obtaining a professional NI 43-101 report to summarize the data already. presented to be consistent through over 20 engineering and analysis reports written by well-respected companies. It was determined that instead of investing time and capital in additional third-party reports, it would be more productive to use this investment directly to prove concession reserves through production. At a future date, and in parallel with the achievement of actual production results, an NI 43-101 professional report will likely be commissioned to further refine exploration methodologies and help establish specific areas of interest within reserve boundaries. . (Analysis reports are posted on the SSMG website).
The Sage Hen claims will be placer mines. Placer extraction means that the target source material is extracted directly from the surface. Based on previous geology and testing, this material is likely to be consistent to a depth of at least 1,000 feet. The operation is not a hard rock pit mining operation, but is rather minimally invasive. The operation will require limited heavy equipment, minimal excavation and no caustic byproducts. The raw ore will be crushed and rolled into a very fine material processed using sophisticated autoclaves, electro-oxidation units and confined leach tanks. SSMG’s mining team is led by its Chairman and CEO Clifton Turley, who has 15 years of experience with the Sage Hen project. He will lead an extremely knowledgeable team of knowledgeable mining operators, contractors, technology patent / trade secret owners / experts and equipment specialists.
WSRC and SSMG plan to build a 100 ton / day plan and then immediately increase it to 1,100 ton / day. The projected annual net income from the 100 ton / day and 1,100 ton / day operations is $ 269 million and $ 3.2 billion, respectively.
An additional $ 50 million will be needed to build the 1,000 ton / day plant. It is expected that these costs will be paid out of accumulated net income and / or borrowings against the allocation of net income of the Company.
Recovery technology is an existing technology that is proven and widely used in other industries. The adaptations relate to the chemistry of the autoclave, the chemical process before electro-oxidation and the environmentally friendly leaching of residues after the process. SSMG and WSRC will provide more detailed information on completed scans and an overview of the technology on their website.
Roger Johnson, CEO of Western Sierra Resource Corporation, said, “These are very exciting times for the company. We believe that the Sage Hen project is a unique opportunity for the company and for our shareholders. The management priority of SSMG and WSRC is to execute the plan diligently – the most direct strategy to turn this remarkable opportunity into efficient production in the shortest possible time. This means significant production by the end of this year and a capacity of 100 tonnes per day within 12 months. The rest is just a function of scale. Look for other upcoming announcements.
The WSRC will begin posting information about Sage Hen on its website.
About Western Sierra Resource Corporation:
Founded in 1907, Western Sierra Resource Corporation (a Utah corporation) has historically been a gold and silver mining company that continues to own several historic reserves of precious metals in Arizona. In 2014, the Company broadened its vision to include natural (and renewable) resources with its acquisition of water rights and associated infrastructure in Colorado for irrigation and industrial hemp cultivation; processing of hemp for the manufacture of various construction products; and building affordable homes using hemp-based materials, among other beneficial uses. Commercial, industrial and agricultural land for these purposes was recently acquired (closed 06.15.21) at a price of $ 1,400,000, with additional agricultural and residential land also now under a down payment purchase contract. non-refundable $ 250,000. WSRC’s intention is to become a broad-based resource company with high value, high income generating assets including water, agriculture, precious metals and related technologies.
WSRC is not a subsidiary of any other company. WSRC and Global Hemp Group (GHG) have formed a partnership through a preferred share exchange to utilize WSRC’s $ 40 million in water and infrastructure assets and GHG’s extensive experience with the industrial hemp (and financial resources) in a collaborative effort to develop an Agro-Industrial Hemp (“HAIZ”) in Northwest Colorado.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements include those which may predict, predict, indicate or involve future results, performance. or achievements, and may contain the words “estimate”, “project”, “intend”, “foresee”, “anticipate”, “plan”, “plan”, “expect”, “believe”. “,” Probable “,” should “,” could “,” would “,” could “or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties which could cause the actual results and financial position of the company to differ materially from those contained in such statements, which involve risks and uncertainties. uncertainties, including those related to the company’s ability to grow. Actual results may differ materially from those predicted and any report should not be taken as an indication of future performance. Potential risks and uncertainties include the operating history and resources of the Company, as well as all customary and current economic, competitive and market conditions / risks.
Western Sierra Resource Society
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