Shelron Group Subsidiary Signs Memorandum of understanding to Acquire 7 Gold Exploration and Production Licenses
Estimated resources of 740,000 oz of gold worth over $1.1 Billion
NEW YORK, June 11, 2012 /PRNewswire/ --
Shelron Group , Inc. (OTCBB: SRNG) (the "Company), is pleased to announce that it signed a binding MOU with openers of concessions in Chile, via its subsidiary Serena Gold LLC, to acquire seven gold exploration licenses in Northern Chile.
The prospect is 1700 acres located about 5 ½ hours north of Santiago, Chile in a known gold, silver and copper trend. The new prospect is easily accessible by road with the highest elevation of less than 6,500 feet. River water is located nearby and the prospect can go in to large scale production by running pipes and desalination of sea water from the nearby Pacific Ocean.
The veins typically run from 200 to 500 meters in depth and a meter in width at the surface, broadening upon descent. The acreage has 3 well known A-shaped gold veins traversing it, conservatively estimated at 3,000 meters long, 200 meters deep, 1 meter wide. As many as 30 other veins are suspected and considered be tested in the exploration program.
The nearest analog deposit in production, Carmen de Andacollo, is located 12 miles south of the prospects mentioned in the MOU. According to Infomine.com, Carmen de Andacollo' s 2010 production included 34.8kt of copper and 27,700 oz. of gold, with a value in excess of $40M.
Artisanal mining has occurred for the last 100 years near the property and continues by a small adjacent license holder. Native gold can be seen in rock samples lying on the ground. A number of studies have been conducted near the target acreage over the years and most recently in the spring of 2011.
Chile is a mining-friendly country with good mining laws, highly trained and capable labor, and peaceful and democratic conditions. With large mines to the north and south of the area defined in the exploration licenses, the Company expects that securing production permissions should not be a problem.
Upon funding, Shelron plans to aggregate additional licenses covering more acres and then perform the 43.101 exploration process to raise resources estimates to reserves status. With these results, the Company, can then monetize using any of several options, such as sale or production.
The parties will now have a period of 75 days to negotiate a definitive agreement.
About Shelron Group
Shelron Group, Inc. (OTCBB:SRNG) is a New York based mineral exploration and development company focused on acquisition, exploration, evaluation, and development of mineral resource properties in Africa and South America. The Company incorporated in Delaware and is headquartered in New York.
Additional information is available at http://www.Shelron-Group.com.
Safe Harbor Statement
There can be no assurance that a definitive agreement with any party will be executed on acceptable terms or at all. Additionally, even assuming acceptable terms are reached, there can be no assurance that the required conditions of such transactions would be met.
Closing of the transaction will be subject to several conditions including Shelron obtaining sufficient financing. There can be no assurance that the transaction will close.
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives and other forward looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects," or similar terms, variations of such terms or the negative of such terms. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. A number of factors could cause our actual results to differ from anticipated results expressed in such forward-looking statements. Such factors are addressed in our filings with the Securities and Exchange Commission (available at http://www.sec.gov). Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein. We assume no obligation to update any forward-looking statements.
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