Paul C. Rizzo and Associates Inc. to Reengineer and Perform Metallurgical Tests to Bring Sierra Resource Group's Chloride Copper Mine Into Production
KINGMAN, Ariz.., March 7, 2012 /PRNewswire/ -- Sierra Resource Group, Inc. (OTCBB: SIRG) (the "Company") announced today that it has engaged Paul C. Rizzo Associates, Inc. (www.rizzoassoc.com) ("Rizzo Associates") to identify, prioritize, and schedule the necessary activities to bring the processing operation at the Chloride Copper Mine into production. Rizzo Associates is an award-winning firm specializing in all aspects of the civil engineering and earth sciences fields for the dams, nuclear power plants, and tunneling industries.
On January 25, 2012, representatives of Rizzo Associates completed a site visit of the Chloride Copper Mine. The Rizzo Associates team consisted of Dr. Ananda (Andy) Chakrabarti, Senior Consultant, and K. Michael Cline, Principal Geologist. The purpose of the site visit was to provide an independent assessment of the plant, mill tailings, and general site conditions for supporting the Company in bringing the existing SX/EW Plant at the Mine back into full operation. The Plant has been idle since 1996.
On February 21, 2012, Rizzo Associates issued a "Trip Letter Report to Assess Status of the Chloride Copper Mine" to the Company. According to the "Trip Letter Report: "The SX/EW Plant is in good condition; however, in need of minor refurbishment and the replacement of some supporting equipment, but most of the equipment can be used and the Plant can be brought back into working condition within a reasonable timeframe and limited expense." The Company has not currently defined "reasonable timeframe" or "limited expense."
"We are extremely pleased to have the Rizzo team working to bring the mine back into production and beginning work to improve the accuracy of our reserve estimate," says J. Rod Martin Chief Executive Officer of the Company.
About Sierra Resource Group Inc.:
Sierra Resource Group Inc. (OTC Bulletin Board: SIRG) is a U.S based exploration and mining company committed to the exploration, discovery and development of gold, silver, copper and other mineral resources. Sierra's primary asset is 80% ownership of the Chloride Copper Mine located near Kingman Arizona. The technical report, NI43-101, by Scott Wilson Roscoe Postle Associates dated March 10, 2006, estimates the Chloride Copper Mine contains 27,000,000 pounds of copper. The company is looking to expand throughout the Americas.
Sierra plans to use open pit mining and plans to reopen the existing SX/EW plant on site with an estimated maximum capability of producing up to 5,400,000 pounds of Copper Cathode per year. The SX/EW process is environmentally friendly, cost effective and a quick production process according to an article published by the Copper Development Association in August 2001 and publically available on the Association's website (www.copper.org).
The Chloride Copper Mine deposit is hosted by Late Tertiary conglomerates and, to a lesser extent, by Quaternary alluvium and Cretaceous granitic rocks. Copper mineralization at Chloride Copper Mine is in the form of mineralized lenses contained within a paleochannel approximately a few thousand feet long and up to 750 feet wide. The source of copper at Chloride Copper Mine is interpreted to be the low grade porphyry-type copper mineralization at Alum Wash, about 3.5 miles northeast of the Chloride Copper Mine deposit. The mineralization is characterized by dark blue to black rock similar to the Exotica deposit, a satellite of the huge Chuquicamata copper deposit in Chile.
Sierra's management and Board of Directors consist of expert geophysicists', mining professionals and experienced business people.
FOR INFORMATION CONTACT:
Sierra Resource Group, Inc.
J. Rod Martin CEO
Safe Harbor Statement under the Private Litigation Reform Act of 1995. Forward-looking statements in this document do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. You can anticipate that actual results will be different due to the inherent uncertainty of estimates; forecasts and projections may be better or worse than projected. Forward-looking statements may relate, among other things, to expected financial and operating results and the Company's ability to achieve its goals, plans and objectives. The risks and uncertainties that may affect forward-looking statements include among others: the Company's limited operating history and inexperience with mine operations, the speculative nature of the Company's planned operations, difficulty in developing new projects, difficulty gaining necessary governmental approvals, the Company's lack of market research and marketing organization, the Company's inexperience in operating internationally, and difficulty managing rapid growth. At this time, there can be no assurance that the Company will obtain the financing it needs to execute its plans. For a more detailed discussion of the risks and uncertainties of Sierra Resource Group's business, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010, the Company's Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, 2011, June 30, 2011, September 30, 2011, and the Company's Reports on Form 8-K, all filed with the Securities and Exchange Commission, and as subsequently amended. The Company assumes no obligation to update any forward-looking statement contained in this document or with respect to any of the information described herein.
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