Southern Empire Resources Corp. (“Southern Empire”) (TSX-V: SMP) announces that it has entered into an agreement (the “Agreement”) with Cuprum Mining Corporation (“Cuprum”), an arm’s length private Canadian company, that grants Southern Empire the opportunity to acquire up to a one hundred percent (100%) interest in the share capital of Cuprum, and thereby a 100% beneficial interest in Cuprum’s Suaqui Verde Copper Project (“Suaqui Verde” or the “Project”) that comprises certain mineral tenements located in the mining-friendly State of Sonora in northwestern México.
Dale Wallster, CEO of Southern Empire, stated: “With Suaqui Verde, I believe that our team can create significant near-term value for Southern Empire shareholders. Copper, which has just been added to the U.S. Department of Energy’s List of Critical Materials, is now often referred to as the ‘new green metal’ as the electrification and decarbonisation of the world will not happen without it. Suaqui Verde presents an exciting opportunity for Southern Empire to enter the green metals arena by acquiring a little-known copper oxide deposit in mining-friendly Sonora. Southern Empire will be able to immediately capitalize on the substantial investments of previous operators as we investigate the significant exploration potential to expand the Suaqui Verde copper deposit at depth. The case for future development is very compelling, especially with the possible implementation of either conventional heap leach processing or innovative in-situ leaching processing.”
Geology and Copper Mineralization of the Suaqui Verde Area
The Suaqui Verde Copper Project area covers an outcropping, oxidized porphyry copper deposit located in the world-class Sonora-Arizona porphyry copper province (also known as the “Laramide” or the “Southwestern North America” porphyry copper province) where more than twenty porphyry copper-molybdenum deposits have been mined for decades.
Porphyry copper provinces are time-space clusters of porphyry copper deposits. The Sonora-Arizona porphyry copper province comprises adjacent parts of the American states of Arizona, New Mexico and Texas, and the Mexican states of Sonora, Chihuahua, northern Sinaloa, and Baja California. This province contains the world’s second largest copper endowment; an estimated total (production + reserves + resources) of 295 million tonnes, 96% of which is in deposits of Laramide age (∼80–45 million years; “Ma”). The province was particularly fertile between 69 and 54 Ma, bracketing the Suaqui Verde deposit mineralization, which is dated at 57.0 ±0.3 Ma (Barra et al, 2005).
The Suaqui Verde copper deposit area has been explored by minor underground development and about 150 historical, mostly vertical RC and core drill holes completed by companies including: American Smelting and Refining Company (ASARCO in the 1940s; now part of Grupo México, S.A.B. de C.V.); Industrias Peñoles, S.A.B. de C.V. (in 1964); Minera Constelación, S.A. de C.V. (Cominco Ltd. in 1971-1972; now Teck Resources Limited); Duval Corp.; Azco Mining Inc. (“AZCO” in 1991); Cambior Inc. (“Cambior” in1992-1994; now Iamgold Corporation); Phelps Dodge Corporation (“Phelps Dodge” in 1996; now Freeport-McMoRan Inc.) and Minera Corum S.A. de C.V. (“Minera Corum” in 2006-2007; now Cuprum). Overburden is generally shallow and the first 50 meters of the copper mineralized zone often returns poor drill recoveries. Copper mineralized zones are known to continue laterally beyond the drill-defined limits of the deposit and only a few Phelps Dodge drill holes started to explore the copper potential at depth.
The geology of the Suaqui Verde project area is similar to other calc-alkaline porphyry-style copper deposits of the region, featuring a multi-phase intermediate (silicic) Laramide age intrusive complex intruding Cretaceous andesitic rocks of the Tarahaumara formation.
Supergene oxidation, leaching and enrichment have modified the character and position of Suaqui Verde copper mineralization creating an irregular zone of copper oxides, which may reach depths of up to 350 meters. Supergene copper mineralization consists of a mix of chrysocolla ((Cu,Al)2H2Si2O5(OH)4·nH2O), chalcocite (Cu2S), brochantite (Cu4SO4(OH)6) and minor malachite (Cu2CO3(OH)2) and libethenite (Cu2PO4OH). Chrysocolla and chalcocite are regarded as the most desired mineral species for potential extraction of copper by leach processes. Limonitic copper minerals include cupro-hematite and other metallic gangue minerals include hematite, goethite, jarosite and the manganese oxide, neotocite.
Hypogene mineralization comprises pyrite (FeS2), chalcopyrite (CuFeS2), and molybdenite (MoS2). Gypsum is common along fractures especially near sulphide-bearing areas.
Historical metallurgical test work indicates that Suaqui Verde copper mineralization should be amenable to either conventional open pit mining and heap leach copper extraction, or alternatively, in-situ leaching. If either of these operational methods were to be implemented, they would produce a copper-enriched solution from which high-purity cathode copper could subsequently be produced by SX-EW (solvent extraction-electrowinning) processing.
In 2008, an independent, historical open pit mineral resource estimate was prepared as an internal report for Cuprum by Independent Mining Consultants, Inc. (“IMC”) of Tucson, Arizona. IMC’s unpublished, historical open pit mineral resource estimate, at selected cut-off grades and based on 106 total drill holes completed between 1991 and 2007, is set out in Table 1.
