2012-07-30 23:59:28 -
Aims at Development of Million Mountain Zone 1 Hardrock Resource for Production
Vancouver, British Columbia CANADA, July 30, 2012 /FSC/ - Sacre-Coeur Minerals Ltd. (SCM - TSX Venture, S5N - FWB), (the "Company") announced today that it has entered into a purchase and sale agreement (the "Purchase Agreement") with Riverside Resources Inc. ("RRI"; TSXV: RRI.V) under which the Company sold to RRI one of its three core drills which is currently surplus to the needs of the Company and has been in storage. The Purchase Agreement provides that the Company can elect to repurchase the core drill from RRI or act as agent to sell the drill to a third party. In either case, the Company shall repay RRI its purchase
price plus a premium of 15%. If after 120 days from the effective date of the Purchase Agreement, the Company has not repurchased the core drill or effected a sale to a third party, and if the Company and RRI have not reached other arrangements, RRI shall be entitled to put the drill back to the Company for the purchase price plus a 15% premium thereon. The Company's performance under the Purchase Agreement is secured by a subordinate interest in 51% of the shares of its wholly owned subsidiary company, Sacre-Coeur Guyana, Inc. subject to the standard provisions of rights of redemption under the Personal Property Security Act (British Columbia). The shares pledged in the subsidiary company will be deposited in escrow pending release upon the Company's performance under the terms of the Purchase Agreement. The proceeds from the sale of the drill will be used as working capital for general corporate purposes.
The Company has now completed a base case internal analysis of the potential development of its Million Mountain Zone 1 hard-rock resource, including an in-house update to its NI 43-101 resource. This in-house update and analysis, though not intended to be NI 43-101 compliant, has provided the Company with strong encouragement for proceeding with an update of the resource to NI 43-101 standards and initiation of all actions aimed at moving forward with the evaluation of production and the commercial potential of the deposit as soon as practicably possible. These activities shall include as appropriate, commissioning of environmental studies, application for necessary permits for production operations, metallurgical studies, commissioning of a third party feasibility study, and arrangement of financing for development if warranted.
We are excited about the progress marked by the encouraging results of our internal analysis of the prospect of near term development of the Million Mountain hard-rock.
The Company is engaged in the acquisition, exploration, development, and production of properties for gold, metals and diamonds in South America, initially focussing on exploration and production of gold from its properties in Guyana. The Company presently holds 100% interest in approximately 850 sq. km of mineral properties in Guyana, including the Million Mountain Property which hosts an NI 43-101 compliant hard-rock resource of 12,119,285 tonnes grading 1.0 g/t Au Measured, and 2,175,278 tonnes grading 0.9 g/t Au Indicated for a total 451,000 tr oz Au combined. The Company has offices in Vancouver, Canada and Georgetown, Guyana. More information about the Company is available at www.scminerals.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SACRE-COEUR MINERALS, LTD.
"Gregory B. Sparks"
Gregory B. Sparks, P. Eng.
President & CEO
For further information, contact:
Gregory Sparks, President and CEO
Don Mosher-B&D Capital, Corporate Consultant
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of applicable Canadian securities laws, which we will refer to as "forward-looking information". Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information includes, but is not limited to, statements pertaining to development activities, commissioning of environmental studies, application for necessary permits for production operations, metallurgical studies, commissioning of a third party feasibility study, arrangement of financing for development, formal production decisions, business combinations.
We can give no assurance that the forward-looking information will prove to be accurate. Forward-looking information by its nature is based on assumptions and involves known and unknown risks, uncertainties and other factors, including those discussed in the Company's quarterly and annual management discussion and analysis, which are available at www.sedar.com under the Company's profile, any of which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The forward-looking information is based on a number of assumptions that management believes are reasonable, including but not limited to assumptions about: the price of gold; the financial condition of the Company; anticipated costs and expenditures; estimated production; mineral resources or reserves; and metallurgical recoveries; general business conditions; and the ability to achieve our goals. The forward-looking information is also subject to certain risks, uncertainties and other factors associated with our business, including but not limited to: gold price volatility; risks of not meeting production and cost targets; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment and operating in foreign countries; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the Company's quarterly and annual management discussion and analysis. Should underlying assumptions prove incorrect, or should one or more of the risks, uncertainties or other factors materialize, actual results may vary materially from those expressed or implied in the forward-looking information.
Forward-looking information is designed to help you understand management's current views of our near and longer term prospects, and it may not be appropriate for other purposes. Forward-looking information is based on the reasonable beliefs, estimates and opinions of management at the date the statements are made and is subject to change without notice. These factors should be carefully considered and viewers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date of this news release. We will not necessarily update this information unless we are required to by applicable securities laws.
Sacre-Coeur Minerals, Ltd.
Suite 1450, Box 11553
650 West Georgia Street
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Source: Sacre-Couer Minerals Ltd. (SCM - TSXV) www.scminerals.com
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