STEAMBOAT SPRINGS, Colo., June 30, 2021 (GLOBE NEWSWIRE) -- WESTERN SIERRA RESOURCE CORPORATION (OTC: WSRC) is pleased to announce that it has completed negotiations and has fully executed an agreement with Silver State Mining Group, Inc. (“SSMG”) to acquire 70% of SSMG’s common stock in exchange for $10 million which will be used to immediately initiate development of the Sage Hen Mining Claims in Western Nevada.
WSRC management’s level of confidence in this project is such that the $10 million cost of the 100 ton/day plant will be invested directly by WSRC’s officers and directors to prevent dilution of shareholder equity in the Company. Of this $10 million total required to construct the 100 ton/day plant and commence production and recovery operations, $1.5 million is required 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.
The Sage Hen Claims encompass 640 acres within the Oreana Trend, a consistent ancient seabed that extends to depths of 1000 feet in an active mining area known to contain significant precious metals and offer a unique low risk development opportunity. Many mining groups, including Newmont, Rye Patch, Pershing, Victoria, and others have cored, mined, and expended significant resources and effort in the area. Principals of the Sage Hen Mining claims, Andy Kay and Lonnie Treadwell, have maintained active mining claims for over 20 years based upon hundreds of assays over 20,000 acres of the trend. The Sage Hen claims are located near the Relief Canyon Mine in the Oreana Tend. In addition to gold and silver, the enhanced recovery system assays have indicated platinum, palladium, and rhodium.
SSMG and WSRC will immediately commence the 90-day permitting 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 is scheduled to be fully operational within 12 months. However, specific testing and limited development of the mining claims will commence immediately. Once the 100 ton/day Pilot Plant is established on site, SSMG and WSRC intend to file for permit approval to expand the Pilot Plant for increased capacity to process up to 1100 tons per day. Permitting for this expansion is estimated to require an additional six months.
Due to the extensive prior geological work having been completed in the area, and including the subject claims, SSMG and WSRC have determined it to be redundant to expend the time and capital to secure an NI 43-101professional report to summarize the data already shown to be consistent through over 20 engineering and assay reports completed by well-respected firms. It has been determined that rather than invest the time and capital in additional third-party reports, it would be more productive to use that investment directly in proving up the claim’s reserves though production. At a future date, and concurrent with the realization of actual production results, an NI 43-101 professional report will likely be commissioned to further refine exploration methodologies and aid in establishing specific areas of focus within the boundaries of the reserve. (Assay reports are posted on the SSMG web site).
The Sage Hen claims will be placer mines. Placer mining means that the target source material is mined directly from the surface. Based on geology and previous testing, that material is likely to be consistent to a depth of at least 1000 feet. The operation is not hard rock, shaft- driven mining but is, rather, minimally invasive. The operation will require limited heavy equipment, minimal excavation, and no caustic extraction byproducts. Raw ore will be crushed and rolled to a very fine material processed using sophisticated autoclaves, electro-oxidation units and contained leaching vessels. The SSMG mining team, is headed by its President/CEO Clifton Turley, who has 15 years’ experience with the Sage Hen project. He will lead an extremely competent team of capable mining operators, contractors, technology patent/trade secret owners/experts, and equipment specialists.
WSRC and SSMG plan on building a 100 ton/day plan and then immediately increasing that to 1,100 tons/day. Projected annual net income from the 100 ton/day and 1,100 ton/day operation is $269 million and $3.2 billion respectively.
An additional $50 million will be required to construct the 1,000 ton/day plant. It is anticipated that these costs will be paid from accumulated net income and/or borrowing against the Company’s net income allocation.
The recovery technology is existing, proven, off the shelf technology used extensively in other industries. The adaptations are in the chemistry of the autoclave, the chemical process prior to electro-oxidation and the environmentally friendly leach of the tailings following the process. SSMG and WSRC will provide more detailed information as to completed assays and technology overview on its web site.
Roger Johnson, CEO of Western Sierra Resource Corporation stated, "These are very exciting times for the Company. We believe the Sage Hen project is a ‘once in a generation opportunity’ for the Company and for our shareholders. SSMG’s and WSRC’s management priority is to diligently execute the plan--the most direct strategy to bring this remarkable opportunity into efficient production in the shortest possible time. This means meaningful production by the end of this year, and into 100-ton per day capacity within 12 months. The rest is simply a function of scale.” Look for more announcements coming soon.
WSRC will begin posting information about the 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 which continues to own several historical precious metal reserves in Arizona. In 2014 the Company broadened its vision to include natural (and renewable) resources with its acquisition of water rights and associated infrastructure assets in Colorado for purposes of irrigating and cultivating industrial hemp; processing hemp for manufacture of various building products; and construction of affordable homes utilizing hemp-based materials—among other beneficial uses. Commercial, Industrial, and Agricultural land for these purposes has been recently acquired (closed as of 06.15.21) at a price of $1,400,000, with additional agricultural and residential land also now under a $250,000 non-refundable earnest money purchase contract. WSRC’s intent is to become a broad-based resource company with high value and 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 an association through a swap of Preferred Stock to utilize WSRC's $40+ million in Water and Infrastructure Assets and GHG's extensive experience with industrial hemp (and financial resources) in a collaborative effort to develop a Hemp Agro-Industrial Zone ("HAIZ") in Northwest Colorado.
Forward Looking Statements:
This 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. Such statements include any that may predict, forecast, indicate, or imply future results, performance. or achievements, and may contain the words “estimate”, “project”,“intend”, “forecast”, “anticipate”, “plan”, “planning”, “expect”, “believe”, “likely”, “should”, “could”, “would”, “may” or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including those relating to the Company’s ability to grow. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include the Company’s operating history and resources, together with all usual and common economic, competitive, and equity market conditions / risks.
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