Sterling Files Evaluation Report for Phosphate Development in China
VANCOUVER, British Columbia, Nov. 28, 2011 /PRNewswire/ — Sterling Group Ventures, Inc. (OTCQB: SGGV)(FRANKFURT: GD7) (the “Company”) is pleased to report that it has filed a Property Evaluation Report on the Gaoping Phosphate Project located in Chenxi County, Hunan Province, China with the SEC. The report was prepared by Norm Tribe, P. Eng., of N. Tribe & Associates Ltd. The purpose of the report is to provide an evaluation of the Gaoping Project Mining Lease, the applied for expansion of that lease and the area referred to as the Tanjiachang Exploration License.
During a property visit, in August, 2011, Mr. Tribe collected six chip and muck samples of the phosphorite beds from different active adits along the strike within the Gaoping Lease and personally delivered them to the ALS Chemex Laboratory in North Vancouver. The results varied from 19.40% P2O5 to 32.86% P2O5. The samples were prepared and assayed by ALS Chemex in North Vancouver B.C.
The Company through its wholly owned subsidiary in Hong Kong, Silver Castle Investments Ltd., has acquired a Mining Lease covering a phosphorite property 38 kilometers east of Chenxi in the Tanjiachang Phosphorite area. The lease is 0.425 square kilometers above an elevation of 510 meters and is referred to as the Gaoping Mining Lease. The Company is preparing an application to expand this Mining Lease and to apply for an Exploration License to include what is referred in the report as the Tanjiachang Exploration Concession, which in earlier press releases was referred to as Gaoping, in order to further expand the area for potential phosphate exploration. This license is expected to be granted. The area of the Tanjiachang Exploration License is estimated by the Hunan Chemical Geological Exploration Institute, a local geological consulting firm, to contain 58 million tonnes of phosphorite with a grade of 19.8% P2O5. This estimate is not NI43-101 compliant. A letter of intent, authored by the Chenxi County Merchants Bureau (CCMB), Hunan Province, China, and Silver Castle Investments Ltd., supports this application. A prior agreement was made between Chenxi County government and the shareholder of Chenxi County Hongyu Mining Co (“Hongyu”), a company which was acquired by Silver Castle Investments Ltd. The area encompassed by the Gaoping Mining Lease has had artisan production for many years and conditions for an organized formal mining project appear favorable.
Mr. Tribe, P.Eng., of N. Tribe & Associates Ltd. estimates an Inferred Resource of 2,190,142 tonnes at a grade of 22.58% P2O5 within the existing Gaoping Mining Lease. Expansion of the Gaoping Mining Lease to 1.34 square kilometers and to a depth of 440 meters elevation would increase the Inferred Resource to 7,874,148 tonnes of 22.58% P2O5.
The property is easily accessible and has adequate infrastructure.
The Property Evaluation Report on the Gaoping Phosphate Project states that mining could commence immediately with an expenditure of about $500,000. This would provide surface infrastructure and mine startup funding. An adit collared on the phosphorite outcrop would provide immediate income for the operation and would be self sustaining and profitable throughout the remainder of its development and exploitation phases.
The Company is currently working with its China based professional mining consultants to prepare an efficient mining plan and to commence mining early in 2012. The phosphorite is an easily mined sedimentary deposit which occurs in the Jinjiadong Formation of the Upper Sinian.
Acquisition of the Tanjiachang Exploration Concession is expected to cost 87,000,000 Yuan ($13.68 million) over a six year period. Most of this cost is to be accredited through applied exploration and development work. The cost of the acquisition of the Tanjiachang Exploration License is based on 58 million tonnes of phosphorite and a prepaid royalty of 1.5 Yuan per tonne amounting to $13.68 million. The payment of this royalty can be spread out over six years and a schedule of work credits can be applied as payment in lieu. The exact numbers are therefore, not possible to be worked out at this point in time. A recommended exploration program on the Tanjiachang Exploration License consisting of trenching, assaying and preliminary metallurgical testing has been set forth in the report. The total amount for this exploration work is budgeted at $127,350. These exploration expenditures would then be applied against future royalty payments.
This release has been reviewed by Norman L. Tribe, P. Eng., a Qualified Person pursuant to National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Raoul Tsakok, Chairman & CEO
For further information, please check the Company’s SEC 8-K filings or contact:
Richard Shao, PhD, President or Robert Smiley, JD, Director
Phone: (604) 689-4407 Fax: (604) 408-8515
Any forward-looking statement in this press release is made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors, product prices and changes in international and local markets, as well as the inherent risks of the mining related business. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cautionary Note to U. S. Investors Concerning Estimates of Measure, Indicated, and Inferred Resources and Reserves. Statements regarding resources and reserves have been based on audits conducted under Chinese methods of calculation which the SEC guidelines strictly prohibit in its filings.
SOURCE Sterling Group Ventures, Inc.