Southridge Enterprises Inc (SRGE)

[stervc]

NYSE Majors, NI 43-101,& Industry Guide 7 thoughts...

I have been always expecting that a major mining company would be very interested in SRGE. They have some awesome properties that would help any major mining company even more major. It would only make sense once they have enough confirmed to their liking. I know it's only food for thought, but I have seen a multi-billion dollar company do a deal with a small pink sheet penny stock before. You don't hear about them all of the time, but they do happen every now and then. It’s only speculation for now, but you just never know.

You mentioned Barrick Gold and/or First Majestic as a potential candidate, but I am hoping that maybe either of them or even Primera Mining take a huge interest in SRGE and its properties.

Go to Barrick Gold’s map of properties; look at where they ”DON’T” have any ownership at:
http://www.barrick.com/GlobalOperations/NorthAmerica/default.aspx

Now go to First Majestic’s map of properties; look at where they ”DO” have ownership at:
http://www.firstmajestic.com/s/ProjectsOverview.asp

Now go to Primera Mining’s map of properties; look at where they ”DO” have ownership at:
http://www.primeromining.com/Operations/default.aspx

You think First Majestic or Primera Mining wants any other major mining company such as a Barrick Gold to be coming down into their territory to get a big piece of a mining stake right smack in their backyard? These properties from these major companies in Mexico are either close by or directly adjacent to SRGE properties. The properties that SRGE has are proven to be very valuable. We could have a bidding war going on that has already started and we just have not heard about it just yet. Right now this thought is speculative, but I believe it is highly probable. Now read these valuation posts again below and see why I believe that if a major mining company could get pennies on the dollars, they would welcome a deal with SRGE; a Joint Venture or a buyout could be eminent:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=79640513
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=79704043

Being able to afford a mega deal with SRGE would not be an issue for either of these major mining companies. Look at where these three major mining companies trade:

Barrick Gold as ABX on the NYSE at $42.05 per share:
http://finance.yahoo.com/q?s=ABX&ql=0

First Majestic as AG on the NYSE at $23.06 per share:
http://finance.yahoo.com/q?s=AG&ql=0

Primera Mining as PPP on the NYSE at $5.63 per share:
http://finance.yahoo.com/q?s=PPP&ql=1

I believe that if not some kind of a buyout, then maybe some kind of a Joint Venture of some sort with a major mining company. Although the NI 43-101 cannot be used to be put into any of the future filings with the SEC for SRGE, the NI 43-101 is recognized by those who are looking to fund their operations. For the SRGE SEC filings, they will have to identify the value of their mineral resources via SEC Industry Guide 7 Standards as can be researched below:

SEC Industry Guide 7
http://web.cim.org/standards/MenuPage.cfm?sections=177,183&menu=226

INDUSTRY GUIDE 7: Description of Property by lssuers Engaged or to be Engaged in Significant Mining Operations
http://web.cim.org/standards/documents/Block474_Doc32.pdf

A NI 43-101 uses the terms... Inferred… Measured & Indicated (M&I)… and Proven & Probable (P&P)… to define an assessed value of a mineral resource. However with SRGE being a US based company, the NI 43-101 and its terms that are used are not defined terms under SEC Industry Guide 7 and are not permitted to be used in reports and registration statements filed with the SEC.

An US based company will have to account for probable or proven reserves as defined by the SEC section (a) of Industry Guide 7 again as indicated below:
http://web.cim.org/standards/documents/Block474_Doc32.pdf

The beauty about this is that SRGE can now ”officially” meet those SEC standards which is why I believe they made the announcement of being in production with their operations info below to be filed to represent probable or proven mineral resources for SRGE:

http://ih.advfn.com/p.php?pid=nmona&article=54054364

…revenues for the fourth quarter and year ending August 31, 2012, from its 60 ton per day (tpd) mill site at Cinco Minas in Jalisco, Mexico. In fiscal 2012, the Company processed over 9,000 tons of ore and recorded revenues of $3.14 Million. …

Probable and proven are what you are once you are in production generating millions of dollars of which SRGE announced above to now be doing. This was a very necessary requirement that was needed to be released for their future filings with the SEC to meet Industry Guide 7 Standards.

Read below an older post I made to help one understand the importance of a NI 43-101 for those companies that will be able to recognize their NI 43-101 (basically Canadian based companies):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57937445

Still, here’s why that info is still good to know and understand. Having a NI 43-101 allows you as company to have a general idea of the value of the property that you are holding. Also, it is recognized by many financial Institutions when being considered for funding because it is done by a qualified Geologist.

Heck, I guess for even more inquiring minds to help elsewhere with further DD, here are the SEC Industry Guides for all applicable Industries:
http://www.sec.gov/about/forms/industryguides.pdf
(Industry Guide 7 starts on page 34.)

v/r
Sterling