DALLAS, Feb. 23, 2012 /PRNewswire via COMTEX/ -- Southridge Enterprises Inc.
(Pinksheets: SRGE.PK - News) ("Southridge" or the "Company") announced today
that the Company has initiated a program to increase future output of the Cinco
Minas mill in Jalisco, Mexico, to 500 tons per day (tpd). The Company is
currently negotiating a contract with an engineering firm based in Mexico City
to perform an assessment of the mill site at the Cinco Minas as a basis for the
planned expansion to 500 tpd mill. As part of the previously announced Mill
Production Program, Mr. Juan Eduardo Lopez Romero, the Company's geologist and
advisory board member, will be coordinating the finalization of the engineering
contract for the Cinco Minas mill expansion program.
"We are excited to announce our plans to increase the output of our Cinco Minas
mill. This is a major step forward for both the Company and shareholders," says
Southridge President Michael Davies, "as it has always been our goal to
implement a production schedule that would increase both revenues and add to
shareholder value. Our focus is to turn Cinco Minas into a world-class precious
metals mining operation."
Currently, Cinco Minas hosts a 60 tpd mill and has a significant confirmed gold
and silver resource of 235,000 oz. gold, and 23.3 million oz. silver with 80% of
the known vein system at Cinco Minas has yet to be tested. Recently, Southridge
announced rock sampling and testing of the surface ore at Cinco Minas. In 2007,
International mining consulting firm Behre Dolbear released a report on gold and
silver ore stock piles and waste dumps at Cinco Minas. The Behre Dolbear report
recommends the expansion of Cinco Minas and suggests that there is 2 year supply
of ore production currently on surface at Cinco Minas.
To the north of Cinco Minas is First Majestic Silver Corp.'s San Martin Mine,
which hosts a major production operation in a 900 tpd cyanide mill with a Proven
& Probable reserve of 6,790,782 Ag, a Measured and Indicated resource of
7,435,823 oz. Ag and a further 48,900,000 oz. Ag Inferred resource.
Additionally, Mathers Research has initiated research coverage of Southridge,
with a 'Speculative BUY" Opinion and a near term price target of $0.20 cents per
share.
