DALLAS, TX--(Marketwire - 12/10/10) - Southridge Enterprises Inc. (Pinksheets:SRGE - News) ("Southridge" or the "Company") is pleased to announce today that Southridge Minerals, Inc., its wholly owned subsidiary, announces today it has signed a definitive agreement to acquire a 100% interest in the Cinco Minas and and Gran Cabrera Gold properties in Mexico. The Purchase Price for the assets comprising the mineral concessions "Gran Cabrera" shall be $2,500,000. The Purchase Price for the assets comprising the mineral concessions "Cinco Minas" shall be $5,000,000.The Cinco Minas site covers roughly 10,750 hectares and is located approximately 100 kilometres northwest of the City of Guadalajara. The Gran Cabrera site covers roughly 4,300 hectares and is located approximately 35 kilometres northwest of Cinco Minas. Both sites are on strike to a major regional left lateral fault system that hosts many historical areas such as the old Santo Domingo mine site, currently the subject of extensive exploration drilling by Stroud Resources Ltd., which is midway between the two historical sites.Cinco Minas property was mined between 1922 and 1928 and reported 1,083,000 tonnes of ore averaging 3.17 g/t gold and 476 g/t silver. This equates to 97,364 oz. of gold (2,760 kilograms) and 15,095,915 oz. of silver (427,954 kilograms). The Cinco Minas and Gran Cabrera properties both host epithermal systems with adularia-sericite type quartz veins with gold-silver mineralization. The main zone system at Cinco Minas has an identified strike length of approximately 5 kilometres with additional parallel to sub-parallel veins. Past mining has produced several bonanza grade veins with high gold credits. These types of structures have also been reported in the recent exploration drilling at Cinco Minas.In 2004 a resource estimate was prepared on the Cinco minas property that was based on work by independent consulting firm of Behre Dolbear de Mexico (www.dolbear.com). This estimate was based on the drilling, trenching and field exploration since 2003. Based on their examinations and calculations they reported the following:
- An indicated resource of 2.27 million tonnes of 171.9 gram silver containing 12.5 million oz. of silver and 1.22 gram gold containing 89,100 of gold
- An inferred resource of 400,000 tonnes of 137.9 gram silver containing 1.8 million oz. silver and 1.07 gram gold containing 13,800 oz. of gold.
The Cinco Minas vein systems are classic epithermal precious metal deposits with brecciated ore hosts flooded with quartz/sulphide pulses. The mineralization is varied along strike but generally is represented with argentite, miargyrite, native silver, gold, sphalerite, and galena. Literature and recent drilling supports that additional sources of very high-grade mineralization should be encountered along strike. The historical reports indicate that bonanza grades of silver with gold were encountered randomly during the development of both mine sites. The geology supports that potential as volcanic hosted massive sulphides are commonly concentrated and enriched when proximal to major fault systems.INFRASTRUCTUREThe Hostotipaquillo regional infrastructure is moderately sophisticated. The town of Magdalena is roughly 20 kilometres south of Cinco Minas and Tequila is another 20 kilometres southeast of Magdalena. These will be the two primary sources for material for the project. Tequila has a population of some 50,000 persons while Magdalena is roughly 25,000. The two towns have a corresponding ability to provide supplies and manpower to the project both short and long term. Whatever cannot be obtained in Tequila will have to come from Guadalajara, which is a further 80 kilometres southeast. Guadalajara is the capital of the state of Jalisco, and a custom steel centre with an estimated population of 6.3 million people in 2008.All three towns are linked with a good highway system. Modern trucking systems should be able to deliver any required bulk materials, steel, and plant equipment. The infrastructure is suitable for immediate mill tests on site with the installation of new equipment. Water storage around the pad system and other mill facilities can easily be controlled by well-engineered containment facilities. The 200 metre drop from the old mine to the old mill, town and proposed leach pad site provides for an excellent material flow for ore and water.The local population of Cinco Minas is roughly 300 persons. From that group the initial work force has been established. As the project expands, training in mine related jobs, safety and other worker skills can be undertaken. However, at the outset, additional workers will be required to provide technical expertise on site. Housing for those workers will be established by the construction of a camp situation that can be controlled with respect to services, security, and expansion.There are no extraordinary infrastructure costs or hurdles as roads, power and water are all present onsite the Cinco Minas property. The remnants of the old mill site could be quickly refitted as the land package includes the historical Cinco Minas mine and 60 Tonne mill.HISTORYThe Hostotipaquillo region is steeped in a rich mining history. The original mines were small adit enterprises begun in the 1530s by the conquering Spanish, looking for high-grade silver and gold. Sporadic workings were developed where easily hand-cobbed high-grade ore could be obtained. Where large deposits of ore could be worked, the communities would develop around them to support the mine. This model of development is not much different in today's mine industry.In many cases old workings were abandoned simply because they were too remote to continue operations or the ore began to run into silicified materials. In the vicinity of Hostotipaquillo, ore was discovered in 1605 and several mines were developed. The town soon became the administrative centre for the region and later the Municipal capital. However in the Gran Cabrera region, 10-20 kilometres northwest of the town, mining had already begun and many operations were developed. The rugged terrain made working these properties difficult and would qualify as models of excellence in mine development in rugged conditions. In examining the ruins of the Monte de El Favor and Gran Cabrera mine camps, the sheer magnitude of the regional historical development is simply amazing. While the environment has overtaken many of the roads, rail and cable footprints, the evidence still exists. The degree of adit and shaft development done in the individual mines is remarkable.While mining was growing in the Cabrera area, it was also advancing to the east towards and into Cinco Minas. In the early 1900s, a series of independent mine operations became the critical mass for the development of the town of Cinco Minas. Power was brought into the area and extensive mill operations were established. It became the local mine centre for the area and the reported 10,000 person camp resulted. The Cinco Minas deposit was developed to its peak by Marcus Daly with the Cinco Minas Mining Company. He transformed the random mining operation into a 500 tonne per day producer by 1922.Cinco Minas and and Gran Cabrera Work ProgramOver the next several weeks, Southridge is planning to review all the historical information, resample some of the drill core from previous operators. We also plan to digitize the drilling and underground data to confirm the historical estimated tonnages and to confirm the known drill targets. It is expected that the next surface drill program should be underway in Q1 2011.For Cinco Minas and and Gran Cabrera Youtube video visit: https://www.youtube.com/watch?v=C03I_ojnRFMFor further information on the Company's Gold and Silver projects, visit our website, www.southridgeminerals.com.About Southridge Minerals Inc. (Pinksheets:SRGE - News)
Southridge Minerals, Inc. is a U.S.-based mineral exploration company dedicated to acquiring and developing mineral resources in geologically permissible and politically stable areas of the world. The Company seeks out on early state opportunities with good mineralization indicators that can carry plenty of blue-sky potential. Southridge progresses these projects that are or will be of interest to mid-size and major producers.By forming ventures on individual projects, the Company expects to grow and maintain an interest in mines operated by its partners, allowing it to continue to build value through continued exploration. Southridge is currently focused on projects in Mexico.What sets Southridge apart is its vast experience in Mexico, the geology conditions of formation of known large gold deposits that up until now have received very little attention. This way it can focus geographically and on a couple of commodities to give its shareholder return on their investment in the most efficient way possible.Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future.Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.