Strategic Resource Acquisition Corporation

Strategic Resource Acquisition Corporation

June 26, 2008 12:49 ET

SRA Achieves 3,000 tpd in Gordonsville Ramp up

TORONTO, ONTARIO--(Marketwire - June 26, 2008) - Strategic Resource Acquisition Corporation ("SRA")(TSX:SRZ)(TSX:SRZ.NT)(TSX:SRZ.NT.A) is pleased to report that production at the Gordonsville mining complex has been steadily increasing and the mine now trucks regular tri-weekly shipments to the Clarksville smelter. For the month of May, concentrate shipments totalled 2,738 dry metric tonnes.

Production and Productivity

Mining at Gordonsville has achieved the interim target of 3,000 tpd and has been as high as 3,500 tpd as equipment productivity and reliability improve. The ore grades encountered typically exceed 3% as several high grade faces currently being blasted exceed mine plan averages for the Gordonsville mine. Currently 30 faces are being worked on a daily basis and recent drilling and computer modelling assist in mining higher grade tonnage with minimized dilution. Test drilling with four drills is showing improvement particularly in recent weeks running ahead of plan. Hoisting capacity is now at 7,000 tons per day. A key focus going forward will be improving productivity through the addition of an extra supervisor per shift, supervisory and miner training and an emphasis on a preventative equipment maintenance program.


The information accumulated and modeled to date, is expected to benefit the Cumberland mine for its production start-up in September. At Elmwood, dewatering of the southern half of the mine has been completed and the possibility of an earlier start up is being explored.

Mill Productivity

The mill at Gordonsville is achieving high concentrate quality but will require further grinding modifications to meet grind specifications for the Clarksville smelter. This is being addressed by a concentrate re-grind circuit and a supplemental ball mill will be added which will be rehabilitated and installed by the fall to improve grinding and flotation, which will be required as Cumberland and Elmwood volumes come on stream later in the year. Concentrate grades average 64% zinc.


The Company has received the summary of its scoping study for the construction of its own gallium and germanium processing facility from Aker Kvaerner. Indicated capital costs are $32 million with operating costs of under $150 per kilogram of Ge and Ga produced, supporting a less than one year capital payback. Once in full commercial production, SRA expects to be a significant global producer of both metals used largely in semiconductors, wireless devices and fiber optics.

Economic Advantage

"The Company's outlook is dramatically enhanced by the production of Germanium and Gallium," remarked Victor Wyprysky, President & CEO of SRA. "We produce the world's highest quality zinc concentrate and we are positioned to become a leading global producer of gallium and germanium". On a comparative NAV and price to cash flow basis based on our targets for 2009 and 2010, SRA represents significant value. With zinc producers hurt by current commodity lows, we are fortunate in that our gallium and germanium product will lower our cost per pound of zinc produced, commencing late 2008."

About SRA

SRA Corporation is focused on the development of the Mid-Tennessee zinc mining complex (MTM) in the State of Tennessee. The MTM is located approximately 50 miles east of Nashville with excellent infrastructure including roads, water, power, major airport and access to a well-trained workforce. MTM will produce one of the highest quality zinc concentrates in the world and efforts are underway to establish recovery methods for the valuable germanium and gallium contained in the concentrate. Once in full production, the Gordonsville Complex at MTM is expected to be the largest zinc producer and domestic source of germanium and gallium in the continental USA.

The Company also plans to explore and develop additional properties and redeploy cash flow to pursue a strategy of accretive acquisitions.

Cautionary Statement on Forward-Looking Information

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the future price of zinc or other metal prices, the estimation of mineral resources and realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits and future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of regulatory matters. These statements reflect management's current beliefs and are based on information currently available. Forward-looking statements involve significant risks, uncertainties and assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including those listed in the ''Risk Factors'' section of the Company's prospectus on file with Canadian provincial securities regulatory authorities.

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