Strategic Resource Acquisition Corporation

Strategic Resource Acquisition Corporation

September 04, 2007 14:17 ET

SRA Begins Definition Drilling at MTM Zinc Project in Preparation for Mining Activities

TORONTO, ONTARIO--(Marketwire - Sept. 4, 2007) - Strategic Resource Acquisition Corporation (TSX:SRZ)(TSX:SRZ.NT) ("SRA" or the "Company") is pleased to provide an update on continuing progress at the Middle Tennessee Zinc Mining Complex ("MTM"). The Company is on track to commence mining in the fourth quarter of 2007 with the objective of achieving full production in 2008 at an annualized rate of 2.4 million tons of ore containing approximately 147 million pounds (125 million pounds payable) of zinc in concentrate.

In August, several key areas along the critical path to timely start-up were completed. These included:

- installation of three additional 500 HP-1,000 GPM vertical turbine pumps, the sixth and final to be operational shortly;

-rehabilitation of the Elmwood tailings dam;

- commissioning and approval of the Gordonsville service hoist;

- delivery of numerous long-lead time equipment, including Toro 650-D scoops and ventilation equipment - delivery of all remaining mobile gear is on schedule;

- issuance of the air permit in MTM's name

The Company has also initiated an underground definition drilling program comprised of 30,000 ft per month, designed to upgrade sufficient resources to reserves to maintain at least two years of reserves ahead of mining. The first drill has begun to turn with the second and third drills expected to be added in mid-September and October. The yearly replenishment of reserves has been accomplished throughout the entire production history of the Gordonsville mining complex. SRA also plans to initiate in early 2008 and continuing every year thereafter, a 24-hole, 36,000 ft surface diamond drilling program to enhance its resource replenishment objectives.

Gordonsville Complex


The service hoist and work deck conveyance were completed and approved for service and initial hoist operation training has been found to meet or exceed MSHA guidelines. Inspection of the shaft down to the first level (1,000 ft) has determined that it is in good condition. Shaft communication upgrades are almost complete. Sheaves and hoist ropes are all on site for installation as work on the production hoist has now commenced. The second underground mobile pump has been installed at Gordonsville and is pumping water over to Elmwood and ultimately to the tailings area.


The clean-up of the mill is in the final stage of completion. The former flotation cells have been removed and the replacement cells are beginning to arrive on site. The foundation engineering design has been finalized in preparation for the delivery of the new rod mill shell scheduled within the next two weeks.

Elmwood Tailings Dam

The tailings dam rehabilitation is complete and is awaiting final approval.

Elmwood Mine

Three 500 HP-1,000 GPM vertical turbine pumps at Elmwood have been in full operating mode over the last several weeks. The fourth pump at Elmwood is expected to be operating shortly which will double the overall dewatering capacity at MTM.

Cumberland Mine - Shaft

Work on the hoist control and electrical substation is well underway with the hoist targeted to be in operation late September. Contracts have been awarded to supply crushers, feeders, conveyor belts and associated ancillary support structure for the rock handling system. The second vertical turbine pump has been installed alongside the existing pump at Cumberland #8 shaft and both are now in operation pumping approximately 2,100 gallons per minute.

Head Office Appointments

SRA is pleased to announce the appointment of three new members to the corporate office in Toronto:

Paul Chawrun - Vice President Project Economics and Acquisitions. Paul comes to SRA from Dynatec Corporation where he was senior corporate development engineer for the MTM project from inception. With both geology and mining engineering degrees, Paul brings over 18 years experience in large scale mine operating environments, heading up project management for mine designs, large scale earthwork engineering and government regulatory approvals. He has provided expert valuations and business planning frameworks for a number of mining and energy projects.

Donna Yoshimatsu - Vice President Investor Relations & Communications. Donna has worked in the resource and industrial sectors for over 20 years having held prominent positions with public companies including Franco/Euro-Nevada Mining Corporations (Newmont Mining), SNC-Lavalin Group and more recently as a senior consultant to exploration and mining companies.

David Bhumgara - Controller. David is a CA, CA-IT with extensive experience in financial planning, budgeting, IT and internal controls. He served with KPMG in Ottawa and Melbourne, Australia before assuming senior finance positions with public and private companies.

About SRA

SRA Corporation is focused on the development of the MTM zinc project in the State of Tennessee. The MTM project 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. The Company's goal is to become a producer of zinc commencing in late 2007 through the re-opening of the MTM zinc mines comprised of five historic producing underground zinc mines (Elmwood, Gordonsville, Carthage, Stonewall and Cumberland) as well as the undeveloped East Carthage zinc deposit. The MTM mining and milling complex is located approximately 80 kms east of Nashville with excellent infrastructure including roads, water, power, major airport and access to a well-trained workforce. Demand for zinc used largely in galvanizing steel has doubled in recent years. The Company also plans to explore and develop additional properties and redeploy cash flow to pursue a strategy of accretive acquisitions.

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.

A technical report dated May 10, 2007 prepared by Watts, Griffis and McOuat Limited in accordance with the standards adopted by the CIM and compliant with National Instrument 43-101 is available on the Company's filings on

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, and that reflects management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. 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. There can be no assurance that forward-looking 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.

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