SOURCE: Sungro Minerals, Inc.

February 17, 2011 09:00 ET

Sungro Minerals, Inc. Releases Highlights of Its First NI 43-101 Report

WARWICK, RI--(Marketwire - February 17, 2011) -  Sungro Minerals, Inc. (OTCBB: SUGO) announced today the highlights of its first National Instrument 43-101 (NI 43-101) technical report (the "February Report") authored by Randall L. Moore, RPG, of Eugene, Oregon a Registered Professional Geologist (RPG) and Qualified Person in accordance with the Canadian standards. 

A full copy of the report can be found on our website: www.sungrominerals.com

The Conglomerate Mesa Project includes 331 unpatented lode claims covering approximately 6,800 acres of mining claims in the southern Inyo Mountains in Inyo County, California administered by the Bureau of Land Management.

"The completion of this report is a significant milestone for our Company," stated Mr. Fred Pucillo, CEO, "it provides the foundation on which we can move forward with our exploration program and sets a base-line on expectations for the kinds of resources that can be confirmed through that exploration." 

Below are highlights of some of the comments contained in the report:

"The Conglomerate Mesa hosts multiple large-scale hydrothermal gold-silver systems that are similar in style, geology, and geochemistry to the highly productive Carlin-type systems of northern Nevada," and "Gold-silver mineralization is known to occur within a zone that is over 8 kilometers long and 4 kilometers wide."

"Based on previous historical data compiled by several mining companies (including: BHP Billiton, Newmont Exploration, Asamera, Anaconda Minerals, and Mobil Exploration) dating back to 1984, the Conglomerate Mesa could host bulk mineable gold deposits in excess of 2,000,000 ounces (as stated in an inter-company report)... Sungro also controls unpatented lode claims that cover a portion of the historic Santa Rosa Zinc-Lead-Copper-Sliver-Gold skarn that was explored by Anaconda and considered to have the potential to host a world-class deposit" as stated in a 1991 report by James Dixon (PG). This target has some restrictions due to the Malpais Mesa Wilderness area.

"Conglomerate Mesa is a quality prospect that should be drilled on a grid system and several +2,000 foot drill holes should be placed in strategic locations based on geology, geochemistry and geophysics" to test for both shallow and deeper high-grade mineralization. If this prospect was in Nevada, it would have hundreds of drill holes, as properties of this quality are difficult to find. Significant, shallow oxide gold mineralization has been defined at Conglomerate Mesa. These areas remain open with substantial additions conceivable. Beyond the expansion of known zones of mineralization, there is excellent potential for the discovery of new mineralized zones. It is clear that Conglomerate Mesa warrants significant additional expenditures to move targets forward and develop NI 43-101 resources."

"Further drilling at Conglomerate Mesa should focus on three objectives: (i) the expansion of known gold zones; (ii) identification of additional zones of mineralization within new structural/stratigraphic settings; and (iii) upgrading known zones of gold mineralization to resource categories."

"Significant exploration drilling is justified. While several areas have already been defined for drill testing, additional detailed geologic mapping, systematic sampling of outcrops, extensions of the existing soil grid, and geophysical surveys should be used to identify new targets."

"Based on the results of this report, Sungro will be looking to raise a minimum of $10,000,000 to cover the additional exploration costs of $5,500,000 as indicated by Mr. Moore, cover working capital needs, and to meet the requirements of up-listing to larger exchange such as NASDAQ, NYSE, and/or the Toronto Venture Exchange," stated Erwin Vahlsing, Jr., CFO. He continued, "Permitting and Feasibility studies would begin immediately following the completion of funding by one or more of our potential strategic and financial partners."

About Sungro Minerals, Inc.

Sungro Minerals, Inc. is an early stage Mining and Exploration Company seeking to acquire, develop, and manage various mineral properties and resources.

Cautionary Note to U.S. Investors

This press release may use the terms "measured resources," "indicated resources," "inferred resources," and "historical resources" which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification system. The United States Securities and Exchange Commission (the "SEC") does not recognize these terms and the SEC guidelines (Industry Guide 7) provide that such terms shall not be included in a registrant's filings with the SEC (unless required to be disclosed by foreign or state law). The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov.

Forward-Looking Statements

This press release and any related calls or discussions may contain forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements include statements about matters such as: future prices and sales of and demand for our products; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; recapitalization and balance sheet restructuring activities (including debt-for-equity exchanges, land transactions, capital raising and other activities); operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures and their impact on us; nature and timing of restructuring charges and the impact thereof; productivity, business process, rationalization, restructuring, investment, acquisition, consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales and other actions regarding debt or equity securities; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. 

The words "believe," "expect," "anticipate," "estimate," "project," "plan," "should," "intend," "may," "will," "would," "potential" and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our SEC filings and the following: the current global economic downturn and capital market weakness; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources and reserves; operational or technical difficulties in connection with exploration or mining activities; contests over our title to properties; our ability to cure defaults under our current indebtedness; our substantial indebtedness and the impact such indebtedness may have on us; the possibility that our operating performance and operating prospects, and capital market conditions will limit our ability to timely meet our debt service obligations, comply with debt covenants, obtain necessary financing or refinancing or restructure indebtedness or our debt service obligations on acceptable terms or at all; potential dilution to our stockholders from our recapitalization and balance sheet restructuring activities; potential inability to continue to comply with government regulations; adoption of or changes in legislation or regulations adversely affecting our businesses; business opportunities that may be presented to or pursued by us; changes in the United States or other monetary or fiscal policies or regulations in response to the recent capital markets and economic crises; interruptions in our production capabilities due to unexpected equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, copper, diesel fuel, and electricity); changes in generally accepted accounting principles; geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues organically; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies and equipment raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. We undertake no obligation to publicly update or revise any forward-looking statement.

Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any securities.

Contact Information

  • Contact:

    Sungro Minerals, Inc.
    Martin Bolodian
    Investor Relations
    Phone: (401) 648-0805 ext. 350
    Fax: (401) 648-0699
    www.sungrominerals.com