AndhraNews.net
Home » Business News » 2011 » June » June 16, 2011

Siga Resources Inc Signs Letter of Intent to Acquire Big Bear Gold Mining Claims in San Bernardino County, California


June 16, 2011 - South Lake Tahoe, CA

Siga Resources Inc (OTCBB: SGAE) President and CEO Edwin Morrow announced today that Siga Resources Inc has signed a Letter of Intent with Montana Mining Corporation of Blaine, Washington to acquire 100% interest in the Big Bear gold mining property near Lucerne Valley, San Bernardino County, California.

Siga has agreed, subject to satisfactory due diligence, to deliver 11 million shares of Siga common stock as consideration for the acquisition.

Located on the Northern edge of the San Bernardino Mountains, the project is known as the Silver Reef/Blackhawk Landslide. The area of interest is a massive landslide that came down Blackhawk canyon at two separate times approximately 17,000 years ago. The landslide entrained a significant amount of a vein mineralized zone in metamorphic and carbonate host rocks, and exposed mineralization under the area it occupied. The surface exposure became the Blackhawk Mining District in the late 1800s, and produced a few tens of thousands of tons of ores reported to run in the .1 to .9 oz/ton gold range.

The carbonate host rocks that slid off the mountain contain naturally crushed vein mineralized rock which has been a target for gold exploration occasionally throughout the last three decades. In the late 1970s, an exploration program of 61 drill holes, hundreds of feet of bulldozer trench sampling and extensive geochem surface sampling was done. This program showed a broad area of gold mineralization contained in the landslide which was estimated to contain up to 80 million tons of mineralized material at gold grades averaging .03 oz/ton, and silver grades averaging .25 oz/ton. Gold grades of the late 1970s (approx $350/oz gold and $15/oz silver) did not make the project economically viable at the time. However, the current gold and silver prices, at $1,500/oz gold and Silver in the mid $30s/oz, cast the economics in a very favorable light.

During the due diligence period, Siga will evaluate the economic and metallurgical qualities of the landslide material as well as the regulatory conditions. If ore grades can be established to carry over normal mining widths, a 5,000 ton per day surface operation could produce 30,000 to 50,000 oz of gold and 300,000 oz of silver annually.

About Siga Resources Inc

Siga Resources Inc, founded in 2007, is based in South Lake Tahoe, California. Siga is a mineral resource exploration and development company. Siga's strategy targets properties that have the potential for near term production and early positive cash flow. Siga's general geographical interest is North and South America.

Forward-Looking Statements

You should not place undue reliance on forward-looking statements in this press release. This press release contains forward-looking statements that involve risks and uncertainties. Words such as "will," "anticipates," "believes," "plans," "goal," "expects," "future," "intends," and similar expressions are used to identify these forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks we face as described in this press release.

Contact:
Siga Resources Inc
Edwin Morrow
President and Director
Email: Email Contact
1-530 577-4141 (Phone)
530 548-7369 (FAX)
On the web at: www.sigaresourcesinc.com

MarketWire

Comment on this story

Share