SANTIAGO, Chile, June 8, 2009 (GLOBE NEWSWIRE) -- Southern Energy Company, Inc. (Pink Sheets:SOCI), a publicly traded resource exploration company, is pleased to provide the following additional mining history and property details on the Condoryacu Gold, Copper, and Silver Property in Salta Province, Argentina. As previously announced, the Company has entered into a Joint Venture Agreement to put this property into production.
Property Location and History
The property is located in the North West section of Argentina in the Puna physiographic region, a high arid plateau with elevations commonly greater than 4,000 meters. Locally the project area occupies an area characterized by a north-south trending chain of moderately steep hills and an adjacent desert valley.
Mineralization was first discovered in the vicinity of Condoryacu in 1967. Geological studies were carried out in the 1970's and early 1980's. In 1984 a group excavated an open cut and systematically sampled and assayed some 350 tons.
In 1999 a company carried out an exploration program which comprised a ground magnetic survey and 15 diamond drill holes. The company prepared a pre-feasibility study and preliminary design of small mine and concentration plant that focused on the known high-grade mineralization.
The Condoryacu Area displays characteristics associated with a shallow level (hot spring) epithermal environment featuring hydrothermal breccia structures containing high silica and high sulfide content.
South Outcrop Zone
This is the principal zone of mineralization within the project area, consisting of a N-S striking near vertical dipping hydrothermal breccia, exceeding 90 meters length and 140 meters vertical depth, with a near surface width of over 16 meters, narrowing with increasing depth to less than 2 meters. The structure is bounded to the north by an apparent ESE-WNW trending fault. The south portion is progressively offset in echelon style, with the actual southern limit poorly defined. Both hanging wall and footwall boundaries are abrupt.
North Outcrop Zone
Surface exposure of this zone exhibits the same brecciated, silicified and Fe-oxidized characteristics as the South Outcrop exposure, and has similar oval shaped dimensions. It is about 30 meters long by 15 meters wide on surface, decreasing to 10 meters width at 100 meters vertical depth directly beneath the outcrop.
Resource Estimates
The principal exploration target has been the South Outcrop zone in Condoryacu I, which has been delineated by 22 Reverse Circulation holes and 39 diamond drilling to contain an estimated average gold-equivalent concentration of 15 ppm within a hydrothermal breccia body measuring 30 meters strike length by 16 meters near surface width, decreasing to 1.8 meters width at 140 meters vertical depth.
About Southern Energy Company, Inc.
Southern Energy Company, Inc. is a publicly traded resource exploration company. From 2007 to the present the company has been active in seeking out resource opportunities in North and South America to explore, develop, and produce. The Company is currently focused on the acquisition, exploration and development of coal, gold, copper and silver properties throughout South America. Currently, Southern Energy owns the Catalina Silver and Gold Property northwest of Santiago, Chile, and the two Lota Bay Coal Concessions in Lota, Chile. The Company has entered into a joint venture agreement on the Condoryacu Gold, Copper and Silver Property located in Salta Province, Argentina.
Please visit http://www.southernenergycompany.com for more information.
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. For further information about Southern Energy Company, Inc. please refer to its Web site at http://www.southernenergycompany.com.