Data Received Covering The Pedro Gold Project


VANCOUVER - Southern Empire Resources Corp. has received preliminary high-resolution, airborne magnetic and radiometric geophysical data covering the Pedro Gold Project, located in northeastern Durango State, Mexico. The Pedro Gold Project has the potential to host epithermal, bonanza-grade precious metal vein deposits as indicated by the HP Breccia Zone that was discovered in 2012 by regional grassroots prospecting.

I Terraquest Ltd. of Markham, Ontario, collected 393.2 line-kilometers (km; ~244 line-miles) of airborne geophysical data on flight lines that were flown at azimuth 060o / 240o with 50 meter spacings. This data has been delivered to Condor Consulting, Inc. of Lakewood, Colorado; experts in geophysical processing, analysis and inversion modeling.

David Tupper, Vice President of Exploration, said, "The results of our preliminary airborne magnetic data provide some strong clues about the structural setting and underlying ‘plumbing system' of the HP Breccia gold zone. Together with the regional government magnetics, we see evidence for a deeper intrusive body that could be linked to the hydrothermal fluids and related potential for epithermal vein systems that are the target of Southern Empire's upcoming drill campaign."

Southern Empire has entered into an option agreement with Riverside Resources Inc. that grants Southern Empire the opportunity to acquire a 100% interest in the 647 ha (~ 1600 acres) VLM Project located in northwestern México. Future production will be subject to net smelter return royalties, payable to Riverside, of 2.5% on precious metals and 1.75% on base metals. These royalties may be reduced to 1% on precious metal production and 0.5% on base metal production by payments of an additional CAD $4 million within ten years of the TSX-V approval date.