Sierra Resource Group, Inc. has acquired a financing commitment, which the Company believes will enable it to begin the permitting process that is necessary prior to bringing the mine back into production.
The Company is waiting for bids from a number of engineering firms. It expects to engage the winning bidder in the near future.
"We are pleased to have secured the financing needed for the permitting process," said Patrick Champney, Chief Executive Officer. "This is an important step. We still must obtain sufficient funding to actually begin mine operations after acquiring the necessary permits."
Sierra Resource Group, Inc. owns an 80% interest in the Chloride Copper Mine. The Chloride Copper Mine property consists of 37 unpatented lode mining claims and 12 mill site claims. It is located 24km northwest of Kingman, in the Wallapai District, Mohave County, Arizona. The open pit mine and the existing SX/EW processing plant operated at the site from 1995 before being idled in 1996 due to low copper prices.
The Chloride Copper Mine deposit is hosted by Late Tertiary conglomerates and, to a lesser extent, by Quaternary alluvium and Cretaceous granitic rocks. Copper mineralization at Chloride Copper Mine is in the form of mineralized lenses contained within a paleochannel approximately a few thousand feet long and up to 750 feet wide. The source of copper at Chloride Copper Mine is interpreted to be the low grade porphyry-type copper mineralization at Alum Wash, about 3.5 miles northeast of the Chloride Copper Mine deposit. The mineralization is characterized by dark blue to black rock similar to the Exotica deposit, a satellite of the huge Chuquicamata copper deposit in Chile.
Source: Sierra Resource Group, Inc.