Silver Sun Resource Corp. announced Thursday that they signed a binding Letter of Intent (LOI) with Cherry Hill Mining Company, Inc. The LOI is to acquire a 51 percent undivided interest in the Cherry Hill Mine. The Cherry Hill Mine is fully permitted. It consists of a high-grade underground quartz lode mine located on a claim block consisting of six unpatented mining claims. The Cherry Hill purchase includes one mill site claim including a 750 ton per month gravity circuit mill with all machinery and equipment.
Silver Sun Resource Corp. President, Mr. Mark McLeary, stated, “We are very excited about closing the Cherry Hill acquisition. The potential for near-term production should bring immediate value to the growth of Silver Sun. Coupled with our continued commitment to put our Zacatecas, Mexico stockpiles into production, the Company may have two of its three projects close to production in the near-term.”
Gold underwent recovery by gravity with the sulphide concentrates sent to Nevada for processing. In January 2009, Cherry Hill contracted Mr. Robert L. Hill, CA Reg. Geologist #3386, to provide an assessment report on the property. Mr. Hill’s report stated historical production data from the California State Mining Bureau in Jan. 1925, “continuous production along veins with repeated ore grades of 1 ounce gold per ton” (32g/t Au). In addition, historical production results from the California Journal of Mines and Geology stated recoveries from the Property at 2.4 ounces gold per ton (76.80 g/t Au).
In consideration of the acquisition of a 51 percent interest in the Property, Silver Sun Resource Corp. agreed to pay US$555,000 to Cherry Hill Mining Company, Inc. Silver Sun made a non-refundable deposit of US$10,000 to Cherry Hill to be credited against the purchase price at closing.
Closing of the transaction is subject to several conditions. These include the parties’ entry into a definitive agreement on customary terms on or before March 15, 2011; the satisfactory completion of the parties’ due diligence investigations; and obtaining all applicable regulatory, corporate approvals, and consents including the approval of the TSX Venture Exchange. No finder fees are payable in connection with the proposed transaction.
Headquartered in Vancouver, British Columbia, Silver Sun Resource Corp. is a resource company focused on the acquisition, exploration, and development of precious metal deposits in North America. They are engaged in an on-going work programme on the Zacatecas, Salvador, and Mina San Jose properties located within the prolific Zacatecas Silver District in Mexico, as well as their newly acquired Yoreme Silver Project in the mining district of Alamos, Sonora State, Mexico.
The Company has an experienced management team. Their growth strategy is to develop a diversified portfolio of mining projects that they can take to production in the near-term. Silver Sun Resource Corp.’s design is to add shareholder value through efficient exploration, strategic acquisitions, and effective marketing. This is while maintaining a low risk profile through project diversification and sound financial management.
For more information visit: www.silversunresource.com