Tuesday, February 05, 2013
BANDERA GOLD RELEASES RESULTS OF INDEPENDENT REPORT CONFIRMING NO MINING ACTIVITY ON THE CINCO MINAS
February 5, 2013
Bandera Gold Ltd.
BANDERA GOLD RELEASES RESULTS OF INDEPENDENT REPORT CONFIRMING NO MINING ACTIVITY ON THE CINCO MINAS PROPERTY BY SOUTHRIDGE ENTERPRISES
Bandera Gold Ltd. (“Bandera” or the “Company”) has released a summary of an independent report regarding a special site visit to the Company’s Cinco Minas mining property on December 15-16, 2012, in Jalisco, Mexico. The site visit was documented with video and photo evidence demonstrating that the mine site has been non-operational for the past several years.
The site visit to Bandera’s Cinco Minas property was conducted by independent forensic investigators from a private international safety and security firm (‘Security Firm”) that specializes in critical infrastructure security.
The Company is releasing a summary of the independent report to clarify that the Cinco Minas property is not in production. Bandera does not want its shareholders to be misled by false public statements issued by other entities regarding the value or status of the Cinco Minas asset.
The independent report determined:
1. Based on the condition of the overall area, tailings pond, mill site, critical equipment, roads and buildings; the Cinco Minas mine, equipment, and mill has been completely non-operational for some time (presumably many years).
2. Although there is an indication of a 3rd party known as “Southridge Minerals” having accessed the Cinco Minas mill site, there is absolutely no evidence to suggest that there has been any mining activity. To the contrary, the physical requirements that would be needed to place the overall property and mill in working order would be extensive.
3. Photo and video documentation has been provided (including GPS coordinates) to support all statements and conclusions given within this report.
A detailed summary of the Security Firm’s site visit report including video and photo documentation is available on Bandera’s website: www.banderagold.com.
Bandera believes press releases issued by Southridge Enterprises, Inc. (“SRGE” or “Southridge”) contain false and misleading statements about current mining activity and SRGE’s alleged ownership of the Cinco Minas project. Southridge claimed in a press release on December 26, 2012, that it had entered into a “joint partnership” with Kinross Gold Corporation with respect to the Cinco Minas property, a claim that Kinross denied in a press release dated December 27, 2012. Southridge was issued a trading suspension by the Securities and Exchange Commission in the US on December 28, 2012.
The independent report concluded: “There is absolutely no evidence to suggest that the Cinco Minas mill has been operational for quite some time. In fact, the condition of the equipment suggests many years of neglect. It must be noted that there was an indication of another party having entered the mill site. On one of the mill tanks, located where the power generators used to be, there was a large decal with the writing “Southridge Minerals”. Although it cannot be determined when the decal was put in place, it is obvious that the neglected state of the tanks is evidence to the fact that no one has been using the mill equipment; this includes local individuals, third parties or Southridge Minerals. Simply put, the mill is completely non-operational and has been for some time.”
Stephen Roehrig, President and CEO of Bandera Gold comments: “A concerted effort has been made to hijack the identity/ownership of the Cinco Minas project and create doubt in the public’s mind regarding the status of this property. Individuals and entities that have made or are linked to false public statements about current mining activity and alleged ownership representations are being thoroughly investigated by Bandera Gold. Decisive action will be taken against those parties found to be complicit in this matter.”
On Behalf of the Board
President and CEO
For further information please contact:
Stephen Roehrig, President and CEO (780) 465-4129
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Information provided herein contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward-looking statements. The outcome of any regulatory or legal proceedings, including any criminal or civil matters, is uncertain, and Bandera makes no assurances in that regard.
9320 – 49 Street, Edmonton, AB T6B 2L7
Tel: (780) 465-4129 Fax: (780) 469-8407