Sacre-Coeur Minerals Announces Formation Of Contract Drilling Division
December 15, 2011
VANCOUVER, British Columbia – SACRE-COEUR MINERALS, LTD. (the "Company") today announced that it has established a contract drilling division. Two of three Company-owned, late model Atlas Copco Exploration Products wireline core drills have been allocated to the commercial venture, while the third drill has been reserved to continue hard-rock gold exploration and resource expansion on the Company’s more than 850 square kilometer portfolio of properties in Guyana. This move is another component, together with previously announced alluvial gold production, in the Company’s strategy to fund its on-going hard-rock gold exploration and feasibility studies as well as to build working capital reserves entirely from internal cash flow without reliance on the capital market.
The Company’s in-house drilling program has enjoyed a very high level of performance and cost effectiveness over the past five years. This reputation for performance has resulted in high demand for the services of its contract drilling division. Both drills are currently under contract with third party exploration companies working in Guyana. Contract drilling demand is expected to remain strong in the coming months, such that the drilling division will be fully engaged throughout 2012 and beyond.
Combined net cash flow from the Company’s alluvial mining operations and contract drilling division is expected to cover all operating costs, including on-going hard-rock exploration, feasibility studies for development of a portion of its existing hard-rock gold resource, property holding costs, and corporate general and administrative costs plus accumulation of additional working capital. We believe in this period of substantial global economic uncertainty, it makes sense for the Company to tap its available capacity to generate working capital internally and to minimize its reliance on the capital market to continue to maintain its tight share structure.
The Company is engaged in the acquisition, exploration, development, and production of properties for gold, metals and diamonds in South America, initially focussing on exploration and production of gold from its properties in Guyana. The Company presently holds 100% interest in approximately 850 sq. km of mineral properties in Guyana, including the Million Mountain Property which hosts an NI 43-101 compliant hard-rock resource of 12,119,285 tonnes grading 1.0 g/t Au Measured, and 2,175,278 tonnes grading 0.9 g/t Au Indicated for a total 451,000 tr oz Au combined. The Company has offices in Vancouver, Canada and Georgetown, Guyana. More information about the Company is available at <www.scminerals.com>.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SACRE-COEUR MINERALS, LTD.
“Gregory B. Sparks”
Gregory B. Sparks, P. Eng.
President & CEO
For further information, contact:
Gregory Sparks, President and CEO
Don Mosher-B&D Capital, Corporate Consultant
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.
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