NEWS!!!!!!!!!!!STERLING FILES EVALUATION REPORT FOR PHOSPHATEDEVELOPMENT IN CHINA -
November 28, 2011
Sterling Group Ventures, Inc. (the"Company") is pleased to report that it has filed a Property Evaluation Reporton the Gaoping Phosphate Project located in Chenxi County, Hunan Province, Chinawith the SEC. The report was prepared by Norm Tribe, P. Eng., of N. Tribe &Associates Ltd. The purpose of the report is to provide an evaluation of theGaoping Project Mining Lease, the applied for expansion of that lease and thearea referred to as the Tanjiachang Exploration License.
During aproperty visit, in August, 2011, Mr. Tribe collected six chip and muck samplesof the phosphorite beds from different active adits along the strike within theGaoping Lease and personally delivered them to the ALS Chemex Laboratory inNorth Vancouver. The results varied from 19.40% P2O5 to 32.86% P2O5. The sampleswere prepared and assayed by ALS Chemex in North Vancouver B.C.
TheCompany through its wholly owned subsidiary in Hong Kong, Silver CastleInvestments Ltd., has acquired a Mining Lease covering a phosphorite property 38kilometers east of Chenxi in the Tanjiachang Phosphorite area. The lease is0.425 square kilometers above an elevation of 510 meters and is referred to asthe Gaoping Mining Lease. The Company is preparing an application to expand thisMining Lease and to apply for an Exploration License to include what is referredin the report as the Tanjiachang Exploration Concession, which in earlier pressreleases was referred to as Gaoping, in order to further expand the area forpotential phosphate exploration. This license is expected to be granted. Thearea of the Tanjiachang Exploration License is estimated by the Hunan ChemicalGeological Exploration Institute, a local geological consulting firm, to contain58 million tonnes of phosphorite with a grade of 19.8% P2O5. This estimate isnot NI43-101 compliant. A letter of intent, authored by the Chenxi CountyMerchants Bureau (CCMB), Hunan Province, China, and Silver Castle InvestmentsLtd., supports this application. A prior agreement was made between ChenxiCounty government and the shareholder of Chenxi County Hongyu Mining Co("Hongyu"), a company which was acquired by Silver Castle Investments Ltd. Thearea encompassed by the Gaoping Mining Lease has had artisan production for manyyears and conditions for an organized formal mining project appear favorable.
Mr. Tribe, P.Eng., of N. Tribe & Associates Ltd. estimates anInferred Resource of 2,190,142 tonnes at a grade of 22.58% P2O5 within theexisting Gaoping Mining Lease. Expansion of the Gaoping Mining Lease to 1.34square kilometers and to a depth of 440 meters elevation would increase theInferred Resource to 7,874,148 tonnes of 22.58% P2O5.
The property iseasily accessible and has adequate infrastructure.
The PropertyEvaluation Report on the Gaoping Phosphate Project states that mining couldcommence immediately with an expenditure of about $500,000. This would providesurface infrastructure and mine startup funding. An adit collared on thephosphorite outcrop would provide immediate income for the operation and wouldbe self sustaining and profitable throughout the remainder of its developmentand exploitation phases.
The Company is currently working with its Chinabased professional mining consultants to prepare an efficient mining plan and tocommence mining early in 2012. The phosphorite is an easily mined sedimentarydeposit which occurs in the Jinjiadong Formation of the Upper Sinian.
Acquisition of the Tanjiachang Exploration Concession is expected tocost 87,000,000 Yuan ($13.68 million) over a six year period. Most of this costis to be accredited through applied exploration and development work. The costof the acquisition of the Tanjiachang Exploration License is based on 58 milliontonnes of phosphorite and a prepaid royalty of 1.5 Yuan per tonne amounting to$13.68 million. The payment of this royalty can be spread out over six years anda schedule of work credits can be applied as payment in lieu. The exact numbersare therefore, not possible to be worked out at this point in time. Arecommended exploration program on the Tanjiachang Exploration Licenseconsisting of trenching, assaying and preliminary metallurgical testing has beenset forth in the report. The total amount for this exploration work is budgetedat $127,350. These exploration expenditures would then be applied against futureroyalty payments.
This release has been reviewed by Norman L. Tribe, P.Eng., a Qualified Person pursuant to National Instrument 43-101.
ONBEHALF OF THE BOARD OF DIRECTORS
Raoul Tsakok, Chairman &CEO
For further information, please check the Company's SEC 8-K filingsor contact:
Richard Shao, PhD, President or Robert Smiley, JD,Director
Phone: (604) 689-4407 Fax: (604) 408-8515