Sierra Leone: Sunergy Provides Update on Dredging Operations on Pampana River Rare Earth

Sunergy, Inc is pleased to provide update #2 for shareholders on its dredging operations on the 140 sq. km. Pampana River in Sierra Leone, West Africa. The information below comes as an update from Dale Bourassa, President and COO Allied Mining and Supply LLC and Chief of Sierra Leone Operations for Sunergy, Inc.

“We are deep into the second month of dredging operations on our Pampana River Project in Sierra Leone. Production has increased daily for the past 3 weeks. Visible gold production is up, from 1.5 grams to 3 grams per ton of feed gravel. We are now recovering more than the estimated 100 lbs./ton of rare earth black sands concentrate from each ton of feed. Management believes that over 80% of the free gold remains in the black sands concentrate. We clean the sluice out at the end of each 10 hour shift. By the end of this week, we will have 40 tons of rare earth black sands concentrate stockpiled. 40 tons is the maximum allowed to fit in the 40 foot shipping container that we own in Freetown. Management projects that an additional 40 tons of Rare Earth black sand concentrates can be produced by the end of June.

We work closely with the local Chief and his people and currently we employ a total of 50 men and women and rank number two behind African Minerals, the largest iron ore producer in Sierra Leone, in total number of employees in the Tonkolli district. Community relations are strong as we are bringing new prosperity to this community”

Bryan Miller, President comments: “Management is pleased and excited that dredging operations are really performing better than expected. There is another discreet product coming regularly from the dredging that is different from the REE black sand concentrates that is being tested to determine if there is an added economic benefit to operations. Further details will be available once testing is complete. We are also studying opportunities to expand our rare earth/gold and other technology metals operations in the near term.”

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Source: sunergygold, June 14, 2011;