Message #51 From:
NewsBot Date: August 19, 2008 01:29:14 PM
GSPG Stock: GoldSpring Enters into Agreement to Acquire Mineral Rights to Properties in Comstock Lode
Reports Suggest Bonanza Levels of Ore Mined on Certain Properties
GOLDHILL, Nev., Aug. 14 /PRNewswire-FirstCall/ -- GoldSpring, Inc.
(OTC Bulletin Board: GSPG stock), announced today that it has executed binding
Letters of Intent to purchase properties in Nevada's Comstock Lode Mining
District, further consolidating its position as the largest mineral rights
holder in the area. Some of the properties the Company is acquiring have
previously produced significant amounts of gold and silver.
The Company has entered into agreements, with a related-party shareholder,
to purchase assets, including patented and unpatented lode mining claims from
DWC Resources, Inc. DWC Resources owns mining claims for properties in the
Comstock Lode district that previously generated substantial amounts of gold
and silver. The Company also entered into a sub-lease agreement for the Sutro
Mining Company properties in the Comstock Lode district. The purchase price
for the transactions has been agreed upon but is subject to a fairness opinion
to be provided by an independent appraiser. The Company also acquired the
lease interest of the Occidental Lode group, consisting of six patented mining
claims in the Comstock Lode district.
'The acquisitions of these properties, several of which produced
appreciable amounts of gold and silver at a time when sophisticated mining
techniques did not exist, is a logical step in our efforts to further
consolidate our holdings in the Comstock Lode,' said Rob Faber, GoldSpring's
Chief Executive Officer. 'In addition, these acquisitions enhance our
financial flexibility by securing interests that have historically contained
notable amounts of gold and silver.'
DWC Resources, Inc ('DWC') -- Purchase
GoldSpring has entered into an agreement to purchase approximately 188
acres of patented mining claims and associated unpatented claims from DWC.
The property includes numerous historic mines within GoldSpring's permit
boundary. Historic profitable gold and silver producing mines include the New
York Mine, Keystone Mine, Alta Mine, Lady Washington Mine, Woodville Mine, and
Justice Mine. (Mines and Mills of the Comstock Region Western Nevada, 1989,
by Mary B. Ansari). The ore-body in the Hartford Complex, currently being
drilled by GoldSpring, trends onto the DWC lands. The DWC property lies
within this target environment that can be explored under existing permits
with exploration and drilling expected to commence in the third quarter of
this year.
Sutro Mining Company -- Sublease
GoldSpring has entered into an agreement to sub-lease the Sutro Mining
Company's patented mining claims and additional landholdings. The Company
also has acquired the rights to explore and exploit precious metals on these
historic mining claims. GoldSpring has added 225 acres through the
contemplated acquisition of these properties. Historic precious metals mines
of the Gold Hill Mining District are included in this acquisition. The more
famous mines included are: Consolidated Imperial Mine, the Bowers Mine,
Imperial Mine, Rogers Mine, Con Imperial Pit, Confidence Mine, Yellow Jacket
Mine, Kentuck Mine, Challenge-Confidence Mine, and the Crown Point Mine.
(Mines and Mills of the Comstock Region Western Nevada, 1989, by Mary B.
Ansari). These properties, coupled with GoldSpring's down-dip unpatented
claims, provide exploration targets in areas from which bonanza-grade ore has
historically been mined.
Occidental Lode -- Mining Lease
GoldSpring has acquired the Occidental Lode, a group of six patented
claims, lying to the east of Gold Hill. The property is the site of historic
Brunswick Mine.
The acquisitions relating to the interests of DWC and Sutro properties are
subject to customary closing conditions, including, but not limited to,
satisfactory appraisals and documentation.
GoldSpring, Inc. is a North American precious metals mining company,
focused in Nevada, with extensive, contiguous property in the Comstock Lode
District. Our Company was formed in mid-2003, and we acquired two properties
in the Comstock Lode before the end of the year. We secured permits, built an
infrastructure and brought the exploration project into test mining production
within a year of its acquisition. The Company, in 2005, began consolidating
the Comstock Lode by acquiring additional properties in the district,
expanding our footprint and creating opportunities for exploration and mining.
We are an emerging company, looking to build on our success through the
acquisition of other mineral properties in the Comstock Lode District with
reserves or exploration potential. The Company's objectives are to increase
reserves through exploration, expand its footprint in the Comstock, resume
mining, optimize its production, and maximize shareholder value.
The Private Securities Litigation Reform Act of 1995 provides a 'safe
harbor' for forward-looking statements. Certain information included in this
communication (as well as information included in oral statements or other
written statements made or to be made by GoldSpring) contains statements that
are 'forward-looking,' as defined in Section 21E of the Securities Exchange
Act, such as statements relating to the future anticipated direction of the
high technology and energy industries, plans for future expansion, various
business development activities, planned capital expenditures, future funding
sources, anticipated sales growth, mining capability and potential contracts.
Such forward-looking information involves important risks and uncertainties,
which include the risk factors disclosed in our most recent filings with the
U.S. Securities and Exchange Commission, that could significantly affect
anticipated results in the future and, accordingly, such results may differ
from those expressed in any forward-looking statements made by or on behalf of
GoldSpring. These risks and uncertainties include, but are not limited to,
those relating to development and expansion activities, dependence on existing
management, financial activities, domestic and global economic conditions,
changes in federal or state tax laws and market competition factors. These
and other factors, which could cause actual results to differ materially, are
discussed in more detail in GoldSpring's filings with the Securities and
Exchange Commission. Forward-looking statements include statements regarding
our expectations, beliefs, intentions or strategies regarding the future and
can be identified by forward-looking words such as 'anticipate,' 'believe,'
'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'should,' 'will,' and 'would'
or similar words. We assume no obligation to update the information included
in this press release, whether as a result of new information, future events
or otherwise.
Contact information for GoldSpring, Inc.: P.O. Box 1118 Virginia City, NV 89440 Tel 775.847.5272 Fax 775.847.4762 http://www.goldspring.us
Robert T. Faber, President and CEO 480.603.5151 775.847.5272 E-mail: rfaber@goldspring.us
