VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR OTHER DISSEMINATION INTO THE U.S.A.
GoldenFame Resources Corp. (TSX VENTURE:GFA) ("Golden Fame" or the "Company")has signed an Option Agreement to acquire up to a 70% interest in theAlgun Dia gold project east of Guanajuato, Mexico, owned by SenorRodolfo Rodriguez Aldaco ("Aldaco").
"Algun Dia is an advancedstage exploration project with demonstrated past economic production ofgold, silver and copper mineralization. The property has well definedtargets for development of significant amounts of additional similarmineralization for resumed mine production. The Company will immediatelystart the permitting and planning work to drive a 600 plus meterdecline on the Santa Cecelia vein that will serve as both an explorationdrift and facilitate future production should the Company findsufficient mineralization," comments CEO, Graham Clark.
Under theterms of the Agreement, Golden Fame has the option to earn a 70%interest in the Algun Dia project over a three-year period by makingpayments to Aldaco totaling $4.3 million, issuing to Aldaco 3 millioncommon shares of Golden Fame, and expending a minimum of $6.5 million onexploration/development work on the project. The property hosts a veinstructure with mineralized widths of up to 10 meters that has been minedfor gold, silver and copper. Historical reports indicate that in theperiod 2002 through 2007, the property produced approximately 15,000tons of ore that was processed at a mill in Guanajuato owned by PenolesMining Company of Mexico and produced 750 tons of gold, silver andcopper concentrate that was sold to an offshore smelter.
Historicalreports also indicate that that there are 5 northwest trendingmineralized structures that traverse the property. Golden Fame'ssampling to date has confirmed mineralization along this trend for morethan 2000 meters and the zone is up to 200 meters wide based on theCompany's preliminary interpretation.
Prior exploration on theproperty includes 11 diamond core holes totaling approximately 2000meters; two of the drill holes intersected the Santa Cecelia vein atapproximately 140m down-dip from the underground workings. Recordsindicate that both holes encountered gold, silver and coppermineralization at grades and over widths similar to what was mined inthe overlying workings. According to historical records that were notprepared in accordance with NI 43-101 and have not been verified by theCompany, drill hole number AD-8 encountered 14 meters assaying 2.34 ppmAu, 120.3 ppm Ag and 1.88% Cu. Hole AD-10 drilled 16 meters assaying1.71 ppm Au, 104 ppm Ag and 1.51% Cu. Both holes were drilled to theeast northeast with the intention of crossing the northwest trending andsouthwest dipping structure at angles that would approach true widthaccording to the interpretation of the geology, and Golden Fame's 2011exploration work will place a priority on further work to define thetrue thickness of this mineralization.
Golden Fame has completedan initial round of geological due diligence analysis and sampling ofboth surface mineralization and underground workings on the property.The Company's sampling confirmed significant gold, silver and coppermineralization including an underground channel sample across a portionof the vein in the Santa Cecelia drift with 3 meters grading 9.93 ppmgold, 74.1 ppm silver, and 6890 ppm copper. The surface samplingproduced a chip sample across 3 meters which assayed 65.2 ppm gold, 35.8ppm silver, and 1890 ppm copper. Other surface samples of note includeda 3-meter chip sample assaying 5.16 ppm gold, 563 ppm silver, and 9430ppm copper.
Chalcopyrite mineralization is visible in samples fromunderground and on surface and Golden Fame obtained copper values ashigh as 2.4% in a 1.2 meter channel sample on the surface and as high as1.98% in a channel 1 meter channel sample from underground.
TheCompany has commissioned Caracle Creek International Consulting, ofSudbury Ontario, to prepare a NI 43-101 compliant Technical Report onthe property and that work is currently underway.
Golden Fame'sminimum work expenditure for the first six months is $2 million to becompleted by December 31, 2011. The 2011 exploration program willinclude drilling to explore for down dip and strike extensions of theproductive Santa Cecelia vein, surface mapping and sampling of severalother mineralized zones on the property and importantly, completing anew exploration decline on the Santa Cecelia vein.
Finalizing theOption Agreement is subject to obtaining necessary regulatory approvals,including approval of the TSX Venture Exchange.
Lawrence Dick, adirector of the Company and a Qualified Person as defined in NI 43-101,supervised the preparation of the technical information in this newsrelease.
About Golden Fame Resources
Thefocus of Golden Fame is to acquire and put into production historicallyproductive gold, silver and copper properties that have become economicdue to the robust upward movement in metals prices.
On Behalf of the Board of Directors,
Golden Fame Resources Corp.
Graham Clark, President, CEO & Director
FORWARDLOOKING STATEMENTS: The forward-looking information contained in thispress release is made as of the date of this press release and, exceptas required by applicable law, the Company does not undertake anyobligation to update publicly or to revise any of the includedforward-looking information, whether as a result of new information,future events or otherwise, except as may be required by law. By itsvery nature, such forward-looking information requires the Company tomake assumptions that may not materialize or that may not be accurate.This forward-looking information is subject to known and unknown risksand uncertainties and other factors, which may cause actual results,levels of activity and achievements to differ materially from thoseexpressed or implied by such information.
Neitherthe TSX Venture Exchange nor its Regulation Services Provider (as thatterm is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.