MONTREAL, QUEBEC--(Marketwire - Oct. 28, 2010) - GoldenShare Mining Corporation ("Golden Share") (TSX VENTURE:GSH) is pleasedto announce the acquisition of the past producing Berens River Property("Berens River") in the Red Lake district of Northwestern Ontario,Canada.
Berens River hosts the past producing Berens River Mine whichwas operated by a subsidiary of Newmont Mining from 1939 to 1948 andproduced 158,000 ounces of gold and 5.8 million ounces of silver as wellas 1.7 million pounds of zinc and 6.1 million pounds of lead.
The historical production originates from the No.1 Vein, oneof the ten veins recognized on the Property and the only one havingundergone mining. The No.1 Vein was mined by shaft No.1 which was sunkto a depth of 990m although no production has been recorded below the518m level. A second shaft was sunk to a depth of 232m on the No.3 Veinbut has not yet entered into production.
Berens River is located 200 km north of Red Lake in theFavourable Lake Greenstone Belt of Northwestern Ontario and consists ofone claim comprising 15 units for a total area of 238 hectares (seefigure: https://media3.marketwire.com/docs/Berens_River_1028.pdf or visit : https://www.goldenshare.ca).Winter road access is possible from Red Lake, Ontario. The property canalso be reached by float and ski plane services operating out of RedLake.
The geology of the area consists of a sequence of foldedArchean metavolcanic and metasedimentary rocks which have been intrudedby gabbro and granitoid masses. Gold and silver mineralization isassociated with strongly silicified hydrothermally altered zones whichhave been developed in steeply dipping, fracture-shear-fault systems.Many of these vein systems have been identified on the property.However, past exploration efforts have been concentrated on only two ofthem; the No. 1 Vein system, the site of the former Berens River Mineand the nearby No. 3 Vein system. Considerable exploration potentialremains for gold and silver mineralization in similar quartz vein shearzone hosted structures located throughout the property.
Several historical, non NI 43-101 compliant resourceestimates, have been completed on the No. 3 Vein and the most recent andconservative estimate executed in 1989 by Watts, Griffis, McOuat Ltd.outlined a mineral inventory of 43,000 ounces of gold and 981,000 ouncesof silver above the 300m level (174,000 tonnes at a grade of 7.72 g/tAu and 175.22 g/t Ag)*. No resource calculation has ever been executedon the other Berens River veins.
Philippe Giaro, President and CEO, stated "This acquisitionrepresents an additional key step in Golden Share's approach todeveloping overlooked gold belts. The Red Lake District is world famousfor its high grade mineralization and Berens River is no exception. Thereported historical silver grades come as a significant bonus givencurrent market conditions for this metal. While this property has beenthe object of past production and exploration, it has been virtuallydormant for the past 20 years with last significant work programsexecuted while gold was at $US 400/oz and silver at $US 5/oz.Considerable exploration potential remains for gold and silvermineralization and Golden Share's first program will consist of anexhaustive compilation of all historical data. We will provide regularupdates on the on-going developments of the new exciting project."
The acquisition transaction (the "Transaction") of Berens River by Golden Share is structured in the following manner :
- Acquisition of Nanoose Gold Limited ("Nanoose"), a private Canadian Company, through a share exchange on a one to one share basis. Golden Share has issued 5,000,000 Golden Share common shares (the "Shares") to the Nanoose shareholders to complete the Transaction, at a deemed price of
.21 per Share. Additionally Golden Share has issued 471,100 common share purchase warrants with an exercise price of
.15 for a period of 24 months from the date of the Closing of the Transaction (the "Closing"). Of the 5,000,000 Shares issued to the Nanoose shareholders upon Closing, 3,000,000 Shares will be held in escrow and released over a five-year period, 1,450,000 of which will be released in the first year following the Closing.
- Nanoose has an Option Agreement to acquire a 100% interest in Berens River. Golden Share will take over Nanoose's commitments to the Property Optionors and will pay a total of $480,000 cash and issue a total of 1,000,000 Shares, at a deemed price of
.21 per Share over a five year period. A payment of $20,000 in cash and 200,000 Shares was executed upon Closing. Additional payments of $60,000 cash and 200,000 Shares are due to the Optionors in the first year following the Closing.
Following the acquisition of a 100% interest by Golden Share,the Vendor will retain a 2% Net Smelter Royalty (the "Royalty"). GoldenShare will have the right to purchase a portion equal to a half of theRoyalty for $2,000,000 (1% Royalty) at any time prior to commencement ofcommercial production.
Thomas Clarke, currently CEO of Nanoose, was appointed to theboard of directors of Golden Share upon Closing. Mr. Clarke is ageologist who has experience working in gold, platinum and base metalsas well as the Alberta oil sands. Mr. Clarke holds a Bachelor of Science(Honours) in Geology, and a Master of Science (Geology) from theUniversity of the Witwatersrand in Johannesburg, South Africa. Mr.Clarke is also a Qualified Person as per NI-43 101.
In connection with the Transaction, Golden Share has paid acommission consisting of a total of 79,891 Shares and 79,891 commonshare purchase warrants with an exercise price of
.23 for a period of24 months from the date of the Closing.
*These estimates were executed prior to the introductionof National Instrument 43-101; hence they should be treated ashistorical data and therefore not be relied upon.
Philippe Giaro, P.Geo., President and CEO of Golden ShareMining Corporation and Qualified Person for Golden Share, has reviewedand approved the content of this release.
Neither TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.