GoldSpring, Inc. announced today results from the updated resource estimate it received from Telesto Nevada Inc., an independent geology firm. The report provides an estimate of the contained resource gold ounces currently drill indicated at GoldSpring’s Hartford Complex in the Comstock Lode District, which represents less than 2% of the Company’s overall holdings. Utilizing a price of $777 per ounce gold and $11 per ounce silver (which was the low range of prices reported yesterday on http://www.goldprice.org), the mathematical valuation of the resource identified in the Report would be approximately $418 million. The Company presented the findings of the resource report yesterday at the Merriman Curhan Ford and Company Investor Summit 2008 in San Francisco. The Company’s presentation can be viewed via webcast at http://www.wsw.com/webcast/mcm10/gspg.ob/.
The updated estimate includes data from 19 additional drill holes not included in the Company’s June 10, 2008 Preliminary Resource Report. Based on the 57 drill holes completed as part of the current drill program, and 450 drill holes from prior drill campaigns, the estimate indicates a resource of 7,179,984 tons grading 0.072 ounces per ton gold containing 510,000 ounces of gold at a cutoff grade of 0.030 ounces per ton.
The Preliminary Resource Report dated June 10, 2008, based on the previous drill campaigns and the 38 drill holes which the Company had completed at the time of the Report, indicated a resource of 4,926,000 tons grading 0.080 ounces per ton gold containing 392,000 ounces at a cutoff grade of 0.030 ounces per ton. The resource indicated in the preliminary report would have a valuation of $305 million based on current gold prices.
“We will continue to develop the drill indicated resource while exploring our expanded property position. We anticipate that the development activities will result in gold and silver production during 2009. Additionally, we will continue to explore for new deposits within the boundary of our consolidated land position,” stated Jim Golden, GoldSpring’s COO.
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.