SCOTTSDALE, Ariz., Aug. 30, 2004 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG) operates its Plum Mining Billie The Kid gold and silver cyanide heap leach project located just outside Virginia City, NV and takes this opportunity to correct information contained in the August 18, 2004 Press Release, as follows: The line that began " There are regular shipments to Johnson Matthey Refinery, Salt Lake City, Utah, which has already received over 1,400 ounces of gold and 6,000 ounces of silver from Plum, was not correctly stated and is hereby restated correctly as follows: " which has already received, as of August 12, 2004, 1,137 ounces of gold and 4,985 ounces of silver from Plum." It should have said that an additional amount of already recovered, but not yet smelted gold and silver precipitate will be shipped once completed. This amount was estimated at the time and should not have been stated that it was also already at the refinery. Subsequently about 160 ounces of gold and about 600 ounces of silver have been shipped and received, giving about 1,300 ounces gold and about 5,600 ounces of silver. There is additional stripped precipitate at Plum that will pour and ship by Tuesday, August 31, 2004.
Steve Parent, CEO says, "Any misimpression this may have created was an oversight on my part and I wish to extend apologies for any inconvenience this correction may cause. The good news is that we are stripping one bank of the Merrill Crowe, it has two, about every 7-8 days and will pour within a day or so once the precipitate has dried and is suitable for smelting in our furnace. Dore is usually poured and shipped the same day for security reasons, but not refined until several buttons arrive, for economic reasons. Exact numbers are accurate only when refining is complete. Gold Spring's reporting policy is to include production results in Quarterly reports and this is a clarification of same. Metals are typically sold as deliveries against existing spot deferred contracts, if the net price to us exceeds the spot price or sold at spot prices if that price is higher than the deferred contract price at the time of sale."
Mining, drilling, hauling, crushing, agglomerating and leach pad loading are running smoothly at the hands of N.A. Degerstrom, our contract miner, who operates four days a week for 10 hours a day. Approximately 2,500 tons are loaded each day, which is limited due to current Air Quality Permit limitations. Sierra Pacific power is scheduled to replace the 1000KW generator and other steps are being undertaken to enable Air Quality permits to enable us to increase daily production to our targeted 4,000 ton/day level. All leach pad operations such as pumping cyanide solution to the heap, processing of solutions through the Merrill Crowe plant and precipitate and dore handling are run by Plum Mining personnel, again, for security purposes.
AMEX FILING: Our listing application is still pending and we have not received acceptance or rejection.
S-1 FILING: The Company is responding to a current round of questions/comments from the SEC.
Safe Harbor
Statements contained in this press release, which are not historical facts, are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.