GOLD HILL, Nev., Sept. 27, 2006 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG) announced today that it has entered into a final agreement with its current mining contractor to continue operations through November 2006. The agreement calls for a minimum monthly delivery of 20,000 tons per month of ore to the crusher, with a 23% discount on the per ton fee for any month in which the minimum is not met. The Company has already prepaid almost all of the projected fees due to the contractor through the end of the contract term, so any further payments should be minimal. The agreement also allows the Company to purchase all of the equipment deployed by the contractor at the end of the agreement for $540,000, with a $30,000 per month payment starting in December 2006 and a $420,000 balloon payment in April 2007. Through the end of last week, 16,000 tons of ore had been delivered to the crusher, and the contractor anticipates delivering at least another 4,000 tons on or before September 30th.
In discussing the agreement, Rob Faber stated: "This final contract for mining by a third party should yield the 20,000 ton minimum goal we have set and we are optimistic about reaching 25,000 tons by November. These milestones put us well on our way to the desired benchmark of yielding 1,000 ounces of gold per month sometime early next year. In addition to increasing mining capacity, this means that as of December 1, 2006, all mining will be internally contained, which puts us in charge of our destiny and allows us to continue on our quest to maximize shareholder value."
About Goldspring, Inc. GoldSpring, Inc. is a North American precious metals mining company with an operating gold and silver mine in northern Nevada. The Company was formed in mid-2003 and acquired the Plum Mine property in November 2003. In the Company's relatively short history, it secured permits, built an infrastructure and brought the Plum project into production. During 2005, the Company acquired additional properties around the Plum project in northern Nevada, expanding its footprint and creating opportunities for exploration. GoldSpring is an emerging company, looking to build on its success through the acquisition of other mineral properties in North America with reserves and exploration potential that can be efficiently put into near-term production. The Company's objectives are to increase production, increase reserves through exploration and acquisitions, expand its footprint at the Plum mine, and maximize cash flow and return for its shareholders.
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 Form 10-KSB filed on April 15, 2005, 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.