SCOTTSDALE, Ariz., May 3, 2004 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG) GoldSpring is preparing final documents for closing the Timm Mother Lode Mine located in Eldorado County, CA. The process of thorough due diligence often leads down roads that require third party verification prior to being cleared for closing. In this case, we have been both patient and diligent in pursuit of the requisite information upon which to base a business decision to proceed with this acquisition. The sellers have been patient as well and we are both full speed ahead to close.
The Timm family has operated the Timm Mother Lode Mine for over 30 years, until shut down in 1995. The permits have been kept in good standing and are deemed to be adequate to allow GoldSpring to conduct a commercial operation at the existing mine and mill facility. This mine has operated over the years by selectively mining high-grade ore veins and pods that have produced some of the highest grade gold in the famous California Mother Lode. The last 85 tons mined contained 1,200 oz gold (16oz/t). Previous production reports have verified 1,000 oz/t ore. There are over a mile of underground workings, but they only go to a depth of less than 150 feet from the mine entrance. The quartz vein system in this area goes to known depths in excess of 5,000 feet. A small permitted mill is located on site.
The Company's initial plan is to define more clearly the resource potential of the project. As a family operation, little was done other than to find the next high grade pod and mine it. Good records exist for this work, but little future planning was done. Once a working model is in place, mining and exploration drilling on new identified targets will get underway. Preliminary independent engineering suggests a resource potential in the millions of ounces to be developed. What is unique about this exploration opportunity is that the project is already fully permitted allowing for immediate production of exploration results.
GoldSpring is focused on production and rapid growth. Current in-ground reported reserves total approximately $600 million: Gold: $545 Million (1.35 Million oz.), Silver: $25 Million (3.7 Million oz.), and Copper: $30 Million (25 Million lbs.) The Company intends to increase In-Ground Reserves to over 3 million ounces of gold in 2004 through acquisitions and exploration of existing properties.
Management's Finance Team is in London for the Global Mining Forum this week and is visiting our British Institutional investors. Our Acquisitions Team is in Mexico evaluating 3 potential gold and silver acquisitions.
It has come to Management's attention today that the Company's shares may have become listed for trading on the Berlin/ Bremen Germany Stock Exchange without the knowledge, approval or cooperation of the Company. Our securities attorneys are looking into this matter and we will report further.
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