GOLD HILL, Nev., May 17, 2006 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG) announced today that Jim Golden, licensed mining engineer, has been appointed Chief Operating Officer. In November 2005, GoldSpring retained Mr. Golden to conduct a comprehensive review of all aspects of the Plum Mine operation, including the overall mine plan, with the objective of maximizing efficiency, increasing production, and reducing costs. Mr. Golden assembled a team of professional mining consultants, who are recognized experts in their respective disciplines, to assist in his review of the operation. The Company has been implementing the team's recommendations for the past few months and is starting to recognize the benefits of the operational improvements. Through the implementation of the team's recommendations, the Company recorded its first quarterly profit from operations in the first quarter of 2006.
Mr. Golden has over twenty years of experience in the mining industry, including ten years with Peter Kiewit's mining division, where he was a district manager. A graduate of Montana Tech, Mr. Golden has owned his own consulting firm since 1990, where he has provided consulting services throughout the world for over 50 mining companies. GoldSpring's President and CEO, Rob Faber, said, "We are excited to have Jim Golden as an officer of our Company. Jim brings a wealth of industry experience and professionalism to GoldSpring, and we expect to reap many positive rewards from having him as a member of our team."
GoldSpring also announced that it has resumed drilling and processing operations at the Plum Mine in the last week and mining operations commenced on May 15, 2006. In a joint effort with Mine Development and Associates, the Company has recently completed its mine plan. Within the next six weeks, the Company expects to receive a qualified report measuring its proven and probable reserves. Based on the mine plan and internal calculations, the Company expects to ramp up monthly gold production to 1,200 ounces by mid-summer 2006 and anticipates gold production costs of less than $350 per ounce. Jim Golden stated, "Since last November, we have focused on improving the fundamentals of our operation, and we are now experiencing the positive results of our efforts. The current gold prices make this a unique time for developing mining companies, especially in the United States. We are excited about the possibilities created by this market and look forward to seizing the opportunities available for growth both within and outside the Comstock Lode of Nevada."
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 three years in existence, it has accomplished the following: secured permits, built an infrastructure and brought the Plum Mine project into production. During 2005, the Company sought to expand its business even further by acquiring additional properties around the Plum project in northern Nevada, expanding its footprint and creating additional opportunities for exploration. GoldSpring is an emerging company, looking to continue to expand upon its foundation and success through the acquisition of other mineral properties in North America which have reserves and exploration potential that can be efficiently put into near-term production. The Company's objectives are to increase production and reserves through exploration and acquisitions and expand its footprint at the Plum mine, thereby maximizing Company cash flow and shareholder value.
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 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.