GoldSands Development Company (OTCBB:GSDC) (OTCQB:GSDC) is pleased
to announce follow-on activity to the agreement signed on January
20, 2012 of a Mineral Right Option and Joint Venture Agreement (the
"Agreement") with Mineros S.A. ("Mineros") of Colombia, South
America. The Agreement grants Mineros two exclusive options
entitling it to acquire up to an eighty-five percent (85%) interest
of GoldSands' ownership interest in 50 Mineral Rights Concessions
located in Northeast Peru ("Mineral Rights") which it refers to as
its Peru GoldSands project. Mineros has agreed to enter into the
Agreement to both explore and potentially develop the Mineral
Rights.
Mineros SA, a company publicly traded on the Colombia Stock
Exchange, is Colombia's largest gold producer, and one of the
world's largest producers of alluvial gold. Mineros' 2011 gold
production was primarily from alluvial mining projects, with an
annual alluvial gold yield of approximately 95,231 ounces, compared
to approximately 20,652 ounces from their underground mining
operations. For the last several years, Mineros has actively been
seeking additional prospective gold projects in South America.
Mineros' 2011 budget for operational expansion was US$48.411
million, of which US$25.814 million solely for new exploration
activities. Under the Agreement, Mineros has the right to conduct
due diligence investigations through April 30, 2012.
During this time, GoldSands will grant Mineros access to the
property underlying the Mineral Rights. GoldSands has learned that
Mineros, in pursuance of its due diligence work, is planning to
send employees from the company, as well as technical equipment to
the GoldSands property site. The initial team is comprised of a
Legal expert, an Environmental expert, a Social expert and 3
Geologists.
A technical meeting involving employees and management from both
Mineros and GoldSandsCo took place on March 12 in Lima. The Mineros
team is on the way to our Company's Base Camp in Saramiriza, in
preparation for their work on the GoldSands properties.
Chairman of the Board, Patrick Gorman states:
"We are very pleased at the comprehensive planning and measured
speed with which Mineros is moving in the course of their due
diligence efforts on our properties. It is refreshing to be allied
with potential partners who display such high level organizational
skills and professionalism in the conduct of their work."
Mineros plans to bring in its own drill equipment (2 drills) for
the future exploration program, indicating a desire to perform test
sampling along the (Maranon) River. These drills, which are more
robust than the Company's test equipment, will be able to sample
alluvial deposits as far down as 35 - 50 meters from surface - at a
greater depth than was performed during GoldSandsCo's previous
drill hole sampling work.
About this development, GoldSands CEO Michael Stocker
remarks:
"Based upon recent meetings, Mineros seems to believe that
higher grade gold may lie at a greater depth than our (GoldSandsCo)
drills were able to reach during our previous exploratory drill
hole programs. To the best of our knowledge, this will be the first
time that anyone in the area has gone deeper than 35 meters.
"The potential existence of a substantial gold deposit just
above bedrock is an exciting possibility to consider. However, we
must caution, that at the present time, such speculation is only an
assumption on our part. 'Time will tell', as they say. It is too
early to conclude if such higher grade gold deposits can be found
on our property, but we are confident that Mineros has the
know-how, the people, and the skills to evaluate this opportunity
in a professional way."
Under the Agreement, Mineros has the right to conduct due
diligence investigations through April 30, 2012. During this time,
GoldSands will grant Mineros access to the property underlying the
Mineral Rights. In addition, GoldSands will supply any and all
relevant documentation necessary for Mineros to reach a decision as
to whether or not to proceed with Option 1 (see January 20, 2012
News Release). During the due diligence period, Mineros will be
entitled to collect samples, with Mineros being solely responsible
for all related costs, including any services performed by
GoldSands.
The Company can provide no assurance that this Agreement will
result in the Company and Mineros entering into a joint venture
agreement for the purpose of carrying out further development work
and production on the Mineral Rights. In addition, this Agreement
should not be construed as any indication that the Company's Peru
GoldSands project contains alluvial gold in economical quantities
that would support commercial production.
About GoldSands Development Company
The Company's goal is to fully develop its Peruvian GoldSands
project. The Company's GoldSands project in Peru consists of
options on 461 square kilometers (178 square miles) of mining
property, the largest such block in the district. For thousands of
years, the waters of the Santiago and the Maranon rivers have been
carving their way through the gold-rich mountain canyons of the
Andes, carrying off gold and depositing it, as the river comes out
into the plain, in the loose gravels and sands - GoldSands - in the
area the Company now controls.
Results from test holes drilled during GoldSands' exploratory
drill program indicated the presence of alluvial gold in economical
quantities. While the Company considers results from the drill
programs and recently completed test mining production to be
favorable, the Company cautions that these results do not indicate
the presence of a commercially viable mineral deposit over most of
the area and an extensive amount of further exploration and funding
is needed to determine the full feasibility of the project.
The Company completed a social baseline study involving a series
of meetings with local residents and other stakeholders in the
region. The Company intends to work in an equitable, transparent,
and socially responsible manner with local communities, suppliers
and employees. The Company is committed to acting as stewards of
the local and regional ecological systems, behaving in an
environmentally responsible way, leaving a minimal "footprint" as a
result of our operations. The Company is working towards building
trust and sustaining relationships that go well beyond mining
operations. The full implementation of these programs will require
the Company to secure additional financing.
Further information about GoldSands Development Company may be
found at: www.goldsandsco.com.
On behalf of the Board:
Dr. Michael Stocker - CEO
GoldSands Development Company
Disclaimer
This release contains forward-looking statements that are based
on beliefs of GoldSands Development Company management and reflect
GoldSands Development Company's current expectations as
contemplated under section 27A of the Securities Act of 1933, as
amended, and section 21E of the Securities and Exchange Act of
1934, as amended. When we use in this release, the words
"estimate," "project," "believe," "anticipate," "intend," "expect,"
"plan," "predict," "may," "should," "will," "can," the negative of
these words, or such other variations thereon, or comparable
terminology, are all intended to identify forward looking
statements. Such statements reflect the current views of GoldSands
Development Company with respect to future events based on
currently available information and are subject to numerous
assumptions, risks and uncertainties, including but not limited to,
risks and uncertainties pertaining to development of mining
properties, changes in economic conditions and other risks,
uncertainties and factors, which may cause the actual results,
performance, or achievement expressed or implied by such forward
looking statements to differ materially from the forward looking
statements. The information contained in this press release is
historical in nature, has not been updated, and is current only to
the date shown in this press release. This information may no
longer be accurate and therefore you should not rely on the
information contained in this press release. To the extent
permitted by law, GoldSands Development Company and its employees,
agents and consultants exclude all liability for any loss or damage
arising from the use of, or reliance on, any such information,
whether or not caused by any negligent act or omission.
Contacts: GoldSands Development Company Investor Inquiries:
North America Toll Free: 800-215-0811 Direct Dial:
360-339-7309info@goldsandsco.com www.goldsandsco.com
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