Silver Shield enters into letter of intent for Real de Guadalupe Gold / Silver Mine Mexico
BURLINGTON, ON, Sept. 13, 2012 /CNW/ - Silver Shield Resources (TSXV: SSR) ("Silver Shield" or the "Corporation") is pleased to announce that it has entered into a letter of intent to acquire a undivided 100% interest in the former producing Real de Guadalupe Gold and Silver Mine in Guerrero State Mexico. The Corporation has until November 17, 2012 to complete its due diligence and enter into a binding agreement upon successful review of the property, title and property visits. Terms for the letter of intent are stated in USD, and are as follows:
|1)||Payment of $5,000.00 upon signing to enable Silver Shield geologists the unfettered access to the property and all mining and technical records.|
|2)||Upon signing a formal deal Silver Shield Resources will pay a sum of $30,000.00. Payments are staged as follows: $30,000.00 at the six, twelfth, eighteen anniversary dates with $50,000.00 due on the 24th month anniversary, $100,000.00 on the 30th month anniversary, and a final payment of $230,000.00 due on the 36th month anniversary.|
|3)||Upon completion Silver Shield Resources will have 100% ownership of the Real de Guadalupe Gold and Silver Mine, with a stated royalty of $3.00 per tonne payable to the vendors.|
About the Real de Guadalupe Mine
The Mine consists of 500 hectares and lies in Guerrero State, Mexico approximately 40 km northeast of Ixtapa-Zihuatenejo. The mines of the area date back to the 1800's when the Spaniards worked on near surface Gold, Silver, Copper, Lead & Zinc veins. Reported historic production at Real de Guadalupe, averaged 450 grams Silver and 2 grams Gold, with a high lead and zinc content. The style of mineralization is classified as epithermal, poly-metallic of low to medium sulphidation. There are some mineralized stockpiles on surface, tailings from the previous milling and reported mineralized material remaining in the mine. The mine closed in 1989 due to infrastructure issues with the 50 t/day mill. Mining was performed from adits and some internal shafts over ~200m elevations. Silver Shield Resources is planning an exploration program of mapping, surface sampling of the mineralized stockpiles and tailings as part of its due diligence. Silver Shield Resources is determined in bringing high grade small to medium mines into production such as Real de Guadalupe.
Tim Towers President and CEO of Silver Shield Resources commented: "While these are challenging times for the junior miners, the opportunity to add a potential high grade producer to our stable of Southern Mexican Silver Belt properties cannot be missed! With Temixco, La Cumbre and potentially Real De Guadalupe, we are at the cusp of taking great strides in moving the company into the next tier. The resurgence of Gold and Silver prices in recent days adds to the allure of this quality asset. Silver Shield's good relations with the Mexican people, prospectors and mills in the area will certainly aid the Corporation's stated production focus."
Tim Towers also stated "Silver Shield Resources continues to source both debt and equity financing to move our quality projects to first stage production. Despite the difficult market conditions for junior mining companies, the quality of our assets has allowed us to meet with several firms. We are considering the options and terms that have been presented to us thus far, and will proceed if the terms are favorable for the Corporation and its shareholders."
About Silver Shield Resources
Silver Shield Resources is determined to become a world class silver producing company. The Corporation's immediate plans, once funded, are to commence silver production on its fully owned and past producing LaCumbre Silver Mine in Mexico. The Corporation's immediate plans also include implementing, and completing a sampling program and metallurgical study to confirm that past results of assaying of the tailings deposit located at Silver Shield Resources' Temixco concession. The tailings deposit is thought to contain ~500,000 tonnes, with an average grade of 145.3 g/t Ag and 1.00 g/t Au. Once the results are confirmed, the Corporation will immediately begin working towards an operation process the tailings pile recovering gold, silver lead and zinc in concentrates. For more information regarding the Corporation please visit the corporate website at www.silvershieldresources.net
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Silver Shield Resources Corp.For further information:
Mr. Tim D. Towers
President and CEO
Silver Shield Resources Corp.
Tel: (289) 337-6162
Mr. Frank Kordy
Corporate Communications Manager
Silver Shield Resources Corp.
Tel: (289) 337-6162