LANGLEY, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2009) - Shoreham Resources Ltd. (TSX VENTURE:SMH), a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in South America and Canada, is pleased to announce further developments regarding alluvial gold production at its Marudi Mountain Gold Project in Guyana. Shoreham has the right to earn a 75% working interest in the Marudi Mountain Property by exercising an option to acquire 75% of the shares of Romanex Guyana Exploration Ltd. (holder of 100% of the project) held by Vanessa Ventures Inc. (now Infinito Gold Corp. TSX-V: "IG"). Shoreham must invest a total of $US 4,000,000 in the project by March 2011 in order to acquire its 75% interest. Shoreham's expenditures to date significantly exceed the requirements of the agreement and the Company expects to meet its vesting requirements ahead of schedule.
On August 21, 2008, Shoreham and Rexma Participacions (REXMA), an alluvial mine operator based out of Leon, France signed a Definitive Agreement entitled "Project Operating Plans and Principles - Marudi Mountain Alluvial Mining Agreement". This original agreement envisaged commencing sustained production at a rate of 500 cubic meters per day commencing July 1, 2009 with an ultimate target rate of 2,000 cubic meters per day. Since that time, REXMA have undertaken field investigations to firm up mining, resource and processing parameters and have signed a revised Agreement with Shoreham whereby REXMA have committed to providing Shoreham with a definitive mining plan by March 31, 2009 and to be in production by November 1, 2009 at a minimum sustained production rate of 125,000 cubic meters per year and increasing their plant capacity to 200,000 cubic meters per year by October 1, 2010 and further increasing operations to at least 300,000 cubic meters per year prior to October 1, 2011.
REXMA will be responsible for all of its costs, will be required to pay Shoreham an agreed upon monthly sum for Shoreham's Guyanese overhead, office and support costs, pay all royalties to the Guyanese government and underlying royalty holders and will pay a gross production royalty of 10% to Romanex 100% of which monies Shoreham has the right to use to support its own exploration on the Marudi property. In addition, all expenditures incurred by REXMA qualify as earn-in expenditure by Shoreham to acquire 75% of Romanex. Pursuant to notice provision, REXMA's operations must be relocated from areas which Shoreham needs to undertake its own exploration and mining activities. Initial operations will be integrated as a pre-stripping component of Shoreham's development program for the property. The benefits to Shoreham include improvements to access and infrastructure, expansion of facilities, accelerated development of saprolite and bedrock targets, acceleration of property interest vesting through qualified expenditures, generation of cash flow to fund Shoreham's own exploration and development programs and reduced overheads through cost sharing.
David Bending, M.Sc., P.Geo., President and CEO of Shoreham Resources Ltd. reports that; "The Company is very pleased to confirm that REXMA is fully committed to begin alluvial gold mining and gold production at our Marudi Mountain Gold Project by November 1, 2009 and are looking forward to receiving REXMA Mining Plan by March 31, 2009."
For further information please visit our website at www.shoreham.ca or our Investor Relations Hub at www.agoracom.com/IR/Shoreham where you can post questions and receive answers or review questions and answers already posted by other investors or contact our Investor Relations Representative, Mr. Mike Kachanovsky via email at mike@shoreham.ca. |
