Langley, Canada -- June 23, 2009 -- Shoreham Resources Ltd. (the "Company" or "Shoreham") (TSX-V: "SMH"), a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in Guyana and Canada, is pleased to announce that the Company has signed an Agreement with two individuals, at arm's length to the Company, pursuant to which the Company has been granted an option to acquire a 100% interest in the past producing Berens River property (the "Property"), located in the Setting Net Lake Area of Ontario which consists of one (1) 15 unit mineral claim and covers an area of 240 hectares. Subject to the acceptance of the TSX Venture Exchange, in order to acquire a 100% interest in the Property, the Company is required to pay to the Vendors an aggregate of $480,000 and issue to the Vendors an aggregate of 1,000,000 common shares of Shoreham Resources Ltd. over a period of five years. The Property is subject to a 2% net smelter return ("NSR") royalty payable to the Vendors. The Company will have the option, at any time prior to commercial production, to reduce the NSR royalty to 1% upon paying the Vendors the aggregate amount of $2,000,000. There are no work commitments other than to maintain the Property in good standing.
The Berens River Property, also referred to as the Zahavy Mine, is the most advanced mineral prospect in the Favourable Lake Belt and the only site of significant past production. Its discovery was the catalyst for important infrastructure development including an airstrip, a town site, and a hydroelectric power plant. Exploration activity first took place at Borthwick Lake (The Berens River Mine property) with the discovery of gold in four veins in the mid-1920's. It is reported that from 1939-1948, Newmont Mining Corporation's subsidiary, Berens River Mines, produced 560,607 tons of ore grading 0.28 oz./t Au, 10.3 oz./Ag, 0.54% Pb and 0.16% Zn from the No. 1 vein (508,574 tonnes grading 9.59 g/t Au, 353.1 g/t Ag, 0.54% Pb and 0.16% Zn). The mine ceased operations in 1948 due to lower grade and metal prices and higher operating costs. Although the mine reached a depth of over 1,000 metres, no production was recorded from below the 518-metre level. The mine was in production from 1939 to 1948 at a rate of 250 tons per day.
Gold mineralization occurs in quartz veins located within a sequence of volcanic and sedimentary rocks. The most significant mineralization in the area is considered to be the precious-base metal bearing series of sub-parallel, south-dipping veins which occur in the east-trending zones which orthogonally cross cut felsic volcanics. The mineralization consists of silicification, pyrite, sphalerite, galena, minor chalcopyrite, gold and silver minerals which occur in shoots within structures which have been offset by faulting.
The primary exploration target is believed by previous workers to be the No. 3 Vein, which lies 600 metres north of the Berens River Mine and has been subjected to several historic mineral resource/reserve estimates in the 1980's but never put into production. Historical resources vary widely depending on the author and the gold price. At the current gold price project economics are substantially better than at any time in the past. A systematic technical program including 3D modeling of all drilling and underground data, confirmatory surface and underground sampling and diamond drilling will be required to qualify a credible, NI 43-101 compliant resource at current operating conditions. These are the logical first steps in advancing this project area as part of the company's integrated exploration program in the Favourable Lake Belt.
David Bending, M.Sc., P.Geo., President and CEO of Shoreham Resources Ltd. is a Qualified Person as defined in National Policy 43-101 ("NI 43-101"), and is responsible for and has reviewed all technical information contained in this news release. Mr. Bending reports that: " Based on the information at hand, the available infrastructure and today's gold prices, our technical team has stated that while this project does not have ay NI43-101 compliant resources or reserves the project warrants evaluation and if said evaluation is successful then the project may, in their opinion, have potential for development at a scale of 400 to 500 Tonnes Per Day. In conjunction with evaluation and expansion of the Borland Lake silver-gold targets and the other advanced prospects in the belt, the Berens River Property is a solid step forward towards production."
For further information please visit our website at www.shoreham.ca or contact our President and CEO Mr. David A. Bending at 604-533-9288. You may also go to www.agoracom.com where you can view comments posted on their site or contact our Investor Relations Representative, Mr. Mike Kachanovsky via email at [email protected] or Pro-edge Consultants Inc. at 416-581-0177 or via email at [email protected].
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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