NEW YORK, June 1, 2004 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG) is pleased to announce today that its mineral permit applications filed April 16, 2004 with the government of Alberta have been approved and the mineral permits have been received by its wholly-owned subsidiary, Clear Hills Iron, Ltd. The Clear Hills iron property comprises one of the largest known iron ore deposits left in the world, which contains gold, silver, coal, oil and gas. Over a billion tons of known iron reserves in all categories are on record in the province of Alberta. Our permits cover over 20 townships plus several smaller areas for a total area of about 800 sq. miles. Our iron deposit contains gold and silver values that should recover as a byproduct. Tom Sneddon, M.Sc, P.Geol of Calgary, Alberta is leading the pre-feasibility team as manager of Clear Hills Iron, Ltd. Tom has studied the Clear Hills iron deposit for many years and has put together a strong team of professionals to pursue analysis and evaluation of available resources to support the iron project as follows:
Bruce C. Gordon, RPL. P.Land of Arnage Consultants Ltd, Calgary, is handling all land matters and has requested coal leases in 10 of the 20 plus permitted townships. The first stage of coal acquisition involves 270 million tons of drill proven lignite A, a low-grade coal, which is suitable to be used as electrical power plant fuel. Bruce is also involved in the oil and gas evaluation activities.
J. Douglas Uffen, H.B.Sc. P. Geoph. of Petrel Robertson Consulting, Ltd of Calgary and Houston, TX has been retained to study available oil and gas opportunities in and adjacent to the permitted area. Much drilling was done in earlier periods and the established wells were never connected to pipelines. Geophysics and seismic data is being studied. At today's prices and with available infrastructure in place, substantial oil and gas reserves, production and shut-in development is targeted.
Dennis E. Ward, P. Geol of Waverly- Skye Consulting Ltd. of Calgary is involved in evaluation and analysis of existing and planned infrastructure development regarding the permitted area. He is also evaluating existing operating oil and gas companies in the area suitable for either strategic alliance or acquisition to establish adequate reserves to operate the pig iron plant.
"We are approaching a level of information that would lead to the feasibility of a substantial Direct Iron Reduction facility fueled primarily by natural gas", said team leader, Tom Sneddon. "The coal is a bonus that will provide feasibility for an electrical power generation facility to augment power requirements at the pig iron facility. It is our 'belt and suspenders' so to speak for the iron that also provides an opportunity to sell power to the international grid for additional cash flow. With the bull market in iron, oil, gas and electrical power that is occurring, this project's time just may have come", he further stated.
GoldSpring CEO, Steve Parent says; "What is great about this project is that it cost very little to get in and adds cash flow potential to our Company for reasonable development dollars going forward. The fact that we are already permitted fits our business model and makes a huge difference in our ability to accelerate production. There are several reserves associated with this project that will support operations and provide additional cash flow. The political and business climates are just right. Alberta and British Columbia welcome and support new mining and energy development opportunities. There is currently a shortage of scrap iron, pig iron, oil, gas and electrical power in the US and Canada. Coal and natural gas are essential as fuel/power in the operation. China imports over 60% of its iron and is a ready buyer. It may be of note, that BHP Billiton is currently evaluating its power requirements at its Escondida copper project, in Chile, and coal and natural gas are important pieces of their long term plan as well."
About GoldSpring
GoldSpring is focused on production and rapid growth. Current in-ground reported reserves total approximately: Gold: 1.35 Million oz., Silver: 3.7 Million oz., and Copper: 25 Million lbs., Iron Ore: 1.2 billion tons. The Company's plan is to increase In-Ground Reserves to over 3 million ounces of gold equivalent in 2004 through acquisitions and exploration of existing properties.
AMEX Update: The Company is responding to an AMEX request for back up information related to the reserves discussed in the Carrington Report relating to the Plum Mining operation. This information was not provided, only the reserve report's discussion and conclusions were. In addition to drill and cutoff information, we are providing the US government mineral patent application and approval material. Billie The Kid and Lucerne pits are both patented properties, which means that the US government has already ruled on the mineral information. " We certainly have adequate backup and are forwarding it to the AMEX", said John Cook, GoldSpring's President. " I was just at the mine and personally inspected and assisted in the preparation of the submittal and am totally confident in our position", he affirmed.
Further information will be forthcoming regarding ongoing corporate operations, acquisitions in progress and feasibility information on the iron project when available for publication.
Safe Harbor
Statements contained in this press release, which are not historical facts, are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.