DALLAS, Aug. 19, 2014 (GLOBE NEWSWIRE) -- Gold and Gemstone Mining, Inc (OTCBB:GGSM) (the "Company") announces that it has completed the acquisition of a 100% interest (subject to certain underlying royalties) in the Gringo Viejo Project, the project comprises 3,202 hectares, covering a past-producing district dating back to 1982. A Preliminary Economic Assessment ("PEA") estimated an Indicated resource of 3.8 million tonnes at a grade of 1.66g/t gold and 24 g/t silver as well as an Inferred resource of 1.8 million tonnes at a grade of 1.39g/t gold and 31.96g/t silver (Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized), located on the best gold zone of Mexico with companies like Sierra Metals Inc, Goldcorp Inc, Minera Frisco SA own by Grupo Carso in Mexico the potential is exponential at short and medium term. The Company plans to undertake a complete review of all previous work, update the resource, conduct additional baseline studies and diamond drilling, to further advance in to feasibility and pre-production exploration stage. Further, we are looking in to expand our capacity of material processing from approximately 1200 tonnes a month to up to three times within a year, depending on additional institutional financing.
"We are extremely pleased to have reached this important milestone in the Company's development. We also believe shareholders will benefit through increased liquidity as a higher corporate profile in the US and Mexico should lead to enhanced exposure to a far greater number of retail and institutional investors," commented Rafael Pinedo, CEO and President of the company.
Gold and Gemstone Mining is a company focused on the acquisition, exploration and potential development of prospective gold and silver properties in North and South America. Our strategy is to build a pipeline of gold and silver projects to explore and develop, or enter into joint ventures. We target projects in historic mining districts with what are believed to have potential for large-scale exploration or relative short to medium-term production.
FORWARD-LOOKING STATEMENTS: "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements relating to the company's business activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations about the Company's business. Words such as expects, anticipates, intends, plans, believes, estimates and similar words and expressions are intended to identify such forward-looking statements. These statements involve risks that are difficult to evaluate. Actual results can vary from descriptions herein due to many factors including changes in metal prices and business conditions; changes in laws and regulations; problems encountered in exploration and obtaining permits; changes in the competitive environment; technological advances; shortages of skilled workers, drill rigs and equipment; the need for additional capital and other risks listed in the Company's Securities and Exchange Commission filings under "risk factors" and elsewhere. Forward-looking statements speak only as of the date they were made. The Company does not undertake any obligation to update forward-looking statements.