Shoreham Resources Ltd.

Shoreham Resources Ltd.

January 11, 2007 11:17 ET

Shoreham Resources Ltd.: Update on Marudi Mountain Gold Project in Guyana

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2007) - David Bending, P. Geo., President & CEO of Shoreham Resources Ltd. (NEX:SMH.H) and a qualified person under national instrument 43-101 is pleased to announce that Shoreham and Vanessa Ventures Ltd., working diligently with Canadian and Guyanese counsel, have completed the preparation of the final share purchase agreements required to complete the Marudi Mountain Transaction under terms as news released September 5, 2006.

Shoreham has the right to earn a 50% working interest in the Marudi/Paint Mountain Gold project by completing US$2,000,000 in exploration and qualified project management expenditures during the initial three year period. Shoreham may increase its interest to 75% with an additional US$2,000,000 in exploration and development work prior to the fourth anniversary. This option applies to the 55.77 square km (13,774 acre) Marudi Mountain Gold Property and the adjoining 32.92 square km (8,875 acre) Paint Mountain Property. The Marudi/Paint Mountain Gold Project is of interest to Shoreham as it includes the partially explored Marudi Mountain Gold deposits (Mazoa, Marudi and Peace Creek), previously defined geochemical targets which have not been drilled or trenched, and an untested 15 km trend of comparable geology with artisanal gold workings indicating the presence of gold mineralized areas. Shoreham is planning a comprehensive exploration and development program including an updated economic evaluation of the previously defined targets and geochemical, trenching, drilling and bulk sampling for development of new targets.

Shoreham has agreed to commence exploration activity in the Paint Mountain area. Exploration plans will focus on expanding known gold resources at the Marudi/Paint Mountain Project with emphasis on identifying additional gold resources within the large land position. The company will utilize existing and accumulating new data to prepare a National Instrument 43-101 compliant resource report.

Shoreham and Vannessa have also completed the preparation of the final share purchase agreements required for the option by Shoreham to earn a 100% interest in the Maple Creek/Potaro Project in Guyana. Shoreham is required to make payments in cash or shares totaling US$1,200,000 over a four year period. The initial US$100,000 due 60 days from execution and the US$100,000 due 12 months from regulatory approval are due in cash. The remaining US$1,000,000 may be paid in cash or shares at Shoreham's discretion, subject to regulatory approval. Shoreham is also required to complete US$250,000 of exploration expenditure requirements in the first year. Meeting these obligations will earn Shoreham 100% of the shares of Vannessa (Guyana) Limited and Vanarde Mining Inc., through which Shoreham will own 100% of the 40,000 acre Maple Creek - Potaro gold and diamond project. The Project includes areas of deeply weathered greenstone - granite terrane with abundant artisanal surface gold and diamond workings in gold bearing saprolite and bedrock. The Maple Creek - Potaro project includes a fully commissioned 400 cubic metre per day alluvial diamond production and recovery facility on site.

The parties have committed to closing all aspects of both transactions prior to January 31, 2007 subject only to Vannessa's preparation of legal documents concerning the corporate history of the various Guyanese companies involved in the share transactions.

The management and board of Shoreham express their thanks to the management of Vannessa for their diligent work and cooperation in completing these agreements.

The NEX exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this news release

Contact Information

  • Shoreham Resources Ltd.
    David Hammond
    (416) 867-1101
    (416) 867-1222 (FAX)