StoneShield Capital Corp.
TSX VENTURE : STS.P

StoneShield Capital Corp.

November 23, 2009 13:39 ET

StoneShield Signs Letter of Intent for Cumaral Gold/Copper Project, Mexico: Reviews Gold Projects in Colombia;Grants Stock Options

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 23, 2009) - StoneShield Capital Corp. (TSX VENTURE:STS) ("StoneShield" or the "Company") announced today that the Company signed a Letter of Intent ("LOI") pursuant to which StoneShield has been granted an option to earn a 100% interest the Cumarál gold/copper porphyry project ("Cumarál") located in the Sonora State, Mexico. This is the first of several projects the Company is evaluating for exploring in Mexico, with a focus on the most prolific belts in Sonora, Durango and Zacatecas.

StoneShield and its advisors are currently also reviewing and evaluating gold projects in the country of Colombia. Recent large, high-grade gold discoveries in Colombia made by Ventana Gold Corp. and Anglogold Ashanti Corp., coupled with the fact that mineral-rich Colombia has seen relatively little modern mineral exploration employed on its soil, support StoneShield's decision to review and evaluate opportunities for new Colombian gold discoveries.

"As a new company with very few shares outstanding, StoneShield is well-poised to take advantage of the strong, renewed interest in companies focused on exploration and development in gold, silver and copper projects," commented Kris Kottmeier, Company President and CEO. "Both Colombia and Mexico present excellent opportunities for StoneShield to acquire and explore projects set in highly prospective mineralized regions. While numerous opportunities are being presented to StoneShield in both countries, management is committed to finding the best projects available to maximize shareholder value."

The Cumarál Gold/Copper Porphyry Project

Cumarál is located approximately 100 kilometres northeast of Hermosillo and covers approximately 2068 hectares. Cumarál lies at the southern end of a porphyry belt with productive copper, copper-gold and copper-molybdenum mines that include: Bisbee, Arizona; the Cananea copper and copper-gold mine, Sonora; the Creston copper-molybdenum mine, Sonora; and, the Amoles copper-uranium mine, Sonora. The latter two mines are on trend and located only 15 to 30 kilometres north from Cumarál.

The Cumarál district has a history of lode copper-gold production and gold-silver placer production downstream from the main Cumarál gold-copper skarn. In addition, work by Servicio Geologico Mexicano in the region indicates copper, gold, zinc, arsenic and bismuth in stream sediment anomalies. Test pits by ARONOS, in preparation for the placer mining, returned significant gold and silver mineralization downstream, or south from the main Cumarál project area, indicating a bedrock source for gold-silver upstream.

At Cumarál a sedimentary roof pendant, or window that is three kilometres in diameter is surrounded, intruded, and mineralized by quartz-monzonitic and granodioritic intrusive rocks of the Sonora copper porphyry belt. At numerous places throughout the Cumarál mining district, many skarn bodies and associated hydrothermal deposits, occurring in multiple mine workings and prospects, suggest the potential for a large gold-bearing copper porphyry system.

Under the terms of the arm's length LOI with Elsa Susana Acosta Garcia, StoneShield can acquire a 100% interest in Cumarál by making cash payments of US$673,000 as follows: US$8,000 on signing the LOI, US$5,000 by December 15, 2009, US$10,000 by six months from the date of TSX Venture acceptance ("Acceptance"); US$20,000 by twelve months from the date of Acceptance; US$40,000 by eighteen months from the date of Acceptance; US$80,000 by twenty-four months from the date of Acceptance; US$160,000 by thirty months from the date of Acceptance; US$320,000 by thirty-six months from of the date of Acceptance; and an additional US$30,000 on or by the earlier of the commencement of drilling on Cumarál and thirty-six months from the date of Acceptance. While StoneShield has sufficient funds to make initial payments, full payments to acquire Cumarál will be subject to financing. The transaction is subject to acceptance by the TSX Venture Exchange.

The qualified person for StoneShield under National Instrument 43-101 is Mr. Allen Ambrose, P.Geo.

Stock Options

The Company announces that it has granted 480,000 incentive stock options to the directors and consultants of the Company. The options will be exercisable for a five year period at $0.11 per share.

StoneShield is a publicly traded exploration company focused on the discovery of high-value precious metals deposits in North and South America. The Company's experienced management team boasts multiple discoveries, and brings over 70 years of combined experience in the mining and exploration sector. Please visit the Company's web site address at www.stoneshieldcapital.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF STONESHIELD CAPITAL CORP.

Kris Kottmeier, President/CEO

Neither 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.

Contact Information

  • StoneShield Capital Corp.
    Benjamin Curry
    Investor Relations
    (604) 689-2881 or Toll Free: 1-877-689-2881
    www.stoneshieldcapital.com