SOURCE: Diversified Secure Ventures Corp.

December 17, 2010 09:54 ET

Diversified Secure Ventures Signs Option Agreement to Acquire a 100% Interest in the SUNDANCE Gold Claims in Nevada, Historically Grading up to 3.6 oz/t gold (113 g/t)

TORONTO--(Marketwire - December 17, 2010) - Diversified Secure Ventures Corp. (PINKSHEETS: SRWY) (Diversified) is extremely pleased to announce that it has signed an Agreement for a Lease with Option to Purchase in respect to the Sundance Gold Claims (Sundance) in the prolific and prestigious Walker Lane Gold Belt, Mineral County, Nevada. General terms of the agreement are listed below.

The Walker Lane Gold Belt in Nevada is home to several world-class gold deposits, including Round Mountain, which has produced more than 10 million ounces of gold. Additional mines in this geographical region include Gold Hill (produced 4.5 million ounces of gold), Paradise Peak (produced more than 1.6 million ounces of gold) and the Bullfrog Mine (produced 3.5 million ounces of gold). Nevada is currently the world's 4th largest gold producing region in the world, following China, South Africa and Australia.

After weeks of negotiations, Diversified and Tom and Marie Cavin, "Vendor," have achieved an attractive agreement on this extremely high potential deposit. Edward Minnema, President and CEO of Diversified, stated that he is "very excited with the immense upside potential of the Sundance claims. Historically, gold grades for the property have measured as high as 3.6 oz/ton of gold produced. We are eagerly awaiting to progress with a drilling program as soon as feasible." Mr. Minnema further commented, "We at Diversified are very pleased with the forthright negotiations with the Vendors and welcome the opportunity to bring Sundance to its full potential. We also are enthused at the potential that Sundance gives to our current and future shareholders. This is a significant step forward for Diversified. Management is highly optimistic about this Nevada gold prospect and what it could mean for Diversified's corporate growth in the near and long term."

About The Sundance Gold Claims:

Location:
The Sundance property is located in the prestigious Walker Lane Gold Belt Mineral County, Nevada, just outside of the city of Hawthorne. Successful mining operations in the area include The Lucky Boy mine which is approximately 6 miles east southeast of the claim block and the Borealis Mine lies 6 miles south of the Sundance Claim Block. Great Basin Gold operates the now named Esmeralda Mine, formerly the Aurora Mine, which is approximately 14 miles to the Southwest of the property.

The Sundance property encompasses 12 lode claims (240 acres) on Big Indian Mountain and is accessible from two separate roads.

History:
From late 1880s till the early 1900s the mine was referred to as the Big Indian Mine. Early records indicate that the veins ran about 3.6 ounces per ton ($75/ton in 1880). The first reference to gold production in this area was in the "Mining and Scientific Press" on November 13, 1880. The article states that the "Big Indian" deposit was discovered in 1878 and by 1880 had "worked a tunnel... a distance of 300'... of ore that will mill $75 to the ton... and have about 100 tons stockpiled." Gold prices in 1880 were $20.67 per ounce, therefore $75/ton rock would equate to about 3.6 ounces per ton of gold.

Geology:
Gold mineralization occurs along numerous structurally controlled brecciated quartz veins in granitic country rock. Although the system appears to be a classic epithermal deposit, it also has some characteristics of a deeper mesothermal system. The concentration of base metals increase with depth and the gold content is typically higher near the top of the system which is typical of an epithermal system. However, high gold assays have also been found in the canyon at an elevation of about 8000 feet which could be more characteristic of a mesothermal system. The occurrence of pyrite is random throughout the system and some supergene enrichment might be occurring; however, most of the pyrite is relatively fresh and unweathered.

Tonnage and Grades:
Based on historical accounts, approximately 2,000 tons of ore were mined between 1878 and 1936 with an average grade of 3.6 ounces per ton of gold. As per the August 2010 Geological Summary a total estimated tonnage on the four veins is approximately 1.7 million tons (ground level to 9000 feet above sea level) averaging 0.207 ounces per ton gold calculated from the arithmetic mean from 42 assays collected from dumps and veins or approximately 352,000 ounces of gold. If the average ore grade is closer to the historical accounts of nearly 3.6 ounces per ton, 1.7 million tons of ore would produce approximately 6 million ounces of gold if mined down to the 9000 foot level. The property has never been drilled; therefore the upside potential is unknown at this time.

Property Legal Description

Claim Serial Number Claim Name/Number
   
NMC1003188 SUNDANCE NO.6
NMC1003189 SUNDANCE NO.7
NMC1003190 SUNDANCE NO.8
NMC1003191 SUNDANCE N0.9
NMC1003192 SUNDANCE NO.10
NMC778665 SUNDANCE NO.1
NMC778666 SUNDANCE NO.2
NMC778667 SUNDANCE NO.3
NMC778668 SUNDANCE NO.4
NMC778669 SUNDANCE NO.5
NMC809564 SUNDANCE A
NMC809565 SUNDANCE B

Agreement Terms:
The property agreement terms are per a Lease with Option to Buy. Upon receipt of the initial commitments by the Vendor, the Agreement of Lease with Option to Purchase will convert to a Definitive Agreement. The general terms of the agreement are as follows:

The duration of this agreement is for 10+ years. Diversified will pay to the Vendor $25,000 (less $5,000 previously deposited) and issue 500,000 common shares on or before Jan 31, 2011. During the first 5 years Diversified has committed to spending a total of $3,450,000 in combined lease/rental payments and work commitment expenditures.

During years 6-10, Diversified will pay the Vendor a total of $1,250,000 in lease/rental payments. If after year 10 Diversified may still be in a construction phase, Diversified will continue to pay Vendor $250,000 in Advance Minimum Royalties.

The Vendor shall retain a 5% net Smelter Return, less expenses, if and when the property proceeds into production. Diversified has the option at any time to purchase the NSR at percentage increments of $1 million to $5 million, for a total of $15,000,000.

Diversified has the right to purchase the Property at any time for $10,000,000 and 1,000,000 common shares of Diversified, less any work expenditures, not exceeding $3,000,000. If at any time Diversified exercises its option to purchase the property outright, upon payment of calculated purchase price, future lease/rental payments then convert to Advance Royalty Payments. Upon commencing of any production, all Advanced Royalty Payments will be deducted from net income received by Diversified. Diversified has the right to engage a partner with respect to the Sundance Claims, and also to terminate this agreement at any time, with notice, and without penalty.

If anyone wishes a copy of the August 2010 Geological Summary please inquire to the contacts below.

Diversified also wishes to announce that it has retained Mr. Ian Reed of Investors Development Group as the company's Public Relations consultant.

Diversified Secure Ventures Corp. and its management team wish to extend to all current and future shareholders the best of the Christmas Season and a Happy, Prosperous New Year.

Safe Harbor Statement:
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan," or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.

Contact Information