SOURCE: Gold and Gemstone Mining Inc.

Gold and Gemstone Mining Inc.

June 07, 2012 16:10 ET

Gold and GemStone Mining Inc. Announces Gold and Diamond Prospecting Results for First Sierra Leone Mining Concession in the Nimikoro Chiefdom, Kono District

DRAPER, UT--(Marketwire - Jun 7, 2012) - Gold and GemStone Mining Inc. (OTCBB: GGSM) today announced the results of the first prospecting activities from its exciting portfolio of proven alluvial gold and diamond mining concessions in the Kono District of Sierra Leone, the Country's prominent gold and diamond mining region.

Preliminary prospecting results taken from the gravel river beds of the Sewa River, running through GGSM's existing 125 acre mining concession, split across 3 separate chiefdoms in the Kono District, shows extremely positive results and endorses GGSM's mining development strategy to roll out its production operations into the surrounding chiefdoms.

The results show an average yield of 56 carats per hundred tonne (Cpht) of hi-grade diamonds, slightly above the average grade of Sierra Leone, which, according to the comprehensive report undertaken in the 1970s by PK Hall, shows an average of approximately 50 Cpht.

The results go on to show equally impressive data in relation to the incidence of gold with sampling taken from a total of 270 tonnes of gravel showing 62 grams per hundred tonne at an excellent purity rate of 96.4%.

Tom Tucker, CEO of GGSM Mining Sierra Leone, comments, "These preliminary results clearly show that GGSM has an extremely bright and promising future. With such economically significant quantities of both high quality gold and diamonds we will begin the planned rapid expansion of our current mining operations into the surrounding chiefdoms with whom I've established very strong relations over recent years."

With diamond prices continuing to increase, GGSM's management are busy securing the necessary distribution deals with the major players in the international diamond markets to help to secure significant revenues into the company once production begins.

According to diamondintelligence.com, the average price per carat value during the first quarter of 2010 jumped 72 percent to USD $1,753 from USD $1,017 per carat in the first quarter of 2009. Subsequently, an average price of USD $2,002 per carat has been observed.

About Gold and GemStone Mining Inc.
Gold and GemStone Mining Inc. is an exploration stage company that will engage in the acquisition, exploration, and development of Diamond and Gold properties around the world. Integral to our plan is to form strategic alliances and joint ventures with gold and diamond mining companies.

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.

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