Golden Fame Resources Corp.

April 06, 2011 09:31 ET

Golden Fame Signs Letter of Intent to Option Algun Dia Project in Guanajuato, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2011) - Golden Fame Resources Corp. (TSX VENTURE:GFA) ("Golden Fame" or the "Company") is pleased to announce that it has entered into a letter of intent with Rodolfo Rodriguez Aldaco for Golden Fame to acquire up to a 70% undivided interest (the "Option") in and to certain licenses and property claims owned by Mr. Aldaco known as the Algun Dia Project located in the Leon-Guanajuato region of Mexico.

"Algun Dia fits perfectly into our strategic vision of acquiring historically productive properties and putting them into production. Algun Dia has significant values of gold, silver and copper and allows us to take advantage of the robust increase in the prices of all three of these metals," commented Graham (Chip) Clark, Jr., CEO and President of Golden Fame.

The Algun Dia Option

Under the terms of the letter of intent, Golden Fame has the exclusive right and option to earn an initial 50% undivided interest in the Algun Dia Project by paying to Mr. Aldaco an aggregate of US$800,000, with $50,000 payable upon execution of the letter of intent, an additional $100,000 payable upon the execution of the formal agreement, an additional US$150,000 payable on July 31, 2011, an additional US$250,000 payable on December 31, 2011 and an additional US$250,000 payable on June 30, 2012; and by Golden Fame issuing to Mr. Aldaco an aggregate of 2,000,000 common shares of Golden Fame, with 1,000,000 common shares issuable within five days following the approval of the Option by the TSX Venture Exchange (the "TSXV") and an additional 1,000,000 common shares issuable on December 31, 2011. In order to earn the 50% interest, Golden Fame must also fund expenditures of US$2,000,000 on the Algun Dia Project by December 31, 2011, which will include the completion of a technical report on the property compliant with National Instrument 43-101. Upon the completion of the above payments, issuances and funding, Golden Fame will hold a 50% undivided interest in the Algun Dia Project.

Golden Fame then may earn an additional 20% undivided interest (for a total undivided interest of 70%) in the Algun Dia Project by issuing to Mr. Aldaco 1,000,000 common shares of Golden Fame by December 31, 2012. Golden Fame must pay Mr. Aldaco an aggregate of US$3,500,000, with US$400,000 payable on December 31, 2012, an additional US$400,000 payable on June 30, 2013, an additional US$400,000 payable on December 31, 2013 and an additional US$2,300,000 payable on June 30, 2014. Golden Fame must fund aggregate expenditures of US$4,500,000 on the Algun Dia Project, with US$3,000,000 fundable by June 30, 2013 and an additional US$1,500,000 fundable by June 30, 2014. Upon the completion of the above payments, issuances and funding, Golden Fame will hold a 70% undivided interest in the Algun Dia Project.

The Algun Dia Project

The principal exploration objective on the Algun Dia project is to quantify the tonnage and grade of the San Cayetano vein structure. San Cayetano is a brecciated copper-silver-gold-bearing vein system which varies between ten and sixteen meters true thickness and has an outcropping length of approximately 1400 meters, dipping approximately 45 degrees towards the SW. Approximately 300 meters of this strike length has been exposed by underground workings, the remainder unexplored. Within the exposed portions, where approximately 25,000 tonnes were mined, and 15,000 tonnes sent to flotation and smelting processing, three-dimensional observation of the mineralized system is permissive and provides an excellent platform for planned, close-spaced channel sampling. Average grades reported by the Optionor (not verified) are 2.52 g/t gold, 102 g/t silver, and 1.69 percent copper; determined through a combination of drilling, channel sampling, bulk sampling, and assays obtained from beneficiation treatment off-site.

Exploration potential is considered excellent for this multi-element vein-like target. Blue sky potential exists along strike and down dip, while our initial data compilation should provide many geological answers to technical questions. The apparent ease of metallurgical separation of the elements, the nearby infrastructure, availability of water and power, and a proximal work force are all positive aspects of the project.

Lawrence Dick, Ph.D., P.Geo., Chief Geologist of Golden Fame comments, "The acquisition of the Algun Dia project affords the Company the possibility to begin pattern drilling and internal ramp-decline construction, within the mineralized zone, towards a more timely acquisition of all data required for a 43-101 compliant resource calculation. Our team views this project as a potential near-term production scenario, should the data permit, with exploration beginning immediately towards a goal of providing a potentially-economic resource, while step-out drilling and underground work attempt to enlarge the ultimate size of the system."

Completion of the Option is subject to a Number of Conditions

The completion of the Option is subject to a number of conditions, including but not limited to the execution of a formal agreement, satisfactory due diligence, the approval of the formal agreement by the Board of Directors of Golden Fame and the approval of the Option by the TSXV. There can be no assurance that the Option will be completed as proposed or at all.

About Golden Fame Resources Corp.

Golden Fame's focus is to acquire and put into production historically productive gold, silver and copper properties that have become economic with the robust increase in metals prices.

On behalf of the board of directors of Golden Fame Resources Corp.,

Graham (Chip) Clark, Jr., CEO and President

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the inability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Golden Fame Resources Corp.
    Savio Chiu