Golden Share Mining Corporation
TSX VENTURE : GSH

Golden Share Mining Corporation

May 25, 2011 09:30 ET

Golden Share Compilation Shows 10.16 g/t Au Over 10.50 m Open at Depth on Berens River, Ontario, Canada

MONTREAL, QUEBEC--(Marketwire - May 25, 2011) -

Editors Note: There are 3 maps associated with this press release

Golden Share Mining Corporation ("Golden Share" or the "Company") (TSX VENTURE:GSH) is pleased to provide the results of its recent compilation on the Berens River Property ("Berens River") located in the Red Lake district of Northwestern Ontario, Canada. In November 2010 a mandate was given to InnovExplo, a Val d'Or based geological and mining consulting group, for the realization of a thorough compilation of all previous drilling and underground data on the property.

History and geological setting

The Berens River mineralized system comprises 10 recognized strongly silicified hydrothermally altered zones (historically called "Veins") developed in steeply dipping, fracture-shear-fault systems with a general strike of 110° and a 75° dip towards the SSW that cross-cut the stratigraphy at a high angle (see attached figure 1 or visit : http://www.goldenshare.ca). The zones vary in thickness from 15 cm to 4.50 m and show lateral extents of up to several hundred meters. Historical production on Berens River originates from the No1 Vein and mining was executed by shaft No1 sunk to a depth of 990 m; no production has been recorded below the 518 m level. A second shaft was sunk to a depth of 232 m on the No3 Vein but has not yet entered into production. The Berens River Mine was operated by a subsidiary of Newmont Mining from 1939 to 1948 and produced 158,000 ounces of gold and 5.8 million ounces of silver as well as 1.7 million pounds of zinc and 6.1 million pounds of lead.

Compilation results

The bulk of the diamond drilling information relates to Veins No1, No3 and No19 and clearly shows depth extensions to the know structures.

Extension at depth

Vein No3 has been investigated by 121 diamond drill holes ("DDH") for a total of 13,753 m and bottom historical diamond drill holes on two of the main sections show the mineralization to widen and to remain open at depth (see attached figures 2 and 3 or visit : http://www.goldenshare.ca) :

- 10.16 g/t Au and 178.20 g/t Ag over 10.50 m (DDH GZ-82-225-05, 525 m vertical depth).

- 9.26 g/t Au and 145.03 g/t Ag over 14.06 m (DDH G-15, 260 m vertical depth).

Vein No19 has only been investigated by 13 diamond drill holes for a total of 1,400 m and the compilation also highlights its potential below current historical drilling as one of the two bottom holes on the main historical section yielded the following results:

- 24.26 g/t Au and 678.06 g/t Ag over 1.85 m (DDH 15-12, 475 m vertical depth).

These results are in correspondance with Golden Share's October 2010 surface results which showed Vein No19 to be the richest vein known to date with reported surface silver values of up to 1,630 g/t Ag (52.4 oz/t Ag) and gold grades of up to 37.71 g/t Au (1.21 oz/t Au).

Vein No1 has been investigated by more than 70 historical diamond drill holes for an approximate total in excess of 12,831 m. All the historic production from the Berens River Mine originated from Vein No1 and comprised 560,607 tons of ore processed at a rate of 250 tons per day producing a total of 157,696 ounces of gold, with an average mill grade of 9.6 g/t gold. All the data available with regards to shafts 1 and 2 and mine openings were transformed into a 3D model. However, there is a great uncertainty on the placement in space of the openings with respect to the drill hole locations.

The compilation was nevertheless able to demonstrate that in the area of shaft No1, the main ore zone plunged approximately 70° to the SE with ore shoots within Vein No1 being from 18 to 106 m in strike length, showing widths between 1 and 5 m and variable vertical extents between 25 and 150 m. The mineralization on Vein No3, in the shaft No2 area, appears to have the same geometry.

High grade near surface mineralization

While figures 2 and 3 enhance the potential of the mineralization at depth, only drill intersections over 1 m along the drill core were reported. Historical reports however show some very high grade near surface intersections up to 246.65 g/t Au over 0.42 m as demonstrated by the following table.

Hole numberFromTomAu oz/tAu g/t
N87-2592.6693.160.501.0833.59
Z-150-1616.0516.550.501.0432.35
Z-150-1939.6340.130.501.4344.48
Z-150-2152.8253.320.501.4344.48
Z-225-288.679.230.567.47232.34
9.239.830.601.9259.72
Z-225-4210.1210.620.501.4545.10
10.6211.120.502.2971.23
Z-225-6688.3688.640.281.2839.81
Z-225-6721.5921.890.301.3842.92
Z-225-9472.3272.870.552.0162.52
74.8275.170.351.1435.46
Z-225-973.864.280.427.93246.65
Z-225-986.547.040.505.75178.85

Statistics on historical data

InnovExplo's compilation work also yielded the following statistics :

  • A total of 45,754 m of drilling has been executed over the entire history of the Berens River property out of which 8,864 m was drilled in the early years prior to 1938.

  • The 36,890 m drilled since 1938 represents 344 DDH which can be allocated as follows :

    • Vein No1 = more than 70 DDH for an approximate total in excess of 12,831 m
    • Vein No3 = 121 DDH for a total of 13,753 m
    • Vein No19 = 13 DDH for a total of 1,400 m
    • Remaining veins = 132 DDH for a total of 20,791 m

  • Detailed drill logs with geological descriptions are available for 137 DDH totalling 17,035 m.

  • Detailed drill logs with assays and geological descriptions are available for 42 DDH totalling 8,985 m.

Limitations of historical data

The historical information is fragmentary and incomplete. This strongly affects the ability to execute a NI 43-101 compliant resource calculation with the currently available information. Most of the historic information has to be verified especially in the case of high-grade intersections, this includes underground information. The location of the drill holes and the shaft and drift locations must be rectified possibly through more accurate surveying of key features. This verification will lead to the completion of an accurate 3D model. Historic soil geochemistry should also be considered as a starting point for identifying potential gold bearing veins that may increase the mineral resources of the property.

Vein No3 holds the potential for mineable resources and should be the object of the emphasis for the verification of historic information and drilling follow-up.

Geological Model

InnovExplo agrees with historic hypotheses of a caldera formation with post volcanic plutonic activity reactivating the vein system resulting in an epithermal type deposit. Various indicators point towards a low-sulphidation epithermal model. However, the presence of iron formations, garnet-chlorite-actinolite and quartz-sericite alteration along with greenschist to amphibolite alteration indicates a hydrothermal alteration associated with a VMS model. It is possible that the Berens River deposit represents a complex ensemble of both VMS environment and with superimposition of an epithermal deposit due to the possible transition from the stratiform volcano to a caldera sytem.

Status of the Project

The previously announced follow-up program on Berens River was delayed in order to integrate the compilation results. This additional time period allowed Golden Share to establish a first introductory meeting during Q1 2011 with the Sandy Lake First Nation, the leading First Nation community in the area of the Berens River Project. The object of the meeting was to establish a respectful and constructive relationship by presenting the Company and its initial early-stage intentions for the project. While Golden Share's technical crew is now preparing for the start-up of the summer season on the Shebandowan project, the Company's approach to further developments on Berens River will strive to strike the right balance between the creation of wealth and the preservation of the environment, both for the benefit of the area and for the Sandy Lake First Nation's community.

About Golden Share Mining Corporation

Golden Share Mining Corporation is a Canadian-based mining exploration company whose primary mission is to target, explore and develop gold deposits in Canada. Golden Share is developing a promising portfolio of properties in the greenstone belts of eastern Canada, namely in the Val d'Or-Malartic, Red Lake and Shebandowan areas.

The Company is led by a technically focused management team relying on a strong network of high quality contacts and consultants, including SRK Consulting Canada in Toronto and InnovExplo in Val d'Or. Golden Share is further strengthened by an experienced board of directors and a proven advisory board including successful geologists Roy Corrans and Sethu Raman as well as seasoned financier Anthony Frizelle.

Golden Share signed a letter of intent dated March 25th, 2011 (the "LOI") to acquire Lake Shore Gold Corp.'s 100% interest in the Band Ore gold property, located in the Shebandowan belt of northwestern Ontario. Under the terms of the LOI, and if the Band Ore transaction (the "Transaction") is successfully completed, Lake Shore Gold Corp. would in return obtain a 19.99% interest in Golden Share, which may be increased to as much as 30% under certain conditions, and thereby become the Company's single largest shareholder.

Golden Share's exploration programs are executed under the supervision of Mrs. Laurence Huss, M.Sc., P. Geo., a " Qualified Person " as defined in National Instrument 43-101, and Vice-president Exploration of Golden Share. Philippe Giaro, P.Geo., President and CEO of Golden Share and Qualified Person for Golden Share, has reviewed and approved the content of this release.

FOR MORE INFORMATION, CONSULT http://www.goldenshare.ca OR OUR FACEBOOK PAGE AT http://www.facebook.com/people/Golden-Share/100001472712018

To view the Figures 1, 2 and 3 associated with this press release, please visit the following link: http://media3.marketwire.com/docs/GHS_Figure123.pdf

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