Golden Share Mining Corporation
TSX VENTURE : GSH

Golden Share Mining Corporation

April 11, 2012 10:27 ET

Golden Share Highlights Potential 4 km Extension to Band Ore Zone n°4 in Shebandowan Belt

MONTREAL, QUEBEC--(Marketwire - April 11, 2012) -

Editors Note: There is a figure associated with this press release.

Golden Share Mining Corporation ("Golden Share" or the "Company") (TSX VENTURE:GSH) is pleased to provide an update on the Conacher sector of its Shebandowan Gold Project ("SGP") located 90 km west of Thunder Bay, in Northwestern Ontario, Canada.

Highlights:

  • The 2011 compilation, geological mapping and drilling outline a 4 km long auriferous corridor ("Conacher corridor") potentially representing the western extension of Band Ore Zone 4,
  • Two sub parallel trends are identified within this corridor, the Fogen-Conacher ("FC") trend to the north and the Zone 4-Conacher ("Z4C") trend to the south,
  • The FC trend is highlighted by an historical drill intercept of 1.03 g/t Au over 12 m,
  • The Z4C trend is highlighted by an historical drill intercept of 0.92 g/t Au over 1.5 m in the west part, an historical drill intercept of 0.32 g/t Au over 65.07 m associated with a gold humus anomaly in the central part and Band Ore's Zone 4 to the east,
  • Golden Share's drill hole CO-11-01 confirms the mineralisation of the Z4C trend with drill intercepts of 1.36 g/t Au over 3.40 m (including 5.06 g/t Au over 0.56 m) and 0.26 g/t Au over 16.70 m in a very strongly schistosed and altered rock package.

For additional details on the above highlights please see the figure "Conacher Corridor" at the following link: http://media3.marketwire.com/docs/Conacher_Corridor.pdf (the figure is also available at: http://www.goldenshare.ca).

President and Chief Executive Officer Philippe Giaro commented:

"As we keep improving our understanding of the project and we continue to work with our rock data base of last summer, we are able to design effective tools to model the mineralization. Silver appears to be a good pathfinder and has helped us recognize important alteration zones. It is remarkable that a single exploration hole drilled 2 km away from Band Ore's Zone 4 historical resources would hit two mineralized intercepts in an altered and sheared sequence with similar lithologies. The confirmation of this model opens up an entire new area to systematic exploration and will be the object of further detailed work during the 2012 summer surface campaign."

Golden Share's hole CO-11-01 was drilled to a depth of 254 m to test the Z4C trend. The exact positioning of Golden Share's hole was motivated by historical information, namely a gold in humus anomaly and previous drill hole GW 81-4 which yielded broad gold envelopes. While the precise location of historical hole GW 81-4 could not be established, it prompted Golden Share to further test the potential of the area. The following mineralized intervals were obtained in historical hole GW 81-4 :

  • 0.32 g/t Au over 65.07 m from 72.09 to 137.16 m (including 0.60 g/t Au over 12.59 m)
  • 0.30 g/t Au over 9.75 m from 19.00 to 28.75 m
  • 0.34 g/t Au over 6.23 m from 11.27 to 17.50 m (including 1.10 g/t Au over 1.01 m)

Golden Share's CO-11-01 is entirely sheared, intensely altered and consists mostly in an alternating pyroclastic sequence comprising fine to medium sized intermediate to mafic tuffs which are locally strongly pyritized. The following mineralized intervals were obtained in hole CO-11-01:

  • 1.36 g/t Au over 3.40 m from 170.60 to 174.00 m (including 5.06 g/t Au over 0.56 m)
  • 0.26 g/t Au over 16.70 m from 199.00 to 215.70 m (including 1.14 g/t Au over 0.42 m)

The geological sequence observed in hole CO-11-01 is similar to that observed in BO-11-09 drilled by Golden Share 2 km to the east on Band Ore's Zone 4 which also consists in a sheared and altered coarse pyroclastic sequence of intermediate to mafic tuffs (see press release dated February 20th 2012). Of particular interest is the hosting of the mineralization in sheared lapilli tuffs in both CO-11-01 and BO-11-09 suggesting continuity along the Z4C trend.

About the drilling program

The drilling is performed at high angle to the mineralized structures and the above intersections represent near true widths. Individual samples weighting 3kg on average have been taken from sawn half core at +/- 1 meter intervals in the mineralized zones with consideration of the geological contacts. A rigorous QA/QC program involves the random inclusion of mineralized standards, duplicates and blanks at the sample collection and preparation stage. The samples are shipped to the ALS laboratory in Thunder Bay, Ontario, for analysis by fire assay on 50g pulp samples. The sample preparation procedure involves the crushing of the entire 3kg sample followed by quartering to obtain a representative 250g sample which is entirely pulverized and out of which a 50g sample is isolated for analysis by fire assay. Samples suspected to contain visible gold or higher grade mineralization are assayed using the metallic sieve technique on a 1000g sample.

About the Shebandowan Gold Project (SGP)

The SGP is located 90 km west of Thunder Bay, north-western Ontario, in the Rainy River - Atikokan - Shebandowan emerging gold province where Osisko Mining Corporation is currently developing the 10.52 M oz Au Hammond Reef gold deposit 100 km to the West of the Company's project. The SGP is serviced by a railroad line, a high tension power line and the Trans-Canada highway all providing excellent infrastructure to the project.

About Golden Share Mining Corporation

Golden Share Mining Corporation is a Canadian-based mining exploration company 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.

Lake Shore Gold Corp., a Canadian emerging gold producer, holds a strategic 27.2%* interest in Golden Share which is led by a technically focused management team 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's development strategy involves advancing a well balanced portfolio of gold properties in a politically stable environment with a history of gold endowment through systematic exploration, resource definition and acquisitions. Highlights of the current portfolio include:

  • NI 43-101 and historical resources on Shebandowan Gold Play (150,699 oz Au Inferred** and 251,271 oz Au historical***),
  • Past producing high grade Au-Ag Berens River Mine to be redeveloped,
  • NI 43-101 compliant resources on Forsan (35,000 oz Au Inferred Resources****),
  • New discoveries in the Cadillac break environment.
* Lake Shore Gold Corp. acquired direct ownership of a total of 21.69 million common shares of Golden Share representing 19.9 per cent of the outstanding shares, as well as warrants to acquire an additional 10,845,000 common shares of Golden Share (representing 9 per cent of the outstanding shares on a partially diluted basis) at an exercise price of 20 cents per common share.
** 2,857,200 MT @ 1.64 g/t Au at 1.00 g/t Au cut off.
*** These estimates were executed prior to the introduction of National Instrument 43-101; hence they should be treated as historical data and therefore not be relied upon.
**** 536,500 MT @ 2.03 g/t Au at 1.00 g/t Au cut off.

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.

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