Golden Share Mining Corporation
TSX VENTURE : GSH

Golden Share Mining Corporation

May 18, 2011 09:30 ET

Golden Share Stakes an Additional 7 km West Along Pistol Lake-Band Ore Trend of Shebandowan Project, Ontario

MONTREAL, QUEBEC--(Marketwire - May 18, 2011) -

Editors Note: There is a map associated with this press release

Golden Share Mining Corporation (TSX VENTURE:GSH) ("Golden Share") is pleased to announce the acquisition by staking of additional claims contiguous to the west its Shebandowan Gold Project ("SGP"), Ontario, Canada.

The SGP comprises three contiguous properties which are, from west to east :

  • Pistol Lake property : Host to the JF West zone (150,699 oz* Au, NI 43-101 compliant Inferred Resource / 2,857,200 MT @ 1.64 g/t Au at 1.00 g/t Au cut off).
  • Conacher property : Mineralization recognized in close association with sheared and altered felsic intrusives with historic diamond drilling returning 0.93 g/t Au over 12 m and 12.09 g/t Au over 4.03 m.
  • Band Ore property : Host to the Band Ore deposit (251,271 oz Au in historical resources within two principal zones / 706,000 tonnes at a grade of 6.86 g/t Au** in the Main zone and 616,000 tonnes at a grade of 4.83 g/t Au** in the #4 zone); currently undergoing a Transaction with Lake Shore Gold Corp. (see news release dated March 28th 2011).

The recently staked area consists of ten unpatented mining claims comprising 112 units covering approximately 1,792 hectares and adds 7 km of strike length to the SGP. Upon final completion of the Transaction with Lake Shore Gold Corp., Golden Share will control 25 km of strike length along the northern part of the Shebandowan belt with a total property size of 6,600 hectares or 66 km² (see attached figure or visit : http://www.goldenshare.ca).

The new claims cover the western extension of the Pistol Lake – Band Ore host stratigraphy and are considered extremely favourable for gold mineralization. Specific structures to the new claims include the Kabigon Bay, Martin Bay and Contact regional deformation zones which form prime exploration targets. Additionally, the Vanguard and Whalen VMS horizons should be considered very favourable for hosting precious metal-rich VMS deposits. Sedimentary and volcanic stratigraphy may host Vanguard type exhalative deposits while the intrusive units may host North Coldstream type replacement deposits in mafic intrusions.

Two priority target areas have been identified on the new claims.

  • Priority Area #1 covers a large area in the central part of the new claims were numerous exposures of favourable stratigraphy host precious and base metal mineralization. Strongly anomalous gold (up to 1163 ppb Au), zinc (up to 440 ppm Zn) and copper (up to 397 ppm Cu) in soil anomalies indicate the potential for significant mineralization over a broad area. The southern extension of the Ray Smith occurrence is open along strike and Tabor drill hole #5 intersected 36 cm of 8.2 g/t Au along the common boundary with the new claims. Smith drill hole #10 intersected VMS style mineralization over significant widths at the Kabigon Bay occurrence. Shearing, veining and sulphide mineralization is reported in many of the drill logs and in geological mapping.
  • Priority Area #2 covers an area where the felsic pyroclastic rocks display extensive alteration (Ba, Si, Na and K); barium is enriched up to 5% in a bleached white package of felsic crystal and lapilli tuffs. Possible epithermal zones exhibiting intense silicification, abundant sulphide mineralization and narrow veinlets of barite, chlorite and purple fluorite occur extensively throughout the area. The Amp Lake Occurrence hosts Au-Mo-Cu-Ba-Cr anomalies in rock and soil. Old pits and a shaft are located in this area. The mineralization occurs in veins, stockworks, shears, fractures and tectonic breccias in extensively altered felsic volcanics and felsic intrusives reminiscent of a Hemlo-type environment. The alteration and mineralization appear to be associated with a prominent northeast striking structure, the Martin Bay Deformation Zone.

The technical crew is now preparing for the start-up of the summer season on the Shebandowan project. The program will initially focus on the central part of the property, host of the Pistol Lake and Band Ore inferred and historical resources respectively. The summer program will consist in very thorough surface work in preparation for drilling later in the season.

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'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 :

  • Past producing high grade Au-Ag Berens River Mine to be redeveloped,

  • NI 43-101 compliant resources on Pistol Lake (150,699 oz Au Inferred Resources*),

  • NI 43-101 compliant resources on Forsan (35,000 oz Au Inferred Resources***),

  • New discoveries in the Cadillac break environment.

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.

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.

* 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

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/Shebandowan_Property0511.pdf

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

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