Goldmark Minerals Ltd.
TSX VENTURE : GMK

Goldmark Minerals Ltd.

August 31, 2007 09:00 ET

Goldmark Announces Financial Results for the First Six Months of 2007 and the Acquisition of Options to Gold Bearing Properties in Peru

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2007) - Goldmark Minerals Ltd. (TSX VENTURE:GMK) announces its financial and operating results for the six months ending June 30, 2007 showing a loss of $131,767 and a strong work capital position of $1,863,416. Goldmark reports significant progress in its restructuring and new business focus as it has acquired the option to purchase two gold bearing properties, one in Brazil and one in Peru and the completion of the first phase of exploration work on Abigail, its concession in Ecuador.

Financial

During the first half of 2007, Goldmark finalized the sale of non-core assets in Alaska and Canada. The Company realized a gain on the sale of $219,550 on proceeds of $266,100. The gain was offset by an increase in overhead cost and business development cost for work in Brazil, and non-cash compensation costs related to the issue of options to employees and directors resulted in a loss of $131,767 for the period.

Furthermore, during the second quarter of 2007, Goldmark completed a financing raising $2.1 million through the issue of 8.4 million units. Each unit consisted of one share and one share purchase warrant. Each warrant entitled the purchaser to purchase an additional share at a price of $0.35 per share until May 15, 2009. The proceeds will be used to fund the Company's exploration activities in South America.



Financial Summary

Six months ended June 30,
2007 2006 2005
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Revenue $ 219,550 $ - $ 1,242
Loss for the period $ (131,767) $ (19,025) $ (14,709)
per share, basic and diluted $ (0.01) $ (0.00) $ (0.00)
Total assets $ 2,148,075 $ 110,650 $ 163,136
Working capital (deficiency) $ 1,863,416 $ (95,416) $ (73,996)


Business Development

Peru

Goldmark has also acquired an exclusive option to review certain properties located in Huaytara Province, of Peru, some 300 kilometers south of Lima. The Company has paid $20,000 US for a five month option to the exclusive right to access and explore the properties and, if it so wishes, finalize a purchase agreement. The Company is now commencing an exploration program on the property consisting of rock and soil sampling, mapping and some geophysical analysis on the properties.

Ecuador

The sampling results on the initial early stage exploration program of the Abigail property in southern Ecuador has now been completed The 1,745 hectares large Abigail concession is 100% owned by the Company's Ecuadorian subsidiary, Goldminerals Ecuador SA. and was acquired in January 2007. The company also owns the Aleman I property that circumferences the north and northeastern corner of Abigail. The assay results of the soil samples confirm the existence of gold on Goldmark Minerals property, confined to a corridor with a high concentration of the northeastern trending quartz veins.

The exploration program revealed and confirmed the general geology is dominated by the Tres Lagunas Granite. During this initial exploration program, completed at the beginning of April 2007, a total of 433 samples, 366 soil samples, 17 rock and 49 samples of stream sediments and colluvial sediments were taken and sent for geochemical assay to ALS Chemex. The samples were processed at the ALS Laboratory in Quito and assayed at their facilities in Vancouver.

Elevated values of gold were detected in 3 soil samples on the property .The assay results as reported by ALS-Chemex Vancouver with values of gold exceeding 0.039 ppm in soil samples:



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Soil sample # Values of Gold
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in ppm
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- W 1 0.326
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- W 6 0.039
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- W 18 0.103
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The samples were assayed according to ALS-Chemex assay code Au-ICP 22 and ME-ICP 41 for 35 elements Aqua Regia Solution.

At this stage it was not clear if the quartz veins host the free gold. It appears the gold mineralized area is restricted to a zone of at least 250 m wide and over 1000 m long striking in northeasterly direction extending to the northern portion of the concession and apparently connecting to the concession (not owned by Goldmark Minerals) that is currently being mined. Geological evidence suggests the gold bearing zone is controlled by a northeasterly trending fault zone and an extension of the fault to the southwest, transecting a large portion of the Abigail concession.

The results were not as good as the Company had anticipated, however the sample results indicated elevated values of gold in sufficient quantities to justify trenching and further evaluation. This work will be delayed until additional geological work has been completed.

Eight Km to the north of the Abigail claim the El Mozo property contains inferred resources (as of 10 June 2004) estimated at 3.5 million tonnes at an average grade of 2.3 g/t gold, i.e. 256,000 ounces of inferred resources of contained metal gold related to an epithermal system. The findings at El Mozo and current gold mining activities at the northern boundary of the Abigail concession were the catalysts for the exploration for gold on this property.

The exploration program was supervised by Gerhard Jacob, President of Goldmark Minerals Ltd. Mr. Jacob is a registered professional geologist with the Society of Professional Geoscientist of Germany. J. Kraus, PhD., PGeo., the qualified person, and registered with APPEGA, inspected the sampling procedure, recording and confirmed the sampling methods complied with the standards set by the national instrument 43-101. J. Kraus has reviewed the contents of this release for accuracy.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • GOLDMARK MINERALS LTD.
    Peter Barker
    Chief Executive Officer
    (403) 299-0357
    or
    GOLDMARK MINERALS LTD.
    Robert W. Lamond
    Chairman of the Board
    (403) 269-9889
    (403) 269-9890 (FAX)
    Website: www.goldmarkminerals.com