Goldminco Corporation

Goldminco Corporation

June 07, 2006 12:22 ET

Goldminco Corporation: Drilling to Yield New Resource Estimate at Discovery Ridge

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 7, 2006) - Goldminco Corporation (TSX VENTURE:GCP) wishes to announce new diamond drilling results from the Discovery Ridge and Ferndale Prospects in the Blayney Project. Deeper drilling will continue at Ferndale and exploration drilling has begun at the Nash Hill Prospect in the Parkes Project.

Discovery Ridge Prospect

The Discovery Ridge Prospect on the Blayney Project has an indicated gold resource of 165,000 ounces and inferred resource of 107,000 ounces. It is the most advanced of the company's exploration properties. New results for the previously reported Discovery Ridge diamond drill holes include long intervals of low grade gold mineralization above the main intersection in DRD078 and a narrow high grade intersection deep in DRD077. A new resource estimate is being calculated to include the results from these two diamond drill holes.

Table 1: Discovery Ridge Drill Intersections, May 2006

Hole East North From (m) To (m) Width (m) Au g/t
DRD077 694722 6271004 293 385 92 1.9
418 420 2 7.5
485 486 1 13.6
DRD078 694662 6270970 143 198 55 0.5
228 250 22 0.9
250 310 60 2.4
321 328 7 1.3

Ferndale Prospect

The balance of the assays for the Ferndale diamond drill hole FDRCD036 were received in May, 2006. In addition to the previously reported skarn mineralisation (36 metres at 0.2 g/t gold, 0.9 percent copper), low-grade copper-gold mineralization was seen in the upper skarn, in the top half of the main skarn and in intrusives below the main skarn. Deep diamond drilling planned to further test this new mineralization is set to begin in June, 2006.

Table 2: Ferndale Drill Intersections, May 2006.

From To Width
Hole East North (m) (m) (m) Au g/t Cu % Comment
FDRCD036 696465 6293450 401 406 5 0.2 0.8 Upper Skarn
465 474 9 0.4 0.4 Main Skarn -
Epidote Zone
497.8 534 36.2 0.2 0.9 Main Skarn -
Magnetite Zone
543 553 10 0.3 0.2 QZ/PY veins
in monzonite

Nash Hill Prospect

Exploration drilling has begun with a program of 3,000 metres of aircore drilling at the Nash Hill Prospect, located in the Parkes Project. Drilling is testing a highly prospective area surrounding old workings for structurally controlled gold mineralisation and porphyry style copper-gold deposits. Drilling will assist in defining deeper drill targets.

About the Blayney Project

The Blayney Project in the eastern region of the Lachlan Fold Belt (LFB) in New South Wales, Australia, and has a number of advanced prospects for drill testing. The region is considered to be one of the most prospective geological environments in the LFB for porphyry-related copper/gold mineralisation. The Cadia Valley and Ridgeway gold deposits of Newcrest Limited (281Mt at 0.64 g/t gold and 0.17 percent copper; 73Mt at 1.8g/t gold and 0.6 percent copper, respectively) lie 10km to the west of the Blayney Project.

The project tenement also covers large areas of Ordovician sediments and limestone, which are prospective for structurally controlled gold deposits such as Discovery Ridge (270,000 ounces) and skarn gold deposits such as the Browns Creek mine (750,000 ounces total gold content).

About the Parkes Project

The Parkes Project area is located at the southern and northern ends of Goonumbla Volcanic Complex (GVC) and covers the Nash Hill Volcanics. It is highly prospective for porphyry related gold-copper deposits. The GVC is host to the Northparkes gold-copper deposit with initial reserves of 131 Mt at 1.2 percent copper and 0.5 g/t gold which is currently being mined by Rio Tinto.

Extensions of the Nash Hill Volcanics host the Peak Hill (550,000 ounces gold mined and resource) and Wyoming (more than 500,000 oz gold) and a recently discovered porphyry system at the Buryan Prospect by Newcrest just five kilometres to the north.

About Goldminco

Goldminco is a junior mining exploration company registered in Canada with headquarters in West Perth, Western Australia. Goldminco holds over 2,500 km2 of mining tenements in the highly prospective Lachlan Fold Belt (LFB) of New South Wales, Australia. This is the second largest holding in the LFB, host to the world class Cadia group of deposits. The tenements are predominately 100 percent owned and operated by Goldminco and have a range of active projects for gold and porphyry copper-gold.

The Blayney and Parkes Projects are under the supervision of, and the data disclosed herein was reviewed by, Mr. Bruce Hooper, who is a Qualified Person under NI 43-101. Mr. Hooper holds an honours degree in Geology from the University of Leeds, England and is a current member of the Australian Institute of Geoscientists (AIG)

On behalf of the board of directors, Bruce Hooper, President.

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