GoldSands Development Company
OTC Bulletin Board : GSDC
OTCQB : GSDC

June 16, 2011 16:51 ET

GoldSands Updates Gold Production Test

LIMA, PERU--(Marketwire - June 16, 2011) - GoldSands Development Company (OTCBB:GSDC) (OTCQB:GSDC) is pleased to announce updated results from our alluvial gold production test at the Company's Mika 2 concessions in Peru.

The initial gold production test mining project is taking place with Swiss Mining on Mika 2 within the 2.5 square kilometer area of our 100-hole drill program.

Our updated numbers from the ongoing test production for the period March 28th to June 7th are as follows:

Gravel mined:7350 m3(9613 cubic yards)
Raw gold produced:2338 grams(2.338 kg) (75.2 troy oz.)
Raw gold grade:318 mg/m3(3.76 grains/cubic yard)
Raw gold value:US$ 15.34/m3(US$ 11.73/cubic yard)

The Company cautions that these results have not been independently verified, and that we will not attempt to reach a conclusion about potential alluvial gold yields based solely upon the data derived from the first two months of test production.

GoldSands VP of Production, Rafal Swiecki, commented:

"It is encouraging that the average gold grade so far has remained within previously identified levels (over 318 mg/m3). We are now testing various recovery methods to determine if the large volume of alluvial material on our properties may contain gold values conducive to profitable extraction."

About GoldSands Development Company

The Company's goal is to fully develop our Peruvian GoldSands project. The Company's GoldSands project in Peru consists of options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district. For thousands of years, the waters of the Santiago and the Marañón rivers have been carving their way through the gold-rich mountain canyons of the Andes, carrying off gold and depositing it, as the river comes out into the plain, in the loose gravels and sands - GoldSands - in the area the Company now controls.

Results from test holes drilled during GSDC's exploratory drill program indicate the presence of alluvial gold in economical quantities. While the results from the drill programs and initial results of the ongoing test mining production are favorable, the Company cautions that these results do not indicate the presence of a commercially viable mineral deposit over most of the optioned area and an extensive amount of further exploration is needed to determine the full feasibility of the project. The Company can provide no assurance that its Peruvian GoldSands project will contain an economically viable mineral deposit. The Company has signed an agreement with Swiss Mining S.A., which is presently proceeding with the test mining production program within the 2.5 square kilometer area of the recent 100-hole drill program.

The Company has completed a social baseline study involving a series of meetings with local residents and other stakeholders in the region. We intend to work in an equitable, transparent, and socially responsible manner with local communities, suppliers and employees. We will act as stewards of the local and regional ecological systems, behaving in an environmentally responsible way, leaving a minimal "footprint" as a result of our operations. Our company is working towards building trust and sustaining relationships that go well beyond mining operations.

The full implementation of these programs will require the Company to secure additional financing.

Further information about GoldSands Development Company may be found at: www.goldsandsco.com.

On behalf of the Board:

Dr. Michael Stocker - CEO

GoldSands Development Company

Disclaimer

This release contains forward-looking statements that are based on beliefs of GoldSands Development Company management and reflect GoldSands Development Company's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words , or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of GoldSands Development Company with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance , or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, GoldSands Development Company and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.

Contact Information

  • GoldSands Development Company
    Investor Inquiries:
    North America Toll Free: 800-215-0811
    Direct Dial: 360-339-7309
    info@goldsandsco.com