Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

December 12, 2007 09:03 ET

Pershimco Drops Conditional Option Agreement on Las Minitas

CHIHUAHUA, MEXICO--(Marketwire - Dec. 12, 2007) - PERSHIMCO RESOURCES INC. ("Pershimco") (TSX VENTURE:PRO) (FRANKFURT:BIZ) announces that based on new information on the Las Minitas Gold-Silver Project ("Las Minitas Project") obtained through the usual verifications and following communications with the TSX Venture Exchange about significant disclosure contained in press releases issued by a previous owner of the property, and the latest due diligence work gathered on the property, that Pershimco is dropping its conditional option agreement on the Las Minitas Project, and has notified Tara Gold Resources Corporation ("Tara Gold") of its decision. The conditional option agreement was still subject to regulatory approvals, including the TSX Venture Exchange.

Pershimco, through its subsidiary Minero Metallurgica San Miguel, S. de R.L. de C.V, had signed the option agreement with Tara Gold and Corporacion Amermin S.A. de C.V. whereby it could have earned the right to acquire a 75% interest in the project (refer to the press release dated May 11, 2007).

Based on information provided and representations made by Tara Gold at the signing of the preliminary agreement Pershimco reported that the Las Minitas Project hosted a historic mineral resource (refer to the press releases dated May 11 and November 13, 2007). This disclosure was based on a Technical Report submitted by Tara Gold and completed in September 2006 by M. H. Sandidge, P. Geo., titled "Technical Report, National Instrument (NI) 43-101 Qualifying Property Report, Las Minitas Project, Sonora, Mexico" ("Sandidge Report"). The Sandidge Report was commissioned by Tara Gold. Pershimco has since learned that the mineral resource in the Sandidge Report may have been calculated using a historic database. Pershimco is currently unable to validate if the Sandidge Report is complete and if it contains all the relevant historic drilling and assays done on the project.

Following communications with the TSX Venture Exchange about press releases issued between 1994 and 1997, Pershimco learned of and confirms that a statement at that time was issued retracting a resource estimate at the Las Minitas Project, otherwise known in the 1990's as the La Fortuna Project.

The retraction was based on a discrepancy in silver assays. Validation drilling by an optioning party at the time indicated that silver assays were lower than those originally obtained by the vending party over the same twinned intervals. Given the current information Pershimco has in its possession, it appears that the original database was used principally in the drafting of the Sandidge Report. The vendor reported at that time that the optioning party terminated its option on the project following the results from the twinned holes. Pershimco is thus forced, such as the prior optioning party, to drop its option.

As a result of this new information on the Las Minitas Project Pershimco hereby retracts all prior resource estimates it has made for the project and cautions that they should not be relied upon.

Pershimco's management intends to continue its efforts in Mexico, in particular the Cusi and Magistral projects. Pershimco is confident that it will meet its growth objectives and will generate new business opportunities with its partners.

Please visit our web site at www.pershimco.ca

This news release may contain forward-looking statements that could reflect Pershimco's objectives, estimates, expectations and the impact of acquisitions on Pershimco's financial performance. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Pershimco's projections or expectations.

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

Contact Information

  • PERSHIMCO RESOURCES INC.
    Michael Curtis
    President and CEO
    514-793-1915
    www.pershimco.ca
    or
    Paradox Investor Relations
    514-341-0408
    Toll Free within Canada / U.S. at 1-866-460-0408
    514-341-1527 (FAX)
    infoparadox@qc.aira.com