Pershimco Resources Inc.

Pershimco Resources Inc.

August 16, 2007 13:38 ET

Pershimco Initiates Drilling at the Las Minitas Silver-Gold Project, Sonora, Mexico

CHIHUAHUA, MEXICO--(Marketwire - Aug. 16, 2007) - PERSHIMCO RESOURCES INC. (TSX VENTURE:PRO) (FRANKFURT:BIZ) is pleased to announce that it has started a 3,000 m diamond drilling program at the Las Minitas Ag-Au Property in south western Sonora State, Mexico, located 30 km NE of Navojoa.

The current drilling will focus on validating historical drill assay results and expanding the resource potential along the Las Minitas and El Negro easterly trending mineralized corridors, each 2 km in length. Some 569.5 m in 3 holes (LM-07-01 to 03) have been drilled to date on the Las Minitas Property.

Direct field observations by Pershimco personnel, the historical work reported in a 2006 Technical Report by Michael Sandidge and compliant with National Instrument 43-101 standards (refer to the Pershimco news release dated May 11, 2007), and a 2006 internal summary report by David Petersen, P. Eng., for Tara Gold Capital Resources Corp., indicate at least five E-SE trending mineralized corridors (Las Minitas, El Negro, Socorro, Aurifero V-1, Aurifero V-2 and Aurifero V-3), repeated at roughly 750 m N-S spacings, each 2 km in length.

The next 5 drill holes are planned for the El Negro target area, due north of the Las Minitas mineralized corridor, where a historical resource of 13.53 million tonnes grading 260 g/t Ag and 0.31 g/t Au has been defined, as outlined in the Michael Sandidge, P. Geo., technical report. The estimate is strictly historical in nature. There has not been sufficient work to classify these resources as compliant NI 43-101 Mineral Resources; nor is Pershimco treating the historical estimate as current mineral resources. The historical estimate should not be relied upon.

Pershimco will release assay results as they become available, as well as additional field observations as the exploration campaign continues with the drilling; surface outcrop stripping, trenching and sampling; and airborne and ground geophysics, all to determine the full extent of the Ag-Au content on the Las Minitas Property.

Background information on the Las Minitas Au-Ag Project

Pershimco signed a Letter of Intent to acquire a 75% direct property interest in the 7,275 hectares or 72.8 km2 Las Minitas Silver-gold Project in Sonora, Mexico, held by Tara Gold Resources Corporation (OTC: TRGD) (FSE: T8N). The Las Minitas Project is located in the western foothills of the Sierra Madre Occidental, and situated near mineral deposits owned by Agnico Eagle, Gammon Lake and Coeur D'Alene, 300 km W-SW of Pershimco's La Bamba and San Miguel properties.

Pershimco could earn its direct property interest within 55 months by making cumulative payments to Tara gold of US$ 1.83 million, staged exploration work for a total of US$ 5.2 million, property payments for US$ 3.20 million and issuing 750,000 shares of Pershimco to Tara Gold Resources Corporation.

The information in this news release has been prepared and reviewed by Mr. Jean Lafleur, P. Geo., Director and Technical Advisor to Pershimco, the Company's Qualified Person under NI 43-101.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol PRO on the TSX Venture Exchange and under the symbol BIZ on the Frankfurt Stock Exchange. The Company holds 100% of several mining properties including the Courville Gold Project, near the Val-d'Or Gold Mining Camp, The Company has an option to acquire a number of Canadian and Mexican properties in the State of Chihuahua, Mexico, including 100% of the newly acquired Cu-Zn-Au-Ag skarn Magistral Project and 75% of the Las Minitas Ag-Au project. Pershimco's wholly owned La Bamba and San Miguel properties, in the Cusi Mining District, are under option to Dia Bras Exploration. Pershimco's strategy is to advance its exploration properties towards metal reserves and eventual production.

This news release contains forward-looking statements reflecting Pershimco objectives, estimates, expectations and the impact of acquisitions on Pershimco's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. 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
    Paradox Investor Relations
    Toll Free within Canada / U.S. at 1-866-460-0408
    514-341-1527 (FAX)