Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

October 18, 2012 10:00 ET

Pershimco Reports Additional Results 155m @ 0.46g/t Gold and 0.72% Copper

ROUYN-NORANDA, QUEBEC--(Marketwire - Oct. 18, 2012) - Pershimco Resources Inc. (the "Company" or "Pershimco") (TSX VENTURE:PRO)(FRANKFURT:BIZ) is pleased to announce recent drilling results at its 15,000 Ha 100% owned Cerro Quema property. This drilling was completed over the La Pava and Quemita/Quema deposits.

Significant intercepts from Diamond and Reverse Circulation (RC) drill results at the La Pava Deposit include:

  • PDH-12033 returning 155m @ 0.46g/t Au and 0.72% Cu including 50m @ 1.52% Cu and 0.77g/t Au within the sulphide zone;
  • PDH-12028 returned 45m @ 0.95% Cu and 0.17g/t Au within the sulphide zone;
  • PRH-12159 returned 12m @ 2.80% Cu within a larger intercept of 56m @ 0.80%Cu and 0.11 g/t Au within the sulphide zone;
  • PRH-12165 returned 11m @ 1.07g/t Au within the oxide zone; and
  • PRH-12169 returned 15m @ 0.75g/t Au within the oxide zone.

Additional significant drill hole results are listed in Tables 1 and 2 below.

Table 1: New Copper Results from La Pava

DRILL HOLE NO. From
(m)
To
(m)
Length
(m)
Copper
(%)
Gold
(g/t)
PRH12028 83 102 19 1.40 0.21
PDH12033 69 224 155 0.72 0.46
Incl. 103 153 50 1.52 0.77
PRH12159 20 51 31 0.32 0.01
PRH12159 97 109 12 2.89 0.17
PRH12162 12 26 14 0.31 0.01
PRH12165 43 71 28 0.86 0.14
PRH12168 8 21 13 0.39 0.01
PRH12172 69 74 5 0.75 0.16

Table 2: New Gold Results from La Pava

DRILL HOLE NO. From
(m)
To
(m)
Length
(m)
Gold
(g/t)
PDH12025 1 59 58 0.39
Incl. 9 24 15 0.97
PDH12028 18 51 33 0.37
PDH12032 0 54 54 0.70
Incl. 21 35 14 1.34
PDH12034 130 155.1 25.1 0.30
PRH12165 0 11 11 1.07
PRH12167 0 22 22 0.25
PRH12169 2 17 15 0.75
PRH12172 0 22 22 0.42
PRH12181 0 18 18 0.45
Notes for Tables 1 and 2:
1. Drill hole Numbers with prefix 'PDH' are diamond drill holes.
2. Drill hole numbers with prefix 'PRH' are reverse circulation (RC) drill holes.
3. Drill intersections tabulated under 'Intercept' are reported as drilled thicknesses. These intercepts are apparent widths only.

These results from La Pava demonstrate that step-out drill holes completed in the Southeast and central-North areas of the deposit continue to intercept oxide and sulphide mineralization. Of note, drill holes PDH-12032 which returned 54m @ 0.70g/t Au including 12m @ 1.34g/t Au from surface demonstrates continuity of mineralization in this northern area of the deposit. Drill hole PDH-12033 intercepted commercial grades of gold within the oxide zone and copper-gold within the sulphide zone. The sulphide intercept in this area validates the Company's mineralization model for the deposit and represents a combination of the supergene enrichment and the underlying outflow zones.

Step-out drill holes completed in the S-E area of La Pava intercepted both oxide and sulphide mineralization as demonstrated by these results. Of note, drill hole PRH-12165 returning 11m @ 1.07g/t Au from surface and drill hole PRH-12169 returning 15m @ 0.75g/t Au also from surface.

Drill holes PDH-12028 returned 45m @ 0.95% Cu and 0.17g/t Au including 19m @ 1.40% Cu and 0.21g/t Au. Additional step-out drilling is planned in this S-E area to follow-up on these results.

Figure 1 and 2 (available at the following address: http://media3.marketwire.com/docs/pro_fig1_2.pdf) show drill hole location plan on La Pava and Quema. These maps are also available on the Company's Web Site.

Highlights from the drilling program at the Quema-Quemita Deposit are listed in Table 3 below.

Table 3: New Gold Results from Quema-Quemita:

DRILL HOLE NO. From
(m)
To
(m)
Length
(m)
Gold
(g/t)
PRH12161 0 14 14 0.40
PRH12161 44 67 23 0.25
PRH12179 7 18 11 1.00
Notes for Table 3:
1. Drill hole numbers with prefix 'PRH' are reverse circulation (RC) drill holes.
2. Drill intersections tabulated under 'Intercept' are reported as drilled thicknesses. These intercepts are apparent widths only.

Significant intercepts from step-out drilling to the south include drill holes PRH-12179 which returned 11m @ 1.00g/t Au and drill holes PRH-12174 and PRH-12161 which returned 23m @ 0.25g/t Au and 14m @ 0.40g/t Au respectively. These drill holes are located in the south-central area of the deposit and continue to yield gold oxide intercepts as drilling continues to step-out into new areas. Step-out drilling is ongoing to systematically expand areas on known gold resources.

Alain Bureau, P.Eng, Pershimco's President and CEO commented: "Last month has been a spectacular month for drilling production, even being in the middle of the rainy season. Over 4,900 meters of combined RC and core drilling has been achieved in September. We are very satisfied with the oxide results coming out of the current drilling campaign increasing the mineralization on known deposits but we are sure anxious about getting results on the new targets indentified. The IP geophysics team is presently preparing equipments and will be starting in less than two weeks our priority targets. Meanwhile, an RC rig will be moved toward the first new target."

Quality Assurance / Quality Control ("QA/QC")

Drill core from the diamond drill holes and cuttings from reverse circulation (RC) drill holes are transported by Pershimco technical personnel from the drill site to the core and sample preparation facility on site. Once there, geologists and qualified technicians log, sample tag and half-split the diamond drill core in 1 meter lengths using stationary saws. Individual sampled meter intervals of split core and RC chips are then put in tagged and sealed plastic bags with a standard, duplicate and blank inserted at regular intervals. The prepared samples are then sent to the Activation Laboratories (Actlabs) sample preparation facilities in Panama. Individual samples are inventoried by Actlabs personnel, dried, finely crushed to 70% at <2 mm, then pulverized to 85% at <75 microns, and riffle-split to 150 grams. Prepared samples are then placed into sealed 5-gallon plastic containers and shipped by courier services to the Activation Laboratories main facilities in Ancaster (Ontario, Canada) for assaying using a multi-element ICP method and fire assay method with atomic absorption finish for Gold, Silver and Copper. Over limit assays are done on samples with results greater than 2.5 g/t. The sample preparation protocol also requires that samples be dried at 125 degrees Fahrenheit just prior to crushing and also immediately before pulverizing.

The information contained in this news release has been reviewed and approved by Mr. John Kapetas, B.Sc. Hons, MAusIMM, MAIG, a Qualified Person under NI 43-101 rules and standards.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian-based resources and exploration company listed on the TSX Venture Exchange and the Frankfurt Exchange. The Company holds several mining properties in Canada and South America, including the extraction permitted Cerro Quema advanced project in Panama and the Courville Gold Project, in the Val-d'Or Gold Mining Camp, being explored in partnership with Osisko Mining Corporation. The Company is managed by skilled and reputable people with extensive mining, exploration and development experience. The Pershimco Team and its investors are the key to its success.

The Corporation's documents are available on www.sedar.com

Please visit the Corporation's website at www.pershimco.ca

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statement.

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