Shoreham Resources Ltd.
TSX VENTURE : SMH

Shoreham Resources Ltd.

June 12, 2007 14:36 ET

Shoreham Resources Ltd.: Corporate Update

TORONTO, ONTARIO--(Marketwire - June 12, 2007) - David A. Bending, President & CEO of Shoreham Resources Ltd. (TSX VENTURE:SMH) is pleased to provide Shoreham's shareholders with this corporate update. Shoreham is a resource Company dedicated to exploration and development of metallic mineral properties in the Red Lake District of Ontario and in Guyana, South America.

Canadian Projects - Red Lake District of Ontario

- Favourable Lake Project (Option to acquire a 80% working interest from Gold Canyon Resources Inc., see News Release 2006-03, March 07, 2006).

- Bearhead Lake Project (Option to acquire a 70% working interest from RPT Ventures Ltd., see News Release 2007-05, March 27, 2007).

- Setting Net Lake and Twinpeaka Projects (Option to acquire 100% working interest from two individuals, see News Release 2007-08, May 9, 2007).

Shoreham has contracted Terraquest Ltd. to complete a high-resolution airborne radiometric, magnetic and VLF survey to provide a technical foundation for evaluation of the targets on these properties.

Three uranium prospects have been identified by previous work and reconnaissance evaluation at Favourable Lake. Ground prospecting and re-sampling of trenches are planned for this project starting June 2007. As part of this project, evaluation and expansion of the Borland Lake silver / gold base metals target is planned for this winter utilizing deep penetrating Electro Magnetic surveys and diamond drilling.

The Bearhead Lake Project, as documented by OGS Mineral Deposits Circular 25 (1983) was subject to 1,423 feet (433.7 meters) of drilling in 7 holes in 1955 and 29,871 feet (9,104.7 meters) of drilling in 66 holes in 1977. The 1977 drilling formed the basis for an 'indicated reserve' estimate (not compliant with NI 43-101) by Kerr Addison Mines Ltd. and Dolores Branch Resources Ltd., which is of great interest to the management of the Company. Scheduled fieldwork for this project includes line cutting, ground radiometric surveys, location of historical drill site and sampling of previously excavated trenches. Depending upon the results achieved from these preliminary activities, potential drilling would be scheduled for the winter months when the roads allow access to the area.

The Setting Net Lake Molybdenum project, as documented in Energy Mines and Resources Canada MR 223 (1989), is a porphyry hosted disseminated and stockwork molybdenum deposit with associated disseminated copper. The prospect was subject to systematic evaluation including geophysics and drilling during the periods from 1968 to 1969 and from 1977 to 1978, resulting in a historic resource estimate (not compliant with NI 43-101). The currently active field program includes relocation of the historical trenches and drill sites, systematic sampling, and preparation for diamond drilling. Shoreham's evaluation program will re-examine and undertake to prove and expand the historical resource calculations in this target area and will include systematic assays for other associated metals including copper and precious metals. Drilling of the core targets will be scheduled as soon as suitable equipment is located, with a follow-up program scheduled for the winter months when roads will facilitate access to the area.

Guyana Projects:

- Marudi / Paint Mountain Project (Option to earn up to a 75% working interest from Vannessa Ventures Ltd. see News Release 2007-06, March 27, 2007)

- Maple Creek - Potaro Project (Option to earn up to a 100% working interest from Vannessa Ventures Ltd. see News Release 2007-06, March 27, 2007)

Shoreham has completed a program of line cutting, prospecting and geochemistry in the Paint Mountain Concession area, covering the eastern extensions of the Marudi Mountain Target, with results pending. An exploration and development program including but not limited to systematic shallow drilling to evaluate saprolite targets, systematic trenching and bulk sampling, diamond drilling and progressively more detailed prospecting is planned during the remainder of 2007. Independent consultants are currently compiling the historic drilling data in order to provide the Company with an updated NI 43-101 compliant resource estimate for the Mazoa Hill and Marudi Mountain Targets.

The Maple Creek - Potaro properties are on care and maintenance with systematic exploration and test mining programs planned for later in 2007. Shoreham management considers the Maple Creek - Potaro properties to be strategic exploration assets with potential for gold and diamonds.

Shoreham and Garrison International Ltd. ("Garrison") signed a letter agreement in January 2007 granting Garrison an option to joint venture and earn a 50% interest in the Maple Creek - Potaro properties. Shoreham provided Garrison with a written notice of default in February 2007. In March 2007, Shoreham provided Garrison with a written termination notice based upon such default not being rectified within 30 days as provided in the letter agreement. In the termination notice, Shoreham granted Garrison additional time to rectify the defaults. As such defaults have not been rectified to date, Shoreham has taken the position that the letter agreement has automatically terminated in accordance with its terms. Garrison has notified Shoreham that it does not agree that the letter agreement has terminated.

Management Outlook:

Shoreham is financially well positioned to continue to execute our exploration programs and is pleased to be associated with such diverse and high quality projects in Canada and Guyana.

Shoreham Resources Ltd. is a Canadian resource company listed on the TSX Venture Exchange: Symbol "SMH".

The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Shoreham Resources Ltd.
    David C. Hammond
    CFO & Director
    (416) 867-1101
    (416) 867-1222 (FAX)
    Email: shoreham@bellnet.ca