Silver Shield Resources Corp.
TSX VENTURE : SSR

Silver Shield Resources Corp.

August 16, 2007 12:32 ET

Silver Shield Resources Makes Second Mexican Option Payment, Commences Preliminary Exploration Work

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) - Silver Shield Resources S. A. de C. V., a fully owned Mexican subsidiary of Silver Shield Resources Inc., is pleased to announce it has completed the second option payment on it's La Cumbre Property in Guerrero State Mexico. Terms of the option payment call for payments (all USD) of $ 10,000 on signing (paid), $ 10,000 due two months after signing (now paid), $ 20,000 due six months after signing and the final payment of $ 28,000 due on the first anniversary of signing. A $1.00 per tonne royalty on ore mined and milled also applies on the property. An advance royalty of $2,000 per month is enacted on the fifth anniversary of the completion of the option.

The property is the initial expansion of the company into this rich silver producing country. The proposed exploration plan at the La Cumbre Concession will be the first modern day exploration ever performed on the property and certainly on the many other showings. The property consists of 2 claims "La Cumbre" and "La Cumbre 2" for a total of 4,000 Ha. The property has been optioned from Mr. Hector Gonzales-Flores a Mexican Mining Engineer who has also been engaged by Silver Shield Resources S.A de C.V. to assist in the exploration program. Mr. Gonzales-Flores knowledge and expertise of the property and area as well as the local labour will prove invaluable to the company in progressing this project. Mr. Gonzales-Flores and Raymond Lashbrook of the company have also identified additional projects of merit which will be pursued by the company once our presence and workings have been established in Mexico.

The current focus will be around the main El Condor Vein where a shaft to 50 meters and limited underground development has taken place. Previous underground sampling by the Mexican Government agency "Consejo de Recursos Minerales" in 1989 returned an average from 48 samples of 5.30 gms./tonne gold and 518 gms./tonne silver over 1.30 meters in width.

Raymond Lashbrook, Vice President of Explorations is presently in Mexico to do the preliminary phase of our exploration and development program. Mr. Lashbrook will be engaging heavy equipment to make reparations to the mine road, do some stripping of previously identified areas and prepare certain areas for the planned late fall/early winter drill program. While at the site Mr. Lashbrook will also evaluate the status of the shaft, pits , trenches and adit to also aid in our rehabilitation and development plan. Numerous other old trenches and pits on the property define an easterly trending corridor of faulting and mineralization over an approximate known width of 400 meters and at least 2 kilometers long.

The company believes this project to be a complementary project in nature and scope to it's Ontario projects. The company's objective is to strive for quality developmental projects that can be advanced to production. It believes the La Cumbre to be in line with this objective.

A fall work program is also being developed on the companies Ontario projects at the Welsh Mine, Morris Property and it's Leonard Township claims. A surface program of limited scope has already been completed at the Gore claims in South Lorraine Township, and the Wilder Duggan Shafts in Donovan township.

Contact Information

  • Silver Shield Resources Inc.
    Tim D. Towers
    President
    (905) 319-3033
    or
    Silver Shield Resources Inc.
    Raymond Lashbrook
    Vice President Exploration
    (705) 752-3957
    Email: fstplc@lara.on.ca