StoneShield Capital Corp.
TSX VENTURE : STS
FRANKFURT : 5XS

StoneShield Capital Corp.

May 17, 2011 03:01 ET

StoneShield Options "El Mercado" Property 8Km North of Angostura and La Bodega Gold Discoveries, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2011) -StoneShield Capital Corp. (TSX VENTURE:STS)(FRANKFURT:5XS) ("StoneShield" or the "Company") is pleased to announce it has signed an option to acquire up to a 100% interest in the El Mercado gold property ("El Mercado") located 8km north of the 8.9 million oz gold & 59.6 million oz silver Angostura project owned by Greystar Resources Ltd., and the 3.5 million oz gold & 19.2 million oz silver La Bodega gold project owned by Ventana Gold Corp. in the Santander department of Colombia.

El Mercado is a mining concession contract that totals 1,943 hectares. One of the five gold-bearing regional fault zones which control all known gold deposits in the district crosses the El Mercado property. Preliminary rock samples at El Mercado returned assay gold values up to 4.5g/t Au and 35g/t Ag. Artisanal gold workings are present on the property with shallow adits having exposed mineralized veins. Limited, initial stream sediment samples have returned up to 60ppb Au and 170ppb Ag.

El Mercado Exploration Plans

StoneShield is excited by the prospects at El Mercado and by the proximity to two of the largest gold discoveries in Colombia during the past five years. The Company is now planning exploration to include geologic mapping, geochemistry and geophysics to delineate specific drill targets.

El Mercado Property

El Mercado is located in the mountains of the eastern Cordillera of South America, approximately 400 km north-northeast of Santa Fé de Bogotá and is 55 km from Bucaramanga, the capital city of Santander department. Bucaramanga is serviced by frequent daily jet and turbo-prop flights from Bogotá. The villages of California, Vetas, and Surata are all within approximately 10 km of the Project, which is serviced by local hydroelectric power.

To view the El Mercado Property Location Map, please visit the following link: http://media3.marketwire.com/docs/stsi517.pdf.

Host rocks within the property consist of Jurassic to Cretaceous, coarse- to fine-grained, calcareous fluvial sediments and lesser early Paleozoic metavolcanics. Intrusive rocks similar to those at the La Bodega and Angostura deposits outcrop 1 kilometer to the west of the property. These intrusive rocks may be present in the subsurface of the property and may be the source of mineralization within and surrounding the project. Very little exploration has been completed on the El Mercado property. Mineralization is yet to be properly outlined, but appears to consist of quartz veining within a sericitic-argillic alteration envelope, both containing disseminated sulfides. El Mercado is situated between 2100 metres and 3650 metres above sea level with over 75% of the property below the 3200 metre level.

The Option Agreement

Under the terms of the option agreement, StoneShield, through its 100% wholly owned subsidiary Minera Centinela Inc., has the option to acquire a one hundred percent (100%) interest in the mining title for the El Mercado property (the "Option") for a term of seven (7) years (the "Option Term") by paying the option grantors (the "Grantors") the following consideration: (a) US$25,000 within three business days; (b) US$80,000 on December 15, 2011; (c) US$60,000 on June 15, 2012; (d) US$100,000 on December 15, 2012; (e) US$120,000 on June 15, 2013; (f) US$200,000 on December 15, 2013; (g) and for each year thereafter before exercising or rejecting the Option on the part of the StoneShield, the payment of the Option Price will double in comparison with the price paid for the immediately preceding year until: (i) the Option is exercised by StoneShield, (ii) the Option is terminated by StoneShield at its sole discretion, and/or (iii) the Option Term expires without StoneShield having exercised the Option.

The Grantors grant the right to StoneShield to acquire, during the Option Term, a one hundred percent (100%) interest in the mining title for the El Mercado property for the additional sum of US$971,922.

The qualified person for StoneShield under National Instrument 43-101 is Peter Kurisoo, P.Geo.

StoneShield is a publicly traded exploration company focused on the discovery of high-value precious metals deposits in North America and South America. The Company's experienced management team boasts multiple discoveries, and brings over 70 years of combined experience in the mining and exploration sector. Please visit the Company's web site address at www.stoneshieldcapital.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF STONESHIELD CAPITAL CORP.

Kris Kottmeier, President/CEO

Neither 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 release.

Contact Information

  • StoneShield Capital Corp.
    Benjamin Curry
    Investor Relations
    (604) 689-2881 or Toll Free at 1-877-689-2881
    www.stoneshieldcapital.com