GoldSands Development Company
OTC Bulletin Board : GSDC

August 25, 2011 16:01 ET

Update on GoldSands Peru Project

LIMA, PERU--(Marketwire - Aug. 25, 2011) - GoldSands Development Company (OTCBB:GSDC) (OTCQB:GSDC) is pleased to update our progress and plans for the Company's GoldSands project in Peru.

The Company has 52 mining concessions in N.E. Peru which consists of options on 461 square kilometers (178 square miles). During the recently completed test mining production program, 7920 m3 (10,296 cu. Yards) of gravel were extracted, producing 2445.86g. of raw gold at an average gold grade of 309 mg/m3. During this recent test gold production on our Mika 2 concession, we were also able to map nearby GoldSands' concessions for target areas which showed evidence of what are believed to be buried alluvial gold-bearing paleo-channels.

Specifically, we are considering whether the best exploration plan going forward is to expand the test mining operation to other concessions, design a Phase III drilling campaign to expand the Phase II drill program beyond the initial 2.5 square kilometer exploration area to other areas of suspected high mineralization within the Peru Property or, more likely, a combination of both approaches. When feasible, we may initiate test mining of these newly identified areas utilizing gravel pumps and small test dredges to feed material directly into the gold recovery equipment. We believe that this simplification of the mining system should minimize the initial investment necessary for the production equipment which is anticipated to result in lower operational costs than have been experienced to date.

Recently our geological team's exploration activities have determined the location of several additional promising test areas on our Aixa, Castalia and Mika 3 concessions which each appear to contain gravel layers which may contain economical gold grades beneath minimal overburden. Our geological team has taken samples from the gravel banks of Rio Marañon, where the property covers the main active channel, in part to verify some of the previous sampling done. All returned gold values (over 0.100 g/m3) while two samples returned 0.334 g/m3 and 0.511 g/m3 gold respectively.

Additionally the surface land owners, along with indigenous people non-governmental organizations (NGO's), have recently approved GoldSands' development program for both the Aixa and Castalia concessions covering 4,500 hectares (11,120 acres) of a promising area comprising ancient channels of the Maranon River.

GoldSands VP of Production, Rafal Swiecki, commented:

"With the gold grades identified during our test mining to date we intend to develop a plan to further explore the large volume of alluvial material on our properties to determine if an economically viable gold deposit exists. We now have identified several additional locations of merit with initial surface samples grading similar to those found on Mika 2".

GoldSands CEO, Michael Stocker, commented:

"We plan to expand our work in these areas and are now reaching out to potential joint venture partners and dredging contractors with the goal of finding partners or additional financing to assist us in developing a comprehensive and profitable mining plan. Current Gold prices are a big driver for our project as time to production is typically faster in alluvial mining than in hard rock mining."

About GoldSands Development Company

The Company's goal is to fully develop our Peruvian GoldSands project. The Company's GoldSands project in Peru consists of options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district. For thousands of years, the waters of the Santiago and the Marañón rivers have been carving their way through the gold-rich mountain canyons of the Andes, carrying off gold and depositing it, as the river comes out into the plain, in the loose gravels and sands - GoldSands - in the area the Company now controls.

Results from test holes drilled during GSDC's exploratory drill program indicated the presence of alluvial gold in economical quantities. While the Company considers results from the drill programs and recently completed test mining production to be favorable, the Company cautions that these results do not indicate the presence of a commercially viable mineral deposit over any portion of the optioned area and an extensive amount of further exploration is needed to determine the full feasibility of the project. The Company can provide no assurance that its Peruvian GoldSands project will contain an economically viable mineral deposit.

The Company also completed a social baseline study involving a series of meetings with local residents and other stakeholders in the region. We intend to work in an equitable, transparent, and socially responsible manner with local communities, suppliers and employees. We will act as stewards of the local and regional ecological systems, behaving in an environmentally responsible way, leaving a minimal "footprint" as a result of our operations. Our company is working towards building trust and sustaining relationships that go well beyond mining operations.

The full implementation of these programs will require the Company to secure additional financing.

Further information about GoldSands Development Company may be found at:

On behalf of the Board:

Dr. Michael Stocker - CEO

GoldSands Development Company


This release contains forward-looking statements that are based on beliefs of GoldSands Development Company management and reflect GoldSands Development Company's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of GoldSands Development Company with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, GoldSands Development Company and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.

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