BURLINGTON, ON, Sept. 13, 2012 /CNW/ – Silver Shield Resources (TSXV: SSR) (“Silver Shield” or the “Corporation”) is pleased to announce that it has entered into a letter of intent to acquire a undivided 100% interest in the former producing Real de Guadalupe Gold and Silver Mine in Guerrero State Mexico. The Corporation has until November 17, 2012 to complete its due diligence and enter into a binding agreement upon successful review of the property, title and property visits. Terms for the letter of intent are stated in USD, and are as follows:
1) Payment of $5,000.00 upon signing to enable Silver Shield geologists the unfettered access to the property and all mining and technical records.
2) Upon signing a formal deal Silver Shield Resources will pay a sum of $30,000.00. Payments are staged as follows: $30,000.00 at the six, twelfth, eighteen anniversary dates with $50,000.00 due on the 24th month anniversary, $100,000.00 on the 30th month anniversary, and a final payment of $230,000.00 due on the 36th month anniversary.
3) Upon completion Silver Shield Resources will have 100% ownership of the Real de Guadalupe Gold and Silver Mine, with a stated royalty of $3.00 per tonne payable to the vendors.
About the Real de Guadalupe Mine
The Mine consists of 500 hectares and lies in Guerrero State, Mexico approximately 40 km northeast of Ixtapa-Zihuatenejo. The mines of the area date back to the 1800’s when the Spaniards worked on near surface Gold, Silver, Copper, Lead & Zinc veins. Reported historic production at Real de Guadalupe, averaged 450 grams Silver and 2 grams Gold, with a high lead and zinc content. The style of mineralization is classified as epithermal, poly-metallic of low to medium sulphidation. There are some mineralized stockpiles on surface, tailings from the previous milling and reported mineralized material remaining in the mine. The mine closed in 1989 due to infrastructure issues with the 50 t/day mill. Mining was performed from adits and some internal shafts over ~200m elevations. Silver Shield Resources is planning an exploration program of mapping, surface sampling of the mineralized stockpiles and tailings as part of its due diligence. Silver Shield Resources is determined in bringing high grade small to medium mines into production such as Real de Guadalupe.
Tim Towers President and CEO of Silver Shield Resources commented: “While these are challenging times for the junior miners, the opportunity to add a potential high grade producer to our stable of Southern Mexican Silver Belt properties cannot be missed! With Temixco, La Cumbre and potentially Real De Guadalupe, we are at the cusp of taking great strides in moving the company into the next tier. The resurgence of Gold and Silver prices in recent days adds to the allure of this quality asset. Silver Shield’s good relations with the Mexican people, prospectors and mills in the area will certainly aid the Corporation’s stated production focus.”
Tim Towers also stated “Silver Shield Resources continues to source both debt and equity financing to move our quality projects to first stage production. Despite the difficult market conditions for junior mining companies, the quality of our assets has allowed us to meet with several firms. We are considering the options and terms that have been presented to us thus far, and will proceed if the terms are favorable for the Corporation and its shareholders.”
