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Shoreham continues fieldwork at Potaro-Maple Creek

2008-10-01 09:50 ET - News Release

Mr. David Bending reports

SHOREHAM RESUMES WORK ON ITS POTARO-MAPLE CREEK GOLD PROJECT, GUYANA

Shoreham Resources Ltd. has had further developments at its Potaro-Maple Creek gold and diamond project in Guyana. In accordance with an agreement with Vannessa Ventures Ltd. (now Infinito Gold Corp.), finalized in March, 2007, the company received an option to earn a 100-per-cent working interest in its 40,000 acres of exploration licences in the Potaro River area of Guyana, South America. The agreement requires Shoreham to undertake $250,000 (U.S.) in qualified exploration expenditures prior to March 7, 2008 (completed), and make a sequence of cash payments to Infinito totalling $1.2-million (U.S.) over four years, which includes cash payments of $100,000 (U.S.) (paid May 5, 2007) and $100,000 (U.S.) (paid May 5, 2008). Payments due May, 2009, to 2011 may be made (at Shoreham's option) in shares or cash. This property includes a previously operated 400-cubic-metre-per-day alluvial diamond production and recovery facility.

The geochemical surveying results to date indicate the presence of high-priority targets in the Queen of Diamonds and Little Uewang concessions. Five areas on the Queen of Diamonds have been designated for further follow-up work. One area was selected for priority work because of its geological similarity to the deposits in the nearby Omai district. An area in the northeast of the Queen of Diamonds consists of altered metavolcanic rocks intruded by a cluster of felsic dikes and stocks that are associated with the better gold values encountered in the soil, pan concentrates and stream samples. These occur over a relatively large area, currently 500 by 700 metres, and are open to expansion. The area has also yielded consistently high gold grain counts from stream samples from all branches of a dendritic stream. Soil samples have ranged from trace to as high as 5.1 grams of gold per tonne (g/t Au). Pan concentrates range from 0.9 to 9.0 g/t Au. Some of these anomalous values occur in clusters, which appear to be bedrock targets outcropping where the transported cover has been eroded, exposing the underlying saprolite. Pairings of elevated gold in soils ranging from 0.12 to 0.93 g/t Au are being followed up by systematic detailed geochemical sampling and TRADO drilling. (A TRADO drill is a type of mechanized auger drill that provides a large unmixed soil, laterite and saprolite sample similar in quality to those obtained by diamond drilling but at much lower costs and lower environmental impact.)

Approximately 65 per cent of the project lands consist of weathered volcanic rocks that have a potential to host gold deposits. During the winter of 2007/2008, the company undertook soil, saprolite, stream and rock geochemical surveys to evaluate gold targets within the claims. To date, the company has undertaken a preliminary evaluation of approximately 15 per cent of the project lands and collected approximately 2,200 samples, which have identified numerous exploration targets that warrant more detailed evaluation. After a hiatus in work during the rainy season, Shoreham has launched its second 2008 field program, emphasizing the Queen of Diamond targets.

The regolith on the claims consists of a mix of soil types as a result of widespread white sands cover derived from weathered Roraima formation rocks, which either constitute a thin cover or are mixed with detritus weathered from the underlying laterites and greenstones (the target environments). Soil sampling is conducted in conjunction with panning of a split of the soil samples and counting the number of visible gold grains in the pan in order to guide field activities and follow trends. Each selected target area must be cautiously evaluated based on duplicate and infill sampling, field documentation of the nature and depth of white sands and mixed regolith, and other geological indicators, and drilling TRADO holes six to 10 metres deep in sections across the targets. The property has produced substantial alluvial gold and diamonds from dredging and placer mining activities for almost a century. The largest diamonds ever produced from Guyana have come from the project lands. Dredging operations using cutter heads to mine the riverbanks continue on the southwestern portions of the property under separate alluvial mining permits.

David Bending, president and chief executive officer of Shoreham Resources Ltd., reports: "The company is very pleased to be back in the field at Potaro. The results of our phase I program produced many new gold targets. Our present program is designed to expand these anomalies into significant prospects and evaluate whether the company might utilize contract miner Midas Rex to undertake surface mining operations in this sector. Midas Rex is concentrating its mining program on high-grade, diamond-bearing alluvial deposits, but these relatively large areas of disseminated and stockwork gold mineralization offer an attractive alternative and another potential source of cash flow for our company, with the added benefit of exposing the exploration targets for geological evaluation. Confirmation and delineation of these targets by further field sampling is being undertaken to prepare the company's Potaro-Maple Creek project for trenching, diamond drilling and other development as may be warranted. We consider these to be substantial steps in the growth of the project, and in turn for the growth of our company