On Tuesday, GoldSands Development Company announced completion of the initial test mining program on the Company’s Mika 2 mining concession in Peru.
The grades are consistently higher than predicted by their 2009-2010 Phase I and II drill-hole program results from Mika 2.
GoldSands final results from the current Mika 2 test gold production program conducted with Swiss Mining S.A. for the period March 28 to July 10, 2011 are: Gravel mined: 7920 m3 (10,359 cubic yards); Raw gold produced: 2445 grams (2.445 kg) (78.6 troy oz.), and Raw gold grade: 309 mg/m3 (4.76 grains/cubic yard). Final results also include Raw gold value: US$ 15.40/m(3) ($11.77cubic yard at $1550/oz gold.)
GoldSands Development Company’s goal is to develop fully their Peruvian GoldSands project. Their GoldSands project in Peru consists of options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district. Results from test holes drilled during their exploratory drill program indicated the presence of alluvial gold in economical quantities.
The Company considers results from the drill programs and recently completed test mining production to be favorable. However, they caution that these results do not indicate the presence of a commercially viable mineral deposit over most of the optioned area. A significant amount of further exploration is required to determine the full feasibility of the project. GoldSands can provide no assurance that their 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. They intend to work in an equitable, transparent, and socially responsible manner with local communities, suppliers and employees. They will act as stewards of the local and regional ecological systems, behaving in an environmentally responsible way, leaving a minimal “footprint” because of their operations.
The full implementation of these programs will require GoldSands Development Company to secure additional financing.
For more information visit: www.goldsandsco.com