Friday, January 6, 2012

North Springs Resources Corp. (NSRS) Moves to Acquire Two Gold Projects in South Africa’s Kabouri Mining Area

North Springs Resources, the Nevada-based mineral developer with a substantial footprint already in Nevada gold through their North Springs Gold Property (100% owned, 320 acres of large high-grade vein-shear with multiple targets across 16 unpatented lode mining claims), hot on the heels of the recent signing of a definitive agreement to acquire as much as 35% interest in a key AZ gold property, made another announcement today, telling investors it has reached an agreement in principle to acquire 100% interest in two prospecting licenses in Guyana, South Africa.

Just wrapping up negotiation of definitive terms on the deal and completing the necessary due diligence, NSRS is sustaining powerful acquisition momentum with this newest move and anticipates closing the definitive agreement in the next two days. The proposed transaction is merely subject to a definitive agreement entry and customary closing conditions or review.

A bold, but sure move into African gold for NSRS with a beautiful stretch of prime greenstone belt spanning over 25k acres, located some 100 miles S by SW of Georgetown, Guyana. The Kabouri Project Area Licenses R-20 and R-21, while lacking a documented gold mining history, show evidence of artisanal mining and are of similar geological/geochemical composition and characteristics as several other successful operations nearby in this prolific area, like the well-known and producing operations at Omai, Kabouri, Eldorado, and Hicks.

The artisanal mining indications lead alluvial, colluvial, and bedrock targets. Robust study has been conducted of the region, with large amounts of geochemical surveying and stream sediment analysis conducted by Guyana Geology and Mines Commission (GGMC) showing strongly anomalous spikes of gold concentration that demand further investigation. Among the extant analytical data is also the compiled aeromagnetic data of the region generated by the GGMC.

Overall, the Kabouri Gold Mining Area is just a part of an extremely well-defined 1k mile band of greenstone geology from Venezuela and French Guyana, capable of production throughout and often contrasted with analogs in West Africa. Given the presence of several world-class gold producing mines, with an estimated combined total resource exceeding 110M ounces, this move by NSRS is a brilliant strategy to carve out a slice of that pie.

President of NSRS, Harry Lappa, beamed with excitement at the potential of the project, citing the widespread artisanal mining as key among the exploration factors and offering the proximal Omai Mine further southeast, which was worked for years by artisans before being “re-discovered as large scale commercial mine with over 4 million ounces of gold produced.”

Lappa proclaimed that NSRS will get to the bottom of it and see whether or not the R-20 and R-21 artisanal mining thus far has been merely the tip of an iceberg, with a much larger deposit lurking underneath the surface activity. Lappa extolled everything from the geologic profile to the geographical setting, as the deal constitutes a chance for NSRS to get boots on the ground in one of the world’s most important gold producing regions, with a project that has huge potential upside and comparatively low early stage risk factors.

For more information on this latest move by North Springs Resources Corp., or to find out more about the Company’s other projects and stay up to date on the latest news, please visit the NSRS website at: www.NorthSpringsResources.com

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