DRAPER, UT -- (Marketwire) -- 05/21/12 -- Gold and GemStone Mining Inc. (OTCBB: GGSMD) today announced the results of the latest geological data for its portfolio of alluvial Diamond and Gold mining concessions, released by its joint venture partner, produced by the Director of Mines from the Mines Division of the Ministry of Mineral Resources in Sierra Leone's Capital, Freetown, West Africa.
The reports have been compiled as part of a recent site visit and analysis of the various GGSM concessions in the Kono district, Sierra Leone's prominent mining region. The resource data provided in the report was built upon the main comprehensive geological survey conducted in 1972 by geologist P.K. Hall. The historical data, covering Sierra Leone's prominent diamond and gold mining areas, still holds credence today as no large-scale mining activity has been conducted on GGSM's allotted land since the report was published. The expected grade of diamonds and gold can therefore still be applied although GGSM is in the process of undertaking further geological mapping and sampling studies as part of an ongoing mining development program.
The government report outlines the mining potential of each of GGSM's three concessions and supports the financial viability of the Company's current mining development and operational investment plans. Based upon the historic data confirming a conservative estimate of 50 Carats per hundred Ton (CphT), the report stipulates that each of the concessions has an average gravel thickness of 0.65m, equating to an approximate total production of 2,367 Carats / Acre. These results allow GGSM to place an approximate value of each of its current mining concessions. At a conservative market price of USD $250 / Carat the combined value of all three concessions, split over 105 Acres, equals approximately USD $63,000,000 for diamonds alone. The report also refers to the high incidence of "Special Diamonds" in the areas surrounding GGSM's claims; i.e. gem stones larger than 10 Carats. The report states on average 20% of stones recovered are classified as Special Diamonds, allowing an upward revision of the average yield per acreage.
GGSM's Director of Operations in Sierra Leone, Tom Tucker, comments, "The mining concessions held by GGSM are located in a prime location for the further exploration and production of small scale alluvial mining operations. The historical data supported by recent government analysis of the mining areas goes a long way to proving the incidence of economically viable quantities of both diamonds and gold." He continues, "I have longstanding personal relationships with the paramount Chiefs and senior community members across the Kono District and very much look forward to contributing further to the wide-scale development of the areas surrounding the GGSM mining communities."
In addition to outlining potential production figures within the GGSM concessions the report highlights some of the recent significant historic diamond exploration and development activities in Sierra Leone. Alluvial diamond mining remains the major source of Sierra Leone's hard currency earnings accounting for nearly half of the country's exports. Sierra Leone is renowned for the quality of its diamonds and for the recovery of some spectacularly large stones of very high value from its alluvial deposits. Many of the crystals show excellent octahedral form with bright faces. The largest diamond ever discovered was in 2002 in the Kono district, weighing 1440ct and sold for 75 million dollars in Belgium. Other large stones include the 'Star of Sierra Leone,' weighing 969.8ct, discovered in February 1972 at the No.11 Plant in Kono. In 1970, the Sefadu diamond was discovered in the Dominco mine, weighing 620ct. In 1969, the "Zale light of peace" weighing 435ct was discovered. In 1996, two stones weighing 188ct and 283ct; and in 1997, several large stones weighing 524ct, 700ct and 900ct; were recovered from unspecified locations. In 2006, a 152.42ct diamond was discovered east of Koidu Town. In 2007, two pieces weighing 143.4ct and 129.7ct were discovered. Several large pieces have been discovered along the Woyie River (249.25ct, 532ct, 770ct) and upper Gayia (783ct).
Further geological studies are pending to provide a more up to date analysis of the local conditions within the GGSM claims, and to collect core gravel samples to allow further discussions and negotiations with already identified joint venture partners and investors.
About Gold and GemStone Mining Inc.
Gold and GemStone Mining, Inc. is an exploration stage company that will engage in the acquisition, exploration, and development of Diamond and Gold properties around the world. Integral to our plan is to form strategic alliances and joint ventures with gold and diamond mining companies. For more information please visit www.ggsmining.com
FORWARD-LOOKING STATEMENTS: "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements relating to the company's business activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations about the Company's business. Words such as expects, anticipates, intends, plans, believes, estimates and similar words and expressions are intended to identify such forward-looking statements. These statements involve risks that are difficult to evaluate. Actual results can vary from descriptions herein due to many factors including changes in metal prices and business conditions; changes in laws and regulations; problems encountered in exploration and obtaining permits; changes in the competitive environment; technological advances; shortages of skilled workers, drill rigs and equipment; the need for additional capital and other risks listed in the Company's Securities and Exchange Commission filings under "risk factors" and elsewhere. Forward-looking statements speak only as of the date they were made. The Company does not undertake any obligation to update forward-looking statements.
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