North Springs Resources Corp. (NSRS) Signs Definitive Agreement on Premiere Arizona Gold Property

Jan. 04, 2012 5:19 PM ET
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Today, North Springs Resources, the aggressive young mineral developer currently in the evaluation/acquisition/development phase, announced signing a definitive joint venture agreement with DNP Mining LLP on the Goldstar/One Arm Joe Gold Project outside Wickenburg, AZ.

Extensive due diligence related to the strategic acquisition in Goldstar, which is calculated as an ideal fit for NSRS’s target of production in the near term, has culminated in this definitive agreement, which will see the Company picking up as much as a 35% interest via the conducting/financing of mineral exploration at the site.

Further terms of the deal are as follows:

• 20% WI in exchange for some $500k in funding over Phase I
• Option for another 15% upon satisfaction of some $3M in Phase II financing

Roughly 9k feet of quartz veins over 9 blocks (180 acres in two arms, the 6k foot arm called Goldstar and the 3k foot stretch called One Arm Joe) right outside Wickenburg, with ample logistics to develop the property’s estimated reserve of some 500k tons at 0.7oz/ton, places around 350k oz of gold within striking distance.

Current spot indicates a potential gross mineral value over $550M and the Company is eager to get drilling. With sovereign debt, especially in Europe, looming large on the horizon, gold is ready to perform for shareholders via such opportunities. In fact, the soundness of gold in a geostrategic/economic sense moving forward, and particularly smaller gold developers with solid fundamentals like NSRS, are increasingly seen as a real bellwether and haven amid choppy seas.

President of NSRS, Harry Lappa, while he cannot actually predict the future, did see all of this coming. Decades of industry experience by senior management at NSRS has placed the Company in an enviable position, ahead of the curve with boots on the ground for Arizona gold.

Lappa sees the acquisition as a perfect fit for NSRS with significant gold reserves in place and tremendous development potential that will add mightily to the Company’s already solid acreage position in Nevada at their 36 unpatented federal lode mining claim, North Springs Gold Project.

Lappa indicated the singular goal of NSRS in moving towards “full-scale production” at Goldstar and projected that drilling would even commence within the next few weeks, with details regarding the plan for Phase I materializing over the next several days.

For more information on the agreement, or to stay up to date on the latest developments from North Springs Resources Corp., please visit the NSRS website at: NorthSpringsResources.com

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