Oct. 26, 2009 (TheNewswire.ca) --
LANGLEY, CANADA, October 26, 2009 - As a result of a review by the British Columbia Securities Commission ("BCSC"), we are issuing the following news item to clarify our disclosure. Shoreham Resources Ltd. (the "Company" or "Shoreham")(TSX-V: "SMH"), a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in Guyana and Canada, wishes to clarify certain issues surrounding disclosure of mineral resource estimates on the Company's website and in relation to material distributed through news releases and promotional materials. The Company has previously disclosed mineral resource estimates associated with its mineral properties in Ontario, Canada and Marudi Mountain, Guyana without providing sufficient cautionary language and other information required by NI 43-101. This news release also updates plans to file a technical report for the Marudi Project that is compliant with National Instrument 43-101 reporting requirements.
Marudi Mountain (Gold)
The Company has, in the past, disclosed historic mineral resource estimates with respect to the Mazoa Hill deposit on the Marudi Mountain Project and its intention to prepare a technical report and resource estimate compliant with the standards of NI 43-101. Sutton Resources Ltd. and Vannessa Ventures Ltd. both issued News Releases regarding resources at Marudi and Mazoa.
On May 23, 1995, Sutton Resources Ltd. disclosed geological resources of 430,000 ounces for Mazoa and 82,000 ounces for Marudi. Sutton's June 28, 1995 news release disclosed a "total resource base" of 8,151,582 million tons grading 0.053 oz/ton (1.82 g/t) gold for 435,102 ounces of gold.
During 2002, 2003, 2004, and on April 25, 2005, Vannessa Ventures Ltd. disclosed a 1995 Sutton historical resource estimate including Mazoa Hill and Marudi, with a base-case 1 g/t gold cut-off. The measured and indicated class was 3,381,100 tonnes at a grade of 2.94 grams gold per tonne (g/t) for 319,595 ounces, and the inferred class is 860,900 tonnes at 2.45 g/t for 67,815 ounces. Vannessa's news releases indicate Kilborn did the estimate in 1995 as part of a negative "feasibility study".
Subsequently, on October 8, 2008, Shoreham disclosed a new inferred resource estimate citing "a non-complaint NI 43-101 pre-feasibility study of December 2004". The 1995 Kilborn resource estimate was updated in December 2004 and submitted to the Guyana Geology and Mines Commission (GGMC) in a "Feasibility Study" (as accepted by the GGMC) as part of the supporting documentation required for the application of a Mining License. The report submitted to the GGMC does NOT meet the definition in NI 43-101 of a feasibility or prefeasibility study. The Company therefore retracts references in its October 8, 2008 press release to a non-compliant NI 43-101 pre-feasibility study in December 2004, and on its prior website that Kilborn produced a pre-feasibility report in 2002.
The Company is not treating the results of the economic analysis in the GGMC report as material or as a preliminary economic assessment, and the resource base used is too speculative to have economic considerations applied.
The December 2004 study submitted to the GGMC contained a new inferred resource estimate of 11,500,000 tonnes grading 2.28 g/t (850,000 ounces of gold) based on a 0.50 g/t gold cut-off which was disclosed by the company in its October 8, 2008 news release. The Company retracts this statement from its October 8, 2008 news release.
Shoreham has undertaken a review of the literature available which reveals that in 1995 Kilborn Engineering Pacific Ltd. prepared the "Feasibility Study" and Sutton supplied the geology and resource estimate section of the study. The resources provided in the Sutton and Vannessa news releases refer to "In-Pit" material defined by
Whittle 4D treatment of Kilborn's Datamine resource model and do not differ materially from data presented in Vannessa's December 10, 2004 GGMC Report". This quotes an "In-Pit" Geological Inventory at 1.0 g/t cut-off in the measured and indicated classes as 3,381,081 tonnes grading 2.94 g/t Au for a total of 319,590 ounces and an inferred class with 860,293 tonnes grading 2.45 g/t Au for 67,814 ounces using on the original 1995 Kilborn Resource model. This resource is based on mining the near surface portion of the Mazoa Hill deposit only and does not include mineralization identified in drill holes BELOW the pit, to the southeast of the pit and elsewhere on the property at Peace Creek and Marudi Mountain itself. No resources have been estimated for these targets.
Readers are cautioned that the references to resource estimates above are historical resource estimates. While the resource estimates and analysis were undertaken by competent professionals, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, Shoreham is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
Subsequent comments in the Company's website cite economic parameters in support of proposed further exploration and evaluation for the Marudi Project, which should not be relied upon and have been removed from the Company's website. The Company specifically retracts comments on the website about operating cost estimates, recoverable value per tonne, and suggestions of positive economics. The economic projections cited are not supported by a current material economic analysis and should not be relied upon.
Upon review of the Company's technical disclosures and the comments of the BCSC, the Company has triggered the requirements to file a technical report under Section 4.2 of NI 43-101 to support the resource disclosure and economic analysis of the Marudi Mountain Project. In recognition of the need for timely and current disclosure, the Company has commenced preparation of an Independent NI 43-101 Report documenting the Marudi Mountain Project and all of its mineralized zones which we anticipate will be filed by November 15, 2009. An independent Qualified Person performed a site visit to the property on September 28 and 29, 2009. The updated report will include all historic data and also the results of Shoreham's work since 2007.
