GOLD HILL, Nev., Jan. 10, 2006 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG) announced today that the program to improve operational efficiencies at the Company's Plum Mine in Gold Hill, Nevada, which began with the hiring of Scott Jolcover in March 2005, continues to advance. In November 2005, GoldSpring retained licensed mining engineer Jim Golden to conduct a comprehensive review of all aspects of the Plum Mine operation, including the overall mine plan, with the objective of maximizing efficiency, increasing production, and reducing costs.
Mr. Golden has over twenty years of experience in the mining industry, including ten years with Peter Kiewit's mining division, where he was a district manager. Since 1990, Mr. Golden has owned his own consulting firm, where he has provided consulting services throughout the world for over 50 mining companies. Under the direction of Mr. Golden, the Company has assembled a team of professional mining consultants, who are recognized experts in their respective disciplines, to assist in the review of the operation. The team includes Jeff Butwell, a metallurgist; John Esser, an electrical engineer; Dennis Anderson a geologic, soils and environmental engineer; and Stephen Russell, a geologist with 25 years of comprehensive mining experience. Furthermore the company has retained Mine Development and Associates of Reno, Nevada to update the Company's mine plan and model. N.A. Degerstrom continues in its capacity as the Company's mining contractor.
GoldSpring President and CEO Rob Faber is pleased with the possibilities for improvement that have been identified by the operational review program. Faber said, "We are experiencing the positive returns of building a team of experienced, skilled mining professionals at the Plum Mine." He continued, "The implementation of the recommendations of Mr. Golden and the other members of the team has resulted in reduced labor costs, more efficient operations, and an increased grade of ore being identified and mined."
The Company continues to implement the recommendations outlined by Mr. Golden and his team. Some of the immediate changes include revising the mine plan to reflect the current higher gold price; adding various efficiencies in the processing area; and re-positioning personnel to maximize overall performance. "We are optimistic that these improvements will result in increased gold production and reduced production costs, maximizing returns for our shareholders," Faber said.
GoldSpring also announced plans to continue its exploration program in 2006. The goals of the program outlined by the Company include replenishing its inventory and expanding its footprint. The exploration program also allocates resources toward development of future properties. The Company intends to provide regular updates on the results of the improvement program and on the progress of adding additional properties to its portfolio.
GoldSpring, Inc. is an emerging North American precious metals mining company, which was formed in June 2003. In the Company's relatively short history, it has brought a gold and silver project into production, established a solid footprint around its operations in northern Nevada, and acquired mineral rights in Canada. GoldSpring plans to build on this success through the acquisition of mineral properties in North America that can be efficiently put into near-term production. The Company's objectives are to increase reserves, increase production and increase cash flow to maximize return for its shareholders.
Note to Investors
This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our most recent Form 10-KSB filed on April 15, 2005. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.