LAS VEGAS, NEVADA--(Marketwire - Jan. 17, 2012) - North Springs Resources Corp. (OTCBB:NSRS)(PINKSHEETS:NSRS) (the "Company" or "North Springs") is pleased to provide this further update regarding the recently announced Letter of Intent ("LOI") with Discovery Gold Ghana Limited ("Discovery Gold") to acquire a ten percent (10%) interest in the Edum Banso Gold Project ("Edum Banso"), a high-potential gold exploration property in Ghana, Africa.
The Edum Banso concession covers 20.60 km2 (5,100 acres) located approximately 35 km (21 miles) northwest of city of Takoradi in the southeastern portion of Ghana's historic Ashanti Gold Belt. The concession is situated less than one mile from the border of the HBB Father Brown/Adoikrom deposits. Numerous other gold mines are also in operation in the area, including Iduapriem (16 miles - AngloGold Ashanti - 185,000 oz./year - 4.9 million oz. total), Obuasi (55 miles - AngloGold Ashanti - 381,000 oz./year - 33.4 million oz. total), Tarkwa/Damang (18 miles - Gold Fields - 928,000 oz./year - 19.6 million oz. total), Bogosso/Prestea (29 miles - Golden Star - 180,000 oz/year - 3.8 million oz. total), and Nzema (20 miles - Adamus - 100,000 oz./year - 3.0 million oz. total).
Previous exploration conducted on the Edum Banso concession by Newmont Gold (2004) and others (2008) included extensive geophysical (aeromagnetic) interpretation, soil and stream sediment sampling (5,758 samples), trenching (319 m total - 214 channel samples), auger drilling (252 holes), and rock chips (81 samples). To date, four distinct mineralized gold zones have been identified over an area approximately 5 miles long by a quarter mile wide, including two southern zones sharing contact with the unique Mpohor Complex geologic structure, potentially one of the largest known gold bearing synvolcanic mafic intrusives on the African continent. The large circular shaped Mpohor Complex also hosts the HBB Father Brown/Adoikrom open pit gold deposits less than one mile to the southeast.
"The Edum Banso Gold Project is located exactly where you'd expect to find a huge gold deposit; right next door to a producing gold mine and surrounded by more than 100 million ounces of gold," said Harry Lappa, President of North Springs. "Successful exploration work conducted on the ground and from the air is telling us that are we are potentially onto something very special at Edum Banso and we hope to prove that over the coming months."
Terms of the LOI call for North Springs to advance $150,000 to Discovery Gold within ten (10) days and make an additional payment of $100,000 within thirty (30) days. North Springs will also fund a multi-phase $1,000,000 work commitment in 2012. The proposed transaction remains subject to, among other things, North Springs and the current property holders entering into a definitive agreement. There can be no assurance that the transaction will be completed as proposed or at all. If and when a definitive agreement is memorialized, additional details regarding this transaction will be forthcoming.
