SOUTH COPPERSTONE MINES WORTH GOLD !!!
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Great West Gold, Inc. - Restructuring Update
Company Completes on Copperstone Mining, Inc. and Plans to Distribute 49% of
Its Shareholding to the Company Shareholders
NEW YORK, Nov. 15 /PRNewswire-FirstCall/ -- Great West Gold, Inc.
(OTC Bulletin Board: GWGO) confirms that is has now completed the sale of 49%
of its owned subsidiary company, Copperstone Mining Limited to Copperstone
Mining, Inc. The Company is disposing of its additional 51% interest in
Copperstone Mining Limited to a recently acquired subsidiary company of Great
West Gold, Inc. that being Western Diversified Mining Resources, Inc.
Copperstone Mining Limited controls The Gold and Silver Mining Exploration
Projects situated in La Paz County, Arizona and extend to an area of
5,760 acres. The claims consist of 1 Lode and 36 Placer sites. There are no
workings to date and the Project was first opened in the 1970's.
The regional geological setting is dominated by detachment faults of
Tertiary age, as well as younger high angle normal faults. Gold
mineralization at the existing Copperstone mine (presently owned by American
Bonanza) occurs in northwest-striking, moderate-to-shallow dipping fault zones
within a package of Triassic sediments and Jurassic quartz latite volcanics.
Most of the known Copperstone gold mineralization occurs in a breccia zone
related to the fault.
The South Copperstone claim block is immediately south of the Copperstone
property, which it adjoins. Searchlight Exploration's claim block is largely
covered by a thin veneer of alluvium. The western edge has exposed bedrock
consisting of banded quartz latite flows intruded by granite.
The potential is another Copperstone deposit, which had a 500,000T OP
resource of .09 oz/T gold that was mined by Cyprus Gold in the 1980's. A
reportedly larger high grade underground resource is presently being developed
by American Bonanza with support by GoldCorp. Initial drilling by Callahan
Mining at South Copperstone found anomalous gold (approx .02 oz T) hosted by
quartz and altered quartz latite. This is consistent with Cyprus drill
results from immediately north of the claim block. However drilling was not
deep enough to penetrate the breccia unit. Initial IP work found anomalous
chargeability values to the south of Callahan's claim block (roughly in the
middle of Searchlight's claim block and on trend with the historic Valenzuela
mine, which is located on the Indian Reservation immediately west of the claim
block). There is no evidence that these findings were followed up.
Western Diversified Mining Resources, Inc. will remain as a wholly owned
subsidiary company of Great West Gold, Inc. at this time.
COPPERSTONE MINING, INC.:
This company will obtain a separate quotation on the OTC Market as soon as
is possible. It is intended that this Company will raise additional cash to
develop this Mining Property. All of the shares in this Company directly held
by Great West Gold, Inc. will be distributed to the shareholders of Great West
Gold, Inc.
SHAREHOLDING STRUCTURE OF COPPERSTONE MINING, INC.:
Western Diversified Mining Resources, Inc. will hold 102,000,000 shares
of restricted shares of Copperstone Mining, Inc. ("Copperstone") These shares
will remain under the control of Great West Gold, Inc. at this time. Great
West Gold, Inc. will hold a direct interest in Copperstone in the amount of
98,000,000 shares of Copperstone restricted Common Stock. These shares in
Copperstone are being distributed to the shareholders of Great West Gold, Inc.
The balance of the shares in Copperstone will be held by a number of external
investors and by the Management of Copperstone. These shares are being issued
by Copperstone after the acquisition of Copperstone Mining Limited by
Copperstone. This will result in a dilution of Great West Gold, Inc.'s
interest in Copperstone.
UPDATE ON WINDSOR RESOURCES, INC.:
Great West Gold, Inc. (OTC Bulletin Board: GWGO) is in the process of
distributing its entire direct shareholding in the amount of 98,000,000 shares
of Common Stock in Windsor Resources, Inc. to Great West Gold, Inc.
shareholders of record as at November 7, 2005.
Windsor Resources, Inc. has confirmed that it is to effect a ten for one
Stock Split of its outstanding shares of Common Stock, which will therefore
result in the amount of 980,000,000 shares in Windsor Resources, Inc. shares
of Common Stock being distributed to the Great West Gold, Inc. shareholders.
This was a logical step given the huge number of outstanding shares of Common
Stock in Great West Gold, Inc.
UPDATE ON SENTINEL RESOURCES, INC.:
Great West Gold, Inc. (OTC Bulletin Board: GWGO) is in the process of
distributing its entire direct shareholding in the amount of 98,000,000 shares
of Common Stock in Sentinel Resources, Inc. to Great West Gold, Inc.
shareholders of record as at November 14, 2005.
Sentinel Resources, Inc. has confirmed that it is to effect a ten for one
Stock Split of its outstanding shares of Common Stock, which will therefore
result in the amount of 980,000,000 shares in Sentinel Resources, Inc. shares
of Common Stock being distributed to the Great West Gold, Inc. shareholders.
This was a logical step given the huge number of outstanding shares of Common
Stock in Great West Gold, Inc.
WESTERN DIVERSIFIED MINING RESOURCES, INC.:
Great West Gold, Inc. will continue to hold 51% of Western Gold Limited,
Golden Sierra Limited and Copperstone Mining Limited through its wholly owned
subsidiary company, Western Diversified Mining Resources, Inc. Western Gold
Limited controls the "Bouse" Gold Mining Project in Arizona. Golden Sierra
Limited controls the "Mockingbird" Gold Mining Project in Arizona.
These shares of Windsor Resources, Inc. Common Stock will be posted to
Great West Gold, Inc. shareholders of record in and during the two week period
after November 7, 2005, that having been the "Pay Day" for this Dividend.
RATIONALE:
The Company has for some time recognized the fact that its dismal share
price performance required a major corporate restructuring and to this end,
the Company has examined countless possibilities to unlock value for its
shareholders. The rationale was a "Reverse Split" of the Company's stock
coupled with a financing of the Company would not be in the interests of
shareholders
NAME AND TRADING SYMBOL CHANGE:
The Company will shortly be effecting a change in its name and its Trading
Symbol to reflect the acquisition. This will be announced and effected after
the completion of the distribution of the shares in Windsor Resources, Inc.,
Sentinel Resources, Inc., Copperstone Mining, Inc. and after the restructuring
of the Company's holdings in Ambassador Gold Limited and in Golden Eagle
Mining Limited.
This announcement is neither an offer to sell nor a solicitation of an
offer to buy any of these securities.
About Great West Gold, Inc.:
Great West Gold, Inc., www.greatwestgold.com, is a gold mining exploration
stage company, engaged in the acquisition and exploration of mining properties
in the United States.
It holds interests in gold mining prospects, through various its wholly
owned subsidiary companies which include Golden Eagle Limited, Ambassador Gold
Limited and Copperstone Mining Limited. It holds investments in Sentinel
Resources, Inc. and in Windsor Resources, Inc. through its wholly owned
subsidiary company, Western Diversified Mining Resources, Inc. and has now
distributed its direct interest in Sentinel Resources, Inc. and in Windsor
Resources, Inc. to Great West Gold, Inc. shareholders.
Great West Gold, Inc.'s Mining Interests include:
- The Gold and Silver Mining Exploration Projects controlled by
Copperstone Mining Limited which are situated in La Paz County, Arizona
and extend to an area of 5,760 acres. These claims consist of 1 Lode
and 36 Placer sites.
- The Gold and Silver Mining Exploration Projects controlled by Golden
Eagle Limited which are situated in Imperial County, California and
extend to an area of 3,345 acres. These claims include 2 Lode Claims
and 22 Placer Claims which include the GE Claims, Picacho East and
Picacho West Lode Claims.
- The Gold and Silver Mining Projects controlled by Ambassador Gold
Limited which consist of the Ambassador property in Yavapai County,
Arizona and extend to an area of 1,600 acres, include 1 Lode Claim and
10 Placer Claims which include the AM and Ambassador Lode Claims
- The Gold and Silver Mining Projects controlled by Windsor Resources,
Inc. which relate to the Bouse property in Arizona and comprising of
12 placer claims spread over 1,300 acres in La Paz County. They are
located just North of the Plomosa Fault and includes the Little Butte,
Flat Fault and Arrastre projects.
- The Gold and Silver Mining Interests controlled by Sentinel Resources,
Inc. relating to the Mockingbird and Great West project areas
comprising of 4 (four) claim groups spread over 2,500 acres in
Mohave County, Arizona.
Statements contained in this press release, which are not historical
facts, are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
are based largely on the Company's expectations and are subject to a number of
risks and uncertainties beyond the Company's control, including but not
limited to economic, competitive and other factors affecting the Company's
operations, management team effectiveness, expansion strategies, available
financing, market prices and recovery costs, government regulations involving
the Company, facts and events not known at the time of this release, and other
factors discussed in the Company's filings with the Securities and Exchange
Commission. These statements are not guarantees of future performance and
readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release. The Company
