Mexivada Options Jefferson Gold/Silver Project

VANCOUVER, BC - Mexivada Mining Corp. reported that it has entered into a letter of intent with StoneShield Capital Corp. pursuant to which StoneShield has
been granted an Option to earn up to a 70% undivided interest in the
Jefferson Gold/Silver property, located 50 miles north-northwest of
Tonopah, Nevada and three miles east of Round Mountain, Nevada. The
Property comprises a contiguous block of 85 unpatented lode mining claims,
totaling approximately 1,750 acres.
Under the terms of the Option agreement, StoneShield can acquire an
initial 51% interest in the Property by incurring a total of US$3,500,000
in exploration expenditures on the property as follows: a minimum
US$100,000 in expenditures on the Property to be incurred in the first year
following TSX Venture Exchange acceptance of the agreement,
a minimum US$150,000 in expenditures in the second year, and a total
US$3,250,000 in expenditures on the project in the third and fourth years.
StoneShield shall also pay all County, BLM and lease-option
payments required to hold all of the existing Jefferson property mining
claims and any additional claims and other properties acquired during the
life of this option agreement and the subsequent Mexivada-StoneShield joint
venture.
StoneShield can acquire an additional 19% interest (for a total 70%
interest) in the Jefferson property by incurring an additional US$2,500,000
in expenditures within 24 months of the date upon which StoneShield earns
an initial 51% interest in the Jefferson Property and completing a mining
feasibility study within 30 months of that date, at which time StoneShield
must issue a further 250,000 shares to Mexivada. Each party shall then be
responsible for financing its own share of the proposed mining operation.
At this point, StoneShield and Mexivada will also have the pro-rata right
to purchase a 3% net smelter royalty ("NSR") from property lessor at the
rate of US$1,000,000 for each 1% of NSR purchased (70% as to StoneShield
and 30% to Mexivada).
The Jefferson property is situated along the Round Mountain-Northumberland Gold Trend, an Oligocene- to Miocene-age structural zone that hosts the Barrick/Kinross' Round Mountain Mine and the nearby Gold Hill gold mine and Newmont/Fronteer's Northumberland Mine, a Carlin-type, open pitted former gold producing mine. The Jefferson Canyon mining district was mined for silver and gold beginning in the late 1870's, and was explored by drilling by Echo Bay and its predecessor companies in the mid 1980's. It has since lain mostly dormant with only minor exploration by third parties, until the arrival of Mexivada, which has conducted an extensive exploration program in 2005 and 2007, laying the foundation for renewed drilling of gold and silver targets. Mexivada feels that the Jefferson Property holds good potential to host a new gold-silver mine, with the delineation of several new open pit and underground mine targets.
The company's address is 1400 - 400 Burrard Street, Vancouver, BC V6C 3G2, (604) 689-1749, fax: (604) 643-1789, email: [email protected].