Guyana Govt. probing mining company ‘hoax’

Jan 08, 2012 News

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…ploy maybe aimed at inflating US Stock Market Shares–Source

The Guyana Government is currently deeming the report by US-based North Shores Resources Corp as a possible hoax aimed at inflating its shares on the US stock market.
This is according to a senior Government official, who speaking on the basis of anonymity, said that the matter is currently under active investigation and the Administration is currently preparing missives to the relevant authorities in the United States.
The US-based mining company in question is registered in Nevada USA and according to a report appearing on the Wall Street Journal’s MarketWatch (http://www.marketwatch.com/story/north-springs-resources-reaches-agreement-to-acquire-two-gold-properties-in-guyana-2012-01-06-9160) it was up to Friday last, within 48 hours of finalizing a Definitive Agreement to prospect for gold on 25,000 acres of land.
The land in question is located next to the Omai Gold Mines operation.
The Company is said to be compliant with the United States Security Exchanges Council with its President, CEO and CFO listed as Harry Lappa.
According to Forbes.com Lappa “is the sole member of the Company’s Board of Directors and is the Company’s President, Chief Executive Officer, Chief Financial Officer, Treasurer, and Secretary.
“Mr.Lappa has 25 years experience in the financial industry. He has developed a wealth of knowledge in business and finance, and has gained significant management experience working as a financial officer for Employment and Immigration Canada from 1985 to 1989; a manager in the areas of Project Management, Information Technology and Operations for a Canadian utility from 1989 to 2003; a director and officer of Iciena Ventures from 2004 to 2008; and a director of Endeavor Power Corp. in 2009.”
Following the report on Friday by the US-based Company the Local Ministry with responsibility for the mining sector had said it “wishes to advise that the Guyana Geology and Mines Commission is not aware of a company called North Springs Resources Corporation (NSRC) doing business in Guyana with respect to Mining or Mineral Properties…It must be pointed out that North Springs Resources Corporation has not contacted nor informed the Guyana Geology and Mines Commission of any joint-venture of any Letter of Intent with any Mining Company or Mineral tenure in Guyana.”
The North Springs Resources Corp report that appeared had stated that extensive surveys were conducted by the GGMC on the land in question and have already unearthed moderately to strongly anomalous gold concentrations within both properties that warrant immediate follow-up.
“The surveys on the mining plots revealed that it shares geological and geochemical characteristics with several well-known gold producing mines in the immediate area at Omai, Kaburi, Eldorado and Hicks.”
The company claims that from 2004 to 2008, Lappa was President and Director of a publicly traded resource exploration company, with offices in both North, and South America and during his tenure, the company maintained holdings of over 400,000 lease acres in Brazil, and the company completed over 7,700 line kilometres of airborne electromagnetic geophysical survey (VTEM) by helicopter, thereby allowing the company to identify multiple drill targets.
“During this same period, over $3 million was raised in the public markets to further property development.”
In relation to the Guyana negotiations the company says that the 25,000 acres of land, for which the company is said to be finalising negotiations, is divided into two plots and lies on the border of the Omai Gold Mines Gold operations.
The company reported that it had reached an agreement in principle to acquire a 100 per cent interest in two prospecting licences in the prolific gold producing region known as the Kaburi gold mining area in Guyana’s Upper Takutu, Upper Essequibo Region.
Harry Lappa, President of North Springs Resources is reported as describing the plots as two very large properties right in the middle of one of the most important gold producing regions in the world. He touts the venture as one with “huge potential upside with relatively low early stage risk.”  The Omai Mine is located to the southeast of the two plots of land under negotiations.
The Kaburi gold mining area is part of a well-defined 1,000 mile long band of gold producing greenstone geology from Venezuela and French Guiana.
The transaction as reported by the US based Company purportedly now hinges on, “among other things, North Springs and the vendors entering into a definitive agreement and completion of satisfactory due diligence by both parties.”

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