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Golden Fame Resources

Mining Companies - Silver Companies

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Junior Explorer: Ag/Au

Golden Fame Resources is a mining and exploration company with a focus on acquiring and developing historically productive gold, silver and copper properties that have become economic due to unprecedented increase in metal prices. The Company's present focus is its Algun Dia Project, located close to one of the largest silver mining districts in the world, Guanajuato, Mexico. The area has a rich history of mining dating back 400 years ago, and the experienced management team is very excited to be working in this mining district.  The Company is listed on the Toronto Venture Exchange under (GFA).

Annual Trading Range

.13-.40, trading on 17 Oct 2011 @ .245.

Share Structure

 

Shares Issued & O/S July 31, 2011

56,367,467

Options O/S

2,630,000

Warrants*

18,293,840

Fully Diluted Share Capital

77,291,307

 

Financials

Q2 2011

Cash and Equivalents 6.8M

ST liabilities  135K

Cash Burn Rate 300K

Quarterly loss (.01)

Projects

Algun-Dia

Summary Highlights

· Location: Leon-Guanajuato region of Mexico

· Commodity: Gold, Silver and Copper

· Status: Historical production

· Ownership: Option Agreement to acquire up to 70% interest

Algun Dia is Golden Fame's principal project and is located near the cities of Guanajuato and Leon in Mexico, close to the world-class Guanajuato Silver District. The property has demonstrated past economic production of gold, silver and copper from a major vein-hosting structure with mineralized true widths reportedly exceeding 10 meters. Historical reports indicate that between 2002 and 2007, the property produced approximately 15,000 tons of ore during periods of test mining. The ore was processed at the Penoles Mining Company mill in Guanajuato and produced approximately 750 tons of gold, silver and copper concentrate. The Guanajuato Silver District has a history of mining dating back 400 years, and it ranks amongst the largest silver districts in the world.

To date no more than 25% of the total strike length of the main vein-hosting structure has been tested by drilling and/or underground development, leaving the majority of the strike length and down-dip extension yet to be explored. A recent sampling program by Golden Fame has verified the existence of significant grades of gold, silver and copper both on surface and in underground workings, as reported in the historical data.

A further program of diamond and reverse circulation drilling, underground mapping and excavation is currently underway and expected to be completed before December 2011.

Location & Ownership

The Algun Dia Property is located approximately 30 km east of Leon, Guanajuato State, Mexico and consists of an exploitation concession (development and extraction) covering an area of 190 hectares.

On May 18, 2011, Golden Fame Resources entered into an Option Agreement with Mr. Rodolfo Rodriguez Aldaco for the Algun Dia property. Under the terms of the Agreement, Golden Fame can acquire a 70% interest in the property over a three-year period by making payments to Mr. Aldaco totalling $4.3 million (Canadian), issuing to Mr. Aldaco 3 million common shares of Golden Fame, and expending a minimum of $6.5 million on exploration/development work on the project. Golden Fame's minimum work expenditure for the first six months is $2 million, to be completed by December 31, 2011.

Geology

The eastern portion of the Algun Dia property comprises the Esperanza formation, a volcano-sedimentary sequence which formed as part of the Guanajuato volcanic arc that developed during the Middle Cretaceous. The western portion of the property comprises Duarte conglomerate, which was deposited unconformably upon the Esperanza Formation during Eocene to Lower Oligocene. Three main intrusive bodies can also be recognized within the property area:

· a fine-grained granodiorite intrusion at the hanging wall of San Cayetano structure;

· granitic dykes, within the Esperanza Formation, similar in texture to Comanja granite located approximately 2 km to the east of Algun Dia claims;

· the Cerro Pelon tonalite which occupies the southernmost portion of the property.

Structure

The main structural feature within the Algun Dia property is the El Bajio Fault, a major regional structure that extends for approximately 80 km from Iraputo to the south to Leon on the north and consists of a series of normal high-angle faults with downthrown blocks to the southwest. The Algun Dia claim block covers approximately 1.5 km of the El Bajio Fault structure and the San Cayetano vein system. Other mineralized structures identified on the property by historical workings also appear to be associated with this fault system.

The Veta Madre Fault that hosts the Veta Madre silver deposits near the city of Guanajuato is 10 km east of the El Bajio fault and trending parallel to it in a NW-SE direction.

Mineralization

Mineralization at Algun Dia consists of quartz-hematite veins and veinlets with disseminated and locally semi-massive pyrite and chalcopyrite. The main mineralized structure (San Cayetano) is hosted within a sheared and brecciated granodioritic sill in the hanging wall and intermediate volcanics of Esperanza formation in the footwall.

The style of mineralization at Algun Dia appears to be that of a low-sulfidation epithermal deposit characterized by enrichment in precious metals (Au and Ag), paucity of base metals (Pb and Zn) except for copper, and anomalous values of As, Bi and Sb.

To date approximately 25% of the total strike length of the vein-hosting San Cayetano structure has been tested by drilling and underground exploration works, leaving the majority of the strike length and down-dip extension yet to be explored. The structure, which hosts a brecciated, copper-silver-gold bearing vein system, is open to depth. At least five additional structures have been recognized on the property with outcropping characteristics similar to the San Cayetano vein, providing additional exploration targets.

The exact length, width, depth and continuity of the mineralization have not been determined at this stage of exploration.

Previous Exploration

The Algun Dia Property has seen sporadic exploration work by the concession holder since 1987. Prior to this the area had seen minimal exploration work in the form of small mining operations carried out by local prospectors.

Between 1997 and 1998 approximately 2,000 m of diamond drilling was completed by the concession holder in 11 holes targeting the San Cayetano structure.

Two drill holes, AD-08-97 and AD-10-97, located on the same section approximately 50 m apart, and inclined at -75°, intersected the Santa Cecelia vein at approximately 140 m down-dip with high-grade gold, silver and copper mineralization over several meters. According to these historical records (not yet verified by the Company), drill hole number AD-8 encountered 14 m assaying 2.34 g/t gold, 120.3 g/t silver and 1.88% copper. Hole AD-10 drilled 16 m assaying 1.71 g/t gold, 104 g/t silver and 1.51% copper. Both holes were drilled at angles to intersect the vein at close to true width.

A third drill hole, AD-11-97, was drilled from the same location as AD-08-97 at an inclination of -45° to test the up-dip extension of the mineralized zone intersected at depth. AD-11-97 intersected anomalous gold, silver and copper values over shorter intervals indicating that the mineralized zone continues up-dip. Other notable drill holes include AD-06-97 collared approximately 30 m to the southwest, along strike of the San Cayetano structure, which intersected primarily anomalous copper values with minor silver.

From 2002 to 2007, some 900 m of underground workings were constructed on several prospects within the project area, among which Santa Cecilia and El Carmen, within the San Cayetano structure, are the most significant in terms of size. This work followed the construction of a 4 km access road and construction of an exploration camp-site. Approximately 25,000 tonnes of ore containing in average 2.2 g/t Au, 73 g/t Ag and 0.93% Cu, were mined during this period primarily from Santa Cecilia and El Carmen level, of which approximately 7,200 tonnes were sent to the Bolañitos processing plant.

Recent Exploration

In April 2011, Golden Fame Corp. contracted Minera Cascabel S.A. de C.V. to collect independent samples and verify historical data including underground workings, surface outcrops and diamond drilling core review. A total of 84 samples, including 75 rock samples (channel samples, chip samples and grab samples) and nine QA/QC samples were collected from underground workings and surface outcrops within Algun Dia project area.

Samples of up to 5.16 ppm Au, 563 ppm Ag and 9430 ppm Cu across 3 m were obtained, which confirm the occurrence of precious metal and copper mineralization over multi-meter intervals. Mineralization was sampled in both the Santa Cecilia adit and El Carmen underground workings, plus the Los Tejones, Jesus, San Cayetano adit, San Crispin and La Escondida surface mineralization.

The recent sampling also indicates that anomalous values of gold and silver occur not only within the mineralized quartz-hematite veins, but also in the silicified volcanics in the hanging wall of San Cayetano structure.

The extent of mineralization and its distribution along the veins/structures and within the altered host rock away from these structures is not yet known due to the limited exploration work and will be fully addressed by the upcoming 2011 exploration program.

Work Program 2011

Recently, the Company has raised $7.1 million in a Private Placement, at least $2 million of which is to be used towards the aggressive exploration of the prospect, which will include diamond and reverse circulation drilling, underground mapping of existing production stopes and workings, and the excavation of an underground spiral ramp within the known concentration of mineralization.

The Company has submitted applications for permits for blasting and for further adit excavation and expects to have permits in place imminently. The work program includes driving approximately 600 m of underground decline on the main Santa Cecelia vein that will probe the vein system to a depth of over 100 m below the present surface and existing historic stopes. This internal ramp will provide three-dimensional data regarding the geology and sulfide mineralization, will provide for bulk metallurgical samples, and will allow for the construction of underground drill stations which will enable detailed drilling of the vein with relatively short holes. The Company aims to complete a drill program of about 7,000 m (surface and underground) by the end of this year.

Pipeline

GOLD RIDGE PROPERTY – DOS CABEZAS, ARIZONA

Corporate

Graham Clark, Jr., LLB: CEO, President & Director

Mr. Clark has been involved in the international hard rock mining community for the last 35 years as house counsel for The Anaconda Company and ASARCO, and as Senior Vice President with the Newmont Mining Corporation. He has negotiated and implemented many joint operating agreements and other transactions involving the acquisition, finance and provision of security for mineral properties in the U.S., Canada, Mexico, Peru, Ecuador, Australia, Spain, Romania, Uzbekistan and Indonesia. Mr. Clark is the founder and President of Gold Discovery Company, a privately-funded exploration company and serves as Chairman of United Silver Corp (TSX:USC), a near-production mining company working in Idaho's Silver Valley. Graham Clark is a graduate of Yale College and Yale Law School.

Lawrence A. Dick, P.Geo., Ph.D: Director

Dr. Dick is a professional geologist with 35+ years experience in base and precious metals exploration worldwide. He spent over 20 years exploring for copper and gold throughout South America and was credited with major finds at Collahuasi (Chile); Can Can (Chile); Golden Bear (B.C.); and the San Jose silver deposit in Mexico. Dr. Dick co-founded General Minerals Corporation (now Sprott Resource Corporation) and was then co-founder and President of Evolving Gold Corporation. He currently serves as Chief Geologist and Manager of the Resource Group for Baron Global Financial Canada Ltd., a Hong Kong-based merchant bank dedicated to the identification, acquisition, exploration, and marketing of mining projects worldwide. Dr. Dick also serves on a number of boards, including Timmins Gold Corp, Copper One Inc, Confederation Minerals Ltd and United Silver Corp.

Steven M. Green, P.Geo: Consulting Geologist

Mr. Green is a professional geologist with over 25 years experience in base and precious metals exploration. He spent 20 years exploring for precious metals ranging from prospecting to managing million-dollar joint ventures for senior mining companies, such as Freeport McMoRan, Noranda, Santa Fe Pacific Gold and Cambior. Mr. Green currently serves as President of Otterburn Ventures Inc., and prior to joining Golden Fame as Consulting Geologist he managed the geologic data operations for Fronteer Gold USA and supported the newly discovered Long Canyon deposit. Fronteer has recently been acquired by Newmont Mining.

Jason Birmingham: Director

Mr. Birmingham has 20 years of industry experience as founder/principal, senior officer, director or financier of numerous private and public company startups, engaged in exploration/exploitation of uranium, precious & base metals, oil & gas, hospitality and, most recently, green energy. During this time, Mr. Birmingham has been involved with aspects of management, finance, board and committee activities and project generation, negotiation and acquisition. Jason Birmingham is also President and CEO of Cassius Ventures Ltd, President and CEO of Datinvest International and Director of Fitch Street Capital Corp.

Savio Chiu: CFO

Mr. Chiu is a Chartered Accountant and holds a Degree in Accounting from the University of British Columbia. Mr. Chiu is currently Senior Manager, Corporate Finance of Baron Global Financial Canada Ltd. Previously, he was a professional staff accountant with an international accounting firm where he gained valuable experience leading large teams for audits under Canadian GAAP for public multi-national clients. Mr. Chiu is also Director of Otterburn Ventures Ltd and CFO and Director of Cassius Ventures Ltd.

Peter Hughes, B.Sc.: Corporate Secretary

Mr. Hughes has over 25 years of business experience at the executive level in both private and public companies in a variety of industries including pharmaceuticals, alternative energy and mining exploration. Mr. Hughes co-founded Pirie Hughes Consulting, a firm specializing in business development, marketing, financing and strategic management. He has completed the 'Canadian Securities Course' and the 'Directors & Officers Course.'

David Velisek: VP of Business Development

Mr. Velisek has been involved in the capital markets for many years in investor relations, as a trader of equities, options and futures as well as an Investment Advisor. He is currently employed with Baron Global Financial Canada Ltd. David obtained financial experience through his years of analyzing financial statements and performance measurement ratios during his years as an investment advisor.

Media

Corporate Presentation

http://goldenfameresources.com/pdf/presentations/Golden%20Fame%20-%20Investor%20Presentation.pdf

News Releases

September 8, 2011
Golden Fame Resources Corp. Initiates Drilling at Algun Dia

July 6, 2011
Golden Fame Resources Corp. Initiates Exploration Activities at the Algun Dia Copper-Gold-Silver Deposit near Guanajuato, Mexico

June 20, 2011
Golden Fame Retains Investor Relations Consultant

June 17, 2011
Correction Regarding Private Placement Finders' Fees

June 14, 2011
Golden Fame Successfully Admitted to Frankfurt Exchange

June 10, 2011
Golden Fame Resources Closes Non-brokered Private Placement

May 18, 2011
Golden Fame Resources Corp. Signs Definitive Option Agreement on Mexico Gold Property

 

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Comments (3)Add Comment
pitbul13
...
written by pitbul13, October 29, 2011
One thing to notw though, is that the property was in production way back when silver prices were super low. That means the economics must be somewhat different.

Also, GFA's Algun Dia property was wanted by Great Panther. The only problem is, GPR didn't want to leave anything for the owner. GFA stepped in and sweetened the deal for the owner.

IMO This will be an interesting play going forward.
Should see some news in the weeks ahead!
Brian Boutilier
...
written by Brian Boutilier, October 27, 2011
The timing for you question is good. I just got back from touring Endeavor and Great Panther operations in Quanajuato. The details of that I will comment on soon. What stands out in my mind now, is the current grades listed historically for Golden Fame. (around 100gpt Ag and 2gpt Au). These are not stunning for the area. GPR has a high cut off grade in terms of silver when mining, in/around 135gpt. EDR, can profitabley mine at slightly lower cut-off grades, because they have broader mineralization, so they can use less expensive methods of stoping. If the structures at Golden Fame are AU heavy, this raises the silver equivalent, and also shift the AG cut-off. From what I could gather, Golden Fame has brechiated high grade. If these underground workings at Golden Fame are similar to GPR, they too will need a high cut-off to be profitable. That being said, I don't have a good feel for what the underground structures at Golden Fame are like. If the new srill results point to 3+ meter intervals with grades over 120-150gpt, this will bode well for them going forward. Hope that helps.
pitbul13
...
written by pitbul13, October 26, 2011
Boot, what do you think about this company? I think Drill results are due any day now!

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