Windstorm Announces New Mexican Gold-Silver Project Acquisition

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[{"type":"text","content":"\nWindstorm Announces New Mexican Gold-Silver Project Acquisition\n\n Jun. 6, 2011 (TheNewswire.ca) -- Windstorm Resources Inc. (TSX-V: WSR, FRA: 4WE, WKN: A1H700, \"Windstorm\" or \"the Company\") is pleased to announce it has entered into an agreement whereby it has an option to acquire a 100% interest in the 6,475 hectare Escondida gold-silver project in Mexico. La Escondida is located along a 300 km structural corridor that includes known mineral deposits such as Peñasquito (~18 million oz. Au)1, Camino Rojo (~3.5 million oz. Au)2, Charcas (major Ag, Pb, Zn district) and Cerro San Pedro (~2.1 million oz. Au3 plus significant historical production).Windstorm President, Dr. Gerry Carlson, stated \"We are extremely pleased to have concluded this new Escondida acquisition. This is part of our ongoing strategy to focus on gold and silver exploration in Mexico and to build a solid pipeline of precious metals projects for the Company.\"The Company plans an airborne ZTEM geophysical survey over the project area. Zones with anomalous resistivity response will be followed up by ground geophysical surveys including Induced Polarization and gravity. It is anticipated that the highest priority targets will be ready for drill testing by year end.The road accessible project, covering 6,475 hectares, is largely covered with overburden and post-mineral volcanic rocks. The exploration target is gold-rich polymetallic mineralization, including skarn, breccia, and stockwork, similar to the Peñasquito and Camino Rojo deposits, and hosted within Cretaceous sedimentary rocks. Four discrete targets in areas of favourable stratigraphy have been defined by multi-element geochemical anomalies that are up to several km in length, suggesting potentially significant bedrock sources. A magnetic low coincident with one of these anomalies may be caused by associated hydrothermal alteration.Windstorm has an option to acquire a 100% interest in the Escondida Project for $460,000, to be paid over six years, including a $20,000 signature payment, plus a $5 million payment to exercise the option. The final payment may be extended annually by making an advanced royalty payment of $125,000, adjusted for inflation, for up to 99 years. The agreement is subject to a 3% NSR Royalty on precious metals and a 1.5% NSR Royalty on other metals; half of both can b...

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