SOURCE: Consolidated Goldfields Corporation

April 30, 2010 12:45 ET

Consolidated Goldfields Releases Information on the Cahuilla Gold-Silver Project

RENO, NV--(Marketwire - April 30, 2010) -  Consolidated Goldfields Corporation (PINKSHEETS: CDGF) is pleased to announce the initiation of exploration and development on its high-grade and disseminated gold-silver Cahuilla Project in Imperial County, California. The Cahuilla gold-silver project is located in the eastern foothills of the Santa Rosa Mountains and encompasses more than 1,500 acres that are 100% controlled by Consolidated. The Cahuilla Project is a large epithermal, paleo-hot springs system hosting multiple bonanza-grade veins controlled along a major east-west trending structural zone. Mineralization is known to extend for approximately 12,000 feet along the strike of the Modoc Fault zone and more than 4,000 feet in width. Since the late 1980's, an estimated $6 million has been spent on gold exploration, which includes the completion of 214 drill holes. Historical work was performed by companies that include Homestake, Newmont and Kennecott and by the Torres Martinez Indian Tribe.

The Cahuilla deposit currently contains an indicated mineral resource of approximately 750,100 ounces of gold mineralization, and an inferred mineral resource of approximately 106,000 ounces of gold mineralization. Below are several historical drill hole intercepts from the Section 20 target area.

Hole Number Depth (ft) Intercept/Thickness (ft) Grade (ounces/ton Au)
         
TM-6 680' 0 - 15' 15' 0.136
  Including 0 - 5' 5' 0.373
         
TM-28 480' 85 - 325' 240' 0.112
  Including 160 - 205' 45' 0.359
    230 - 245' 15' 0.314
         
TM-44 605' 220 - 315' 95' 0.064
  Including 255 - 275' 20' 0.210
         
TM-49 505' 120 - 285' 165' 0.030
    355 - 400' 45' 0.090
  Including 355 - 365' 10' 0.193
    385 - 390' 5' 0.235
         
CAH-10 660' 175 - 385' 210' 0.029
  Including 190 - 290' 100' 0.041
  (Note) 145 - 660' 515' 0.017

Consolidated Goldfields has executed an Earn-in Agreement with Teras Resources, Inc. (TSX-V: TRA) dated February 8, 2010 and Teras has satisfied the initial requirements by providing Consolidated 4,000,000 common shares of Teras and $1,000,000 US dollars for the exploration and development of the Cahuilla Project. Consolidated and Teras are currently devising aggressive exploration and development plans for the Cahuilla gold-silver project which will include comprehensive geologic mapping and sampling, environmental permitting for the first and second phases of drilling and bulk metallurgical sampling program.

Consolidated Goldfields strongly believes the Cahuilla Project has excellent potential for significantly expanding the existing gold-silver resources since mineralization is open in all directions (along strike and at depth), with the primary objective of developing the project into a multi-million ounce, underground and open-pit gold-silver mining operation.

Certain information contained in this news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections. However, such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intent or obligation to update publicly any forward-looking statements set forth herein, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contact Information

  • For further information, please contact:

    Consolidated Goldfields Corporation
    Peter Leger
    Vice President Corporate Development
    (403) 852-0644

    Mark Fralich
    Investor Relations
    (503) 313-2586