Pediment Exploration Ltd.

Pediment Exploration Ltd.

January 09, 2007 09:54 ET

Pediment Acquires High Potential Project in the Mulatos-La India Gold Silver Camp

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 9, 2007) - Pediment Exploration Ltd. (TSX VENTURE:PEZ) (FWB:P5E) is pleased to announce that it has signed agreements to acquire a 100% interest in the Juliana project located in the Mulatos-La India camp, Sonora Mexico. The Juliana concessions, which total approximately 700 hectares, are located between recent discoveries at La India by Grayd Resource Corp. and the producing Mulatos gold mine owned by Alamos Gold. The Juliana property is located about 6 kilometres west of the Mulatos open-pit, heap-leach gold mine.

Past work at Juliana includes surface sampling and drilling. Prior drilling at Juliana consisted of 16 short percussion drill holes and 5 core holes which targeted a northerly-trending gold mineralized structure referred to as the "Main Feeder Fault". Surface sampling prior to drilling returned a number of samples exceeding 10 grams per tonne gold from this structural zone. Pediment's due diligence sampling in the same area returned grades of more than 3 grams per tonne gold over one- to three-metre sample lengths.

Pediment was drawn to the camp based on recent exploration successes by both Grayd and Alamos in stratigraphically- (rather than structurally) controlled gold zones. Gold zones with stratigraphic controls have the potential for rapid resource growth to large size with exploration success. Our geological review of the targets at Juliana indicate a stratabound, epithermal gold-mineralized zone may exist within a complex set of parallel block faults. Prior work at Juliana focused only on the Main Feeder Fault, a steeply dipping structural zone, whereas Pediment is focusing on stratabound mineralization. The structural zone was an obvious target based on high surface-gold grades in channel samples (e.g. 6 meters of 13.0 g/t Au) and the scattered presence of visible native gold within gambusino workings confined to the Main Feeder Fault structure.

The Mulatos gold mine, as reported in Alamos Gold's, 3rd Quarter Report 2005, has a measured and indicated resource of 62.2 million tonnes with and average grade of 1.51 grams per tonne gold. Alamos has also reported discovery of additional resources that are being quantified in the Escondida high grade deposit, as well as in the Victor-San Carlos deposit.

Grayd recently reported significant gold assay intervals from the La India area. Grayd's new interpretation is that the zone intersected at the La Cruz prospect on La India is a shallow-dipping stratabound zone of intense vuggy silica and not a steeply-dipping breccia body as previously assumed. Grayd has not reported a resource calculation, but drilling is continuing on the La India deposit area. Epithermal gold mineralization at the Mulatos mine is also mostly in stratabound form within the dacitic to rhyolitic volcanic sequence of Oligocene age. Alamos reported in its 2005 annual report it had discovered "several square kilometres of stratiform silicic alteration within the andesitic rocks of the lower volcanic sequence" on its El Jaspe concession that borders the northern side of the Juliana project. Drilling at El Jaspe last year to trace the alteration, reportedly intersected extensive areas of blind copper-gold mineralization within a thick body of stratiform pyritic breccia. Alamos noted that this was a new style of mineralization for the camp and indicated that follow-up geophysics and drilling will be carried out this year. The El Jaspe discovery is located roughly one kilometre north of the Juliana property boundary.

The Juliana option includes complete access to a multi-element analytical database of existing information including the drill holes with continuous down-hole analyses, about 1000 rock chip and channel samples, and more than 1325 soil samples. This database, combined with additional data collected by Pediment, provides a sound foundation for targeting and testing new stratabound gold targets with multi-million-ounce gold potential in this highly prospective gold district. Pediment geologists are currently analyzing the database and planning follow-up sampling and permitting. The company expects to be able to rapidly advance the Juliana project to drill stage in the next few months.

The agreement between Pediment Exploration Ltd's Mexican subsidiary and three private Mexican owners covers three concessions; Juliana, Juliana 1, and Juliana 2 totaling 700 hectares.. The agreement calls for an initial payment of $30,000 and total payments of $800,000 over four years. The majority of the purchase price falls in the fourth year (all amounts in US Dollars). On completion of the payments Pediment will own 100% of the project, with the vendors retaining a 1.0-1.5% royalty, depending on the size of any NI 43-101 compliant mineable reserve discovered on the property.

The Juliana acquisition adds a third major gold district to Pediment's areas of active exploration. These are, in addition to Mulatos, the Caborca-Megashear region (Daniel concessions), and Baja California Sur (Las Colinas with a published drill-established gold resource).

Pediment's exploration programs are conducted under the direction of geologist Melvin Herdrick, MSc (Registered Professional, Washington State), who is a qualified person within the definition of National Instrument 43-101 and who reviewed the contents of this release.

Pediment Exploration is a well financed, aggressive exploration company with approximately $4 million of working capital, and a main focus on precious metals exploration in western Mexico. It currently has 10 fully owned and one optioned project. Pediment has expanded its pool of technical staff and consultants and is accelerating exploration on a number of projects. Results are expected from trenching at the Daniel project, drilling at the Caborca project and large scale geochemical surveys at the Colinas-Baja Sur project and will be reported on when available. Induced Polarization surveys are ongoing at Baja Sur and work will begin at the new Pediment-Inmet Mining joint venture near Caborca late this month. A major drill program is slated to begin at Pediment's Baja Sur projects at the same time.

On Behalf of the board

Gary Freeman, President and CEO, PEDIMENT EXPLORATION LTD.

We Seek Safe Harbour.

Contact Information

  • Pediment Exploration Ltd.
    Gary Freeman
    (604) 682-4418
    Skyline Investor Relations
    (604) 733-3356 or Toll Free: 1-866-433-3356