Pediment Gold Corp.
TSX : PEZ
OTC Bulletin Board : PEZGF
FRANKFURT : P5E

Pediment Gold Corp.

October 13, 2009 16:41 ET

Pediment Clarifies Prior Resource Disclosure on La Colorada Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - Pediment Gold Corp. ("Pediment" or "the Company") (TSX:PEZ)(OTCBB:PEZGF)(FRANKFURT:P5E) is issuing the following news release to clarify its technical disclosure outlined in certain of its previous disclosures regarding the Company's La Colorada mineral property in Sonora Mexico as a result of a review conducted by the British Columbia Securities Commission.

On February 17, 2009 the Company issued a news release which discussed the Company's plan to target the expansion of what were stated to be "known resources" at La Colorada. The Company would like to clarify that the existing resource estimate for La Colorada is not current, and is a historical, resource estimate. Similarly, on May 14, 2009, the Company issued a news release which discussed the existing estimates and the Company's future exploration plans at La Colorada using the terms "ore" and "mineable ore", and refers to an evaluation for the start up of an open pit mine. The Company confirms that while the Company has published results of its exploration activities at La Colorada and management believes that the results from the ongoing exploration efforts justify continued exploration at La Colorada, the Company does not have a current resource estimate for the property nor has it confirmed the economic viability of the mineralization present at La Colorada.

The Pediment website and one previous news release, from October 29, 2007, cited resource quantities published in a news release by Eldorado Gold on February 29, 2000; specifically Pediment cited Eldorado's disclosure of 599,300 oz of gold in 21,534,300 tons of mineral resource with an average grade of 0.87 grams per tonne. A more detailed presentation of this historical resource data is set out in the table below. This more accurate and detailed data was recovered by the Company in the course of its review and re-organization of the prior mine data base, which without restatement may have led to conflicting and confusing statements about historical resources of the project. The Creston resource area is not included in any of these estimates or discussions.

A Creston property resource estimate was disclosed in investor materials previously posted on the Company's website reporting 8.8 million tonnes grading 1.18 grams of gold per tonne, but failed to state the resource classification categories or authorship. Further, this internally calculated resource estimate did not meet current NI 43-101 requirements for reporting resource estimates and should, therefore, not be considered to be a reliable disclosure. It is hereby retracted by the Company. The data on the Creston property will be reconsidered in accordance with CIM guidelines and NI 43-101 requirements, including a review of both prior and new data, and will be disclosed as a new resource estimate in approximately two months time, to be included in the same report as the planned update of the La Colorada and Gran Central resource estimates discussed below.

A report prepared for Eldorado by independent consultant Gary Giroux in 1999 on the La Colorada and Gran Central zones shows two of four calculation passes which are reported in the following table summarizing selected historical resources. (Gary Giroux, May 1999, Audit of the Resources Contained Within the Gran Central and La Colorada Zones, La Colorada Mine, Mexico).

Table of historical resource calculations for La Colorada and Gran Central by Giroux (1999)

MODELCLASSTONNESAu (g/t)Ag (g/t)Au oz.Ag oz.
97 EXPMeasured8,180,0000.9917.791261,0002,050,000
(Eldorado)Indicated9,040,0000.9346.826271,0001,980,000
(1997)TOTAL M&I17,220,0000.9617.284532,0004,030,000
 Inferred4,190,0000.9725.574131,000751,000
       
PASS 1Measured9,090,0001.0469.195305,0002,690,000
(Giroux)Indicated12,050,0000.9188.241355,0003,190,000
 TOTAL M&I21,140,0000.9738.651660,0005,880,000
 Inferred5,660,0000.8179.346149,0001,700,000
       
PASS 4Measured11,630,0000.9929.134371,0003,420,000
(Giroux)Indicated12,670,0000.8898.534362,0003,480,000
 TOTAL M&I24,300,0000.9388.821733,0006,890,000
 Inferred4,760,0000.83710.507128,0001,610,000

This table uses mineral resource category terminology consistent with requirements of NI 43-101. The "97 EXP" model is an Eldorado kriged resource model based on 1997 surface data and widely space drilling. "Pass 1" by Giroux utilized a 45x45x15 meters search ellipse configuration and grade capping of blocks to 1 gram in the low grade zone. "Pass 4" by Giroux utilized 75x75x50 meters search ellipse configuration and included influence from blast holes. Giroux included silver grades for each resource category, but did not include the "Ag oz." column, which was calculated for this news release. Some differences of totals shown may occur due to rounding error.

Pediment has determined that the above-referenced February 2000 Eldorado news release with historical resource totals, contained sums of measured, indicated and inferred resources that differ from the information contained in the underlying report (Giroux 1999). The above table, which the Company believes is an accurate summary of these historical estimates, clarifies the disclosure of the 1999 calculated resources from that report.

Notwithstanding that the Company considers these historic calculations relevant to its own exploration planning, the Company cautions that these calculations were completed prior to establishment of NI 43-101 guidelines for resource estimation. Consequently, these historic results cannot be categorized as current mineral resources or mineral reserves in accordance with NI 43-101.

Pediment also reported that subsequent to the estimates published by Eldorado, production records prepared by previous owner, Exploracions La Colorada, S.A. de C.V., record that 3,617,340 tonnes averaging about 0.9 g/t gold was mined from the La Colorada site. This historical information has not been independently verified by the Company in accordance with NI 43-101 requirements and should not be relied upon. This information is reproduced for historical reference only.

Since obtaining ownership of the La Colorada property in October 2007, the Company has conducted two drill programs, the second of which is continuing, and has completed approximately 5,200 meters of RC and 1,550 meters of core drilling in 2009. A 2008 drill program completed about 4,320 meters of RC drilling, as reported in a September 17, 2008 news release, and details of drill hole assay results were listed in a news release on February 17, 2009 with geological interpretation. This drill data is also currently available on the Pediment website at www.pedimentgold.com. Two contracted geologists have completed mapping and supervised pit bench sampling. This resulted in the collection of about 3,600 rock samples which have been analyzed in approved laboratories and was posted to the Pediment website in map form illustrations.

Four different engineering groups were contracted over the period to review in detail various aspects of the former mine site and facilities regarding the state of existing infrastructure, integrity of leach pads and dumps, the amenability of the rock types for underground mine development, and various environment assessments. These mining engineers and technicians have provided useful information and recommendations to facilitate advancing the project beyond the exploration drilling phase. Reyna Mining and Engineering of Mexico City was contracted to provide general recommendations regarding the development potential at the La Colorada property. Milne and Associates of Tucson, Arizona also provided additional assessment of the underground mining potential. Interminera S.A. de C.V. of Sonora, Mexico, has been reviewing the site infrastructure and making an assessment of the various components of the site. Munro Legal of Sonora, Mexico, provided environmental assessments and a partial baseline study, including water well sampling for the former operating mine.

The Company does not have a current resource estimate for the La Colorada property, nor has it verified the historical estimates disclosed above. However, it recently has engaged a group of independent consultants to prepare an NI 43-101 compliant resource study and technical report for the La Colorada property prior to December 1, 2009.

Melvin Herdrick, Vice President of Exploration and a Director of the Company, is a Qualified Person as defined by NI 43-101 and has reviewed and approved this release.

Pediment Gold Corp.

Gary Freeman, President & CEO

This news release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 27E of the U.S. Securities Exchange Act of 1934, as amended, and within the meaning of Canadian provincial securities laws applicable to the Company, regarding the ongoing exploration at the Company's La Colorada property. Such statements include, without limitation, statements regarding the Company's expectation that further exploration is warranted and the Company's plan to prepare and file a NI 43-101 compliant technical report on the La Colorada property. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, and the U.S. Securities and Exchange Commission's Electronic Data Gathering and Retrieval (EDGAR) System at www.sec.gov, for a more complete discussion of such risk factors and their potential effects.

All of the Company's public disclosure filings may be accessed via www.sedar.com and www.sec.gov, and readers are urged to review these materials, including any technical reports filed with respect to the Company's mineral properties.

This news release is not, and is not to be construed in any way as, an offer to buy or sell securities.

The TSX has not reviewed or accepted responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Pediment Gold Corp.
    Gary Freeman
    (604) 682-4418
    or
    Pediment Gold Corp.
    Michael Rapsch
    (604) 682-4418
    www.pedimentgold.com