Pediment Exploration Ltd.
TSX VENTURE : PEZ
FRANKFURT : P5E

Pediment Exploration Ltd.

October 22, 2007 09:02 ET

Pediment Exploration Ltd.: La Colorada, Gold-Silver Deposits Being Acquired for High-Grade Testing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2007) - Pediment Exploration Ltd. (TSX VENTURE:PEZ)(FRANKFURT:P5E) is pleased to announce that it has negotiated the exclusive option to purchase the past producing La Colorada gold-silver mine property. The property is located approximately 40 km southeast of Hermosillo, Sonora State, Mexico. La Colorada originally operated as a high-grade underground mine, which closed at the start of the Mexican Revolution in 1914. During the period 1993-2000 Eldorado Gold Corp. developed a bulk tonnage heap leach operation from several open pits; although the operation was sold in late 2000, production continued by a private Mexican owner until April 2002. La Colorada was until recently Sonora's largest historic gold producer. Currently the La Herradura mine is Sonora's largest producing gold mine.

Pediment's decision to option the project is based on developing a modified geological model for the formation of the La Colorada vein and stockwork deposits following field investigations and a review of historic data. During the main historic mining period from 1876-1914 the production of more than 3 million ounces of gold was recorded. In 1990 the Mexican Geological Service (SGM) measured 1.5 million tons of tailings that were utilized at the start of the open pit production by Eldorado in 1993. The last formal resource estimates for the open pit project were done by Eldorado in 2000. These estimates, as indicated below, are not compliant with NI 43-101 and should not be relied upon, and are reproduced as historic reporting only. Pediment has not independently verified these estimates.

In Feb. 2000 Eldorado published estimated bulk tonnage open pit reserves of 4,115,200 tonnes averaging 1.18 g/t gold (155,900 ounces) within open pit resources of 21,534,300 tonnes at 0.87 g/t gold (599,300 ounces, total). Production records provided by the current owner show 3,617,340 tonnes of about 0.9 g/t gold were mined following that estimate. In early 1998 Eldorado reported an intersection of 9.4 metres of 31.27 g/t gold which included 3 metres of 80.14 g/t gold.

Pediment plans initially to conduct studies of the engineering and environmental parameters for dealing with the existing resource and workings while it completes database and geological studies to outline new targets for testing as possible high-grade ore sources. Pediment's primary goal is to test the project's high-grade vein potential, using exploration parameters for epithermal gold-silver systems (see below). This will include evaluating both the bulk tonnage and high-grade potential of structures for which there is limited indication of past exploration testing.

Geological Background

The La Colorada gold vein deposits are hosted in a volcano-sedimentary sequence that has been locally altered to skarn by magma intrusions. Veins are focused along east-west and northeast-southwest trending structures that dip to the north and northwest at moderate angles, and cut across the skarn and intrusions. Surface mining was focused along three structures, the upper parts of which flare out into stockwork zones. Eight different structures in the La Colorada mine area appear to have older underground workings in gold bearing quartz veins. Past reports indicated the gold deposits formed under mesothermal or deep epithermal conditions, and implied a genetic relationship to the Cretaceous aged magma intrusions that created the skarn. Recent fluid-inclusion studies on veins indicate a low-temperature regime in the epithermal range, and radiometric age determinations indicate ages younger then those for the Cretaceous period of magma intrusion. In addition to this, recent investigations indicate some veins cut Miocene aged volcanic rocks, which suggests the vein forming period at La Colorada is as young as the veins of the Sierra Madre Occidental gold-silver belt located to the east of La Colorada.

Pediment has an option to acquire 100% of 18 concessions held by private owners and is also working with Industrias Penoles S.A. de C.V. ("Penoles") for acquisition of an additional 5 concessions. In order to acquire the 18 concessions plus 1130 hectares of surface holdings that includes production plant and offices, Pediment must make an initial payment of US$1.1 million, followed by additional payments totaling US$1.8 million over a 2 year period.

President Gary Freeman comments, "We are excited by the opportunity of adding to our portfolio the potential for high-grade resources in an under-explored, historically rich gold district. Adding this program to the on-going expansion drilling at the San Antonio bulk tonnage gold project in Baja California Sur and the early phase targeting programs in the Megashear trend of western Sonora fully brackets the gold potential of northwestern Mexico's precious metals belts. We are maintaining our goal of developing new precious metals resources within good infrastructure that allows us to move projects forward at a reasonable cost."

The successful expansion and in-fill drill testing program at San Antonio in Baja Sur continues. Results from drill testing of the bulk tonnage Los Planes discovery within this project will be reported as they are compiled.

Vice President, Exploration Mel Herdrick, M.Sc. is a qualified person as defined by NI 43-101 and has approved the information contained in this release.

On Behalf of the board

Gary Freeman, President and CEO

PEDIMENT EXPLORATION LTD.

We Seek Safe Harbour.

This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 27E of the U.S. Securities Exchange Act of 1934, as amended related to the option to purchase the past producing La Colorada gold-silver mine property and the company's initial plans for studies and research on the project. Such statements include, without limitation, statements regarding the timing of future exploration activities by the Company, future anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, business and financing plans, potential mining scenarios, the success of mineral processing procedures, business trends and future operating costs and revenues. 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.

This press release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises that the U.S. Securities and Exchange Commission's mining guidelines prohibit information of this type in reports filed with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such adjacent or similar properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.

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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pediment Exploration Ltd.
    Gary Freeman
    (604) 682-4418
    or
    Pediment Exploration Ltd.
    Michael Rapsch
    (604) 682-4418
    (604) 683-6557 (FAX)
    Website: www.pedimentexploration.com