SOURCE: Consolidated Goldfields Corporation

February 09, 2011 09:12 ET

Consolidated Goldfields Acquires the Fisher Canyon Gold Project

RENO, NV--(Marketwire - February 9, 2011) - Consolidated Goldfields Corporation (PINKSHEETS: CDGF) is pleased to announce the acquisition of the Fisher Canyon gold project in Pershing County, Nevada. The Fisher Canyon project consists of 87 unpatented claims or approximately 1740 acres that are 100% controlled by the Company. Fisher Canyon is situated approximately 25 miles east of Lovelock, Nevada, 4 miles east of the Relief Canyon gold mine and 6 miles southeast of the Coeur Rochester silver/gold mine. To date, the Rochester and surrounding mining districts have produced nearly 5 million ounces of gold and more than 130 million ounces of silver.



The Fisher Canyon project is situated on the southeastern end of the Humboldt Range and is characterized by limestone and dolomite that contain lenses of altered volcaniclastic sediments and flows. The volcanic rocks are observed to form giant lenses within the carbonate section, with dimensions of several miles along strike and up to about 600 feet thick. The volcanic lenses commonly exhibit intense hydrothermal alteration and represent the focus of past exploration activities. The stratigraphy within the Fisher Canyon area has also been significantly disrupted by various episodes of intense structural deformation.



Geological reconnaissance by the Company and in the past has identified several areas with extensive hydrothermal alteration associated with oxidized shear zones and brecciated quartz veins hosting wide spread gold mineralization. Surface geochemical outcrop samples collected by the Company contain from 0.014 to 0.282 ounces per ton gold. The samples are also highly anomalous in arsenic and a summary of the results follow:


+----------+----------+----------------+-------------+
| Sample # | Gold ppb | Gold ounce/ton | Arsenic ppm |
+----------+----------+----------------+-------------+
| 70514    | 726      | 0.021          | 2444        |
+----------+----------+----------------+-------------+
| 70515    | 3437     | 0.100          | 4600        |
+----------+----------+----------------+-------------+
| 70516    | 4009     | 0.117          | 7999        |
+----------+----------+----------------+-------------+
| 70517    | 477      | 0.014          | 1644        |
+----------+----------+----------------+-------------+
| 70518    | 9652     | 0.282          | 7285        |
+----------+----------+----------------+-------------+
| 70519    | 2724     | 0.080          | 1200        |
+----------+----------+----------------+-------------+
| 70520    | 5883     | 0.172          | > 10000     |
+----------+----------+----------------+-------------+
| 70521    | 569      | 0.017          | 1942        |
+----------+----------+----------------+-------------+
| 70522    | 2671     | 0.078          | 9634        |
+----------+----------+----------------+-------------+


Approximately forty historic exploration holes were drilled on the property. The majority of drill holes contained anomalous gold mineralization and the following table illustrates some of the better gold intercepts (the following data was obtained from a report prepared by Hardrock Mineral Exploration Inc. for NV Gold Corporation on May 10, 2010 entitled "Fisher Canyon Project, Pershing County, Nevada, 2009 Exploration Summary Report):

+---------+---+----+----------------+------------+-------------+----------+
|Hole #   |To |From|Thickness - feet|Thickness - |Gold - oz/ton|Gold - ppm|
|         |   |    |                |meters      |             |          |
+---------+---+----+----------------+------------+-------------+----------+
|FN-09-3  |30 |85  |55              |16.8        |0.039        |1.34      |
+---------+---+----+----------------+------------+-------------+----------+
|including|35 |50  |15              |4.6         |0.138        |4.73      |
+---------+---+----+----------------+------------+-------------+----------+
|FN-09-5  |115|125 |10              |3.0         |0.032        |1.10      |
+---------+---+----+----------------+------------+-------------+----------+
|FN-09-8  |80 |130 |50              |15.2        |0.017        |0.58      |
+---------+---+----+----------------+------------+-------------+----------+
|Including|100|110 |10              |3.0         |0.058        |1.99      |
+---------+---+----+----------------+------------+-------------+----------+
|FN-09-9  |40 |65  |25              |7.6         |0.024        |0.82      |
+---------+---+----+----------------+------------+-------------+----------+
|FC-005   |No |Data|40              |12.2        |0.015        |0.51      |
+---------+---+----+----------------+------------+-------------+----------+
|FC-006   |No |Data|105             |32.0        |0.021        |0.72      |
+---------+---+----+----------------+------------+-------------+----------+

The company is currently planning an aggressive exploration program including geological mapping, geochemical sampling and geophysics to determine drill hole locations for continued drilling at Fisher Canyon.

In other news, results for the second diamond drill hole completed at the Cahuilla project in Imperial County, California were received in late January. Drill hole CAH - 0112 represents a vertical twin of TM - 58 which was drilled by the Torres Martinez Tribe in the early 1990's. The purpose of the diamond drill hole twin is to compare gold and silver assays with historical drill results to confirm assay information that was utilized in the 1996 Mine Development Associates historical resource estimate. The drill results will be utilized to prepare a new NI 43-101 compliant resource estimate.

In addition, the third diamond drill hole, CAH - 0113, that was completed at Cahuilla is currently being prepared for assay and will also be used for the new precious metal resource calculations. The historical resources were calculated in 1996 for Kennecott Corporation and included gold mineralization only. The new NI 43-101 compliant resource will include silver and also the high grade vein mineralization, which were not modeled for Kennecott since they were solely focused on developing a large, open pit mining operation.



Thomas E. Callicrate B.Sc., Professional Geologist is the company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties. Mr. Callicrate has reviewed and verified the technical information contained in this news release.



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.


This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Consolidated Goldfields Corporation via Thomson Reuters ONE

[HUG#1486843]

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