Consolidated Goldfields Corporation

April 07, 2011 12:56 ET

Consolidated Goldfields Receives Permit Approval to Expand Drill Program

RENO, NEVADA--(Marketwire - April 7, 2011) - Consolidated Goldfields Corporation (PINK SHEETS:CDGF) is pleased to announce that the Company has received the required permits to drill an additional 200 holes at its Cahuilla gold-silver project in Imperial County, California. The Cahuilla project is a large epithermal, paleo-hot springs system hosting multiple high-grade veins that occur within an extensive envelope of disseminated gold-silver mineralization.

The Company is currently in the process of engaging a core drilling contractor to conduct a much more comprehensive drilling program of the high-grade veins, which is scheduled to begin as soon as possible. The main purpose of this program will be to test the surface dimensions of the veins and their down dip extensions with a series of gridded core holes to develop continuity and increase the precious metal resources for a new NI 43-101, which will be initiated later this year.

The immediate interest of the company is to core drill the outcropping vein on High Grade Hill and build upon the many high-grade gold/silver intercepts that were encountered in historical drilling as well as the portable core program completed in January 2011. A summary of assay results from the portable core program was reported in the March 1st, 2011 press release (TITLED: Consolidated Goldfields Receives Results from Preliminary Core Program). The preliminary portable core program consisted of fourteen shallow core holes that were drilled for the purpose of obtaining a precursory look at the gold and silver mineralization in the high-level, banded epithermal vein material. 

The Company along with our partner Teras Resources, Inc. (TRA.V) also plans to initiate a substantial reverse circulation drilling program in the near future that will test many other high-grade veins that have been intersected throughout the project area. In addition, reverse circulation drilling will focus on the development and expansion of disseminated mineralization that was defined by historic drilling to enhance the existing 856,000 ounce gold resource as calculated by Mine Development Associates of Reno, Nevada for Kennecott Corporation in 1995.

"Receiving the drill permit for an additional 200 holes is a very significant step in advancing the Cahuilla Project and increasing shareholder value. This will allow the Company to further define the high grade veins and disseminated precious metal mineralization to substantially enhance the existing resources" states Mr. Thomas Callicrate, President of Consolidated Goldfields Corporation.

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.

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

  • Consolidated Goldfields Corporation
    Peter Leger
    Vice President Corporate Development
    (403) 852-0644
    Consolidated Goldfields Corporation
    Mark Fralich
    Investor Relations
    (503) 313-2586