Consolidated Goldfields Corporation

March 01, 2011 09:31 ET

Consolidated Goldfields Receives Results from Preliminary Core Program

RENO, NEVADA--(Marketwire - March 1, 2011) - Consolidated Goldfields Corporation (PINK SHEETS:CDGF) is pleased to announce the receipt of assay results from a recently completed portable core drill program that was conducted at the 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 body of disseminated gold-silver mineralization.

The core drill program was supervised by Mr. Thomas Callicrate in January 2011 and focused on one of the high-grade, banded epithermal veins that outcrop at the Cahuilla site. The program consisted of fourteen shallow core holes that were drilled with a portable core drill for the purpose of obtaining a precursory look at the gold and silver mineralization in the high-level, banded epithermal vein material. The core samples were sawed in half for sampling and assaying, and half of the cut samples were delivered by Mr. Callicrate to Inspectorate Laboratory in Reno, Nevada for processing. A summary of the drill results follows:

Hole # From   TD   Thickness – ft. (m)   Gold – oz./ton (g/t)   Silver – oz./t (g/t)  
SCH-01 0.00   1.75   1.75 (0.53 ) 0.262 (8.97 ) 3.77 (129.1 )
SCH-03 0.00   4.90   4.90 (1.49 ) 0.079 (2.71 ) 7.67 (262.7 )
Including 0.00   1.90   1.90 (0.58 ) 0.137 (4.69 ) 16.29 (557.9 )
SCH-05 2.50   11.50   9.00 (2.74 ) 0.197 (6.75 ) 0.78 (26.7 )
including 7.25   11.00   3.75 (1.14 ) 0.328 (11.23 ) 0.78 (26.7 )
SCH-07 0.00   9.00   9.00 (2.74 ) 0.315 (10.79 ) 2.14 (73.3 )
Including 1.50   2.50   1.00 (0.31 ) 0.625 (21.40 ) 12.47 (427.1 )
SCH-08 0.00   2.50   2.50 (0.76 ) 0.294 (10.07 ) 6.53 (223.6 )
SCH-11 0.00   4.50   4.50 (1.37 ) 0.224 (7.67 ) 4.90 (167.8 )
SCH-12 0.00   4.00   4.00 (1.22 ) 0.200 (6.85 ) 1.80 (61.6 )
SCH-13 0.00   2.50   2.50 (0.76 ) 0.417 (14.28 ) 5.73 (196.2 )

The deepest core hole totaled 11.5 feet while the average depth of all fourteen holes was 3.7 feet. None of the core holes penetrated the entire thickness of the vein at depth. As a result of the extremely hard ground conditions due to the intense silicification that is characteristic of the banded quartz after calcite vein material, not all of the core holes were drilled to their desired depth.

The Company plans to conduct a much more comprehensive drilling program of the high-grade veins with a standard truck-mounted core drill rig in the second quarter of this year, pending permitting. The main purpose of this program will be to test the surface dimensions of the vein and their down dip extension with a series of gridded holes to develop continuity and increase the precious metal resources for a new NI 43-101, which will be initiated later this year.

The Company is currently awaiting approval of its Phase 2 drill permit for the Cahuilla project. The Phase 2 permit will allow Consolidated and Teras Resources (TRA.V) to drill an additional 200 core and reverse circulation holes throughout the main project area. The primary objective of Phase 2 will be to test the continuity and extent of known high-grade veins and disseminated mineralization that was encountered in historic drilling to expand the existing 856,000 ounce gold resource as calculated by Mine Development Associates of Reno, Nevada for Kennecott Corporation in 1995.

As per the press release dated July 21, 2010 regarding performance shares, Teras Resources has met its obligation as announced on February 16, 2011. Mr. Peter Leger, Mr. Thomas Mancuso and Mr. Thomas Callicrate shall receive their 500,000 shares performance shares upon their election.

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.

Contact Information

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