Consolidated Goldfields Corporation

December 08, 2010 14:34 ET

CORRECTION FROM SOURCE: Consolidated Goldfields Reports Drill Results at the Cahuilla Project

RENO, NEVADA--(Marketwire - Dec. 8, 2010) - Consolidated Goldfields Corporation (PINK SHEETS:CDGF) is pleased with the final results from the first diamond drill hole completed at the Cahuilla gold-silver project in Imperial County, California. The Cahuilla Project is a large epithermal, paleo-hot springs system hosting multiple bonanza-grade veins that occur within an extensive body of disseminated gold-silver mineralization.

The Company has completed three diamond drill core holes totaling 1,356 feet (413.3m). The holes were drilled within one of the main historical resource areas and spaced approximately 300 feet (91.4m) apart to evaluate and substantiate existing gold and silver mineralization. The major purpose of obtaining this new drill data is to calculate a NI 43-101 compliant resource.

The first core hole, CAH-111, was drilled to a depth of 587 feet and anomalous gold plus silver mineralization was encountered from 34 feet to the bottom of the hole. Significant intercepts include:

Evaluation of assay results for the first hole shows that there are significant amounts of silver in many of the mineralized zones. The historical resources were estimated for gold only and did not include silver, which will represent a favorable addition to the mineral model when included in the new NI 43-101 compliant resources. The associated down-hole geochemistry is also positive and indicates that the epithermal system is very clean as demonstrated by the anonymously low mercury, arsenic and antimony values.

The purpose of the first core hole was to drill an angle within the resource area that passed through older vertical reverse circulation holes to better evaluate the continuity of precious metal mineralization as well as the down-hole geochemistry. The second and third diamond drill holes were vertical and twinned TM – 41 and TM – 59 which were drilled by the Torres Martinez Tribe in the early 1990's. The company will use this data to compare with historical drill results and confirm assay information that was utilized in the 1996 Mine Development Associates resource estimate. 

The historical resource was estimated when gold prices were between $350 and $400 per ounce and did not include silver and the high grade veins. The company anticipates that updating the historical resource using NI 43-101 guidelines along with the addition of silver and high grade veins will significantly improve the mineral model and provide a more accurate estimate of the precious metal resources at Cahuilla. 

Samples from the second and third holes are currently being prepared for assay and will be delivered to Inspectorate Laboratories in Reno, Nevada in December. The Company is planning to resume Phase 1 drilling in the first quarter of 2011. The primary objective of the Consolidated and Teras continues to focus on expanding the current mineral model to substantially increase underground resources and evaluate the development of both a high grade underground and 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.

Contact Information

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