Pediment Gold Corp.
TSX : PEZ
OTC Bulletin Board : PEZGF
FRANKFURT : P5E

Pediment Gold Corp.

August 25, 2009 09:30 ET

Pediment Adds Ounces and Upgrades Resource at San Antonio

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2009) - Pediment Gold Corp. (TSX VENTURE:PEZ)(OTCBB:PEZGF)(FRANKFURT:P5E.F) ("Pediment" or the "Company") is pleased to give a progress report on the Company's wholly owned San Antonio Gold Project in Baja California Sur, Mexico. An updated 43-101 compliant resource estimate has added ounces and significantly upgraded the deposit, confirming 1.53 million ounces gold in the Measured and Indicated category, plus 111,000 ounces in the Inferred category (using a 0.4 g/t cut off). In addition, ongoing metallurgical studies (partially released April 20, 2009) have returned initial column leach tests showing strong 75-81% gold recoveries for Oxide type mineralization and up to 72% for Mixed (oxide/sulphide) mineralization.

Updated Resource

An updated resource estimate was recently performed by Giroux Consultants Ltd. of Vancouver BC, to incorporate infill drill holes not included in the first estimate, conducted by Derry Michener Booth and Wahl Consultants Ltd ("DMBW") in 2008 (previously announced June 16, 2008). This new estimate was based on 242 holes totaling 42,891 m and comprising 26,613 gold assays. The previous resource estimate by DMBW was based on 124 drill holes totaling 15,804 m and representing 14,609 assays. The new estimate is tabulated below, along with the previous estimate for comparison purposes. Both calculations used Ordinary Kriging and a range of gold grade cut offs. The values reported here are based on a 0.4 g/t gold cut off. A detailed report documenting the estimation methodology will be available on the website shortly.

As shown in the tables, the new estimate has added roughly 13% to total contained gold ounces, and upgraded essentially that entire amount into the Measured and Indicated category. Estimated grades are somewhat lower but tonnage has been increased significantly. The new estimate of Oxide gold ounces is lower than previously calculated, because the previous estimate lumped Oxide and Mixed (partially oxidized sulphide) material together. In the new estimate, a Mixed category has been broken out, and it can be seen that the combined total of new Oxide and Mixed gold ounces now exceeds the previous Oxide (lumped) total by roughly 10%.



------------------------------------------------------------
San Antonio - Updated Resources Estimate 2009 (0.4 g/t Au
cut off)
------------------------------------------------------------
Mineralized Resource Tonnes Au Grade Contained Ounces
Zone Category (M) (g/t) (M)
------------------------------------------------------------

------------------------------------------------------------
Global M&I 47.3 1.01 1.53
------------------------------------------------------------
INF 5.4 0.637 0.111
------------------------------------------------------------

------------------------------------------------------------
Oxide M&I 7.24 0.928 0.216
------------------------------------------------------------
INF 0.170 0.592 0.0032
------------------------------------------------------------

------------------------------------------------------------
Mixed M&I 6.61 1.066 0.227
------------------------------------------------------------
INF 0.190 0.588 0.0036
------------------------------------------------------------

------------------------------------------------------------
Sulphide M&I 33.5 1.018 1.096
------------------------------------------------------------
INF 5.03 0.64 0.1035
------------------------------------------------------------


------------------------------------------------------------
San Antonio - Previous Resource Estimate 2008 (0.4 g/t Au
cut off)
------------------------------------------------------------
Mineralized Resource Tonnes Au Grade Contained Ounces
Zone Category (M) (g/t) (M)
------------------------------------------------------------

------------------------------------------------------------
Global INF 36.2 1.17(i) 1.45
------------------------------------------------------------

------------------------------------------------------------
Oxide INF 10.91 1.1 0.400
------------------------------------------------------------

------------------------------------------------------------
Sulphide INF 25.29 1.28(i) 1.04
------------------------------------------------------------

(i)Denotes weighted average grade between Planes and Colinas
zones in first resource estimate


Metallurgical Results

Ongoing metallurgical testing of gold mineralization from San Antonio has recently been completed by METCON Research of Tucson, Arizona. The latest phase of metallurgical testing involved open cycle column leach analyses of 2 composite samples, comprising one each of Sulphide and Mixed (oxide/sulphide) mineralization, to augment previous Oxide-only leach tests (announced April 20, 2009).

Combined results of the column leach tests are summarized in the table below. Cyanide concentration was held at 0.5 g/l for all samples, and leach time was 111 days for the Oxide samples, 120 days for the Mixed sample and 102 days for the Sulphide sample. The complete METCON report will be posted to the website shortly.



------------------------------------------------------------
Crush Calculated
Sample Type Size Head Grade Extraction Consumption
------------------------------------------------------------
Au Au NaCN CaO
g/t % Kg/t Kg/t
------------------------------------------------------------
CL-01 Oxide 3/8 0.87 80.65 0.06 1.80
------------------------------------------------------------
CL-02 Oxide 1 1/2 0.81 75.15 0.06 1.58
------------------------------------------------------------
CL-03 Mixed 3/8 0.85 71.87 0.33 1.84
------------------------------------------------------------
CL-04 Sulphide 3/8 2.98 47.10 0.45 0.92
------------------------------------------------------------


As seen in the table, Oxide sample gold recoveries ranged from 75 to 81% (for 1.5 and 3/8 inch crush sizes respectively) and Mixed sample gold recovery was almost 72%, which are both very encouraging. As is typical for Sulphide mineralization in column leach testing, results for the Sulphide sample test were significantly lower at 47%, but additional testing, evaluating different crush sizes, reagent concentrations and flow rates, could improve on these results.

Bottle roll tests were also conducted on the Mixed and Sulphide samples (as part of the column leach test protocol) and those results are summarized in the following table.



------------------------------------------------------------
Mesh Calculated Extraction
Sample Type Size Head Grade (72 hrs) Consumption
------------------------------------------------------------
Au Au NaCN CaO
g/t % Kg/t Kg/t
------------------------------------------------------------
BR-02 Mixed -10 0.89 79.89 0.27 2.09
------------------------------------------------------------
BR-03 Sulphide -10 2.69 63.23 0.70 1.38
------------------------------------------------------------


As seen in the table, bottle roll gold recovery after 72 hrs was 79% for the Mixed sample and 63% for the Sulphide sample. These positive results are generally similar to earlier results (reported July 10, 2008) when 72 hour tests returned results ranging from 62-70% recovery for Sulphide samples and 68-78% recovery for Mixed samples.

Discussion

Gary Freeman, President and CEO of Pediment stated, "We are very pleased that the updated estimate has confirmed a significant 1.64 million ounce gold resource at San Antonio, while maintaining a gold grade of 1 g/t. As importantly, the Oxide and Mixed contained gold ounces have increased and metallurgical recoveries for these categories are very positive. Ongoing metallurgical work continues to address improvements in Sulphide leaching and/or alternative scenarios for processing of the Sulphide mineralization. The Company is also making progress in negotiations for land and water rights and we expect to have agreements very soon."

The Company is planning further work to characterize mineralization, including additional column leach tests, grinding and hardness tests, and gold and sulphide mineralogy, in an effort to refine gold recoveries from Oxide, Mixed and Sulphide mineralization. Other well known processing methods, such as grinding and flotation, or Carbon In Pulp (CIP) leaching will also be evaluated to address Sulphide mineralization specifically. The Company is also planning a new drill program to begin this fall, to continue infill drilling and explore the Intermediate Area between Los Planes and Las Colinas, and to start testing the recently acquired and as yet untested Triunfo Trend.

Please visit the Company website at www.pedimentgold.com to see new maps and an interactive 3D model of the San Antonio deposit.

Melvin Herdrick, Vice President of Exploration and Director, is a Qualified Person as defined by NI 43-101 and has reviewed and approved this release.

On behalf of the board,

Gary Freeman, President & CEO

This news release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 27E of the U.S. Securities Exchange Act of 1934, as amended, and within the meaning of Canadian provincial securities laws applicable to the Company, regarding the progress report provided on the San Antonio Gold 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 news 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 news release is not, and is not to be construed in any way as, an offer to buy or sell securities.

The TSX has not reviewed or accepted responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Pediment Gold Corp.
    Gary Freeman
    604-682-4418
    or
    Pediment Gold Corp.
    Michael Rapsch
    604-682-4418
    www.pedimentgold.com