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

Pediment Gold Corp.

May 14, 2009 14:43 ET

Pediment Announces Second Work Program at La Colorada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2009) - Pediment Gold Corp. (TSX:PEZ)(OTCBB:PEZGF) (the "Company") is pleased to announce a new work program which will commence in early June at the Company's 100%-owned La Colorada Gold mine project, located approximately 40 km southeast of Hermosillo in Sonora, Mexico. The Company plans to utilize both reverse circulation and diamond drilling in the two work phases, totalling approximately 8,000 metres. Based on studies of historic and new data, the Company plans to evaluate areas of near surface gold mineralization for its open pit heap leach potential, as well as explore extensions of vein-type, higher grade gold mineralization.

RC drilling program for near-surface targets

The proposed RC-drill program will help to define and extend known near-surface mineralization where quick-to-start open pit mineable ore can be identified and added to the leach process facility. The existing processing facility is being evaluated for operational start-up. Trenching in the pit margin will also be used to obtain information in certain areas. The purpose and goal of the RC drill phase is to use drilling grids to outline gold bearing ore in four key locations:

(1) Southern and eastern extension from Creston pit areas where previous Eldorado drilling and systematic, continuous pit-wall sampling suggest extensions of gold mineralization exist.

(2) North-eastern extension of vein zones outside Creston pit area including the nearby La Verde surface mineralized area where nearby drilling in 2008 returned a maximum intercept of 1.5 metres of 518 g/t Au (refer to February 17, 2009 news release).

(3) Easterly extension of La Colorada and Gran Central vein zones including the intermediate area. Pit wall sampling has identified gold values in the walls of these two vein-pit zones that account for a wide zone of near surface gold readily accessible. These areas will be tested to block out a resource and check leachability of precious metals.

(4) Closer spaced drilling in the higher-grade part of the Veta Madre area. Blocking out of the mineable ore in the Veta Madre zone will allow planning for possible exploitation of the near one gram per tonne gold bearing area. During 2008, drill hole LCOL-R11 intercept 42.2 metres of 0.64 g/t gold and 7.52 g/t silver (refer to February 17, 2009 news release).

Diamond drilling for high-grade veins

The second phase of this work program will consist of core drilling. The objective is to confirm, over broad intervals, the existence of underground vein gold mineralization in three main areas. These areas are extensions of the vein zone within the two main blocks that contain the Creston and Gran Central veins, and a third zone west of the Gran Central block where several old shafts prospected nearly barren epithermal veins to about 25 metres depth. An example of the targeted extension is the intercept in 2008 RC drill hole (LCOL-R17) that cut 1.5 meters of 19.3 g/t Au and 447 g/t Ag in 4.6 m averaging 10.1 g/t Au and 323 g/t Ag in the extension of the Gran Central vein zone (refer to February 17, 2009 news release).

Drilling in this phase is designed to confirm the presence of high grade vein zones in deeper segments not reachable by open pit. Confirmation of high grade veins with core will also allow limited metallurgical testing of the vein material, more detailed planning for underground access and provide geotechnical data. Part of this drilling will target areas that have not seen prior exploration.

The Company also announces it has engaged a qualified mining engineer on a consulting basis, to evaluate the production facility at La Colorada. This work will focus on assessing the state and capability of the metallurgical facilities including pond liners, leach pads, and mechanical segments of the plant, conducting a full environmental assessment of the mine, and directing a program to test ore and stockpiled material previously mined by Eldorado Gold Corp.

About La Colorada

La Colorada has been recognized by the Company as a large historic gold mining district with the potential for a large quantity of producible gold-silver mineralization. The project's character is similar to other notable Mexican gold-silver mines producing ore from epithermal vein zones that are exemplified by Tayoltita operations (Goldcorp) and the Cienega mine (Fresnillo-Penoles). Estimated production from La Colorada is mainly from pre-1914 and is over 3.3 million ounces of gold, plus 35 million ounces of silver. At the Tayoltita mine, estimated total production to date is 10.3 million ounces of gold and 707 million ounces of silver (average yearly production of 147,200 ounces of gold), while Cienega has produced approximately 1.5 million ounces of gold and has about 1.2 million ounces of gold in reserves with a probably large remaining resource. La Colorada's open pit mine closed when the gold price was below 300 dollars per ounce in 2002, while the Cienega and Tayoltita underground mines continued production through the present.

The Company's President & CEO Gary Freeman states, "We are excited to get back to work at the La Colorada project. While the company has been quiet as of late with respect to exploration due to the recent down turn in the sector, the Company has preserved its cash and is fully funded with $15 million in the bank."

Melvin Herdrick, VP 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 second work program at La Colorada. 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
    (604) 669-0384 (FAX)
    www.pedimentgold.com