California Gold Mining Announces Filing of Preliminary Economic Assessment for Its Dingman Project
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Toronto, Ontario CANADA, May 17, 2013 /FSC/ - California Gold Mining Inc. (CGM - TSX Venture), ("California Gold" or the "Company") announces that it has filed a technical report titled "Technical Report on the Preliminary Economic Assessment of the Dingman Gold Project, Madoc, Southern Ontario, Canada" prepared by Roscoe Postle Associates Inc. ("RPA") dated April 30, 2013 on SEDAR that constitutes a preliminary economic assessment (as defined by NI 43-101) (the "Preliminary Economic Assessment"). The Preliminary Economic Assessment concludes, in part, that the life of mine plan for the Dingman Project indicates that mining and processing of 10.64 Mt at an average grade of 0.92 g/t Au with a mine life of five years, has the potential to produce approximately 290,000 ounces of gold. RPA estimated that the break-even pre-tax undiscounted cashflow for the Dingman Project could occur at a gold price of approximately US$1,650 and that using a gold price of US$1,825, the Dingman Project could achieve an internal rate of return of 15%. At a base gold price of US$1,500/oz, the Preliminary Economic Assessment concluded that the Dingman Project is not expected to be economically feasible.
"Gold prices are fluctuating. Under the right economic conditions the Dingman Project could, upon permitting approval and funding, provide a near term production scenario. The Company will be reviewing its options and permitting opportunities," said Mr. Michael Churchill, President of the Company.
The Preliminary Economic Assessment is based upon the mineral resource estimate contained in the technical report prepared by Scott Wilson Roscoe Postle Associates Inc. dated as of January 31, 2011 and filed on SEDAR on February 8, 2011. The Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. The basis of the Preliminary Economic Assessment included conventional open pit mining carried out by contractors, and processing of 6,100 tonnes per day by gravity and flotation concentration, followed by leaching. Key economic inputs included a gold price of US$1,500/oz, metallurgical recovery of 92.3%, initial capital costs of C$152 million, and life-of-mine operating costs averaging C$27 per tonne milled. Total cash cost was estimated to be US$1,071, and total production cost was estimated to be US$1,573. The above information reflects only part of the information set out in the Preliminary Economic Assessment which is meant to be read as a whole. Readers are encouraged to review the entire Preliminary Economic Assessment on SEDAR.
Eric Moeller, RPG (SC374), is the Qualified Person under NI 43-101 who has reviewed the contents of this release.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release of California Gold contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause California Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding the information provided by the Preliminary Economic Assessment and the Company's intentions regarding its plans for the Dingman Project. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward looking statements. Any factor could cause actual results to differ materially from California Gold's expectations. California Gold undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Michael Churchill
President
647-977-9267 x101
Martin Shefsky
Chief Executive Officer
647-977-9267 x222
Website: www.caligold.ca
To view this press release as a PDF, please click on the following link:
http://www.usetdas.com/pr/californiagold05172013.pdf
Source: California Gold Mining Inc. (TSX-V: CGM) http://www.caligold.ca
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