Revised - California Gold Mining Files Fremont Gold Property Technical Report and Provides Update on Drilling Activity
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Toronto, Ontario CANADA, June 24, 2013 /FSC/ - California Gold Mining Inc. (CGM - TSX Venture)
This press release serves as a revision to the press release put out by California Gold Mining Inc. ("California Gold" or the "Company") on Friday, June 21, 2013.
The Company is pleased to announce that it has filed a NI 43-101 compliant titled "Technical Report for the Las Mariposas Ranch Property (also known as the Fremont Property)" prepared by Mr. A.A. (Al) Burgoyne, M. Sc., P. Eng., of Burgoyne Geological Inc. dated May 7, 2013 on SEDAR (the "Fremont Report"). Mr. Burgoyne is a Qualified Person who is independent of the Company as defined in NI 43-101. This is a revised June 21 news release that contains cautionary statements and supporting details on the historical resource for the Pine Tree-Josephine gold deposit and mineral potential for the Queen Specimen and down-dip PineTree-Josephine mineral targets.
In the Fremont Report, Mr. Burgoyne summarizes his investigation (including site visits in 2003 and 2011) of the extensive historic property records, including historic production records, maps, drilling, assaying, metallurgical testing, hydrologic testing, environmental reports (including two draft environmental impact reports), and numerous resource and feasibility studies. The Fremont Report concludes that, the technical evaluation of the Las Mariposas Ranch Property carried out demonstrates that the exploration and development work carried out by previous owners of the Fremont Property have been to good industry standards and that this has resulted in the definition of a gold deposit and historical mineral resource of merit.
Mr. Burgoyne further reports that an historical resource called a "geological reserve" for the Pine Tree-Josephine gold deposit based on assay and geological information from vertical reverse circulation drill holes and limited surface trenching and underground workings completed in 1985 and 1986. The historical resource consists of 8.29 million tons grading 0.085 ounces per ton gold in the historical "drill indicated" category at a 0.025 ounce per ton gold cut-off; and additional 1.597 million tons grading 0.078 ounces per ton in the historical "drill inferred" category. This historical resource was obtained from the 1988 study by Derry, Michener, Booth & Wahl (DMBW) and is considered to be reliable. A Qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the company is not treating the historical estimate as a current mineral resource. The categories of the resource are equivalent to the CIM Definition Standards except that DMBW's use of "geologic reserve" is the equivalent of historical mineral resource and the terms "drill indicated reserve" and "drill inferred reserve" are the equivalent of historical indicated and inferred resources, respectively. A series of recommendations have been given in the Burgoyne Report to upgrade the historical estimate to a current mineral resource.
The Fremont Report recommends further exploration for gold mineralization within the Pine Tree Deposit. The down-dip mineral potential in the Pine Tree deposit is defined as ranging from 7 to 9 million tons grading from 0.12 to 0.15 ounces per ton gold as further detailed in the Fremont Report. Mr. Burgoyne believes there is a significant potential to develop an underground resource below the open pit resource at the Pine Tree-Josephine deposit reported by previous consultants and engineers who studied the Fremont Property between 1988 and 1991. The potential quantity and gold grade is based upon a "conceptual Underground Mining Plan" in January 1989 by Beacon Hill Consultants. This "Plan" was based upon historical drilling and sampling. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Recommendations are made for further drilling. The Fremont Report also reviews previous work on the Fremont Property including a conceptual underground mine plan for a mechanized bulk mining operation, using sub-level long hole stoping, to produce 2,500 to 4,000 tons per day. Current economic viability has not been determined and there is no certainty this potential production would be practical.
At the Queen Specimen target to the north of the Pine Tree-Josephine deposit an historical "reserve" is reported; however, this "reserve" does not meet CIM or NI 43-101 requirements and cannot be relied upon. The target is being treated as a mineral potential. The potential quantity and grade is based upon eight vertical drill holes on five separate sections and an historical "reserve" study to define a zone of potential mineralization ranging from 1.5 to 2.3 million tons grading from 0.030 to 0.12 ounces per ton gold as further detailed in the Fremont Report. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Recommendations are made for further drilling.
With respect to metallurgy, previous reports found that conventional gravity concentration and cyanidation gave poor gold recoveries; however, greater than 90% gold recoveries have been achieved through a combination of gravity, and flotation processes. The flotation concentrates achieve greater than 90% gold recovery if treated to pre aeration, bio-leach and carbon-in-leach processes. Mr. Burgoyne recommends that further work involve a full evaluation of the historical metallurgical studies and appropriate recommendations for further metallurgical studies including the definition and extent of oxide mineralization that is amenable to cyanide heap leaching.
The Fremont Report concludes that the Fremont Property holds potential for gold deposits that are mineable by both open pit and bulk tonnage underground methods. Mr. Burgoyne has recommended a two-phase exploration program with the first phase consisting of drilling and government liaison activities. As announced on May 22, 2013, the Company commenced its drilling program which has now been completed. The drilling included 6,502 feet of HQ diamond drill core (twinning 14 of the 1985 reverse circulation holes in the Pine Tree - Josephine gold deposit). The Company also intends to reinitiate environmental monitoring, and continue evaluation/review of historic geologic records and assays.
Pending favourable assay results the Company anticipates completing a current NI 43-101 resource estimate this fall.
This is only a highlight summary of the very detailed Fremont Report and the Company urges readers to read the full report on the Company's website at www.caligold.ca or on SEDAR.
Mr. Burgoyne, author of the Fremont Report, acting as an independent qualified person under NI 43-101 standards has reviewed and approved this press 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 California Gold's expectations regarding future exploration and development activities on the Fremont Property. 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 file, click onto the following link:
http://www.usetdas.com/pr/CaliforniaGoldJune24Revised.pdf
Source: California Gold Mining Inc. (TSX-V: CGM) http://www.caligold.ca
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