California Gold Mining Inc. (“California Gold” or the “Company”) (TSX-V:
CGM) is pleased to announce that following the previously concluded
Phase I drill program, the Company is poised to commence its Phase II
drill program at its flagship Fremont Project (the “Project”) in
Mariposa County, California.
The Phase II drill program is scheduled to start on December 13, 2013
and is expected to be completed by mid-January, 2014. The program will
consist of six to eight holes totalling 3,000 – 4,000 ft of diamond
drilling. The main objectives of the drill program are as follows:
-
To generate enough representative rock material from each of the three
metallurgical domains that have been recently identified at the
Project in order to initiate preliminary economic analysis (PEA)-level
metallurgical testing. The metallurgical domains are described below.
-
To help increase the confidence in the geological and gold-grade
continuity within the Pine Tree-Josephine deposit, which is the most
advanced of the four deposits at the Fremont project. The other three
deposits are Queen Specimen-Succedo, Chicken Gulch and Crown Point.
The completion of the Phase II drill program, and the subsequent
metallurgical test work, is considered by Company management to be a
major milestone in the development of the Project. The results of the
metallurgical testing will be used to identify potentially viable
processing technologies suitable to the different ore types at the
Project. Additionally, the results will be used as a stepping stone for
an eventual process flow-sheet for the Project. The Phase II drill
program is not intended, and will not be sufficient by itself, to
generate a maiden NI 43-101 compliant resource estimate for the Project.
Provided sufficient funds are available, the Company anticipates being
in a position to commence a third phase of drilling following
satisfactory completion of Phase II drilling. Results from the Phase III
drill program, along with results from the Phase I program, the Phase II
program, and the extensive historical drilling, will support preparation
of a maiden NI 43-101 compliant resource estimate for the Project.
As part of the Phase II program, the Company plans to drill six holes
initially, with the possibility of drilling two additional holes in case
the total rock material from the initial holes is not enough to initiate
metallurgical testing. The average depth of the holes is expected to be
approximately 500 ft each. All of the Phase II drilling will be PQ-sized
(3.3” diameter core), which is significantly larger than the HQ-sized
(2.5” diameter core) drilling conducted at the Project during the Phase
I drill program. The larger core size has been chosen in order to
maximize core recovery and rock mass per foot of drilling.
The Company’s technical team has chosen the location and attributes of
each of the eight proposed drill holes in consultation with the
Company’s recently contracted independent metallurgical consultant
BOMENCO Inc., and the Company’s independent technical consultant Tetra
Tech WEI. The collar locations of the eight drill holes and the
corresponding drill hole-specifications are illustrated in Appendices A
and B, respectively.
Following a site-visit to the Project by BOMENCO in November, 2013, a
total of three distinct rock assemblages were identified as
metallurgically significant at the Project. These include a) sulphide
replacement, b) quartz-hosted mineralization and c) oxide cap. BOMENCO
has estimated that a 200 kg sample from each of the three metallurgical
domains should be sufficient to fulfil the requirements of a PEA-level
metallurgical testing program, which will include head sample
characterization, grind hardness and sensitivity, determination of
gravity and flotation recovery potential, direct cyanidation and/or
cyanidation of flotation concentrates before or after oxidation, and
heap leach recovery potential of the oxide cap material.
A detailed request for proposal (RFP) for the metallurgical test program
is being prepared in order to identify and select the most suitable
testing laboratory for the program. BOMENCO Inc. has been retained by
the Company as an independent consultant for the entire duration of the
metallurgical test program.
About California Gold Mining Inc.
California Gold Mining Inc. (formerly Upper Canada Gold Corp. TSX-V:UCC)
is focused on developing its flagship Fremont gold project in Mariposa
County, California. The project consists of a land package totaling
3,351 acres of historically producing gold mines. The Fremont Property
lies within California’s prolific Mother Lode Gold Belt that has
produced over 50 million oz of gold historically. The Company purchased
the property in March 2013.
The laboratory being used for assay analyses is American Assay
Laboratories Inc. (“AAL”) based in Sparks, Nevada (ISO/IEC 17025:2005
Certified). The Company’s on-site Quality Assurance & Quality Control
(“QA/QC”) protocols, and AAL’s assay QA/QC protocols have received
third-party verification by Paul Daigle, P.Geo., a Qualified Person
(“QP”) as defined under NI 43-101, representing Tetra Tech WEI Inc.
Mr. Vishal Gupta, the Company's Director, Corporate Development has
reviewed and approved this press release. Mr. Gupta is a P.Geo.
registered with the Association of Professional Geoscientists of Ontario
(APGO), and a Qualified Person (QP) as defined under National Instrument
43-101 regulations.
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 planned exploration work on the Company’s Fremont Property and
in particular, the Company's ability to carry out the Phase III drill
program, which is contingent upon, among other things, satisfactory
results from the Phase II program, the Company's ability to raise
sufficient funds to complete the Phase III program and other economic
conditions. 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
Vishal Gupta
Director, Corporate Development
647-977-9267 x333
Website: www.caligold.ca
Appendix A
Plan Map Depicting Collar Locations for the Proposed
Phase
II Diamond Drill Holes
To view the Plan Map, click onto the following link:
http://www.usetdas.com/maps/californiagold/californiagolddec92013003.jpg
Appendix B
Specifications
for the Proposed Phase II Diamond Drill Holes
To view the Specifications, click onto the following link:
http://www.usetdas.com/maps/californiagold/californiagolddec92013005.gif
Copyright Business Wire 2013