Reno, NV – Consolidated Goldfields Corporation (PINKSHEETS: CDGF) is pleased to announce that the Company has initiated its Phase 2 diamond drill program at the Cahuilla gold-silver project in Imperial County, California. The Cahuilla Project is a large epithermal, paleo-hot springs system hosting multiple high grade veins that occur within an extensive envelope of disseminated gold-silver mineralization.
The Company has engaged Sierra Madre Exploration Drilling Company who has recently commenced a core hole program to drill approximately 1,500 feet (500 meters). The purpose of these drill holes will focus on delineating the surface dimensions of the outcropping sheeted quartz vein on High Grade Hill and down dip extensions with a series of fence type core holes to develop continuity and increase the precious metal resources for a new NI 43-101, which is currently in progress. This program is expanding on the portable drill program performed in January 2011 (reference our press release dated March 1st, 2011 for the results).
The core from the current drill program will be cut as each hole is completed. The samples will be delivered to Inspectorate America lab in Reno, Nevada when completed with assay results to follow. In addition to the currently approved and permitted 200 drill holes (reference our press release dated April 7th, 2011), we have recently completed and submitted an expansion to authorize and permit an additional 200 holes at Cahuilla. The Company anticipates that the additional 200 drill hole permits will be obtained in the second half of 2011.
Consolidated Goldfields (CDGF.PK) and Teras Resources, Inc. (TRA.V) are also planning to initiate a substantial reverse circulation and core drill program later this year that will test many other high-grade veins that have been intersected throughout the project area. In addition, reverse circulation drilling will focus on the development and expansion of disseminated mineralization that was defined by historic drilling to enhance the existing 856,000 ounce gold resource as calculated by Mine Development Associates of Reno, Nevada for Kennecott Corporation in 1995.
The primary objective of the Company is to develop the existing gold resource into a minable reserve to initially begin underground mining operations of the high grade gold-silver veins. Consolidated will then focus on expanding the historical mineral model to substantially increase high grade gold-silver resources and evaluate the development of an extensive open pit mining operation.
In addition, Consolidated Goldfields has launched a new website. More information can be obtained from our website www.consolidatedgold.com.
Thomas E. Callicrate B.Sc., Professional Geologist is the company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the company's properties. Mr. Callicrate has reviewed and verified the technical information contained in this news release. |
