RENO, Nev.--(BUSINESS WIRE)--Consolidated Goldfields Corp. (“Consolidated” or the “Company”) (OTCQX: CDGF) is pleased to announce the results of its recent placer gold investigation of the gravels at the Rose Gulch property, which is 100% controlled by the Company and consists of 460 acres of private land within the Rochester Mining district in Pershing County, Nevada.
Historically, Rose Gulch has been exploited for its significant placer gold occurrence which began in the late 1800s when Chinese miners tunneled down to reach bedrock and gathered gold-bearing gravels for processing. Local miners revisited the area in the 1930s and worked the property through the 1960s using dry washing techniques to recover the free placer gold. Although substantial amounts of gravel were mined, no records of production are currently available.
In the early 1980s, Cordex Exploration conducted an exploration program on the Rose Gulch property. Cordex drilled a total of thirteen holes to test both the unconsolidated gravels as a paleo placer in addition to the surrounding gold-bearing conglomerate bedrock as an epigenetic range front, lode mineralization play. Three holes were drilled to test the placer gold exclusively and the results revealed that some of this free gold had a weathered appearance indicating a non-local source. However, an equal or greater amount had a sharp angular appearance suggesting a local source, which was interpreted to be hosted in the surrounding gold-bearing conglomerates.
Drilling of the mineralized Tertiary conglomerates by Cordex was also very successful. Ten holes were drilled throughout the property to test the silicified conglomerate and the majority of them encountered anomalous to ore grade gold mineralization. For example, one hole intersected 15 feet of 0.053 oz/ton gold (3.1m of 1.82 g/ton) while gold values as high as 0.110 oz/ton (3.77 g/ton) were encountered in other drill holes.
Then in 2002, a very comprehensive placer evaluation of Rose Gulch was completed by a professional consulting geologist and concluded that the content of placer gold increased toward the mouth of the canyon and the property held promise as a placer gold production opportunity. As a result, Consolidated acquired the property by lease and confirmed the auriferous nature of the gravels before initiating an exploration program for both the paleo placer and surrounding gold-bearing conglomerates, which commenced in July of 2013.
Testing sites were chosen to provide equal coverage of the main drainage where placer gold accumulation was determined to be favorable. Trenches were constructed by backhoe until bedrock was encountered. Gravels were collected from the contact zone in five gallon buckets and the majority of barren gravels were then removed by gravity separation. The sample concentrate was panned and individual gold pieces were described and weighed. The trench was metal detected after the samples were taken to search for larger gold nuggets. Numerous gold flakes were recovered from the concentrates and gold nuggets as large as 2.2 grams were encountered by the metal detector.
Consequently, the placer testing results are very encouraging and justify additional work that may involve a larger scale placer testing operation. As demonstrated by the long and successful history of placer mining on the property and the prominence of angular gold indicating a nearby source, the project also warrants additional work for the very promising lode potential including a future exploration drill program.
Lane Griffin, VP Exploration, Consolidated Goldfields, is a Registered Member of the Society for Mining, Metallurgy, and Exploration and is a Qualified Person as defined in NI 43-101. Mr. Griffin has reviewed and verified the technical information contained in this news release.
Certain information contained in this news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections. However, such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intent or obligation to update publicly any forward-looking statements set forth herein, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.