RENO, Nev.--(BUSINESS WIRE)--Consolidated Goldfields Corporation (“Consolidated” or the “Company”) (OTCQX: CDGF) is pleased to announce that the 2013 sampling and mapping program conducted at the Klondike Pass project has been concluded with positive results. Located 20 miles south of the town of Winnemucca, Nevada, the Willow Creek Mining District is responsible for over 5,000 ounces of placer gold and substantial amounts of lode gold production from high grade quartz/calcite veins.
The regional and project geology is complex with several episodes of thrusting, high angle basin and range faulting and intrusion of granites and mafic dikes with resultant skarn formation in nearby limestones. The Ordovician Valmy Formation has been thrust over the Pennsylvanian/Permian Pumpernickel and Havallah Formations, which in turn are thrust over Triassic carbonate and clastic rocks of uncertain correlation. Granodiorite of Jurassic age intrudes the Triassic rocks in the lowest plate.
The Klondike Pass sampling and mapping program focused on the exploration of old mine workings and dumps. Outcropping rocks were mapped and sampled, and alluvium near the prospects and within the mine dumps was evaluated to determine any enrichment in precious metals. Select soil samples on the main mine dump were sent to the Inspectorate America Lab in Reno, Nevada and indicated anomalous gold values as illustrated in the table below:
Assay - ppm gold
|#97408||alluvium/soil, west end, lower dump||0.449|
|#97410||representative alluvium/soil from lower dump||0.893|
|#97412||alluvium/soil, east end, lower dump||2.754|
Based on these results, a thorough examination of the alluvium in and around the prospects, outcrops and dumps was conducted. Over the course of the program, many specimens of coarse visible gold were identified and recovered. The gold is of a crystalline nature and occurs as leaves, wires and aggregates within calcite veins, quartz fragments and along fractures planes in phyllite. The gold appears to be associated with old mine dumps and prospects that extend along a 500 foot exposure of Triassic phyllite. These encouraging results will be used to further explore the surrounding rocks for the source, extent and genesis of the precious metals.
Gold mineralization similar to Klondike Pass occurs at the Wadley Mine approximately one mile to the northwest. According to a Southern Pacific Company report from 1959, the ore at this mine occurs as narrow but very high grade gold-quartz veins. The veins strike northerly in Triassic slate and phyllitic slate and are the source for the placer gold in the prolific Willow Creek district. One of the veins reportedly contained gold values of one ounce of gold per pound (about 160 ounces/ton) in one quarter to one inch wide veins.
Geological mapping and sampling will continue in the spring of 2014 with the objective of further delineating favorable host rocks and defining targets for future exploration drill programs. The potential high grade source or concentration of gold may be associated with a peripheral blanket of lower grade mineralization that appears to be characterized by jasperoid outcrops in the surrounding carbonate rocks. These jasperiod units represent targets for future exploration programs which have the potential of becoming much larger, disseminated precious metal deposits.
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.