Piedmont Announces First Drill Program Completed At Dutch Flat, Nevada
By: Real Estate News
Piedmont Mining Company, Inc. (PIED) today announced that the first drill program of 17 angle holes totaling 2,550 feet of reverse circulation drilling has been completed at the Dutch Flat gold property. This drill program was designed to evaluate the extent to which earlier drilling may have undervalued the grade of the gold resource on the property. Assays are pending.
The Dutch Flat gold property is located 19 miles northeast of the town of Winnemucca and 15 miles north of Golconda in Humboldt County, Nevada. The property is owned by a subsidiary of Columbus Gold Corporation (CGT: TSX-V) and consists of 114 unpatented mining claims at the northern end of the Battle Mountain – Eureka Trend, at the southwest end of the Hot Springs Range and about 11 miles west of the Pinson Mine. The host rocks are shales and feldspathic sandstones of the Cambrian Harmony Formation that have been intruded by a granodiorite stock of probably Cretaceous age. The sedimentary rocks have been metamorphosed to biotite hornfels around the contact of the intrusive. Gold mineralization in quartz veinlets in both the stock and the hornfels is the source for the nearby placers.
Gold production from this district was recorded at $211,276 prior to 1950. Most of this gold came from stream and slope-wash placers prior to 1936 as well as from some small mines and workings in the immediate area. AMAX Gold and Brican Resources Ltd. drilled 49 rotary holes totaling 14,381 feet between 1985 and 1988 identifying a low grade gold resource. Columbus Gold (U.S.) Corporation, through their exclusive operating agreement with Cordex Exploration Co., has consolidated and extended the claim position recently and has completed geologic mapping, sampling and a ground magnetic survey of the property.
On July 2, 2006, Piedmont entered into a 5-year Exploration Agreement With Option to Form Joint Venture with Columbus Gold. At least $200,000 in exploration expenditures are required during the first year of this agreement, $300,000 during the second year and $500,000 during each of the next 3 years. Upon completion of $2,000,000 in exploration expenditures, Piedmont will have earned a 51% interest in the property. It can then elect to either earn an additional 19% interest in the property by funding a positive feasibility study or form a joint venture in which Piedmont would be the operator of the joint venture. Piedmont may terminate this agreement at any time after completion of the first years work commitment. Prior to the commencement of each annual exploration program at Dutch Flat, Piedmont has the right to appoint the Operator, and it has appointed Columbus Gold for this first year. Columbus Gold operates through an exclusive management agreement with Cordex Exploration Co., a private company owned and operated by John Livermore and Andy Wallace who have had long and distinguished careers in gold discovery and mine development in Nevada.
Piedmont is an exploration stage company with minimal revenues, limited assets and a $12.5 million tax-loss carryforward. It is now a fully reporting company with the SEC. Its Common Stock traded in the US electronic pink sheets under the symbol: PIED.
The Company is including the following cautionary statement in this news release to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company. Certain forward-looking statements herein involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. These include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions that are other than statements of historical facts. These forward-looking statements are based on various assumptions, many of which are based upon further assumptions. The Company’s expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections will be achieved or accomplished. Article Source: http://www.content.onlypunjab.com
|
