LA CANADA, Calif., June 27, 2011 /CNW/ -- California Gold Corp. (the "Company" or "California Gold") (OTCBB: CLGL) has commenced its 2011 exploration program at its AuroTelurio project near the city of Moctezuma in Sonora, Mexico. The Company can earn up to an 80% interest in this project by spending $US3-million over a four-year period on the exploration and development of concessions covering 18,840 acres (7,621 hectares) surrounding the holdings of First Solar, Inc., and other mining groups in three directions.
The Company's property holdings adjoin the La Bambolla tellurium-gold mine owned by First Solar, a leading manufacturer of solar panels. The La Bambolla mine, an historical source of pure tellurium, is currently being explored by First Solar's Mexican subsidiary. Tellurium is an essential component for the manufacture of solar panels.
California Gold is currently conducting mapping, trenching and sampling programs at the AuroTelurio project through its Mexican subsidiary, CalGold de Mexico. These activities will be followed by planned gravity and magnetic geophysical surveys in preparation for an initial 3,000-meter drilling program that is planned for implementation by this fall.
Historical data suggest that tellurium-gold mineralization at the adjoining La Bambolla mine occurs along a regional structural system with an average S 70 degrees E trend where a swarm of relatively narrow, sub-parallel, silica-rich mineralized veins are present. At La Bambolla, these veins are either vertical, or have steep dips, and range from 0.14 to 2.60 meters in width. Based on analytical results of more than 500 underground channel samples taken at La Bambolla in the 1980's, the grades in the mine range from 0.01 to 3.26 % Tellurium and 0.03 to 4.90 oz/ton Gold, respectively.
Geologic mapping and sampling has thus far confirmed that the regional structure hosting the tellurium-gold vein system at La Bambolla extends easterly onto California Gold's property holdings. Zones of fracture-controlled silicification, strikingly similar to those described at La Bambolla, have been mapped in California Gold's grounds to the east-southeast.
The current interpretation is that these features could be spatially located at a higher level than similar alteration-mineralization features found at La Bambolla. This interpretation, furthermore, appears to support the company's initial geologic model that a series of essentially north trending, post-mineral faults have down-dropped segments of the original mineralized system to the east. The Company's current belief, based on projections from the existing data, is that ore-grade tellurium-gold mineralization is highly likely to exist at depth within its mining concessions.
About California Gold
California Gold is an exploration stage mining company whose principal focus is the identification, acquisition and development of rare and precious metals mining properties in the Americas. The Company's primary focus is on the exploration and development of the La Viuda Concessions (comprising the Company's AuroTelurio project) south of Moctezuma, Sonora, Mexico, where, the Company believes, deposits of tellurium, gold and silver may exist in economically minable quantities.
All statements other than statements of historical facts included in this news release including, without limitation, statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "estimates," "projects," "potential," "target," "goal," "plans," "objective," "should" or similar expressions or variations on such expressions are forward-looking statements. The Company can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause the Company's actual results to differ materially from the forward-looking statements, including, but not limited to: the Company's ability to successfully explore the Mexivada AuroTelurio gold/tellurium project in Sonora, Mexico; the Company's ability to identify appropriate corporate acquisition and/or joint venture opportunities in the precious and rare metals mining sector and to establish the technical and managerial infrastructure, and to raise the required capital, to take advantage of, and successfully participate in such opportunities; future economic conditions; political stability; and precious and rare metals prices. For further information about certain risks faced by the Company, see "Risk Factors" in the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on May 17, 2011.
Additional information about the company and its project may be found at: www.californiagoldcorp.com.
SOURCE California Gold Corp.
For further information: George Duggan, +1-818-542-6891 Web Site: http://www.californiagoldcorp.com