LA CANADA, Calif., May 15, 2012 /CNW/ - California Gold Corp. (OTC BB: CLGL) ("California Gold" or, the "Company") has elected to conduct a more detailed geophysics analytical program at its AuroTellurio project near Moctezuma in Sonora, Mexico, before commencing its previously announced drilling program at the project this month.
Of the three drilling targets that were defined on a geological basis, two of them, the southeasterly extension of the La Bambolla vein system and the deep-seated intrusive target area, respectively, will be further investigated using geophysical methods in order to better define the configuration of these targets at depth.
In both instances, a high resolution resistivity imaging technique, CSAMI (Controlled Source Audio-Frequency Magneto Telluric), will be used to model lithologic contacts and structures. This methodology will be supplemented with CSIP (a similar technique to gradient Induced Polarization) in order to detect sulfide mineralization associated with both, the intrusive contact and the structural features.
The results of the further geophysical surveys are intended to assist the Company to select drill targets and specific drill sites more effectively.
The Company has completed the survey lines for this program and they have been flagged in the field. The field work is expected to start shortly. The Company estimates that it can complete this program and evaluate the information by mid-July, and that a decision to launch the drilling program should follow.
Zonge International, Inc., of Tucson, Arizona, will be conducting the focused geophysics survey program. The Company's AuroTellurio project adjoins the La Bambolla Mine, which has recently been undergoing re-development for tellurium, and is believed to host a gold and tellurium resource. California Gold Corp. is targeting similar mineralization at its own project.
For more information on the Company and its projects, go to the California Gold website: www.californiagoldcorp.com.
Certain statements in this news release are forward-looking. 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 start and complete its exploration drilling program at its AuroTellurio Project in Mexico, to establish technical and managerial infrastructure, to raise the required capital to take advantage of and successfully complete its AuroTellurio Project, future economic conditions, political stability and business conditions in Mexico and fluctuations in rare and precious metal prices. For further information about the risks faced by the Company and it AuroTellurio Project, see the "Risk Factors" section in the Company's Form S-1 filed with the Securities and Exchange Commission on February 10, 2012. The Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
SOURCE California Gold Corp.
For further information:
George Duggan, California Gold Corp., +1-818-542-6891