Pediment Retains Reyna Mining & Engineering for La Colorada Production Study; Data Review Update
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 19, 2008) – Pediment Exploration Ltd. (TSX VENTURE:PEZ)(OTCBB:PEZFF) is pleased to report that it has retained Reyna Mining and Engineering S.A. de C.V. to evaluate the potential mining and development scenarios for its La Colorado gold project. Reyna is a mining and engineering Company based in Mexico City, with extensive experience in mine design, development and operations. In addition to its evaluation of the project, Reyna has agreed to conduct all required engineering work and to assist Pediment in obtaining all required surface, environmental and governmental permits. For background on the project see Pediment’s website at http:// www.pedimentexploration.com/s/La_Colorada.asp.
Review of Underground Potential
Pediment is also reviewing several historic calculations made for prior operator Eldorado Gold Corp. of high-grade vein mineralization below the La Colorada and Gran Central open pits, using the results from drilling conducted primarily to assess the project’s open pit potential. The Company considers these historic calculations relevant to its own exploration planning. However, the Company cautions that these calculations were completed prior to establishment of NI 43-101 guidelines for resource estimation. Consequently, these historic results have not been categorized mineral resources or mineral reserves in accordance with NI 43-101. The Company believes these resources listed below would be categorized as “inferred” under current guidelines however, a “Qualified Person” as defined by NI43-101 has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. The Company further cautions that though these historical calculations deal with different aspects of the high- grade potential, they may in part overlap with areas that had also been included in open pit resource historical calculations made prior to the cessation of pit mining. These historic calculations should not be considered in aggregate as material representations of current resource potential.
In 1997 the following historical estimate was completed by Duncan McBean for Eldorado using an 8 g/t cut-off grade, for the veins in sections directly below the “restricted pit limit” of La Colorada and Gran Central pits:
La Colorada (LC) Vein – 140,400 tons @ 19.98 g/t Au, for 90,178 gold ounces.
La Colorada Vein Possible – 213,400 tons @ 24.27 g/t Au, for 168,313 gold ounces.
Gran Central-LC Vein Zones – 72,913 tons @ 13.05 g/t Au, for 30,595 gold ounces.
Gran Central Extension – 30,750 tons @ 76.19 g/t Au, for 75,323 gold ounces.
The La Colorada and Gran Central veins had been partially mined during the 1874-1912 period of high-grade underground mining. The above historic calculations included were vein intersections from the La Colorada and Gran Central veins and between, but without regard to evidence of previous mining. In 1998, an internal scoping study coupled with additional historic resource calculations was completed by Eldorado assisted by MRDI Consulting that separated intersections which had no evidence of underground workings (un- mined) from those with evidence of workings (mined). Intersections located between the two main veins are referred to as “intermediate veins” and have no history of underground mining. The results of the 1998 historic study were calculated with 4 gram/tonne Au cut-off:
Intermediate Zone Resource – 124,500 tons of 16.14 g per ton for 64,612 oz
La Colorada Mined – 187,425 tons of 8.11 g per ton for 48,875 oz
La Colorada Un-mined – 217,399 tons of 11.75 g per ton for 82,136 oz
Gran Central Mined – 497,390 tons of 6.30 g per ton for 100,757 oz
Gran Central Un-mined – 289,024 tons of 11.10 g per ton for 103,156 oz
These historic calculations did not include the results of silver assaying. The Company considers silver also a potentially important by-product metal and will evaluate it in its on-going programs. The data review also suggests there is untested high-grade potential in down-dip and on-trend extensions of the historic calculations, and that there may be further potential in both fault displaced portions of these same structures, and in other similar structures within its holdings. From this and newly developed data we are developing a mineralization model. Historic data also has records of numerous fluid inclusion samples that indicate epithermal boiling zone is present in the mineralization.
No estimate of high-grade potential has been located for the El Creston veins within the recently acquired concessions. Records indicate that the bulk of pre-1912 underground vein mining was done in the Creston pit area. Historic estimates of near surface bulk material and potential can be found in Pediment’s news release dated October 22, 2007.
Results from a recently completed reconnaissance RC drill program being finalized will be released shortly and included in planning by Pediment and Reyna to grow resources and resume processing at La Colorada in the most efficient and expeditious manner. This data is also being used to construct a district mineralization geologic model.
Mel Herdrick, a qualified person as defined by NI 43-101, has read and approves this release.
On behalf of the board,
Gary Freeman, President & CEO
We Seek Safe Harbour.
This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 27E of the U.S. Securities Exchange Act of 1934, as amended, and within the meaning of Canadian provincial securities laws applicable to the Company, regarding the Company retaining Reyna Mining & Engineering for work on the La Colorada and underground potential. Such statements include, without limitation, statements regarding the timing of future exploration activities by the Company, future anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, business and financing plans, potential mining scenarios, the success of mineral processing procedures, business trends and future operating costs and revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or authorizations required for its activities, the Company’s inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, and the U.S. Securities and Exchange Commission’s Electronic Data Gathering and Retrieval (EDGAR) System at www.sec.gov, for a more complete discussion of such risk factors and their potential effects.
This press release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises that the U.S. Securities and Exchange Commission’s mining guidelines prohibit information of this type in reports filed with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such adjacent or similar properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties.
All of the Company’s public disclosure filings may be accessed via www.sedar.com and www.sec.gov, and readers are urged to review these materials, including any technical reports filed with respect to the Company’s mineral properties.
This press release is not to be construed in any way as, an offer to buy or sell securities.
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