Press Release – August 25, 2017
CALIFORNIA GOLD PROVIDES OPERATIONAL UPDATE AND ANNOUNCES PROPOSED PRIVATE PLACEMENT OF UNITS
Toronto, Ontario – California Gold Mining Inc. (“California Gold” or the “Company”) is pleased to provide an operational update for the Company’s flagship Fremont gold project (“Fremont”, or the “Property”) in Mariposa County, California.
The Company’s current NI 43-101 compliant mineral resource of 515,000 ounces grading 1.71 g/t gold in the Indicated category, and an additional 364,000 ounces grading 1.44 g/t gold in the Inferred category, encompasses the Pine Tree-Josephine zone only (the NI 43-101 Technical Report is available on SEDAR or at the Company’s website www.caligold.com). The Pine Tree-Josephine Zone hosts two historical underground gold mines and covers a strike length of roughly one kilometre, out of a total strike of four kilometres over which the Mother Lode shear zone (the “Shear Zone”) is interpreted to extend on the Property.
“We believe there is tremendous potential to increase the size of our resource along the four kilometre strike of the Shear Zone and at depth based on data from historical mines on the Property, exploration conducted by previous owners, and our exploration activities since acquiring the Fremont project in 2013,” said Vishal Gupta, President and CEO of California Gold. “Our exploration plans include drilling the Shear Zone along strike to expand our mineral resource, testing the depth potential through deep exploratory holes, and conducting Property-wide geochemical and geophysical surveys to further define additional mineralized zones.”
Management has identified the Queen Specimen zone as the target for a second mineral resource at Fremont. The Queen Specimen zone constitutes roughly 750m of strike length, out of the total four kilometers strike of the Shear Zone on the Property. For a Fremont Property map illustrating the location of the various mineralized zones, please refer to Appendix A.
The following exploration programs have been planned for the Fremont Property over the next 12 months:
Resource drilling at Queen Specimen zone
The Company intends to commence resource drilling at the Queen Specimen zone in the first quarter of 2018. This 35,000ft – 40,000ft drill program is expected to generate a second mineral resource at the Fremont Property by the third quarter of 2018. Previously completed exploration drilling at Queen Specimen has returned significant mineralized intercepts, and gives Management a lot of confidence in its ability to substantially add to the current mineral resource at the Pine Tree-Josephine zone with a second mineral resource at the Queen Specimen zone.
Property-wide soil geochemistry survey
The Company has already commenced a soil geochemistry survey on a 100m x 100m grid covering the entire Property, and expects to complete the survey in the third quarter of this year. This survey is designed to complement the Company’s previously completed surface mapping program of 2014 that led to the discovery of multiple mineralized zones on the Property, as announced in the Company’s press release dated September 17, 2014.
Three-phased geophysical survey
The Company intends to commence a comprehensive geophysical survey at Fremont using a combination of high-resolution airborne magnetics, airborne Very Low Frequency (VLF), and ground-based Induced Polarization (IP) techniques. Preparation for the geophysical survey has already begun, and all three components are expected to be completed before the end of this year. Management believes this three-phased geophysical survey should help delineate numerous mineralized structures on a Property-wide scale, and provide drill targets for near-term exploration drilling.
PRIVATE PLACEMENT OF UNITS
The Company also announces today that it intends to carry out a non-brokered private placement for an aggregate of up to 8,000,000 units (“Units”) at a price of $0.25 per Unit for total proceeds of up to $2,000,000 (the “Offering”). Each Unit will be comprised of one common share and one-half of one common share purchase warrant, with each whole warrant (“Warrant”) entitling the holder to acquire a further common share of the Company at a price of $0.50 for 24 months following the date of issuance. The common shares and Warrants will be subject to a four-month hold period. The C
The Company intends to use the net proceeds of the offering for exploration on the Company’s mineral properties and for other general corporate purposes.
Insiders of California Gold may subscribe for over 25% of the Offering. Closing of the Offering is conditional upon compliance with the policies of the TSX Venture Exchange and general corporate and securities laws applicable to the private placement. The Offering is expected to close in one or more tranches on or before September 8, 2017.
The Company may pay finder’s fees in accordance with the rules and policies of the TSX Venture Exchange. The offering remains subject to the approval of the TSX Venture Exchange. The securities to be issued under the offering have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
Mr. Vishal Gupta, the Company’s President & CEO has reviewed and approved this press release. Mr. Gupta is a P.Geo. registered with the Association of Professional Geoscientists of Ontario (APGO), and a Qualified Person (QP) as defined under National Instrument 43-101. The exploration program at Fremont is being conducted under Mr. Gupta’s supervision.
About California Gold Mining Inc.
California Gold Mining Inc. is focused on developing its flagship Fremont gold project in Mariposa County, California. The project consists of a land package totaling 3,351 acres of historically producing gold mines. The Fremont Property lies within California’s prolific Mother Lode Gold Belt. The Company purchased the property in March 2013.