RENO, Nev.--(EON: Enhanced Online News)--Consolidated Goldfields Corporation (“Consolidated” or the “Company”) (OTCQX: CDGF) is pleased to announce it has acquired a 100% interest in the Kennedy Property with the signing of an Exploration and Option to Purchase Agreement that encompasses 160 acres of private land in the Willow Creek Mining District situated in the northeast portion of Pershing County, Nevada. The lease requires an advanced royalty payment of $5,000 upon signing of agreement, $6,000 on the first anniversary, $7,000 on the second anniversary, $8,000 on the third anniversary, $10,000 on the fourth anniversary and $15,000 on the fifth anniversary and years thereafter. Additionally, Consolidated agrees to a work expenditure of $10,000 during the first year of lease, $80,000 during the second, $50,000 during the third and $50,000 during the fourth year and thereafter. The Agreement includes a payment that is equal to two and one half percent (2.5%) of the Net Smelter Returns (“NSR”) from the production or sale of minerals from the property. Owner has granted Consolidated the exclusive right to purchase the property subject to the Royalty reserved by Owner. The purchase price for the property shall be $3,000,000.
Located 20 miles south of Winnemucca, Nevada, the Willow Creek District is responsible for the production of more than 5,000 ounces of placer gold in addition to substantial amounts of lode gold production from very high grade veins. Select veins from this mining district reportedly contained up to 1 ounce per pound of gold (approximately 167 ounces per ton) within 1 inch stringer veins hosted in phyllitic slate intruded by diabasic dikes.
The Kennedy property is characterized by high grade gold quartz/calcite veins hosted in Triassic phyllite. Associated carbonate rocks have been strongly silicified into jasperoids which represent a much larger alteration overprint that has been recognized throughout the property. This acquisition of private land in a prolific gold mining region should provide Consolidated the opportunity for near term placer production in addition to longer-term lode potential from high grade veins and/or larger disseminated gold deposits presuming exploration efforts are successful.
A geologic mapping and geochemical sampling program will begin immediately at Kennedy in conjunction with a detailed evaluation of the old mine workings. This investigation will provide valuable information as to the nature of the gold occurrences and will be applied to the surrounding rocks as a guide for our future drilling and placer evaluation programs.
Consolidated is also announcing that Mr. John Reynolds has resigned from the Company's Board of Directors. Mr. Reynolds tendered a letter of resignation to the Company, which was accepted by the Board of Directors on Wednesday, October 2, 2013. Mr. Reynolds indicated that he thought his resignation was in the best interest of the Company and that his resignation was not due to any concern regarding CDGF. There has been no disagreement between the Company and Mr. Reynolds. Mr. Reynolds served on the Company's Board of Directors since August 26, 2011.
Lane Griffin, VP Exploration, Consolidated Goldfields, is a Registered Member of the Society for Mining, Metallurgy, and Exploration and is a Qualified Person as defined in NI 43-101. Mr. Griffin has reviewed and verified the technical information contained in this news release.
Certain information contained in this news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections. However, such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intent or obligation to update publicly any forward-looking statements set forth herein, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.