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PEDIMENT GOLD CORP. ANNOUNCES RECOMMENDATION FROM INSTITUTIONAL SHAREHOLDER SERVICES (ISS) THAT ITS CLIENTS VOTE FOR BUSINESS COMBINATION WITH ARGONAUT GOLD INC.
Vancouver, British Columbia, January 17, 2011 - Pediment Gold Corp (TSX: PEZ and OTCBB; PEZGF, "Pediment" or the "Company") announces that Institutional Shareholder Services ("ISS") has recommended that its clients vote FOR the Business Combination, to be considered by shareholders of Pediment at a Special Meeting of Shareholders scheduled for January 24, 2011.
As outlined in the press release issued December 23, 2010, if the shareholders of both Pediment and Argonaut Gold Inc., (TSX:AR) ("Argonaut") approve the Business Combination and the other conditions of closing are met, then Argonaut will acquire all of the issued and outstanding shares of Pediment. In exchange for each one (1) Pediment common share Pediment shareholders will receive 0.625 of a common share of Argonaut.
Based on the then-closing price of $4.10 of Argonaut shares on the Toronto Stock Exchange ("TSX") when the transaction was announced on October 19, 2010, the 0.625 of an Argonaut share implied a value of C$2.56 per Pediment common share and valued Pediment's equity at approximately C$137.1 million on a fully diluted in the money basis. Since then Argonaut's share price has appreciated and with it the implied value of Pediment shares. In other words, when using the $4.80 closing price of Argonaut shares on the TSX on January 17, 2011, the 0.625 of an Argonaut share currently implies value of C$3.00 per Pediment common share. This exchange ratio of 0.625 shares of Argonaut Gold in exchange for each common Pediment share will apply to the final closing date of the transaction.
ISS is a leading independent international corporate governance analysis and proxy voting firm. Its recommendations assist institutional shareholders to make decisions regarding proxy voting decisions. In recommending that its clients vote FOR the Pediment-Argonaut Business Combination, ISS stated*:
"A vote FOR is warranted based on a review of the terms of the transaction and, in particular, sound rationale, positive market reaction and lack of governance concerns."
"We are pleased that ISS shares our view that Pediment shareholders should vote FOR the Business Combination," said Gary Freeman, President and Chief Executive Officer of Pediment. "Pediment management believes that the Pediment-Argonaut business combination represents enhanced value creation potential for Pediment shareholders. They will fully participate in an entity that will be diversified across two mining operations by 2013 that boasts over 3.8 million oz of measured and indicated gold resources. This quality portfolio of exploration projects will be managed by an experienced management team and board of directors."
A Management Information Circular, dated December 17, 2010 has been mailed to shareholders and filed on SEDAR (www.sedar.com). The circular contains, among other items, details regarding the terms and conditions of the proposed Pediment-Argonaut Business Combination, Arrangement Resolution to be considered by Pediment's shareholders, the business of Pediment and certain historical and pro forma financial information relating to Pediment and Argonaut.
*Permission to quote from ISS report was neither sought nor obtained.
Directors' recommendation
Directors of both companies have carefully considered the proposed business combination and have unanimously recommended that their respective shareholders vote FOR the Business Combination. Each Director of the Argonaut Gold Board and Pediment Board intend to vote all their respective shares FOR the business combination.
Pediment Shareholder Information Line
If Pediment shareholders have questions about the business combination, they should contact Kingsdale at 1-866-581-1479 or via email at contactus@kingsdaleshareholder.com.
About Pediment Gold Corp
Pediment Gold Corp. is a junior mining company with a focus on the exploration and development of low-cost gold assets in Mexico. With an experienced team of geologists, financiers and miners, in management and on the board, the company is dedicated to advancing its projects. To date, the company established a Measured and Indicated Resource of 1.22 million oz gold and an Inferred Resource of 28,449 oz of gold at San Antonio in Baja Sur (NI 43-101 compliant, AMEC, Edward Orbock III, June 2010). Pediment also outlined its initial gold resource at the past producing La Colorada gold mine in Sonora with 605,000 oz of gold in the Measured and Indicated category and 582,000 oz of gold in the Inferred category (NI 43-101 compliant, Giroux 2009).
About Argonaut
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets being the production-stage El Castillo Project and the exploration-stage La Fortuna Project, both located in the State of Durango, Mexico. Argonaut is a new venture created by former executive management team members of Meridian Gold Inc.
Creating the Next Quality Mid-Tier Gold Producer in the Americas.
Per:
Gary Freeman
President & CEO
Pediment Gold Corp
Investor contacts:
Michael Rapsch
Pediment Gold Corp
604-682-4418
Kingsdale Shareholder Services
1-866-581-1479
contactus@kingsdaleshareholder.com
Pediment and Argonaut Announce New Meeting Dates
TORONTO, ONTARIO, Dec. 16, 2010 (Marketwire) -- Argonaut Gold Inc. (TSX:AR) ("Argonaut") and Pediment Gold Corp. (TSX:PEZ)(OTCBB:PEZGF) ("Pediment") announce that, further to their November 22, 2010 announcement of the extension of the deadline for the completion of their business combination transaction from December 23, 2010 to January 31, 2011, the meetings of Argonaut and Pediment shareholders to approve the transaction have now been rescheduled to take place on January 24, 2011. The extension of the completion deadline was implemented to allow Pediment and Argonaut time to investigate proposed amendments to the local environmental laws in the State of Baja California Sur, Mexico the ("BCS") which, if implemented, could adversely affect Pediment's ability to secure a building licence for the development of its San Antonio Project as currently envisioned.
Based on the information received to date, the parties understand that the legislation, as originally proposed, has not been approved by the Governor and the Governor has stated publicly that it will not be approved in its current form. The current sitting of the BCS legislature has now ended. The legislature is not expected to resume sitting until March 2011, at which time new members and a new Governor will be sworn in following elections. There can be no certainty with respect to future legislative action, however, Pediment and Argonaut have held meetings with a variety of local stakeholders and legislators and believe there is broad opposition to the proposed legislation and support for the San Antonio Project.
Forward Looking Information
This news release contains forward looking statements of Argonaut and Pediment, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of applicable Canadian provincial securities legislation. Forward-looking statements are statements which are not historical facts, including, without limitation, statements regarding the proposed acquisition of Pediment by Argonaut, the proposed amendments to the laws affecting mining projects in Mexico and the likely impact of those proposed amendments on Pediment's business and prospects. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Argonaut's or Pediment's expectation are in the documents filed by Argonaut and Pediment, respectively, from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. Other than as required by applicable securities legislation, Argonaut and Pediment disclaim any intention and assumes no obligation to revise or update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
The Toronto Stock Exchange has not reviewed or accepted responsibility for the adequacy or accuracy of this news release.
Pediment Gold Corp. 604-682-4418 Pediment Gold Corp. 604-682-4418 www.pedimentgold.com
Awesome opportunity to buy
Mining Speculator (11/22/2010)
". . .A week and a half ago the state legislature in La Paz initiated a bill to ban open-pit mining in southern Baja, which could affect companies like Pediment Gold that has projects in this area. . .What we now understand is that the bill has gone back to be rewritten to enforce further safety and environmental concerns rather than try to ban open-pit mining all together.
Companies like Pediment Gold are totally committed to safe and environmentally sound mining practices and will responsibly reclaim the land once it is through with its mining activities. While I expect a favorable conclusion that will allow responsible mining to move forward, the timing of this activity is not ideal for Pediment who in the process of a merger with Argonaut Gold and seeks to put the San Antonio gold project into production. I wanted subscribers to have the facts and not panic as this news is reported in the media. . .In the end, I don't think this will affect PEZ in any way regardless of what the state legislature ultimately can pass. . .nothing will change for PEZ and Argonaut. The problem is a community problem and new and special rules will need to be followed to allow mining near the sensitive biosphere reserve area. It will not prohibit mining. The San Antonio project's water drainage moves away from the biosphere area not toward it. . .PEZ remains a BUY. As a contrarian, you are getting a great chance to buy a nice dip right now."
Temporary bad news. . . . .
http://www.pedimentexploration.com/s/NewsReleases.asp?ReportID=430096
Pediment Drills 39.9 Meters Grading 2.37 /t Gold
http://www.pedimentexploration.com/s/NewsReleases.asp?ReportID=428934
Mining Speculator (10/28/2010)
"Pediment and Argonaut have entered into a binding agreement to merge. . .this is a good situation for current PEZ shareholders. CEO Gary Freeman knows he's done his job in making an economic gold discovery of size and merit that has gotten the attention of the market. But he also realizes that for him to take PEZ to the next level would require a very large financing and further shareholder dilution.
One of the difficult problems in trying to put a discovery into production right now is finding qualified people who have the mining background and experience to successfully build a new mine. . .the Argonaut team is the perfect match. Gary has been searching for the right situation to move his company forward, and I think he's found the best solution for us as investors. The benefits to PEZ shareholders include significant premium based on 20-day VWAP; immediate exposure to a record gold-price environment by converting from an exploration-focused to a producing company, management with extensive construction and operational experience; strong balance sheet and operating cash flow."
I tried to open a trading position at 1.95 the other day and missed out. Darn! Oh well, I still have my core position and will hold it through the merger.
Update the chart please. The chart is wrong. PEZ is the symbol on the TSX and PEZGF is the symbol on the pink sheets.
Thank you
Argonaut Gold Inc. and Pediment Gold Corp. Announce Friendly Business Combination
TORONTO, ONTARIO, Oct. 19, 2010 (Marketwire) -- Argonaut Gold Inc. (TSX:AR); ("Argonaut") and Pediment Gold Corp. (TSX:PEZ)(OTCBB:PEZGF), ("Pediment") are pleased to announce that they have entered into a binding agreement (the "Agreement") to complete a business combination (the "Transaction") to create a premier mid-tier gold producing company focused on the Americas. The combined entity will focus on generating value for its shareholders by increasing production, bringing new and existing projects into production, expanding the resource base, and growing cash flow.
Argonaut is a gold production and exploration company and is currently producing gold at its El Castillo project in Durango, Mexico. Argonaut forecasts 2010 production of 47,000 oz gold at US$600/oz cash cost. Pediment is a junior mining company with a focus on the exploration and development of low-cost gold assets in Mexico. Pediment's most advanced project is the San Antonio gold project in the state of Baja. A positive Preliminary Assessment was completed for the San Antonio gold project in August 2010.
Pursuant to the terms of the Agreement, all of the Pediment common shares (the "Pediment Common Shares") issued and outstanding immediately prior to consummation of the business combination shall become exchangeable into the common stock of Argonaut on the basis of 0.625 of a common share of Argonaut for each one (1) Pediment Common Share. Based on the closing price of Argonaut on the Toronto Stock Exchange ("TSX") on October 18, 2010, the exchange ratio implies an offer price of C$2.56 per Pediment common share and values Pediment's equity at approximately C$137.1 million on a fully diluted in-the-money basis.
This represents a 50.7% premium to the closing price of Pediment on the TSX on October 18, 2010 and a 40.4% premium based on the 20-day VWAPs of both companies for the period ended October 18, 2010. Upon completion of the Transaction, Argonaut and Pediment shareholders will own approximately 63% and 37% of the combined company, respectively. The terms of the Transaction have been unanimously approved by the boards of directors of both Argonaut and Pediment.
The newly combined company will draw on the expertise from both companies to fulfill board and management responsibilities. The newly combined board will be comprised of the current Argonaut directors and a representative of Pediment - Peter Mordaunt. Peter Dougherty will remain President and CEO of the combined company.
Highlights of the Combined Entity:
-- Diversified across 2 mining operations by 2013
-- Gold production expected to grow in excess of 150,000 oz per year by
2013
-- Over 3.3 million oz of measured and indicated gold resources
-- Strong balance sheet
-- Strong cash flow generating capabilities
-- A quality portfolio of exploration projects
-- Experienced management team and board of directors
Mr. Peter Dougherty, President and CEO of Argonaut stated, "Combining Argonaut and Pediment provides a mutually beneficial transaction. The newly formed company will have access to an array of development and exploration opportunities. Cash generation from a producing mine will support the development of properties with high potential for expansion."
Mr. Gary Freeman, President and CEO of Pediment stated, "This is a natural progression for Pediment as this merger brings together two talented management teams. The resulting company will encompass a strong capital markets presence, proven construction and operating experience, and a successful exploration team. It further allows realization of internal financing for the development of San Antonio and access to exploration funding. Pediment shareholders are receiving an attractive premium and will benefit from production at El Castillo."
Transaction Rationale
Argonaut and Pediment believe the Transaction will provide significant benefits for both companies' shareholders.
Benefits to the shareholders of Argonaut include:
-- The San Antonio project provides an early stage development project with
potential to produce in excess of 80,000 oz Au per year by 2013
-- Increases Argonaut's leverage to gold resources
-- Provides diversification from a single operating mine to two operating
mines in 2013
-- Geographic synergies with dual operations within Mexico
-- An extensive pipeline of grassroots exploration properties for future
development
-- La Colorada has excellent potential to add significant value to the
newly combined company
-- Extensive grassroots exploration expertise and nine exploration projects
in Sonora Mexico
-- Established exploration team with extensive experience in Mexico
-- Strong re-rating potential via a portfolio of multiple mines, increase
in resources and strong production growth profile at below industry
average cash costs
-- Improvement in stock liquidity
The benefits to the shareholders of Pediment include:
-- Significant premium for Pediment shareholders based on 20 day VWAP
-- Immediate exposure to a record gold price environment by converting from
an exploration focused company to a producing company
-- Access to management with extensive construction and operational
experience
-- Strong balance sheet and operating cash flow which are expected to be
sufficient to fund the construction of the San Antonio project
Transaction Details
The business combination is anticipated to be completed by way of a statutory plan of arrangement whereby Argonaut would acquire all of the issued and outstanding shares of Pediment in consideration for the issue of Argonaut shares on the basis of 0.625 of one Argonaut share for one (1) Pediment share.
The Transaction will be subject to certain standard conditions which will include no less than 66 2/3% of the shareholders of Pediment and a simple majority of Argonaut shareholders voting in favour of the Transaction at shareholders meetings expected to be held in December 2010, and the acceptance of the Toronto Stock Exchange.
The Transaction is unanimously supported by the Board of Directors of both Argonaut and Pediment. Management and directors of Pediment hold approximately 8.2%, for which they have indicated that they will sign lock up agreements supporting the Transaction.
The Agreement will be described in detail in Management Information Circulars of Argonaut and Pediment to be filed with the regulatory authorities and mailed to Argonaut and Pediment shareholders in accordance with applicable securities laws.
The Transaction has been structured, with respect to Pediment shareholders in the United States, so as to permit reliance upon the exemption from the registration requirements of the U.S. Securities Act of 1933 provided by Section 3(a)(10) thereof. Upon closing of the Transaction, Argonaut is expected to become the successor-registrant to Pediment under the U.S. Securities Exchange Act of 1934.
Advisors
GMP Securities L.P. ("GMP") is acting as financial advisor to the board of Argonaut (comprised of Independent Directors). GMP has provided an opinion to the board of Argonaut that, subject to certain assumptions and limitations set out therein, the proposed transaction is fair, from a financial point of view to the shareholders of Argonaut. Fraser Milner Casgrain LLP is acting as Argonaut's legal advisor and Greenberg Traurig LLP as its U.S. legal advisor.
Pediment has engaged Canaccord Genuity Corp. ("Canaccord Genuity"), PI Financial Corp. and Axemen Resource Capital Ltd. as its financial advisors, and Bull, Housser & Tupper LLP as its legal advisor, and Dorsey & Whitney LLP as its US legal advisor. Canaccord Genuity has provided an opinion to the board of Pediment that, subject to certain assumptions and limitations set out therein, the proposed transaction is fair, from a financial point of view to the shareholders of Pediment taken as a whole.
Tom Burkhart, Argonaut's VP of Exploration, a Qualified Person under NI 43-101, has read and approved the Argonaut technical information contained in this press release.
Mel Herdrick, Pediment's VP of Exploration, a Qualified Person under NI 43-101, has read and approved the Pediment technical information contained in this press release.
A conference call to discuss the transaction will be held at 10:30 AM EDT time (7:30 AM PDT time) on Tuesday, October 19, 2010 to provide shareholders, securities analysts, and investors the opportunity to hear management discuss the business transaction outlined herein. The call can be accessed by dialing 1-866-226-1792 (toll free) or 416-340-2218. The call will also be webcast live and can be accessed via the website of Argonaut. The call will be available for replay by dialing 1-800-408-3053 (toll free) or 416-695-5800 (Passcode 8724514#) for 14 days.
About Argonaut Gold Inc.
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine and the exploration-stage La Fortuna Project, both located in the State of Durango, Mexico. Argonaut is a new venture created by former executive management team members of Meridian Gold Inc. For further information about Argonaut, including summary technical information, please see the Annual Information Form of Argonaut dated March 31, 2010 in relation to the year ended December 31, 2009.
About Pediment Gold Corp.
Pediment Gold Corp. is a junior mining company with a focus on the exploration and development of low-cost gold assets in Mexico. With an experienced team of geologists, financiers and miners, in management and on the board, the company is dedicated to advancing its projects. To date, the company established a Measured and Indicated Resource of 1.22 million oz gold and an Inferred Resource of 28,449 oz of gold at San Antonio in Baja Sur (NI 43-101 compliant, AMEC, Edward Orbock III, June 2010). Pediment also outlined its initial gold resource at the past producing La Colorada gold mine in Sonora with 605,000 oz of gold in the Measured and Indicated category and 582,000 oz of gold in the Inferred category (NI 43-101 compliant, Giroux 2009). For further information about Pediment please see the Annual Report of Pediment on Form 20-F dated December 21, 2009 in relation to the year ended September 30, 2009."
Information Concerning Mineralization and Resources
Unless otherwise indicated, all resource estimates contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System in compliance with Canadian securities laws, which differ from the requirements of United States securities laws. Without limiting the foregoing, this news release uses the terms "measured resources", "indicated resources" and "inferred resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission ("SEC") does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of contained ounces is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report resources as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this news release may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.
Forward Looking Information
This news release contains forward looking statements of Argonaut and Pediment, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of applicable Canadian provincial securities legislation. Forward-looking statements are statements which are not historical facts, including, without limitation, statements regarding the proposed acquisition of Pediment by Argonaut, the potential benefits thereof and discussions of future plans, projections and objectives. In addition, estimates of mineral reserves and resources may constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if a property is developed. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Argonaut's or Pediment's expectation are in the documents filed by Argonaut and Pediment, respectively, from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. Other than as required by applicable securities legislation, Argonaut and Pediment disclaim any intention and assumes no obligation to revise or update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
The Toronto Stock Exchange has not reviewed or accepted responsibility for the adequacy or accuracy of this news release.
Argonaut Gold Inc. Investor Relations Manager (775) 284-4422 x 101 or 647-980-4172 nichole.cowles@argonautgoldinc.com www.argonautgoldinc.com
Hi All.... I placed PEZ on my watch list earlier this week. It received a good word from a money manager on BNN. I believe his words were something akin to "a potential world class gold find". Looking for an entry point.
Very volatile today.
P.S. Hopefully this board starts rolling too.
3.40 before some profit taking, WOW!!!
Now give us drill results!
if linked-chart appears reduced, click on it to enlarge
http://stockcharts.com/h-sc/ui?s=PEZ.V&p=D&yr=0&mn=3&dy=0&id=p93213582713&a=...
BUY RECCO-Middelkoop Discovery Alert Pediment Exploration Ltd (PEZ-V)
Shares o.s. C$32 mln
Market cap C$51 mln
“Pediment Exploration Drills 12.19 m of 19.87 g/t Gold within 84.12 metres of 3.79 g/t Gold.”
All indications are Pediment Exploration is on the doorstep of a major gold discovery on their San Antonio project, Baja California (Mexico).
Hole PLRC-07 delivered a magnificent 84.12 metres of 3.79 grams of gold
is kswj moving
Sounds great! Thanks.
Should be a surprise in hole 7 re-assay limit on the 10g that were reported to.
Holes 2,3 4 should be simular grades as hole 1
Yes they have completed more holes aroud hole 7
I expect news within the next two weeks. I do not however believe we will have as great results this time around. Perhaps 30m intercepts. Not fully sure of this, but i got the feeling from E-mailing the company, that they are excited about the next batch of results, but that they won't be mind boggling. If they present more drill holes than anticipated, this could change. Can hardly wait until they present holes near the magic hole nr 7. Maybe, just maybe, they will come soon too.:))
Coffin brothers also hooked up in here too.There too close to management thus can't be saying much but there not selling any shares
I own a chunk of it. Got in just days before the great PR.
I can assure you that at least TEN newswriters follow PEZ. Yes T E N. Including Jay Taylor, Bob Moriarty, MacCoach, Burgess, Al korelin.
HEAVY dudes!! The last PP will double the onging drill program. Last time the markets plummeted like this, PEZ rose. Exactly the same thing happened today. Drill results will come as soon as the PP is closed. If they are as good, I think we can reach $5 befor year's end.
At least one can dream, but this really could be a stock that make it big.
With drill results like they have, I don't know why this stock won't take off. Is anyone else in on this stock? Maybe we just need some analyst to recommend it to get some action going.
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Pediment Exploration Ltd (C-PEZ) - News Release
Pediment drills 12.9 m of 19.87 g/t Au at Los Planes
2007-07-30 10:47 ET - News Release
Shares issued 29,160,968
PEZ Close 2007-07-27 C$ 1.20
Mr. Gary Freeman reports
PEDIMENT EXPLORATION DRILLS 12.19 M OF 19.87 G/T GOLD WITHIN 84.12 METRES OF 3.79 G/T GOLD.
After having finished the first seven drill holes of its planned 10,000-metre reverse circulation program at the Los Planes zone in the San Antonio project, Baja California Sur, Pediment Exploration Ltd. has provided its initial assay results from the program, which have significantly increased mineralized volume at the project. Results have been received from four drill holes, three of which (PLRC-01, PLRC-05 and PLRC-07) fully penetrated the known thickness of Los Planes system, which is located north of the Las Colinas historic resource. Hole PLRC-06 was stopped at 62 metres and short of intersecting its target due to difficult ground conditions. Another drill hole in this area is planned with vertical orientation.
Summarizing the combined intercepts of each drill hole received below are as follows:
PLRC-07 -- 84.12 metres of 3.79 grams of gold per tonne;
PLRC-05 -- 100.58 metres of 1.60 grams of gold per tonne (near true width);
PLRC-01 -- 83.82 metres of 1.47 grams of gold per tonne (near true width).
Brief description of drill results
Drill hole PLRC-07 is located 50 metres west of previously reported core hole LCDD-20 and was drilled vertically. The hole has returned 84.12 metres of 3.79 (1, 2) grams per tonne gold, which includes 12.19 metres of 19.87 grams per tonne gold. Since the mineralized zone has a calculated dip of 45 degrees to the west, the true thickness of the zone is calculated at approximately 59 metres in this section. Hole PLRC-07 is the most northerly test of the Los Planes shear system to date.
This interval includes one additional sample that assayed more than 10 g/t gold by atomic absorption, and is thus here averaged with the rest of the samples as 10 g/t gold. The fire assay, gravimetric finish result for this individual sample will be reported when received.
Grades were not cut for calculating average grades in the interval.
Drill hole PLRC-05 is located 100 metres south, along trend from hole PLRC-07 and between previously reported core holes LCDD-18 and LCDD-19. Hole PLRC-05 has returned 18.29 metres of 2.28 grams per tonne gold in an Upper zone and two further intersections of 15.24 metres of 2.0 grams per tonne gold and 62.48 metres of 1.357 grams per tonne gold, which include higher grade sections of 3.05 m of 7.27 g/t gold, and of 13.72 m of 4.87 g/t, respectively. In contrast with hole PLRC-07, this hole was drilled at a minus-50-degree angle to the east and the length of its intersections are near true thickness of the zone.
Drill hole PLRC-01 is located 100 metres south, from PLRC-05 and 100 metres east from Echo Bay's reverse circulation hole SA97-120. Hole PLRC-01 returned 24.38 metres of 1.20 grams per tonne gold in the Upper zone, and 59.44 metres of 1.58 grams per tonne gold in the Main zone. The Upper zone in RC-01 begins 18.3 metres down hole and is the oxidized portion of a zone that included 16.5 m of two g/t in SA97-120; the Main zone in RC-01 begins 90 metres down hole.
TABLE OF REVERSE CIRCULATION DRILL RESULTS FROM THE SAN ANTONIO PROJECT,
LOS PLANES ZONE
From Length
Drill hole (m) To (m) (m) Au g/t Comments
07PLRC-07 53.64 59.74 6.10* 0.30 Oxide zone
and 218.24 302.36 84.12* 3.79** Sulphide zone
including 227.38 239.57 12.19* 19.87**
including 251.76 263.96 12.19* 2.37
including 268.43 302.36 39.93* 0.89
07PLRC-05 2.44 7.01 4.57 0.86 Oxide zone
and 71.02 89.31 18.29 2.28 Sulphide zone
including 77.11 81.69 4.57 7.68
and 103.02 118.26 15.24 2.00 Sulphide zone
including 103.02 106.07 3.05 7.27
and 128.93 191.41 62.48 1.36 Sulphide zone
including 171.60 185.32 13.72 4.87
07PLRC-01 16.76 41.15 24.38 1.20 Oxide zone
and 89.92 149.35 59.44 1.58 Sulphide
including 105.16 109.73 4.57 3.08
including 126.49 131.06 4.57 3.14
* Not true width. Hole was drilled vertically and mineralized zone is calculated to
dip 45 degrees to the west.
** One sample that has graded more than 10 g/t Au remains to be reassayed by gravimetric
finish. A value of 10 g/t Au has been used temporarily to calculate the interval.
Please click on the links below to view the drill plan and cross-sections showing the holes in this news release.
Drill plan
http://www.pedimentexploration.com/i/pdf/SA-drillmap-jul302007.pdf
Cross sections
http://www.pedimentexploration.com/i/pdf/SA-xsect-jul302007-01.pdf
http://www.pedimentexploration.com/i/pdf/SA-xsect-jul302007-02.pdf
http://www.pedimentexploration.com/i/pdf/SA-xsect-jul302007-03.pdf
Assay results for RC holes PLRC-02, 03 and 04 are pending. Sampling of the reverse circulation drill holes is done by collecting sections of 1.52 metres length and splitting each on site. A split from each sample is shipped to the ALS Chemex preparatory facility in Hermosillo, Sonora, Mexico, and is then ground to a fraction to be sent to its laboratory facility where it is analyzed for gold and several other elements by induced coupled spectrometer. Gold is analyzed by fire assay with atomic absorption finish and any results over 10 g/t gold are refire assayed with gravimetric finish.
All of the reported RC holes except PLRC-07 were drilled from west to east at an angle of minus 50 degrees. In order to better penetrate the full thickness of the zone, PLRC-07 was drilled vertically. Subsequent drilling at Los Planes will continue to be mainly vertical to avoid drilling problems. The Los Planes zone trends approximately due north to south, and dips to the west at 40 degrees to 45 degrees. The northerly portion of Los Planes zone tested by Pediment is now recognized in general as an approximately 100-metre-thick shear zone within which occur higher grade sections where gold is associated with sulphide mineralization or its oxidized equivalent. The Los Planes zone remains open and untested to the north, south, and both the eastern (up dip) and western (down dip) boundaries of the system are still to be determined.
Based on limited testing by prior operators plus work to date by Pediment, the Los Planes mineralization extends for at least 600 metres of strike length. The historic Las Colinas gold deposit (340,000 ounces of gold, historical resource) is located 500 metres farther south of Los Planes, within an offset portion of the same north-south-trending San Antonio structural corridor that contains both zones.
The company has staked a 14-kilometre-long portion of the San Antonio trend extending from Las Colinas deposit northward, and will test other targets along this trend generated by its geophysical and geochemical surveys of pediment cover to the north of Los Planes. There is no history of gold exploration in this area. The San Antonio project is located adjacent to the mining town of San Antonio and 40 km southeast of the port city of La Paz that is serviced by daily vehicle and passenger ferries and by passenger aircraft. A paved road, power line and communication corridors run through the project.
Review of history and potential of the San Antonio project
The Los Planes deposit area was selected for planned drill testing based on compilation of limited prior drilling by Echo Bay, current geological investigations coupled with an IP ground geophysical survey, and more than 3,000 sample grid soil program. Echo Bay drill data from 1995 to 1997 were recently purchased from Kinross Gold Corp. covering both Las Colinas and Los Planes areas.
The Las Colinas resource mineralization was estimated by Echo Bay to be 10.599 million tons containing 348,000 ounces of gold.* Pediment recently added five more core drill holes to Las Colinas with somewhat higher grade results than the stated average for the deposit. Echo Bay did some sulphide metallurgical work on Las Colinas with favourable results through Hazen Research in Colorado.
* A qualified person, as defined by NI 43-101, 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.
Core drilling at Los Planes was initiated in May, 2007, completing four core drill holes. This drilling north of prior holes revealed a deeper zone of oxide mineralization with thicker intercepts than Echo Bay found. Problems in drill penetration led to changing to RVC drilling. Seven RVC drill holes have been completed, which are partially reported here, that now show a much thicker zone with higher gold grade in the shear zone.
Drill intersections at the south end begin approximately 600 metres south of RVC 7 where two intervals total 7.5 m of 1.08 grams, then 400 m south of RVC 7 with two drill holes intersected having 15 metres combined of 1.32 g/t and 16.5 combined with 1.06 g/t. All sections located farther north have higher grades, and more width in drilling by both Pediment and Echo Bay.
The company has built an exploration model assisted by various geological sources including Arizona State University structural expert Dr. Steven Reynolds and graduate student Josh Coyan, and independent consultant Stan Keith. The main low-angle shear zones are hosts to deep mesothermal gold mineralization of the "intrusion-related" type connected to peraluminous intrusions. Large zones of this type of mineralization are thought to have long trends and similar related parallel zones. Adjacent zones called Fandango, La Virgin and Colpa are concluded to have potential based on anomalous soil geochemical values, geophysical surveys, and scout drilling in the La Colpa northern area. These parallel anomalous shear zones are being investigated for gold potential, and may receive limited drill testing later this year. Drilling at San Antonio continues and results will be released on a regular basis.
Vice-president, exploration, Mel Herdrick, MSc, is a qualified person as defined by NI 43-101, and has approved the information contained in this release. The project is supervised by Pedro Teran, BSc.
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