TOPEKA, Kan., July 21, 2005 (PRIMEZONE) -- Kachina Gold Corporation (Pink Sheets:KCHG), an emerging junior gold exploration and production company, announced that it is increasing the production outlook from its claims in Mohave County, Arizona. With commercial production on the property already at more than 150 ounces per week, the Company expects to increase its production outlook to approximately 300 ounces per week within the next three months.
"We are pleased to note that our production efforts in the Mohave County property are proceeding ahead of schedule, and expect to deliver continued successes to our shareholders," noted Robert M. Gaither, President of Kachina. "With gold prices continuing to rise in the face of an uncertain economy and a weak dollar, this is an exciting time for Kachina Gold Corporation, and we look forward to attaining sustained production improvements over the foreseeable future," he continued.
With production already underway at two of the Company's fourteen Mohave County mining claims, and with ongoing efforts to bring additional claims into production over the intermediate term, Kachina expects to meet its goal of full-time production on the property within the next 18-24 months. Recent completion of a water-well and continued on-site improvements from Kachina's joint venture partner will enable it to significantly expand its production goals. When the 300 ounce production goal is met, Kachina will achieve revenues of approximately $240,000 per month at current gold prices.
About Kachina Gold Corporation
Kachina Gold Corporation (www.kachinagold.com) is an innovative new entrant into the white hot gold mining industry. The Company has acquired a working interest in a number of historically producing mining claims located in the prolific gold producing region of Mohave County, Arizona. Kachina's claims were heavy producers over 70 years ago before the limitations of mining technologies forced abandonment. Kachina has established operating agreements with an experienced mining partner, and is already extracting ore out of the ground today. Upon completion of remediation and rework on these claims, Kachina expects to extract approximately 1 ton a year- or $13.6 million at today's gold prices.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by Kachina may differ materially from these statements due to a number of factors. Kachina assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. Investors and potential investors should independently investigate and fully understand all risks before making investment decisions.