TOPEKA, Kan., July 26, 2005 (PRIMEZONE) -- Kachina Gold Corporation (Pink Sheets:KCHG), an emerging junior gold exploration and production company, announced that it has completed the strategic planning for its mining claims located in Mohave County, Arizona. The plan includes three primary phases, each leading to incremental increases in on-site gold production.
The Mohave County, Arizona property consists of fourteen different mining claims, three patented and eleven un-patented, and contains total reserves estimated at 480,000 ounces. Kachina has undertaken a number of geological surveys of the property, including assays which indicate gold resources ranging between 2.5 grams to 34 grams per ton of ore at the claim sites. Kachina intends to implement a phased development approach that will encourage short-term production gains while laying the groundwork for sustained long-range production improvements.
In Phase I of the plan, already underway, Kachina will begin commercial production on the property. Currently at approximately 150 ounces per week, the Company expects to increase production to 300 ounces per week over the next three months. To facilitate this ramp-up in production, Kachina has brought in heavy extraction equipment, and is planning to bring in an additional backhoe and loader to increase mining volume. Kachina is also establishing an on-site mill for processing of gold ore.
Phase II of the strategic plan involves initiating production from all of the fourteen claims into production, with a target of 8,000 ounces per annum. Phase III expansion will explore deeper pay zones in the claims concurrent with more intensive mining efforts for a target of 32,000 ounces in annual production.
"With this balanced growth strategy, we are confident that Kachina will be able to deliver rapid and continued expansion of gold production from the Mohave County property," stated Robert M. Gaither, President of Kachina Gold. "We are excited to inform our shareholders that progress is continuing well ahead of schedule. With additional heavy equipment and infrastructure improvements on the property, we anticipate entering Phase II of production earlier than anticipated".
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 contemporary 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.