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Piedmont Mining Signs Letter of Intent on Gold Discovery at Morgan Pass
RENO, Nev.-(Business Wire)-May 20, 2008 - Piedmont Mining Company, Inc. (OTC BB: PIED) today announced the signing of a Letter of Intent with Nevada Eagle Resources LLC, a wholly owned subsidiary of Gryphon Gold Corporation (TSX: GGN), to enter into an 'exploration agreement with option to form joint venture' on a gold discovery by Duval International in 1985 at Morgan Pass, approximately 12 miles southwest of Wendover in Elko County, Nevada. This property consists of 22 claims covering an area with massive jasperoid outcrops and gold assays of up to 4.3 ppm (0.13 ounces per ton) of gold in surface samples. Duval drilled 24 shallow holes on this property in 1985 and 1986. Gold mineralization assaying more than 0.3 ppm (0.01 ounces per ton) of gold was found over sample intervals of 20 to 330 feet in 17 of the drill holes. These holes were located along a two-mile long zone trending northeast. They also reported a 5-foot intercept assaying 8.1 ppm (0.236 ounces per ton) of gold and a 45-foot intercept assaying 2.33 ppm (0.068 ounces per ton) of gold.
In early May 2008, 14 rock chip samples were collected from various jasperoid outcrops on the claim block. All of them have returned anomalous gold assays, with over half of the assays showing from 0.4 ppm (0.01 ounces per ton) of gold up to 4.3 ppm (0.13 ounces per ton) of gold. This gold mineralization is hosted in brecciated jasperoids replacing Paleozoic limestones. The geology and past work on the property confirm Carlin-type mineralization and many characteristics of the mineralization at the Pequop - Long Canyon gold discoveries 28 miles to the northwest.
This property is currently located within a 'Wilderness Study Area', but the Bureau of Land Management has recommended that the area be released from wilderness study and placed instead into a 'Multiple Use' category because of its proximity to an active U.S. Air Force training area and a large operating limestone quarry and its mineral potential.
A formal agreement will be entered into upon release of the property into Multiple Use status. At that time Piedmont will then undertake a work commitment of $750,000 over a five year period to earn a 51% interest in the property and the project, or up to 70% upon completion of a bankable feasibility study. In the meantime, this property will have very low holding costs and the property payments and holding costs will be creditable against the work commitment.
Piedmont is an exploration-stage company, exploring for gold and silver in Nevada. It has entered into agreements with experienced and respected exploration groups on 7 properties in Nevada. It participates through funding exploration costs utilizing highly skilled people only on an as needed basis thus minimizing G&A costs. It can drop properties that don't meet expectations. The Company's Common Stock is traded on the OTC Bulletin Board under the symbol: PIED.
FORWARD-LOOKING STATEMENTS: "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements relating to the company's business activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations about the Company's business. Words such as expects, anticipates, intends, plans, believes, estimates and similar words and expressions are intended to identify such forward-looking statements. These statements involve risks that are difficult to evaluate. Actual results can vary from descriptions herein due to many factors including changes in metal prices and business conditions; changes in laws and regulations; problems encountered in exploration and obtaining permits; changes in the competitive environment; technological advances; shortages of skilled workers, drill rigs and equipment; the need for additional capital and other risks listed in the Company's Securities and Exchange Commission filings under "risk factors" and elsewhere. Forward-looking statements speak only as of the date they were made. The Company does not undertake any obligation to update forward-looking statements.
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