TORONTO, ONTARIO -- May 30, 2016 / California Gold Mining Inc. ("California Gold" or the "Company") announces new assay results from the Company's recently completed Phase III drill program at its flagship Fremont Project (the "Project") in Mariposa County, California.

 

Vishal Gupta, California Gold's President and CEO, said, "We have now released the complete set of assay results from the infill component of the Phase III drill program at Fremont. We are extremely pleased with the consistency with which the mineralized zone has been intersected on every section of infill drilling during this campaign."

 

Mr. Gupta goes on to say, "The four holes released today were all deep holes drilled substantially below the previous depth of drilling at Fremont. We are delighted that these deep holes have all successfully intersected the same mineralized structure as the shallow holes, demonstrating significant depth extension to the gold-bearing zone. The first resource estimate for the Project is expected to be released in a few weeks. In the meantime, we are excited for the upcoming assay results from the exploratory drilling at some of the newly discovered mineralized zones at Fremont."

 

This press release discusses the assay results and corresponding geological interpretation for four holes of the Phase III drill program, namely DD-15-053, 055, 057 and 060. Highlights from these four holes are displayed in the following table. The plan-view collar locations and interpreted geological cross-sections for all four holes can be viewed in Appendices A and B of this press release, respectively.
 

 

** Notes: Composite grades are length weighted to interval width. Composite true width for DD-16-053 is estimated at 85% of the reported interval. Composite true width for DD-16-055 is estimated at 83% of the reported interval. Composite true width for DD-16-057 is estimated at 97% of the reported interval. Composite true width for DD-16-060 is estimated at 91% of the reported interval.

The Phase III drill program commenced on September 11, 2015 and concluded on March 5, 2016. It consisted of a total of 43 diamond holes, and 12,549 meters of drilling.

Today's announcement brings the total number of Phase III drill holes for which assay results have been publicly released to 31. Assay results for the previously released 27 drill holes were announced on November 9, 2015, November 23, 2015, December 15, 2015, January 18, 2016, February 17, 2016, March 30, 2016, April 27, 2016, and May 9, 2016. Further assay results will continue to be released as they become available.

The Phase III drill program is designed to achieve the following objectives:

- Generation of a maiden resource estimate for the Project covering the main Pine Tree-Josephine mineralized zone

• 31 of the Phase III holes are infill holes in support of the resource estimate

- Testing the down-dip extension of the shear zone in the main Pine Tree-Josephine mineralized zone to a depth of up to 1,000 meters below surface

• Three of the Phase III holes are deep holes

- Testing the mineralization potential of the newly discovered mineralized zones on surface originally discussed in the Company's December 4, 2014 press release

• Nine of the Phase III holes are exploratory holes drilled in the Queen Specimen Succedo and Golden Slope mineralized zones

Discussion of the Phase III Drill Holes

The four holes discussed in this press release are part of the infill drilling segment of the Phase III drill program, focused on providing greater confidence in the geological continuity of the main Pine Tree-Josephine mineralized zone, in order to help generate a maiden resource estimate for the Project.

The results from all currently analyzed Phase III drill holes show strong correlation with the geology documented during the recent Phase I and II diamond, and historic RC, drilling campaigns, and geological analysis of the Pine Tree-Josephine deposit.

A descriptive overview of the geological setting and the various styles of mineralization prevalent at the Project is provided in the Company’s news release dated November 9, 2015.

DD-16-053

Drill hole DD-16-053 was drilled with an azimuth of 240° and an inclination of -70° to a depth of 460.6m.

This hole intersected one important mineralized zone with gold values exceeding 4.4 g/t. A 8.2m interval with an average of 4.43 g/t Au was intersected between 362.4m and 370.6m and is associated with sulphide replacement mineralization in ribboned quartz veins within the tectonic melange, and quartz-albite alteration. This interval includes intersections of 1.5m with an average grade of 7.89 g/t Au (362.4m to 363.9m); 1.2m with an average grade of 4.66 g/t Au (365.5m to 366.7m); and 1.5m with an average grade of 6.45 g/t Au (368.2m to 369.7m).

DD-16-055

Drill hole DD-16-055 was drilled with an azimuth of 240° and an inclination of -70° to a depth of 447.4m.

This hole intersected two important mineralized zones with gold values exceeding 0.9 g/t. A 4.3m interval with an average of 0.94 g/t Au was intersected between 335.9m and 340.2m and is associated with fault breccia, and quartz-carbonate veinlets within the tectonic melange. A 1.8m interval with an average of 1.53 g/t Au was intersected between 368.7m and 370.5m and is associated with sulphide replacement mineralization and abundant quartz-carbonate veinlets in Mariposa Formation metasedimentary rocks at the footwall contact of the tectonic melange

DD-16-057

Drill hole DD-16-057 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 396.2m.

This hole intersected two important mineralized zones with gold values exceeding 1.5 g/t. A 4.0m interval with an average of 2.68 g/t Au was intersected between 326.7m and 330.7m and is associated with sulfide replacement mineralization, shearing, and quartz veins in the tectonic melange. This interval includes an intersection of 1.5m with an average grade of 4.05 g/t Au (326.7m to 328.2m). At the footwall contact of the tectonic melange a 6.1m interval with an average grade of 1.59 g/t Au was intersected between 358.1m and 364.2m. This is a zone of fine-grained, blebby, sulphide replacement mineralization associated with fault development, and quartz-ankerite veinlets that have been observed in a similar position in previously analyzed drill holes. This interval includes an intersection of 1.5m with an average grade of 3.15 g/t Au (361.2m to 362.7m).

DD-16-060

Drill hole DD-16-060 was drilled with an azimuth of 240° and an inclination of -57° to a depth of 380.4m.

This hole intersected one important mineralized zone with gold values exceeding 2.5 g/t. A 11.4m interval with an average of 2.70 g/t Au was intersected between 330.9m and 342.3m and is associated with sulphide replacement mineralization and abundant quartz-carbonate veinlets in Mariposa Formation metasedimentary rocks at the footwall contact of the tectonic melange. This interval includes intersections of 2.9m feet with an average grade of 4.03 g/t Au (330.9m to 333.8m); 2.0m with an average grade of 4.40 g/t Au (334.7m to 336.7m); and 0.9m with an average grade of 4.80 g/t Au (341.4m to 342.3m).

The Company has retained the services of SRK Consulting (Canada) Inc., an internationally recognized, independent resource consulting firm, to advise the Company's technical team on overall geological interpretation and to act as an independent umpire on assay results.

Description of Quality Assurance & Quality Control (QA/QC) Procedures

The laboratory being used for assay analyses is American Assay Laboratories Inc. ("AAL") based in Sparks, Nevada (ISO/IEC 17025:2005 Certified).

Prior to transportation of core samples to AAL, all core processing is conducted at the Project site in an enclosed 6,000 sq. ft. office facility. All diamond drill core is logged, photographed and split using core saws. Core from entire holes is being sampled every five feet to compare with the historic RC hole assay intervals. Additionally, sub-samples are being collected within the planned five foot intervals where important geological or mineralization contacts occur to allow better discrimination within the geological model. The minimum sample interval is 1.5 feet.

One half of the split core is transported to AAL by Company employees for prep and analysis. The other half of the core is stored at the Company core storage facility for future inspection and assay verification. All gold analyses of strongly mineralized samples utilize the screened metallics fire (SMF) assay method with a gravimetric finish. At the laboratory, the entire sample is crushed to 90 percent minus ten-mesh. A rotary splitter is used to obtain a 500 gram sample for pulverising. The screened metallics are collected as the plus fraction from a 150-mesh screen at the lab. The plus 150-mesh fraction is fire assayed in its entirety. Two separate one-assay ton fire (1ATF) analyses of the minus 150-mesh fraction are performed and arithmetically averaged. The minus and plus 150-mesh results are then combined for a total screened metallics fire assay.

A full QA/QC program, involving insertion of appropriate blanks and standards is being employed with acceptable results. Generation of QA/QC control charts, and overall independent umpiring of assay results is being conducted by SRK Consulting (Canada) Inc.

Mr. Vishal Gupta, the Company's President & CEO has reviewed and approved this press release. Mr. Gupta is a P.Geo. registered with the Association of Professional Geoscientists of Ontario (APGO), and a Qualified Person (QP) as defined under National Instrument 43-101. The exploration program at Fremont is being conducted under Mr. Gupta's supervision.

About California Gold Mining Inc.

California Gold Mining Inc. is focused on developing its flagship Fremont gold project in Mariposa County, California. The project consists of a land package totaling 3,351 acres of historically producing gold mines. The Fremont Property lies within California's prolific Mother Lode Gold Belt that has produced over 50 million oz of gold historically. The Company purchased the property in March 2013.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of California Gold contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause California Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding planned exploration work on the Company's Fremont Property including the anticipated results and timing thereof. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward looking statements. Any factor could cause actual results to differ materially from California Gold's expectations. California Gold undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Appendix A
Orthophoto of the Pine Tree-Josephine Deposit Showing Locations of Completed and Planned Phase III Drill Holes, and Historic Drill Holes

To view the Orthophoto of the Pine Tree-Josephine Deposit, please click on the following link:
http://www.fscwire.com/sites/default/files/NR/711/11114_caliimage1.jpg

Appendix B
Interpreted Geological Cross-Sections Depicting Down-Hole Traces
For Completed Phase III Drill Holes, and Historic Drill Holes

DD-16-053 & DD-16-057

To view DD-16-053 & DD-16-057, please click on the following link:
http://www.fscwire.com/sites/default/files/NR/711/11114_caliimage2.jpg

DD-16-055 & DD-16-060

To view DD-16-055 & DD-16-060, please click on the following link:
http://www.fscwire.com/sites/default/files/NR/711/11114_caliimage3.jpg

For further information contact:

Vishal Gupta
President & CEO
647-977-9267 x333
Website: www.caligold.ca