Mexico: La Colorada, Sonora - San Antonio project, Baja California Sur.
Pediment Exploration, our focus is to develop gold assets in Mexico. We are excited that our key assets, the San Antonio project in the Baja and the La Colorada project in Sonora, are moving towards production.
With a very successful drill program and the discovery of a gold zone, we reported our initial inferred mineral resource of 1.45 million ounces of gold at San Antonio. We also acquired La Colorada, a previously producing mine, with a historical resource of 600,000 oz (non NI 43-101 compliant) and high grade vein potential.
We have spent $11 million in the last three years on successful exploration. We have accumulated our resources at an approximate cost of only $3.50 per ounce.
We have a robust treasury of $16 million and have accomplished what all junior exploration companies have set out to do: Find Gold.
With these key developments, a prudent acquisition strategy and several exploration properties, we will continue to create value in our business, and we want you to be part of it.
Pediment's main exploration focus has been principally for gold in Sonora and Baja California Sur, Mexico, because of the region's identified favorable geological environment for large gold deposits (Mesquite mine, La Herradura mine), generally mining supportive governments, reasonable social-rural populations (ejidos and ranches) and excellent widespread infrastructure. Mexico in general has low fuel costs, low labor costs and well trained technical workers available.
For the past three years the company has been very successful in positive asset building including the discovery of a new gold zone. This accomplishment is highlighted by the Los Planes gold zone discovery on the San Antonio project in Baja California Sur.
After an aggressive drill program a NI 43-101 inferred mineral resource of 1.45 million ounces of gold has been established.
In addition to the existing land package the company also acquired the El Triunfo Mineral Reserve which is a past producing district of a gold and silver vein system that has been without exploration for about ninety-five years. It will compliment the San Antonio project with more than eight kilometers of adjacent concession boundaries.
In late 2007 Pediment also acquired for reinterpretation and rediscovery the past producing La Colorada gold silver mine in Sonora. This project includes an existing historic resource of approximately 600,000 ounces of gold (non NI 43-101 compliant), production equipment, offices and additional facilities to produce gold. The La Colorada project is a very large high grade district of epithermal vein zones.
Pediment currently holds twelve fully owned projects and two optioned project and reconnaissance work continues to assess and acquire more. The primary focus of this work has been gold and silver targets with an emphasis on the still evolving "orogenic" deposit model. Orogenic gold deposits are a recently recognized grouping or deposit model type resulting from deposition of gold and/or silver into amenable host rocks by fluids streaming from areas of intrusive activity. This is an important new class, as it includes many of the world's largest gold deposits.