LAS VEGAS, Feb. 13, 2013 /PRNewswire/ - Palmdale Executive Homes Corp. (OTC Bulletin Board: PMDX) (the "Company") is pleased to announce the following update on its past producing gold property in California acquired in August 2011 by lease and option to purchase.
In December 2012, the Company conducted its initial on-site inspection of the Providence group of mines.
From December 4 to December 8, Mr. Joseph Calpito, the Company's Vice President of Geology, the vendor of the property, a mining consultant with several years of exploration experiences with the Providence and three workers conducted the Company's initial exploration activities on site and discussed future plans.
The Providence consists of 65 acres of real property and 260 acres of Bureau of Land Management ("BLM") mining claims situated on a hillside in Tuolumne County, California, and has the following four mines:
The exploration included the inspections of the following:
|(1)||closed mining shafts on all four mine sites;|
|(2)||the large tailings dump on the Fair Play Mine located approximately half way to the bottom of the property;|
|(3)||the cross-cut tunnel close to the bottom that connects all four mines; and|
|(4)||the Consuelo stamp mill site at the bottom of the property by the creek and the adjacent open area that was used for the mining camp.|
Due to the narrow roads and the significant distance to be travelled, a mining consultant joined the team to provide additional guidance as well as a four wheel quad vehicle to transport people and equipment on the property. Based upon his previous exploration and surveying experiences on the property, he led Mr. Calpito to review several quartz outcrops, approximately 1/3 of the distance down the 1300 foot hillside, which had been documented as a "new discovery" approximately a year and half earlier when the property was staked for the thirteen surrounding BLM mining claims.
As part of the exploration, rock chip samples were taken at the new discovery outcrops and inside the cross-cut tunnel. Several grab/soil samples were taken from the top and the slopes of the Fair Play tailings dump, as historical reports indicate that the dump is heavily mineralized with as much as half an ounce of gold per ton but was previously considered not economically viable before modern technologies.
The samples were sent to ALS Minerals in Reno, Nevada. The results are currently being analyzed and interpreted by Mr. Calpito and will form our next course of actions.
About The Providence Property
The Providence Gold Mine is located approximately 6 miles from the town of Tuolumne which is in the East Belt of the Mother Lode Gold Belt one of the most famous gold regions in California gold mining history. This belt has produced some of the richest gold in the past and produced over 125,000,000 ounces of gold. Experts estimate that the produced gold represent 10% of the remaining gold left underground in the Mother Lode Region. The Mine has been owned by the same family for over two generations. There is an extensive array of very valuable information regarding the early history of the mine including signed declarations and important statements on the mines ability to produce gold ore.
In August 2011, we entered into a three year Mining Lease and Option to Purchase Agreement for 75% of the Providence group of mines - a past producing gold mining property located in Tuolumne County, California. The property consists of 65 acres of real property interests and 13 unpatented mining claims on adjoining 260 acres. Pursuant to the Agreement, we are obligated to expend $150,000 per year of the lease developing the property and make annual advance royalty payments of $50,000 in year one, 50,000 in year two and $60,000 in the final year. We must also pay a net smelter return royalty of 10% during the term of the lease until expiry of the Agreement or the exercise of the option to purchase. The advance royalty payments are credited against any net smelter returns royalties payable during the term year in question. The purchase price of the 75% interest is $2 million in cash plus the ongoing payment of a net smelter return royalty of 2.5% to the seller. If the property option is exercised all lease terms and related obligations expire upon the closing of such sale.
Palmdale is a U.S.-based exploration company, focused on the acquisition and development of gold and other precious commodity projects that are economically viable. Palmdale is a fully reporting company quoted on the OTCBB under the symbol PMDX.
This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to the completion of the Mining Lease and Option to Purchase Agreement.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. These forward-looking statements are made as the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
SOURCE Palmdale Executive Homes Corp.