TOPEKA, Kan., Oct. 27, 2005 (PRIMEZONE) -- Kachina Gold Corporation (Pink Sheets:KCHG), an emerging junior gold exploration and production company, announced today the results of its ongoing development of commercial gold mining operations from its Mohave County, Arizona property. Kachina has already undertaken production at this property and is currently producing approximately 150 ounces per week. The Company has completed all of the necessary infrastructure improvements and brought in heavy extraction and processing equipment, which will enable it to meet these Phase I production goals.
Based upon these initial production results, Kachina expects that it will be enter Phase II of production, with production from all fourteen claims on the property, earlier than anticipated. The Company expects gold reserves on the claims to hold for the next fifteen years, and anticipates that its share of production over the near term will amount to approximately 4,000 ounces valued at $1.8 million at current gold prices. Over the intermediate term, Kachina expects that production will reach 8,000 ounces per year.
"We have been pleased with the exceptional results of our initial operations at the Mohave County property, and feel that this is a very busy and exciting time for the Company and its shareholders," said Robert M. Gaither, President of Kachina. "The many recent developments within the Company illustrate management's leadership and commitment to success within the red-hot gold industry."
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 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 it will be able to extract approximately 1 ton a year- or $15 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.