TOPEKA, Kan., Nov. 1, 2005 (PRIMEZONE) -- Kachina Gold Corporation (Pink Sheets:KCHG), an emerging junior gold exploration and production company, announced today that it has just completed its first sale of gold commercially mined from its Mohave County, Arizona property. The sale of this gold represents the first revenues for the Company, and signals entrance into a critical phase in corporate development for Kachina Gold Corporation.
The Company has already entered the production phase in its Mohave County properties and is currently producing upwards of 150 ounces per week. 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 $1.7 million at current gold prices. Over the intermediate term, Kachina expects that production will reach 8,000 ounces per year.
"This first sale of commercially produced gold represents a crucial development in the expansion of Kachina's business, and will serve to validate the strategic plan that we have undertaken over the last year," noted Robert M. Gaither, President of Kachina. "With the recent ramp-up in production from the Mohave County property, we expect this to be the first of regular commercial sales that will produce meaningful revenues in its first phase of production operations. With gold prices now near eighteen year highs, the timing of this commercial production and sales could not be better for Kachina or its shareholders," he stated.
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 to extract approximately 1 ton a year -- or $14.8 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.