TOPEKA Kan., Nov. 8, 2005 (PRIMEZONE) -- Kachina Gold Corporation, an emerging junior gold exploration and production company, is pleased to announce the beginning of infrastructure work that will enable opening new claims into production and expanding output. While the current production is concentrated in a single claim, this expansion of underlying infrastructure in conjunction with successful test mining, will allow the Company to begin bringing additional claims into producing status. The work, which includes an expansion of the on-site road network, is expected to last approximately 90 days, after which the Company can bring additional equipment on-site and begin production at the first new claim.
Currently, Kachina is extracting gold from only one of fourteen claims on the property, containing estimated total reserves of up to 480,000 ounces. Current production on the property is approximately 150 ounces per week; with the work to bring additional claims into production, the Company expects that it will be able to ramp production to approximately 4,000 ounces per year over the near term.
"We are pleased to inform our shareholders of our ongoing efforts to bring the entire Mohave County property in production, and believe that this current infrastructure work will enable us to dramatically increase revenues and gold production," stated Robert Gaither, President of Kachina. "This recent work represents the beginning of an ongoing effort to increase production at the Mohave County property."
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.