Pediment jumps on gold results from Mexico (August 27, 2007)

Vancouver — A trio of strong drill results from the San Antonio gold project, in Mexico, bumped shares of Pediment Exploration (PEZ-V, PEZFF-O) up as much as 46% last month.

Pediment is drilling the Los Planes target north of its main Colinas deposit at San Antonio and the share price boost was in response to the initial four assay results. Three of the four reverse-circulation (RC) holes hit the Los Planes system. The fourth was stopped short of the target due to difficult ground conditions.

Hole 7, collared in the northwest corner of the explored zone, returned 84.1 metres of 3.79 grams gold per tonne, including 12.2 metres of 19.87 grams gold. The hole was drilled vertically; since the mineralized zone dips 45 west, the true thickness is roughly 60 metres in this section.

Hole 5, spotted 100 metres south along trend from hole 7, intersected 18.3 metres of 2.28 grams gold in an upper zone, and then hit 15.2 metres of 2 grams gold followed by 62.5 metres grading 1.36 grams gold. Since it was drilled at a -50 angle to the east, intersection lengths are near true thicknesses.

Hole 1, another 100-metre stepout to the south, returned 24.4 metres of 1.2 grams gold starting 18.3 metres down-hole, followed by 59.4 metres of 1.58 grams gold in the main zone, starting 90 metres below surface.

Pediment shares saw a boost of as much as 55 before closing at $1.57 per share, up 37.

The Los Planes zone trends almost due north-south, dipping to the west at 40-45. Pediment geologists believe the drilled northerly section is a 100-metre-thick shear zone containing higher-grade sections where gold is associated with sulphide mineralization. The zone remains open to the north and south, and the updip eastern and downdip western boundaries are yet to be determined.

Los Planes mineralization has been traced for 600 metres. The historic Las Colinas gold deposit, which hosts an estimated 340,000 ounces contained gold (not compliant with National Instrument 43-101), lies 500 metres to the south in an off-set portion of the same north-south-trending structural corridor.

Pediment started drilling at Los Planes in May 2007 and pulled four diamond core holes. Due to problems with drill penetration, the company the switched to RC drilling, and has to date completed seven RC holes.

San Antonio is located on the Baja Peninsula, 40 km southeast of the port city of La Paz. Gravel roads and a high-voltage power line traverse the property.

In the late 1990s, Echo Bay Minerals, now Kinross Gold (K-T, KGC-N), explored the Colinas deposit with a 31-hole drill program that gave a resource estimate of 10.6 million tonnes grading 1.02 grams gold. Pediment is drilling the Colinas deposit to expand the historic resource, and bring it into compliance with NI 43-101 standards.