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California Gold Corp. (CLGL) Starts Mexican Exploratory Drilling Program

California Gold Corp. announced that it has started an exploratory drill program at a mining property in Mexico, which the company believes is prospective for tellurium, gold and silver.

California Gold is involved with the AuroTelurio project, part of an 18,840 acre mining concession located in Sonora, Mexico. The company can earn up to an 80% interest in this project by spending $3 million over four years on the exploration and development of the property.

California Gold said that the AuroTelurio project is situated near the La Bambolla mine, an existing producing mine owned by First Solar (NASDAQ:FSLR). The property produces tellurium, which is used in the manufacturing of solar panels.

The current exploratory drilling program underway by California Gold includes sampling, mapping and trenching of selected areas at the property. After these activities are complete, the company plans to conduct gravity and magnetic geophysical surveys.

California Gold said that if the results of the initial phase of the exploratory drilling program are successful, it plans to initiate a 3000 meter drilling program in the fall of 2011. The program is being conducted by CalGold de Mexico, the company’s Mexican subsidiary.

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