Emgold Updates Gold Exploration Activities at its Buckskin Rawhide Property, Nevada
31 January 2012 - 12:00AM
Marketwired Canada
Emgold Mining Corporation (TSX VENTURE:EMR)(OTCBB:EGMCF)(FRANKFURT:EML)
("Emgold" or the "Company") is pleased to provide an update of its surface
exploration activities at the Buckskin Rawhide Property (the "Property"),
located about 40 miles south of Fallon, Nevada. Since acquiring the Property,
Emgold has made two important discoveries: the Black Eagle High Grade Vein
Target and the Chicago Mountain Bulk Disseminated Target.
Results of recent surface mapping and rock chip sampling show:
-- the Black Eagle Fault (which contains the Black Eagle High Grade Vein
Target) has potential for additional high grade vein and bulk
disseminated gold and silver mineralization;
-- a new fault has been discovered and sampled which also shows potential
for both high grade vein and bulk disseminated gold and silver targets
associated with this fault; and
-- additional rock chip sampling confirms historic sampling results for the
Chicago Mountain Bulk Disseminated Target.
The Buckskin Rawhide Property is comprised of 52 unpatented claims totaling
1,040 acres, of which 46 claims are currently under a lease and option to
purchase agreement with Nevada Sunrise LLC, a private company. Six additional
claims were staked by Emgold. The Property is located in the Rawhide Mining
District and is situated adjacent to Pilot Gold Inc.'s Regent gold-silver
property and to Rawhide Mining Company's Rawhide Mine.
The Buckskin Rawhide Property is a volcanic-hosted, structurally controlled,
epithermal gold-silver prospect in the Walker Lane gold belt of western Nevada.
The Walker Lane is a regional shear zone and known gold trend that hosts large
and small historic and currently operating gold-silver mines, including mines of
the Comstock Lode, Tonopah District and Rawhide District. Buckskin Rawhide
geology and mineralization are associated with lithologic units and structures
of the Rawhide caldera, as well as structures from the Walker Lane and Basin and
Range.
Black Eagle High Grade Vein Target
Kennecott Minerals conducted surface sampling along the Black Eagle Fault, a
north-south trending structure situated on the west side of Emgold's claim
block, between years 1996 and 2002. Kennecott was exploring for bulk
disseminated gold deposits similar to the one found at the adjacent Denton
Rawhide Mine (now called the Rawhide Mine), which was being operated by
Kennecott Rawhide Mining Company at that time. They assayed a total of 125 rock
chip and grab samples over a strike length of 5,700 feet in the area of Black
Eagle Fault. The average grade of those samples was 0.031 ounces per ton gold.
Kennecott also drilled 36 reverse circulation holes in the area along the Fault,
with 20 of those holes showing gold anomalies greater than 0.005 ounces per ton.
However, Kennecott was not looking for high grade gold associated with the Black
Eagle Fault. The methods and quality control from Kennecott's historic sampling
are unknown and cannot be verified under NI 43-101, and should not be relied
upon for investment purposes, but the results are useful guides for further
exploration.
Prior to acquiring the Property, Emgold's geologists recognized the potential
for high grade vein targets along the Black Eagle Fault, in addition to the
potential for bulk disseminated gold targets. Surface sampling of that structure
by Emgold resulted in the discovery of high-grade gold-silver mineralization
that has been designated the Black Eagle High Grade Vein Target. This Target was
identified by rock chip sampling with gold grades ranging from non-detectable to
9.00 ounces per ton gold and from non-detectable to 17.58 ounces per ton silver
(see Emgold's January 12 and April 20, 2011 press releases) and is interpreted
to be a steep-dipping mineralized shoot. The Black Eagle High Grade Vein Target,
which consists of fault gouge, quartz veins, and silicified wall rocks
overprinted with iron-manganese oxides, is 360 feet in strike length and open to
extension. Potential exists for other high grade shoots along the Black Eagle
Fault and within other faults on the Property.
Emgold's continuing exploration of the Black Eagle Fault involved detailed rock
sampling and geologic mapping of new structures and extensions of previously
mapped faults and veins. Results were positive, with anomalous gold values
ranging from non-detectable up to 0.034 ounces per ton and silver values ranging
from 0.031 ounces per ton to 12.3 ounce per ton in 6 and 12-inch channel samples
of bedrock, structures, and one grab sample from a historic mine dump. Dry
sample weights varied from one to two pounds.
Forty-four additional rock chip samples were taken by Emgold to further explore
the Black Eagle Fault, for a total of 108 surface samples to date, as shown in
Table 1. These include 101 surface rock chip samples of bedrock and structures,
and seven grab samples of historic mine dumps. To date, the total length of the
Black Eagle area sampled to date is 6,000 feet.
Table 1
Comparison of Historic and Emgold Surface Gold Assays in Mineralized Zone
Black Eagle Fault, Buckskin Rawhide Property, NV
----------------------------------------------------------------------------
Company (Date of Work) No. of Samples Average Gold Grade (opt)(i)
----------------------------------------------------------------------------
Kennecott (2000-2002) 125 0.031
----------------------------------------------------------------------------
Emgold (2011) 108 0.275
----------------------------------------------------------------------------
(i) Gold grades are arithmetic averages
A comparison of the average Kennecott sample grades to Emgold's samples on the
Black Eagle Fault, shown in Table 1, indicates that the samples taken by Emgold
are much higher grade than the historic samples. The higher grade has been
identified because Emgold sampled rocks exposed primarily on and adjacent to the
high grade zone, while Kennecott analyzed the targets in the vicinity of that
structure, looking for bulk disseminated mineralization. The data indicate the
potential for discovery of both types of mineralization. The methods and quality
control from the historic sampling are unknown and cannot be verified under NI
43-101. Confirmation drilling will need to be completed to confirm the
reliability of historic data.
Emgold's most recent geologic mapping of the area near the Black Eagle Fault
also resulted in the discovery of a new fault. Eight channel samples, each
12-inches in length, of bedrock and structures taken at and near the new fault
showed low grade anomalous gold mineralization, with values ranging from less
than 0.001 to 0.019 ounces per ton gold. Silver values ranged from 0.049 to 2.73
ounces per ton. The Black Eagle High Grade Vein Target was previously disclosed
by Emgold in news releases of January 12 and April 20, 2011.
Chicago Mountain Bulk Disseminated Target
Geologic mapping and surface sampling, conducted by Emgold at Buckskin Rawhide,
also continued on the eastern half of the Buckskin Rawhide claim block in the
Chicago Mountain Bulk Disseminated Target where the Company previously
discovered a low grade bulk disseminated gold exploration target that is exposed
at surface (see Emgold news release dated October 4, 2011). Nine additional rock
chip samples were taken as further confirmation sampling of historic sampling,
for a total of 15 Emgold rock chip samples to date. Results are summarized in
Table 2 below. Total samples taken in this mineralized zone, including historic
samples, is now 120.
The Chicago Mountain Bulk Disseminated Target is an area approximately 4,000
feet in length and 400 feet in width situated on the eastern half of the
Buckskin Rawhide claim block, with gold mineralization at the surface. Several
companies conducted reconnaissance exploration programs in this area between the
years 1996 and 2002. Of the 416 surface samples taken of rock outcrops in the
area between Buckskin Mountain and Chicago Mountain, 105 samples defined an
anomalous northwest-trending mineralized zone with grades ranging from 0.003
ounce per ton gold to higher grades of over 0.06 ounces per ton gold in the
center of the zone. The methods and quality control from the historic sampling
are unknown and cannot be verified under NI 43-101. However confirmation
sampling by Emgold to date confirms the historic values, as shown in Table 2
below.
Table 2
Comparison of Historic Surface Gold Assays in Mineralized Zone
Chicago Mountain Area, Buckskin Rawhide Property, NV
----------------------------------------------------------------------------
Company (Date of Work) No. of Samples Average Gold Grade (opt)
----------------------------------------------------------------------------
Cordex (1996) 10 0.019
----------------------------------------------------------------------------
International (1997) 45 0.014
----------------------------------------------------------------------------
Kennecott (2000-2002) 50 0.068
----------------------------------------------------------------------------
Overall Average 105 0.040
----------------------------------------------------------------------------
Emgold (2011) 15 0.020
----------------------------------------------------------------------------
Gold grades are arithmetic averages
Kennecott Minerals also conducted reverse circulation drilling during that
period of time, with results indicating the presence of gold mineralization from
the surface to depths of 165 feet. The methods and quality control from the
historic sampling are unknown and cannot be verified under NI 43-101.
Confirmation drilling will need to be completed to confirm the reliability of
historic data.
Note that sample results on the Buckskin Rawhide Property are preliminary in
nature and are not conclusive evidence of the likelihood of the occurrence of a
mineral deposit. However, the results do justify further exploration of the
Property, including additional mapping and sampling. In addition, core and
reverse circulation drilling for both the Black Eagle High Grade Vein Target and
Chicago Mountain Bulk Disseminated Target is recommended. Emgold is currently
developing plans and budgets for this work, as well as permitting this activity.
Emgold's Quality Assurance and Quality Control Program
Emgold's quality assurance program and quality control measures at Buckskin
Rawhide were described in the press release dated October 4, 2011 and pertain to
all samples taken on the property. Quality control measures started with
representative sampling, proper numbering, and accurately locating samples in
the field both visually on maps and also with a GPS instrument. Samples were
transported by the geological staff from the field to Emgold's office-warehouse
facility to assure secure storage, and were then packaged for shipment to the
assay laboratory. Samples were shipped via commercial carriers directly to
American Assay Laboratories in Sparks, Nevada, for analysis. All dry sample
weights varied from one to two pounds.
Emgold's Qualified Person visited American Assay Laboratories in February 2011
to review the general sample handling and preparation measures, and felt they
were adequate. The assay laboratory catalogued all samples, maintained complete
chain of custody throughout the analytical process, and electronically mailed
the chain of custody forms to Emgold for review prior to initiating sample
preparation. All sample preparation was done at the laboratory by their staff.
As part of their quality assurance, the laboratory incorporated assaying
standards, test blanks, and duplicate analyses of samples, and included those
results in final reports. The final signed reports completed the chain of
custody process. Thus far, no factors have been encountered in sampling programs
conducted by Emgold on the Buckskin Rawhide property that would materially
affect the accuracy or reliability of Emgold's sample data.
American Assay Laboratories, Inc. of Sparks, Nevada, an independent and properly
certified laboratory, conducted the laboratory analyses of Emgold's samples.
Samples taken by Emgold were analyzed using standard fire assaying and ICP
methods. Mr. Robert Pease, Chief Geologist of the Company and a Qualified Person
as defined in National Instrument 43-101, participated in and directly
supervised the sampling program and interpreted historic data. He has read and
approved the scientific and technical information in this press release.
Emgold's President, Dave Watkinson, stated, "The results continue to indicate
the potential for both high grade vein target and low grade bulk disseminated
target discoveries on the Buckskin Rawhide Property. Additional exploration is
warranted. The exploration potential, along with the property's unique strategic
position, makes this an asset with increasing opportunity for the Company."
To view the Figure associated with this release, visit
http://media3.marketwire.com/docs/emr130_F1.pdf.
Information Regarding Emgold
Emgold is currently in the advanced stage of permitting the Idaho-Maryland
Project, located in Grass Valley, CA. The Idaho-Maryland Mine was once the
second largest underground gold mine in California and is reported to have
produced 2.4 million ounces of gold at an average recovered grade of 0.43 ounce
per ton. Emgold has a number of earlier stage exploration properties including
the Buckskin Rawhide Property in Nevada, the Stewart Property and the Rozan
Property in British Columbia. For more information about Emgold, the
Idaho-Maryland Gold Project and the Buckskin Rawhide, Stewart, and Rozan
Properties, please visit www.emgold.com. Company filings are available at
www.sedar.com.
On behalf of the Board of Directors
David G. Watkinson, P.Eng., President & CEO
This release was prepared by the Company's management.
This news release includes certain statements that are "forward-looking
statements" within the meaning of applicable securities laws including
statements regarding the Company's planned work programs, expected results and
potential mineralization and resources on the Buckskin Rawhide Property.
Forward-looking statements are based on certain assumptions of the Company,
including that the Company has adequate capital to fund its proposed exploration
programs, that actual results of exploration and development activities are
consistent with management's expectations, that assumptions relating to mineral
resource estimates are accurate, the assumption that metal prices remain at
current values, and that the Company is able to procure equipment and supplies
for its planned work programs Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include exploration results that are
different than those anticipated, inability to raise or otherwise security
capital to fund planned programs, changes to metal prices, the price of the
Company's shares, the costs of labour, equipment and other costs associated with
exploration, availability of drilling equipment and operators, development and
mining operations, exploitation and exploration successes, continued
availability of capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ materially
from those projected in the forward-looking statements. The Company does not
intend to update or revise any forward-looking information whether as a result
of new information, future events or otherwise, except as required by law. For
more information on the Company, investors should review the Company's filings
that are available at www.sedar.com or the Company's website at www.emgold.com.
U.S. 20-F Registration: 000-51411
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