Emgold Doubles Size of its Koegel Rawhide Gold-Silver Property, Nevada
16 February 2012 - 4:13AM
Marketwired Canada
Emgold Mining Corporation (TSX VENTURE:EMR)(OTCBB:EGMCF)(FRANKFURT:EML) (the
"Company" or "Emgold") is pleased to announce that it has staked 17 additional
unpatented mining claims and doubled the size of its recently acquired Koegel
Rawhide Gold Property ("Property") in Nevada. The additional claims, totaling
340 acres, increase Emgold's total property holdings at Koegel Rawhide to 36
unpatented claims and 720 acres. The new claims cover prospective areas south
and east of Emgold's existing Koegel Rawhide Property, as shown in the attached
figure, http://media3.marketwire.com/docs/emr0215.pdf.
The Koegel Rawhide Property is located approximately 40 miles southeast of
Fallon in the Rawhide Mining District and five miles southwest of the Rawhide
Mine, which is operated by Rawhide Mining Company. The Rawhide Mine, formerly
operated by Kennecott Minerals, is reported by Kennecott to have produced 1.47
million ounces of gold and 11.7 million ounces of silver from the years 1988 to
2005. The Property is situated six miles south of the Pilot Gold Corporation's
Regent Property and four miles south of Emgold's Buckskin Rawhide Property.
The Koegel Rawhide Property, situated in the Koegel Hills, contains a
volcanic-hosted epithermal gold-silver exploration target with geology similar
to the nearby Rawhide Mine. Potential exists at for both high grade vein
mineralization and low grade bulk disseminated mineralization. Note that the
location of the Koegel Rawhide Property in the vicinity of Rawhide Mine and
other nearby exploration properties does not mean that a resource will be
identified on the Property. However, the presence of similar geology and
mineralized structures to those located on the Buckskin Rawhide, Regent, and
Rawhide properties and historic mine workings in the area are favorable
indicators for the potential of discovery.
Nineteen of the 36 unpatented mining claims at Koegel Rawhide, totaling 380
acres, are currently under a lease and option to purchase agreement (the
"Agreement") with Jeremy C. Wire, the registered owner. As per the Agreement,
any new claims staked by Emgold that fall within a 0.5 mile radius of the claims
listed in the Agreement will be subject to a 2 percent Net Smelter Royalty,
should commercial production ever occur from the claims. Emgold retains the
right to purchase this royalty for $1 million, less any advance royalty payments
made to Mr. Wire as part of the Agreement.
This acquisition increases the size of Emgold's strategically located
gold-silver properties in Nevada. Emgold now controls 109 unpatented mining
claims, totaling 2,180 acres, in Mineral County and in the vicinity of Rawhide
Mine. These claims were either staked by the Company or are under lease and
option to purchase agreements with Nevada Sunrise LLC or Jeremy C. Wire, as
outlined in previous Emgold press releases.
David Watkinson, President and CEO of Emgold stated, "We are very excited about
the potential of the Koegel Rawhide Property, especially given its vicinity to
our Buckskin Rawhide Property, the Regent Property, and the Rawhide Mine. These
additional claims help consolidate our land position in the area and provide
increased opportunity for discovery."
Background on Koegel Rawhide Property
The Koegel 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. Koegel Rawhide geology
and mineralization are associated with lithologic units and structures of the
Rawhide volcanic center, as well as structures from the Walker Lane and Basin
and Range.
Geologic mapping by Charles P. Watson, a consulting geologist, in the years
1991-1992, indicates the area is covered mostly by Tertiary (Pliocene) age
intermediate volcanic rocks including andesitic tuff breccias, sills and dikes.
The volcanic units have been folded into minor anticlines and faulted. Faults of
several orientations occur on the Property with north, northwest and northeast
trends. Hydrothermal alteration (clay and silica) is present and is associated
with structures and mineralization.
Gold and silver mineralization is present at Koegel Rawhide based on historic
randomly spaced surface sampling. A total of 464 samples were taken in
geologically derived locations by consulting geologist Charles P. Watson in the
years 1991-1992. The results of the historic grab samples ranged from
non-detectable to 2 ounces per ton gold, and from non-detectable to 11 ounces
per ton silver. The methods and quality control from the historic sampling are
unknown and cannot be verified under NI 43-101, but the results are considered
reliable for exploration purposes.
Emgold plans initially to complete surface rock and soil geochemical sampling
programs on the Property with the goal of ultimately developing drill targets.
Historic sampling on the property will be analyzed as an initial guide for
exploration. Funds are in place for this work.
Mr. Robert Pease, Chief Geologist of the Company and a Qualified Person as
defined in National Instrument 43-101, has reviewed and approved the scientific
and technical information in this press release.
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 Koegel 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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