Emgold Commences 2012 Exploration Program Stewart Property, B.C. and Announces Update to Buckskin Rawhide Transaction
27 November 2012 - 8:23AM
Marketwired Canada
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR
AUTHORIZED DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
Emgold Mining Corporation (TSX VENTURE:EMR)(OTCQB:EGMCF)(FRANKFURT:EML)
("Emgold" or the "Company") is pleased to announce it has obtained an
Exploration Permit and is commencing its 2012 Exploration Program ("the
Program") on its 100 percent owned Stewart Property ("the Property"), located in
southeastern British Columbia. The Stewart Property is a poly-metallic property
located in the Nelson Mining District and approximately 7 kilometres north of
the town of Salmo. The Property consists of 28 contiguous mineral tenures
(claims) covering an area of 5,789 hectares.
The Property is in a large north-south geologic trend containing occurrences of
gold, silver, molybdenum, tungsten, and other mineralization. It was acquired by
Emgold in 2001. Exploration work by Emgold has included soil and rock chip
sampling, trenching, geophysics, and diamond drilling focused primarily on the
Stewart Moly Zone, Arrow Tungsten Zone, Craigtown Creek Gold Zone, and the Free
Silver Zone. In total, historic work and work done by Emgold since acquiring the
Property includes 91 diamond drill holes totaling 12,294 meters.
Emgold plans to complete soil sampling, geophysics, and diamond drilling to test
a series of prospective gold, silver, and poly-metallic exploration anomalies
identified by previous exploration programs on the Property. Drilling will
commence on the Free Silver Zone, a previously undrilled exploration target
sampled by Emgold in 2004. Wade Critchlow Enterprises Ltd has been contracted to
conduct the diamond drilling. The Company also plans to contract Geotech Ltd. to
conduct a V-TEM electro-magnetic geophysics study on the Property. This survey,
combined with a geophysics survey conducted by Fugro Airborne Surveys in 2003
(see Emgold's December 16, 2003 press release), will complete aerial geophysics
coverage on the entire Stewart claim block.
The Free Silver area consists of a cluster of historic showings, located in the
southeast portion of the Property. The original Free Silver Claims were staked
in 1896 and prior work on the claims consisted of small trenching programs in
1906 and 1915. In the Free Silver area, a number of parallel to sub-parallel
veins occur at the contact of volcanic rocks with a quartz monzonite porphyry.
The veins vary from 0.1 to 3.0 metres wide and trend in an east-west direction
and dip steeply. Mineralization varies from massive pyrite-pyrrhotite to galena
with subordinate pyrite and sphalerite. Minor molybdenite is reported locally
within the veins. Sylvanite can be found in calcite filled vugs in an andesite
host (occurring as a xenolith in monzonite) and is associated with trace amounts
of chalcopyrite and galena.
Significant assay results from Emgold's 2004 grab and rock chip sampling program
at the Free Silver area are tabulated below. Nineteen out of a total of 29
samples had grades ranging from 1.1 to 641 gram per tonne silver, with
significant lead, zinc and copper values. Ten of the 29 samples had grades less
than 1 gram per tonne silver and are not considered to be significant results
and are therefore not included in the table. The samples were taken in an area
approximately 1,000 metres wide by 3,000 metres long.
Table 1
Grab and Chip Sample Results
Stewart Free Silver Zone
----------------------------------------------------------------------------
Sample Silver Lead Zinc Copper
Number Sample Type (g/t) (%) (%) (ppm)
----------------------------------------------------------------------------
FS-1 Grab 270.0 0.72 0.27 2,848
----------------------------------------------------------------------------
FS-2 Grab 3.1 0.00 0.03 939
----------------------------------------------------------------------------
FS-4 Grab 6.2 0.01 0.03 75
----------------------------------------------------------------------------
FS-5 Grab 11.0 0.38 0.11 1,739
----------------------------------------------------------------------------
FS-6 3 metre chip 41.2 1.52 25.99 183
----------------------------------------------------------------------------
FS-7 1 metre chip 114.1 8.78 2.19 217
----------------------------------------------------------------------------
FS-8 Grab 2.6 0.04 0.03 155
----------------------------------------------------------------------------
FS-9 Grab 75.6 2.83 0.41 60
----------------------------------------------------------------------------
FS-10 Grab 8.0 0.53 0.96 95
----------------------------------------------------------------------------
FS-11 Grab 218.0 14.92 16.55 3,212
----------------------------------------------------------------------------
FS-12 1 metre chip 109.0 10.74 0.81 438
----------------------------------------------------------------------------
FS-13 Grab 641.0 15.39 0.41 3,147
----------------------------------------------------------------------------
FS-14 Grab 1.1 0.07 0.05 129
----------------------------------------------------------------------------
FS-15 Grab 38.0 1.81 0.18 1,849
----------------------------------------------------------------------------
FS-22 2.5 metre chip 20.6 0.77 3.34 80
----------------------------------------------------------------------------
FS-23 Grab 305.0 18.30 8.21 84
----------------------------------------------------------------------------
FS-24 Grab 362.0 15.39 25.89 303
----------------------------------------------------------------------------
FS-25 Grab 3.9 0.12 0.15 139
----------------------------------------------------------------------------
FS-26 Grab 67.1 5.54 4.51 270
----------------------------------------------------------------------------
(i) Samples FS3, FS16, FS17, FS18, FS19, FS20, FS21, FS27, FS28, and FS29
had no significant values.
Work in 2004 was completed under the supervision of Ms. Linda Dandy, P.Geo. of
P&L Geological Consultants Ltd. Ms. Dandy, P.Geo. was the "Qualified Person" for
the purpose of National Instrument 43-101. Chip samples were taken as continuous
samples collected perpendicular to bedding or mineralizing structures wherever
identifiable and consist of numerous 2 to 3 centimetre rock chips to total about
5 kilograms. Grab samples consist of 2 or 3 fist size pieces of rock
representing a certain rock or mineralization type. All sample sites were marked
with fluorescent flagging marked with the sample number. Samples were placed in
poly bags labeled with the corresponding sample number and were shipped to ACME
Labs Ltd. in Vancouver for analyses. In the laboratory, samples were crushed to
minus 200 mesh and fire assayed for gold, plus geochemically analyzed for 30
additional elements by the ICP method.
David Watkinson, President and CEO of Emgold stated, "Emgold is excited about
the potential of the Stewart Property and we look to expand our knowledge and
understanding of Free Silver and other targets on the Property. We believe there
is excellent potential for discovery."
Update to Proposed Rawhide Transaction
Emgold announces that, further to its news releases dated November 14 and 19,
conditional upon the closing of the issuance of equity securities to Rawhide
Mining LLC described in such news releases, Emgold intends to appoint a nominee
of Rawhide to its board of directors, which would occur subsequent to the
Company's annual meeting, scheduled for December 12, 2012. Subject to such
closing and to acceptance of the nomination by the TSX Venture Exchange, the
appointee is intended to be Marceau Schlumberger, a Director of Rawhide Mining
LLC and the partner of its parent company, Coral Reef Capital.
About Emgold Mining Corporation
Emgold's primary focus is permitting the re-opening of the Idaho-Maryland
Project in California, subject to available financing. The Idaho-Maryland Mine
produced 2.4 million ounces of gold at an average recovered grade of 0.43 ounces
per ton between 1862 and 1956. Once the Environmental Impact Report is complete,
operating permits are obtained, and subject to available financing, the Company
plans to dewater and rehabilitate the historic underground workings, conduct
underground exploration, and ultimately, if exploration is successful, construct
a high grade underground gold operation capable of producing over 200,000 ounces
of gold per year.
Emgold has several other exploration properties located in the western U.S. and
Canada. These include the Buckskin Rawhide and Koegel Rawhide gold properties in
Nevada and the Stewart and Rozan poly-metallic properties in British Columbia
where it is conducting exploration activities. Emgold plans to complete
exploration on these properties with the goal of defining mineral resources.
Qualified Person
Technical information in this press release related to Canadian properties has
been reviewed and approved by Mr. Perry Grunenberg, P.Geo., a Qualified Person
as defined in National Instrument 43-101. Mr. Grunenberg supervises technical
work related to Emgold's Canadian properties. Similarly, technical information
in this press release related to U.S. properties has been reviewed and approved
by Mr. Robert Pease, P.Geo., a Qualified Person as defined in National
Instrument 43-101. Mr. Pease is responsible for supervising the technical work
related to Emgold's U.S. Properteis.
On behalf of the Board of Directors
David G. Watkinson, P.Eng., President & CEO
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. This news release includes certain statements that are
"forward-looking statements" within the meaning of applicable securities laws
including statements regarding the timing of completion of the Final EIR for the
Idaho-Maryland Project, plans to dewater and rehabilitate the underground
workings, the Company's other planned work programs such as the one planned for
the Stewart Property,, exploration potential, expected results, and other
statements. Forward-looking statements are based on certain assumptions that the
City of Grass Valley and its consultants, which require funding by Emgold, will
complete the EIR in a reasonable timeframe, the City of Grass Valley will
certify the EIR as complete, and the City of Grass Valley will approve the
Conditional Use Permit for the mine and approve other entitlements under their
authority. They assume other permitting agencies overseeing the project on a
local, state and federal level will grant the permits needed for mining
construction and operation. They assume that actual results of permitting and
exploration activities by the Company on its various properties are consistent
with management's expectations, that assumptions relating to exploration targets
are accurate, and that necessary financing is available to complete the required
exploration work. They include assumptions about production rates, production
grades, and gold recoveries.
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 the failure to obtain the required permits and approvals,
exploration results that are different than those anticipated, inability to
raise or otherwise secure capital to fund planned permitting, exploration, mine
construction and development, and mine operations. Other risk factors include
changes in metal prices, the price of the Company's shares, the costs of labour,
the cost of equipment, the cost of supplies, actual development and mining
operation successes, exploitation and exploration successes, approvals by
federal, state, and local agencies, permitting delays, legal challenges to
permits, general economic, market or business conditions, and other factors
beyond the control of the Company. 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 to a result of new information, future events or
otherwise, except as required by law.
U.S. 20-F Registration: 000-51411
FOR FURTHER INFORMATION PLEASE CONTACT:
Emgold Mining Corporation
778-375-3106
info@emgold.com
www.emgold.com
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