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Tuesday, August 28, 2012
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TSX Venture Exchange: EMR
U.S. OTCQB: EGMCF
Frankfurt Stock Exchange: EML
U.S. 20-F Registration: 000-51411 |
Emgold Commences 2012 Exploration Program Rozan Property, B.C.
Emgold Mining Corporation ("Emgold") is pleased to announce it has obtained an Exploration Permit and is commencing its 2012 Exploration Program ("the Program") on its 100 percent owned Rozan Property ("the Property"), located in southeastern British Columbia. Emgold has contracted Wade Critchlow Enterprises Ltd to conduct up to 1,600 metres of diamond drilling on the Property. Emgold plans to complete soil sampling and diamond drilling to test a series of prospective gold exploration anomalies identified by previous exploration programs on the Property.
Overview of the Rozan Property
The Rozan Property is a poly-metallic property located in the Nelson Mining District of British Columbia and approximately 10 kilometres southwest of Nelson. The Property consists of 32 mineral claims covering an area of 1,950 hectares. The Property is in a large north-south geologic trend containing occurrences of gold, silver, molybdenum, tungsten, and other mineralization. The Property is west of and adjoining Altair Ventures/Sultan Minerals' Kena Property and southwest and adjoining Anglo-Swiss Resources' Nelson Mining Camp. It is north of Emgold's 100 percent owned Stewart Property. Emgold is currently focused on exploration for gold on the Rozan Property, with a number of prospective gold exploration targets identified.
Recent Exploration on the Rozan Property
The Rozan Property was acquired by Emgold in 2000. Exploration work to date by Emgold has included limited soil sampling, geophysics, and diamond drilling focused primarily on the Main Vein and the Sheeted Vein Zone. Emgold drilled two diamond drill holes totaling 304 metres in 2000.
Previously reported significant drill results included:
- 1.45 gram per tonne of gold over 4.08 metres in hole RZ00-01 (Sheeted Vein Zone), and
- 60.73 grams per tonne gold over 0.25 metres in hole RZ00-02 (Main Zone).
A third hole, 07RZ-01, totaling 107 meters, was drilled in 2007 (Main Zone) but failed to intercept the target (see Emgold press releases dated Dec. 4, 2000 and June 11, 2008).
In January of 2010, Valterra Resource Corporation ("Valterra") optioned the Rozan Property from Emgold. Valterra conducted exploration programs in 2010 and 2011 including compilation of historic data, soil sampling and geophysics. (See Emgold press release dated Jan 25, 2012). Valterra identified a total of 10 gold anomalies on the Rozan Property. A NW-SE trending gold soil anomaly (Target A) extends for some 1.8 kilometres and is up to 200 metres wide Along the surface trace of the Mount Verde fault, there is a strong anomaly (Target B) identified by gold, tungsten, arsenic, and manganese in the soils. The remaining gold soil anomalies are generally NE-SW orientated and are considered related to high grade or sheeted quartz vein gold mineralization (most of which remain unexplained) on the property. The Rozan Property reverted to Emgold in 2012 when Valterra was unable to meet its work commitments.
Emgold Proposed 2012 Work Program
Planned work in 2012 includes surface rock and soil sampling, and diamond drilling. Drilling will include up to 1,600 metres of coring from seven drill pads. Multiple holes may be completed from individual pads. Drill pad locations have been located to test target areas that were defined in the historic exploration, as well as from recent compilations and field work conducted by Emgold and Valterra.
Work will include extending the soil sampling survey as well as rock sampling over areas of elevated soil geochemical survey results. Most of the work will be centered on the main part of the property, which includes the historically mined Main Vein (location of historic underground workings mined by Bill Rozan from 1928-72) and the Sheeted Vein Zone (approximately 700 metres to the east of the Main Vein).
Diamond drilling will target:
- The Main Vein, which is considered open to the north and south and at depth. Up to four drill holes are planned for the Main Vein;
- The Sheeted Vein Zone;
- The West Vein, which appears to have similar characteristics as the Main Vein;
- The Mount Verde Fault that has associated multi-element soil geochemical elevated values; and
- Parts of Target A, which has elevated multi-element soil geochemistry over a distance of 1,800 metres.
The planned drilling program will cover an area of approximately 1,000 metres east to west and 300 metres north to south. Plans are subject to modification in the field based on results.
David Watkinson, President and CEO of Emgold stated, "Emgold is excited about the potential of the Rozan Property and plans to continue exploration of the gold targets identified by Valterra and Emgold in past work programs. We believe there is excellent potential for discovery".
About Emgold Mining Corporation
Emgold's primary focus is permitting the re-opening of the Idaho-Maryland Project in California. 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 Grunenburg, P.Geo., a Qualified Person as defined in National Instrument 43-101. Mr. Grunenburg 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 Persons 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 further information please contact: Tel: 604-687-4622 Toll Free: 1-888-267-1400 Email: info@emgold.com
This release was prepared by the Company's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 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, 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 are funded 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 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. |
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