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Magnum Goldcorp Inc
Symbol MGI
Shares Issued 37,248,195
Close 2016-08-25 C$ 0.08
Market Cap C$ 2,979,856
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Magnum Goldcorp starts exploration at LH

2016-08-29 10:28 ET - News Release

Mr. Douglas Mason reports

MAGNUM GOLDCORP ANNOUNCES EXPLORATION PROGRAM FOR ITS LH GOLD EXPLORATION PROPERTY, B.C.

Magnum Goldcorp Inc. has commenced its planned exploration program on its LH gold exploration property. The LH property consists of 19 contiguous Crown-granted claims and four mineral claims. The LH property is located approximately seven kilometres south of Silverton, B.C., on the east side of Slocan Lake. Access to the LH property is via Highway 6 for two kilometres south of Silverton and then via Red Mountain Road for two kilometres and a four-wheel-drive road along Fingland Creek for five kilometres.

The first phase of the proposed exploration program (which is currently under way) will consist of a ground geophysical program comprising a combined self-potential, magnetometer and horizontal-loop electromagnetic survey. The self-potential survey has been completed, which included: 1) several infill lines on the east flank of the Ridge zone and 2) several lines over the surface projection of the LH underground workings to further develop the target for future drilling. The subsequent field program (expected to commence in the fall) is intended to further evaluate significant gold results documented to date, arising from interpretation of recently compiled geological and geochemical data, including results from the 2012 drill program completed by International Bethlehem Mining Corp., ground geophysics in 2014 (self-potential and induced-potential surveys), as well as the 2014 and 2015 drill programs as completed by Magnum.

In June, 2014, an initial self-potential survey was completed along the existing exploration trail network to make an initial evaluation of the area of interest (the Crown grants) in advance of the 2014 drill program. The survey identified two conductive anomalies of interest. The first anomaly is located on the baseline immediately south of Line 8N, with the second anomaly located slightly west of the baseline and north of Line 6N. Initial modelling of the second anomaly was interpreted to suggest the anomaly is located at a depth of approximately 52 metres below surface.

Additional self-potential data were acquired along several grid lines to supplement the data from the 2014 survey. Two prominent anomalies identified on the trail network, both immediately west of the baseline, are interpreted to represent a linear zone along the east flank of the Ridge zone, west of Fingland Creek. Additional data were acquired along lines 6N, 7N and 8N, as well as along a portion of the baseline, to further evaluate this interpretation.

In addition, self-potential data were collected along five lines in the immediate vicinity of the LH underground workings. The lines were proposed to cross over the surface projection of the underground workings, developed along one (or more) interpreted mineralized zone(s), oriented essentially east-west and dipping moderately to steeply to the north (see news release dated Aug. 18, 2015). Acquisition of self-potential data along the two upper lines was limited to the area south of the underground workings due to the presence of cliffs. Two lower lines extend across, and beyond, the surface projection of the underground workings. The fifth, and lowest, line is located approximately 75 metres west of the lower portal to evaluate the potential for the mineralized zone(s) within the underground workings extending farther west and/or the anomalous zone on the east flank of the Ridge zone extending farther north. The data are currently being evaluated.

The subsequent combined magnetometer/horizontal-loop electromagnetic survey will commence shortly, intended to further evaluate the mineralized zone(s) associated with the underground workings. The combination of the results from the three separate and distinct geophysical methods is expected to establish the subsurface extent and continuity of the mineralized zone(s) in the underground workings and, therefore, provide greater confidence in locating, and targeting, the drill holes in the subsequent drill program.

By way of background, a combined induced potential/magnetometer survey was also completed on the LH property during 2014, comprising approximately 8.3 line kilometres (see news release dated Aug. 26, 2014). Results from the magnetometer survey confirmed the presence of the two anomalies described above, as being two components of a much larger anomaly. The main portion of this magnetic anomaly lies to the south of line 6N and southwest of the existing road network.

A review of previous results, particularly historical results from the LH underground workings and results from the 2012, 2014 and 2015 drill programs, is interpreted to suggest that moderately to strongly anomalous gold values are associated with intervals having strong pyrrhotite-plus-or-minus-arsenopyrite mineralization. As pyrrhotite is both magnetic and strongly conductive, a coincident self-potential (conductive) or magnetic anomaly is interpreted to indicated the presence of elevated pyrrhotite content, potentially with elevated gold values.

The magnetic anomaly (described above) is part of a trend of at least six similar anomalies, ranging from 34 metres in diameter to an elongated anomaly 82 metres wide by a minimum of 170 metres in length, extending approximately 600 metres south-southwest by 85 metres wide. The first self-potential anomaly (described above) represents the northernmost portion of this well-developed, strongly magnetic string of anomalies. Therefore, the magnetic anomaly, with a coincident self-potential anomaly at the northernmost extent, represents a high-priority drill target, particularly since a large portion of the anomaly identified has not been tested by any previous holes.

This news release has been reviewed and approved by Rick Walker, PGeo, who is acting as the company's qualified person for the LH property project, in accordance with regulations under National Instrument 43-101.

We seek Safe Harbor.

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