Mr. David Watkinson reports
EMGOLD ACQUIRES ONE HUNDRED PERCENT INTEREST IN EAST-WEST AND TRECESSON PROPERTIES, QUEBEC
Emgold Mining Corp. has completed the acquisition of a 50-per-cent interest in the East-West property and 100-per-cent interest in the Trecesson property, both located in Quebec, from Knick Exploration (KNX). The transaction solidifies Emgold's total interest in the East-West property at 100 per cent.
The transaction was completed as part of a commercial proposal made under the Canadian Bankruptcy and Insolvency Act by Knick with its creditors. The proposal was agreed to by a vote of creditors and subsequently approved by the Superior Court of Quebec, Abitibi District. Emgold paid the trustee $160,000 in return for Knick's interest in the properties. In addition, operations loans totalling $110,000 advanced to Knick are considered as part of the acquisition cost of the East-West property and Trecesson properties by Emgold.
David Watkinson, president of Emgold, stated: "We are extremely excited with these acquisitions, especially the consolidation of ownership of the East-West property. East-West is in the Marbenite shear deformation corridor running through the Val d'Or mining camp, with the operating Kiena mine to the east and the advanced stage Marlaric property to the west. Trecesson is just to the north of Val d'Or. Both properties were drilled by Knick and previous owners have shown significant high-grade gold intercepts -- defined here for the purposes of this press release as assays of drill hole intervals greater than 10 grams per tonne gold over 1.0 metre in length.
About the East-West property
The East-West property is located in the Val d'Or mining camp on trend, west of and adjacent to Wesdome Gold Mines Ltd.'s Kiena complex property, which hosts the producing Kiena mine. The Kiena complex produced more than 2.8 million ounces of gold from 1981 to 2013 and has a permitted 2,000-tonne-per-day milling and refining complex. Wesdome recently announced a positive prefeasibility study prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, for its Kiena mine complex project (see Wesdome's press release dated May 26, 2021, on its website or under that company's corporate filings on SEDAR).
It is also on trend, east of and adjacent to O3 Mining Inc.'s Malarctic property, which contains three past-producing mines (Marban, Norlartic and Kierrans). These mines produced more than 590,000 ounces of gold. O3 Mining announced a positive preliminary economic assessment, prepared in accordance with NI 43-101 for its Marban project, which is part of the Malarctic property (see O3 Mining's press release dated Sept. 8, 2020, on its website or under that company's corporate filings on SEDAR). The Marban project and associated Marban resource are located just to the northwest of the East-West property boundary.
Note that the location of the property adjacent to the Kiena complex or Malarctic properties does not guarantee exploration success or that mineral resources and mineral reserves will be delineated on the East-West property.
Historic drilling done on the property prior to Knick's ownership included 181 drill holes totalling 40,192 metres. Selected significant drill intercepts (intercepts greater than 10.0 grams per tonne gold and with lengths greater than 1.0 metre) on the East-West property from historic drilling prior to Knick's ownership (drilling between 1984 and 1987) include:
13.13 g/t Au over 1.83 m from a depth of 140.21 m to 142.04 m in hole CD-19;
10.73 g/t Au over 1.22 m from a depth of 96.77 m to 97.99 m in hole CD-28;
134.64 g/t Au over 1.68 m from a depth of 145.08 m to 146.86 m in hole CD-55;
51.98 g/t Au over 3.20 m from a depth of 125.27 m to 127.47 m in hole CD-78;
24.75 g/t Au over 1.52 m from a depth of 141.43 m to 142.95 m in hole CD-81;
64.83 g/t Au over 2.75 m from a depth of 137.92 m to 140.67 m in hole CD-149;
226.70 g/t Au over 2.24 m from a depth of 199.03 m to 201.17 m in hole CD-156;
64.36 g/t Au over 1.68 m from a depth of 81.99 m to 83.36 m in hole CD-172.
Selected significant drill intercepts (intercepts greater than 0.5 g/t and lengths greater than 3.0 m) from historic drilling prior to Knick's ownership of the property (drilling between 1984 and 1987) include:
2.26 g/t Au over 5.49 m from a depth of 89.61 m to 95.10 m in hole CD-84-10;
4.09 g/t Au over 4.73 m from a depth of 96.01 m to 100.74 m in hole CD-84-10;
4.14 g/t Au over 3.51 m from a depth of 103.17 m to 106.68 m in hole CD-84-10;
51.98 g/t Au over 3.20 m from a depth of 125.27 m to 127.47 m in hole CD-78;
2.11 g/t Au over 3.96 m from a depth of 103.02 m to 106.98 m in hole CD-79;
1.29 g/t Au over 3.66 m from a depth of 78.94 m to 82.60 m in hole CD-83;
3.60 g/t Au over 5.49 m from a depth of 210.31 m to 215.80 m in hole CD-92;
2.79 g/t Au over 7.01 m from a depth of 26.88 m to 43.89 m in hole CD-111;
1.54 g/t Au over 7.62 m from a depth of 201.32 m to 208.94 m in hole CD-114;
1.03 g/t Au over 4.58 m from a depth of 70.10 m to 74.68 m in hole CD-145;
1.20 g/t Au over 3.05 m from a depth of 106.68 m to 109.73 m in hole CD-150;
3.86 g/t Au over 3.51 m from a depth of 150.72 m to 154.23 m in hole CD-152;
0.86 g/t Au over 3.04 m from a depth of 159.11 m to 162.15 m in hole CD-161;
0.69 g/t Au over 6.09 m from a depth of 128.02 to 134.11 m in hole CD-165;
1.08 g/t Au over 4.12 m from a depth of 208.94 m to 213.06 m in hole CD-169;
1.38 g/t Au over 3.05 m from a depth of 18.59 m to 21.64 m in hole CD-172;
1.14 g/t Au over 4.57 from a depth of 32.92 m to 37.49 m in hole CD-173.
Drilling indicates the potential for both higher-grade mineralization (greater than 10 g/t Au and widths greater than one metre) and lower-grade bulk disseminated mineralization (greater than three g/t and widths greater than three m). Note that no mineral resources or mining reserves have yet been defined on the East-West property. True widths of intervals are unknown.
Work for the historic drilling was done prior to the implementation of National Instrument 43-101 and CIM (Canadian Institute of Mining, Metallurgy and Petroleum) standards of disclosure. No core is available for reassay and quality assurance/quality control procedures are unknown. The drilling results have not been verified by a qualified person and are being treated as historic information. Historic information does provide a guide for future exploration.
Knick acquired the East-West property in 2007. It subsequently conducted three drilling programs. The first consisted of 38 drill holes for a total of 7,228.9 metres drilled in 2009, the second totalled 5,635.4 metres in 33 drill holes drilled in 2011, and the third totalled 6,864 metres in 29 drill holes in 2016/2017. Total drilling by Knick was 100 drill holes totalling 19,728 metres of drilling. This equates to an average hole length of 197.2 metres per hole.
Selected significant drill intercepts (intercepts greater than 10.0 g/t Au and with lengths greater than 1.0 metre) from Knick drilling that occurred in 2009, 2011 and 2016/2017 include:
- 11.149 g/t Au over 1.95 m from a depth of 52.10 m to 54.05 m in hole LEO-09-21;
- 10.080 g/t Au over 1.45 m from a depth of 10.55 m to 12.00 m in hole LEO-09-33;
- 31.500 g/t Au over 1.25 m from a depth of 101.95 m to 103.20 m in hole EW-16-06;
- 15.191 g/t Au over 2.40 m from a depth of 79.15 m to 81.55 m in hole EW-16-10;
- 13.300 g/t Au over 1.10 m from a depth of 260.30 m to 261.40 m in hole EW-17-20;
- 10.010 g/t Au over 1.40 m from a depth of 195.20 m to 196.60 m in hole EW-17-27.
Emgold management believes significant exploration potential exists at depth at East-West, given the depth of similar deposits along the Marbenite deformation corridor. True width of intervals is unknown.
Knick's samples were sent to Laboratoire Expert Inc. (Expert Laboratory Inc.) in Rouyn-Noranda, Que., or ALS's laboratories in Val d'Or for analysis. Fire assay and metallic sieve methods were used for the analysis. Quality assurance/quality control measures in Knick's drilling program included blanks and standards. Emgold considers these results to be historical and it has not yet completed sufficient work to independently verify the results.
Information on the property can be found in the NI 43-101 technical report pertaining to the East-West property, Val d'Or area, northwestern Quebec, Abitibi region, by Donald Theberge, PEng, MBA, dated Nov. 21, 2017, and found under Knick's corporate filings on SEDAR.
About the Trecesson property
The Trecesson property is located approximately 50 kilometres north and 10 kilometres northwest of the cities of Val d'Or and Amos, Que., respectively. It contains the Cossette gold system with two main exploration targets identified to date along that system -- South Cossette and North Cossette.
Knick conducted two drill programs, one in 2011 and one in 2017. The first drilling program consisted of 121 drill holes totalling 3,457.7 metres. The second drill program consisted of 33 drill holes totalling 3,220.6 metres. Total drilling by Knick was 154 drill holes totalling 6,678.3 metres. This equates to an average hole length of 43.4 metres per hole.
Selected significant intercepts (greater than 10 g/t and one-metre width) drilled by Knick include:
- 10.55 g/t Au over 1.2 m from a depth of 8.80 m to 10.0 m in hole TR-11-19;
- 14.22 g/t Au over 3.8 m from a depth of 23.00 m to 26.80 m in hole TR-11-61, including 33.1 g/t Au over 1.5 m from a depth of 23.00 m to 24.50 m;
- 13.65 g/t Au over 1.45 m from a depth of 6.80 m to 8.25 m in hole TR-11-78;
- 20.50 g/t Au over 1.10 m from a depth of 17.60 m to 18.70 m in hole TR-11-111.
Knick's samples were sent to Laboratoire Expert in Rouyn-Noranda, Que., for analysis. Fire assay and metallic sieve methods were used for the analysis. Quality assurance/quality control measures in Knick's drilling program included blanks and standards. Emgold considers these results to be historical and it has not yet completed sufficient work to independently verify these historic results.
Additional information on the property can be found in the NI 43-101 Technical Report Pertaining to the Trecesson property, Abitibi area, Amos region, Quebec, by Donald Theberge, PEng, MBA, dated Jan. 20, 2012, updated March 25, 2013, and found under Knick's corporate filings on SEDAR.
Robert Pease, PGeo, CPG, a qualified person under NI 43-101, has reviewed and approved the technical content of this press release.
About Emgold Mining Corp.
Emgold is a gold and base metal exploration company focused on Nevada and Quebec. The company's strategy is to look for quality acquisitions, add value to these assets through exploration, and monetize them through sale, joint ventures, option, royalty and other transactions to create value for its shareholders (acquisition and divestiture business model).
In Nevada, Emgold's Golden Arrow property, the core asset of the company, is an advanced-stage gold and silver property with a well-defined measured and indicated resource. New York Canyon is a base metal property subject to an earn-in with option to joint venture agreement with Kennecott Exploration, a subsidiary of Rio Tinto PLC. Buckskin Rawhide East is a gold and silver property leased to Rawhide Mining LLC, which operates the adjacent Rawhide mine and represents a royalty opportunity for the company.
In Quebec, the Casa South property is an early-stage gold property adjacent to Hecla Mining Corp.'s operating Casa Berardi mine. The East-West property is a gold property adjacent to and on strike with Wesdome Gold Mine's Kiena complex and O3 Mining's Malarctic property (Marban project). Emgold also has a 1-per-cent net smelter return royalty in the Troilus North property, part of the Troilus mine property being explored by Troilus Gold Corp.
Note that the location of Emgold's properties adjacent to producing or past-producing mines does not guarantee exploration success at Emgold's properties or that mineral resources or reserves will be delineated.
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