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Emgold Mining Corp (3)
Symbol EMR
Shares Issued 136,182,621
Close 2021-10-01 C$ 0.05
Recent Sedar Documents

Emgold partner drills 94.35m of 0.33% CuEq at NY Canyon

2021-10-04 11:14 ET - News Release

Mr. David Watkinson reports

EMGOLD PROVIDES EXPLORATION UPDATE FOR ITS NEW YORK CANYON PROPERTY, NV

Emgold Mining Corp. has released assay results from four exploration diamond core holes and reassay results from nine historic diamond core holes drilled at its New York Canyon property, Nevada. Exploration activities are being carried out by the company's partner, Kennecott Exploration Company (KEX), a subsidiary of Rio Tinto PLC.

The property is an advanced-stage exploration project consisting of three main copper targets which were first explored in the mid-1960s, with the last historic drilling completed in 2006. These historic targets, situated west to east respectively, are called Copper Queen, Champion and Longshot Ridge.

The property is subject to an earn-in with option to joint venture agreement between Emgold and KEX first announced by press release on Feb. 11, 2020. KEX can earn up to a 75-per-cent interest in the property by completing up to $22.5-million (U.S.) in exploration expenditures. Under the terms of the agreement, KEX has a first option to acquire a 55-per-cent undivided interest in the property by incurring $5-million (U.S.) in expenditures over a five-year period, of which $1-million (U.S.) is a committed expenditure that must be completed prior to the 18-month anniversary of the agreement. To date, KEX has completed the $1-million (U.S.) committed expenditure and is in the process of completing the first option.

Significant intercepts from the first four of 10 currently planned drill holes for 2021 on the property are summarized in the associated table.

In addition, KEX has reassayed core from nine historic drill holes stored on the property. Significant intercepts from six of these reassayed drill holes received to date are shown in the second associated table.

Details on the 2021 exploration program, to date, are outlined below. David Watkinson, president and chief executive officer of Emgold, stated: "We are grateful to have KEX as a partner to explore the New York Canyon property and are excited by the results to date that indicate the potential for a larger copper skarn and porphyry system on the property. KEX is taking a systematic approach to exploring the property, including geologic and structural mapping, geophysics, drilling and other exploration work. KEX has doubled the size of its initial planned drilling program from five holes in 2021 and is now expected to complete at least 10 holes prior to year-end. We look forward to receiving and releasing additional exploration results in the near future."

About the property

The property currently consists of 417 unpatented claims and 21 patented claims totalling approximately 8,700 acres. It is located in the Santa Fe mining district, Mineral county, west-central Nevada, and about 30 miles (48 kilometres) east of the town of Hawthorne. KEX is exploring the property to expand the copper skarn and copper porphyry mineralization. Total historic drilling on the property, prior to the current drill program, is 234 holes totalling about 43,000 metres (139,000 feet).

The property is an advanced-stage exploration project consisting of three main copper targets which were first explored in the mid-1960s, with the last historic drilling done completed in 2006. These historic targets, situated west to east respectively, are called Copper Queen, Champion and Longshot Ridge.

Historic exploration on the property

From Copper Queen on the west side of the property to Longshot Ridge on the east side, is a length of 6.4 kilometres (four miles). The average width of the known mineralization is 3.2 kilometres (two miles). Copper mineralization, including skarn and porphyry, has been found in all three deposits.

Copper Queen target

Historic exploration by Conoco in the 1970s and 1980s defined copper sulphide skarn and porphyry mineralization at the Copper Queen prospect. Drilling reported in a May 10, 1979, internal report included a significant interval of chalcopyrite and molybdenite mineralization in drill hole MN-42, drilled in 1977. MN-42 intersected 1,020 feet (310.9 metres) of 0.41 per cent Cu, 0.012 per cent Mo, 4.5 parts per million Ag, and 0.1 part per million Au from 560 feet (170.7 metres) to 1,580 feet (481.6 metres) (true width unknown). Note this hole was drilled prior to the implementation of NI 43-101 Standards of Disclosure for Mineral Projects and quality assurance/quality control procedures are unknown. KEX reassays of MN-42 reported 1,310 feet (399.3 metres) of 0.443 CuEq.

Champion

The Champion prospect was explored from the late 1960s through the 1970s, although apparently to a lesser extent than Copper Queen and Longshot Ridge. Historic core drilling intersected oxide and sulphide copper skarn mineralization, but historical mineral resources were not delineated.

Longshot Ridge

Oxide skarn mineralization has been drilled at the Longshot Ridge target by various operators since the 1960s. Most recently, Searchlight Resources Inc. (SCLT) (formerly known as Canyon Copper Corp. and Aberdene Mines Ltd.) drilled the property between 2004 and 2006 and completed a 2010 technical report. Searchlight defined an indicated resource of 16.3 million tons (14.8 million tonnes) of 0.43 per cent Cu and an inferred resource of 2.9 million tons (2.6 million tonnes) of 0.31 per cent Cu solely in the Longshot Ridge copper oxide skarn area. A cut-off grade of 0.20 per cent Cu was used. Emgold's qualified person has not audited or verified this resource as a current mineral resource and Emgold is therefore treating this resource as a historical estimate according to NI 43-101 Standards of Disclosure. The 2010 technical report can be found under Searchlight's corporate filings on SEDAR.

Other targets

The Ideal target is located south of Copper Queen and underlies alluvium. The actual date of its discovery is unknown at this time, although it appears in a 1997 report and map. Ideal appears to be a previously untested geophysical anomaly. Kennecott drilled hole one hole (NYCN0001) into this target and assay samples from this hole did not encounter significant copper values.

2021 drilling program to date by KEX

Planned depth

Seven holes have targeted the Copper Queen area. Two holes have targeted the Longshot Ridge area. No holes were drilled in the Champion area. A geophysical anomaly, called Ideal, was targeted with one drill hole and is located to the south of the Copper Queen area.

NYCN0001 drilled into the Ideal geophysical target intersected a magnetic anomaly with no significant copper mineralization. NYCN0002 was a stepout hole from historic hole MN-42 and showed several long-mineralized skarn intercepts including 94.35 metres of 0.333 per cent CuEq, 49.34 metres of 0.273 per cent CuEq and 172.28 metres of 0.169 per cent CuEq. NYCN0003 and NYCN0004 also showed numerous intercepts greater than or equal to 0.1 per cent CuEq.

2021 reassay program by KEX

Historic drill core from past drilling programs is stored on the property. KEX reassayed selected holes and in some cases selected core intervals of the historic drill core.

The fourth associated table shows the selected intervals that were reassayed by KEX. Note that MN-202 and MN-221 were selectively sampled with representative 0.2-metre-long core samples taken at selected intervals which were reassayed and used for isotope testing.

The fifth associated table includes assay results from the reassay program. Of particular note is the reassay of MN-42, drilled in 1977, which was reported as intersecting 1,020 feet (310.9 metres) of 0.41 per cent Cu, 0.012 per cent Mo, 4.5 parts per million Ag, and 0.1 part per million Au from 560 feet (170.7 metres) to 1,580 feet (481.6 metres) (true width unknown). The reassay results show 399.29 metres of 0.341 per cent Cu, 0.012 per cent Mo, 3.301 parts per million Ag and 0.036 part per million Au. As a direct comparison, for the exact corresponding reassay interval in MN-42 (from 170.7 metres to 481.6 metres representing 310.9 metres in length), reassay results of 0.381 per cent Cu, 0.014 per cent Mo, 3.666 parts per million Ag and 0.041 part per million Au were obtained. Note that hole MN-42 was drilled in 1977 and the core has been stored for about 44 years on the property. The impact of storage on the core over this length of time on assay results is difficult to ascertain. Historic assays were done before the implementation of NI 43-301. Lab detection limits for silver and gold are significantly different than those used in historic lab work. The historic versus reassay results are relatively comparable.

Note that reassay intervals tried to copy historic assay intervals from work done in the 1970s. In addition, lab detection limits for gold and silver used today are much lower. However, internal analysis shows that where selective assay intervals could be compared with historic intervals on a footage-to-footage basis, the results were comparable.

Other work completed by KEX as part of the 2021 exploration program

Other work completed as part of its 2021 exploration program includes:

  • Geologic, structural and alteration mapping;
  • Surface rock chip sampling;
  • A UAV (unmanned aerial vehicle) drone magnetic geophysics and DEM (digital elevation model) survey was completed by MWH Geo-Surveys over the majority of the property and over the northwest corner of the claims;
  • A passive seismic reflection geophysics survey completed by Magee Geophysical Services LLC and IM Seismology with results pending;
  • Carbon-oxygen isotope analysis was competed for historic holes MN-202 and MN-221.

QA/QC methods

Drilling program

The drill being used is a Boart LF-160. Core is typically PQ in size at the top of the holes, reduced to HQ around 200 to 300 metres depth, and further reduced to NQ if needed.

Drill core is initially taken to a field core logging facility on the property and scanned with an XRF (X-ray fluorescence) device and quick-logged by the field geologist. Core samples are then shipped to KEX's core logging facility in Salt Lake City, where they are photographed and logged in detail. Detailed logging includes rock types, alteration and structures. Core is sawn in half, and samples prepared, labelled and shipped to ALS laboratories in Elko, Nevada. Typically core samples were one to three metres in length, except for hole NYCN0001 where 10-metre composite samples were taken.

ALS is an ISO/IEC 17025:2017 accredited laboratory. ALS prepared the samples and analyzed them using ME-MS61L. If certain elements, including copper, exceeded certain values, additional analyses were done using ME-OG62. Gold, in some cases, was analyzed using method Au-ICP21. The lab inserted standards and duplicates as par of its internal QA/QC program. ALS is independent from both KEX and Emgold.

KEX follows strict QA/QC measures. As part of the KEX QA/QC program, independently certified control samples (standards, blanks and duplicate samples) were also inserted into the sample stream for each analytical batch. In general, a blank is inserted at the start of each stream and then every 10th sample is a QA/QC sample, alternating between blanks, standards and duplicates. Standards are inserted with every submitted batch of samples, and to match the level of mineralization as much as possible. Additional blanks are sometimes included before visibly mineralized intervals. Duplicate samples were systematically included. Drill core duplicates are one-quarter core samples. Finally, KEX evaluates the QA/QC results to determine if they meet the company's specifications to ensure proper QA/QC. All holes passed QA/QC in this report.

Reassaying program

Historic core samples selected from storage on the property were shipped to KEX's core logging facility in Salt Lake City, where they are photographed. Of the nine historic holes reassayed, five holes were relogged. Half core, remaining from historic drilling, was sawed in half (i.e. quartered), and samples were prepared, labelled and shipped to ALS laboratories in Elko, Nevada. Sample lengths were typically three metres long, except for holes MN-202 and MN-221. In those holes, a 20-centimetre sample was taken at the beginning at various depths to get representative samples of longer core intervals.

ALS is an ISO/IEC 17025:2017 accredited laboratory. ALS analyzed the samples using the method ME-MS61L. If certain elements, including copper, exceeded certain values, additional analyses were done using ME-OG62. Gold, in some cases, was analyzed using method Au-ICP21. The lab inserted standards and completed duplicates as part of its internal QA/QC program. ALS is independent from both KEX and Emgold.

KEX follows very strict QA/QC measures. As part of the KEX QA/QC program, independently certified control samples (standards, blanks and duplicate samples) were also inserted into the sample stream for each analytical batch. In general, a blank is inserted at the start of each stream and then every 10th sample is a QA/QC sample, alternating between blanks, standards and duplicates. Standards are inserted to match the level of mineralization as much as possible. Duplicate samples were systematically included. As previously noted, KEX evaluates the QA/QC results to determine if they meet the company's specifications and to ensure proper QA/QC. All historical holes passed QA/QC in this report.

Qualified person

Technical aspects of this press release have been reviewed and approved by Robert Pease, PGeo, CPG, the designated qualified person under National Instrument 43-101.

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. The Mindora property is a gold, silver and base metal property located 12 miles from New York Canyon. Buckskin Rawhide East is a gold and silver property leased to Rawhide Mining LLC, operators of the adjacent Rawhide mine.

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 Ltd.'s Kiena complex and O3 Mining Corp.'s Malarctic property. Emgold also has a 1-per-cent net smelter return 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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