Emgold Finds High Grade Gold at its Recently Acquired Koegel Rawhide Gold-Silver Property, Nevada
February 27 2012 - 7:00AM
Marketwired Canada
Emgold Mining Corporation (TSX VENTURE:EMR)(OTCBB:EGMCF)(FRANKFURT:EML) (the
"Company" or "Emgold") is pleased to announce that it has confirmed the presence
of high grade gold in surface sampling at the Company's recently acquired Koegel
Rawhide Property (the "Property") in Mineral County, Nevada. Fourteen grab and
chip samples where taken by Emgold, as part of the Company's due diligence,
prior to acquiring the Property. Nine samples were taken in the T-10 high grade
area by Emgold and averaged 0.27 ounces per ton gold. The 14 samples taken on
the Property by Emgold averaged 0.21 ounces of gold per ton gold. Details of the
sampling program are outlined below.
Emgold's President, Dave Watkinson, stated, "The exploration opportunities at
Koegel Rawhide include the potential for both bulk disseminated and high grade
vein gold and silver targets, similar to our nearby Buckskin Rawhide Property.
Historic and Emgold sampling in the T-10 high grade area confirms the presence
of one such high grade zone and we intend to continue sampling with the goal of
identifying others. Emgold looks forward to advancing exploration on the
Property."
Emgold plans initially to complete surface rock and soil geochemical sampling
programs on the Property with the goal of ultimately developing drill targets.
Historic sampling on the Property will be analyzed as an initial guide for these
exploration activities. Funds are in place for this work.
The Koegel Rawhide Property consists of 36 unpatented lode mining claims
totaling 720 acres. Nineteen of the 36 unpatented mining claims, totaling 380
acres, are currently under a lease and option to purchase agreement. Information
on that acquisition was disclosed in a February 13, 2012 news release. The other
17 unpatented mining claims, totaling 340 acres, were recently staked by Emgold
and disclosed in a news release dated February 15, 2012.
The Property is located approximately 40 miles southeast of Fallon in the
Rawhide Mining District, and five miles southwest of the Rawhide Mine, which is
operated by Rawhide Mining Company. Kennecott Minerals, the former owner of the
mine, reported that the Rawhide Mine produced 1.47 million ounces of gold and
11.7 million ounces of silver from the years 1988 to 2005. The Property is also
situated in the Koegel Hills, six miles south of the Regent Property being
explored by Pilot Gold Corporation and four miles south of Emgold's Buckskin
Rawhide Property.
Geology of the Koegel Rawhide Property
The Koegel Rawhide Property is a volcanic-hosted, structurally controlled,
epithermal gold-silver prospect in the Walker Lane gold belt of western Nevada.
The Walker Lane is a regional shear zone and known gold trend that hosts large
and small historic and currently operating gold-silver mines, including mines of
the Comstock Lode, Tonopah District and Rawhide District. Koegel Rawhide geology
and mineralization are associated with lithologic units and structures of the
Rawhide volcanic center, as well as structures from the Walker Lane and Basin
and Range. The geology and mineralization is similar to the nearby Rawhide Mine,
Regent Property, and Buckskin Rawhide Property.
Note that the location of the Koegel Rawhide Property in the vicinity of Rawhide
Mine and other nearby exploration properties does not mean that a resource will
be identified on the Property. However, the presence of similar geology and
mineralized structures to those on the Buckskin Rawhide, Regent, and Rawhide
properties and historic mine workings in the area are favorable indicators for
the potential of discovery.
Geologic mapping by Charles P. Watson, a consulting geologist, completed in the
years 1991-1992, indicates the area is covered mostly by Tertiary (Pliocene) age
intermediate volcanic rocks including andesitic tuff breccias, sills and dikes.
The volcanic units have been folded into minor anticlines and faulted. Faults of
several orientations occur on the Property with north, northwest and northeast
trends. Hydrothermal alteration (clay and silica) is present and is associated
with structures and mineralization.
Historic Surface Sampling of the Koegel Rawhide Property by Others
Gold and silver mineralization is known to be present at Koegel Rawhide, based
on historic randomly spaced surface sampling on the Property. A total of 464
chip and grab samples were taken in geologically derived locations by consulting
geologist Charles P. Watson in the years 1991-1992. The average gold grade of
these historic samples is shown in Table 1, below:
Table 1
Average Grades of Historic Gold Assays
Koegel Rawhide Property, NV
----------------------------------------------------------------------------
Average Gold Grade
Samples No. of Samples of Samples (opt)
----------------------------------------------------------------------------
All Historic Samples (including
Historic T-10 Zone) 464 0.02
----------------------------------------------------------------------------
Historic T-10 Zone 13 0.52
----------------------------------------------------------------------------
Sample weights are unknown. Samples include grab and chip samples.
Gold grades are arithmetic averages.
The results of the historic grab samples on the Property ranged from
non-detectable to 1.99 ounce per ton gold, with 98 percent of those samples
having gold grades less than 0.10 ounces per ton gold and two percent being
greater than 0.10 ounces per ton gold. The sampling indicates the potential for
both high grade vein and low grade bulk disseminated gold and silver
mineralization.
Mr. Watson identified the T-10 Zone as one of the potential mineralized high
grade vein structures. Historic sampling in the T-10 high grade area included 13
samples ranging in grades from 0.004 to 1.99 ounce per ton gold, with an average
grade of 0.52 ounces per ton gold. Dimensions of the zone have not been defined,
although the exposure sampled has a width of approximately eight feet. The area
is open for expansion in several directions, and the true width of the structure
is unknown at this time.
The methods and quality control from the historic sampling are unknown and
cannot be verified under NI 43-101, but the results are considered reliable for
exploration purposes.
Emgold Surface Sampling of the Koegel Rawhide Property
Emgold's surface samples were taken in areas of known mineralization on the
Property, based on historic sampling done by Mr. Watson. The sampling was
intended to confirm historic gold grades as part of due diligence work
associated with the acquisition of the property and focused on high grade vein
targets.
Ten rock chip-channel samples, each 12 inches in length, and four grab samples
were taken from outcrops of bedrock and structures. The average gold grade of
all samples is shown in Table 2. Dry sample weights varied from one to two
pounds.
Table 2
Average Grades of Emgold Gold Assays
Koegel Rawhide Property, NV
----------------------------------------------------------------------------
Average Gold Grade
Samples No. of Samples of Samples (opt)
----------------------------------------------------------------------------
Emgold Samples(including Emgold T-10
Zone) 14 0.21
----------------------------------------------------------------------------
Emgold T-10 Zone 11 0.27
----------------------------------------------------------------------------
Gold grades are arithmetic averages.
Emgold samples were taken December 2011, and include rock chip-channel
samples taken over 12 inch widths and grab samples. These are not true
widths across the vein.
Emgold's sampling results ranged from non-detectable to 1.60 ounces per ton
gold, with 79 percent of the samples having gold grades less than 0.10 ounce per
ton gold. Twenty-one percent had grades greater than 0.10 ounce per ton gold.
Note that the average of Emgold's 14 gold assays, as shown in Table 2, are
higher than the average from the 494 samples historically assayed on the
Property, and shown in Table 1. This is because most of Emgold's samples were
taken from known higher grade mineralized structures and did not evaluate bulk
disseminated targets.
Emgold specifically sampled the T-10 high grade area, with results shown in
Table 2. The grade of the 11 samples taken in the T-10 Zone ranged between
non-detectable and 1.60 ounce per ton gold. The average grade was 0.27 opt gold.
Results of Emgold's sampling compared favorably with historic sampling on the
Property.
Emgold's Quality Assurance and Quality Control Program
Emgold's quality assurance program and quality control measures at Koegel
Rawhide pertain to all samples taken on the Property. Quality control measures
started with representative sampling, proper numbering, and accurately locating
samples in the field both visually on maps and also with a GPS instrument.
Samples were transported by the geological staff from the field to Emgold's
office-warehouse facility to assure secure storage, and were then packaged for
shipment to the assay laboratory. Samples were shipped via commercial carriers
directly to American Assay Laboratories in Sparks, Nevada, for analysis.
Samples taken by Emgold were analyzed using standard fire assaying and ICP
methods. American Assay Laboratories is not ISO certified but participates in
CANMET PTP-MAL certification analyses twice per year, GEOSTATS testing twice per
year, SMA (U.S. and Canada) twice per year, and IOAG testing twice a year.
Emgold's Qualified Person visited American Assay Laboratories in February 2011
to review the general sample handling and preparation measures, and felt they
were adequate.
The assay laboratory catalogued all samples, maintained complete chain of
custody throughout the analytical process, and electronically mailed the chain
of custody forms to Emgold for review prior to initiating sample preparation.
All sample preparation was done at the laboratory by their staff. As part of
their quality assurance, the laboratory incorporated assaying standards, test
blanks, and duplicate analyses of samples, and included those results in final
reports. The final signed reports completed the chain of custody process. Thus
far, no factors have been detected in any sampling programs conducted by Emgold
on the Koegel Rawhide property that would materially affect the accuracy or
reliability of Emgold's sample data.
Mr. Robert Pease, Chief Geologist of the Company and a Qualified Person as
defined in National Instrument 43-101, participated in and directly supervised
the sampling program and interpreted historic data. He has read and approved the
scientific and technical information in this press release.
Information Regarding Emgold
Emgold is currently in the advanced stage of permitting the Idaho-Maryland
Project, located in Grass Valley, CA. The Idaho-Maryland Mine was once the
second largest underground gold mine in California and is reported to have
produced 2.4 million ounces of gold at an average recovered grade of 0.43 ounce
per ton. Emgold has a number of earlier stage exploration properties including
the Buckskin Rawhide and Keogel Rawhide Properties in Nevada, and the Stewart
Property and the Rozan Property in British Columbia. For more information about
Emgold, the Idaho-Maryland Gold Project and the Buckskin Rawhide, Keogel
Rawhide, Stewart, and Rozan Properties, please visit www.emgold.com. Company
filings are available at www.sedar.com.
On behalf of the Board of Directors
David G. Watkinson, P.Eng., President & CEO
This news release includes certain statements that are "forward-looking
statements" within the meaning of applicable securities laws including
statements regarding the Company's planned work programs, expected results and
potential mineralization and resources on the Koegel Rawhide Property.
Forward-looking statements are based on certain assumptions of the Company,
including that the Company has adequate capital to fund its proposed exploration
programs, that actual results of exploration and development activities are
consistent with management's expectations, that assumptions relating to mineral
resource estimates are accurate, the assumption that metal prices remain at
current values, and that the Company is able to procure equipment and supplies
for its planned work programs 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 exploration results that are
different than those anticipated, inability to raise or otherwise security
capital to fund planned programs, changes to metal prices, the price of the
Company's shares, the costs of labour, equipment and other costs associated with
exploration, availability of drilling equipment and operators, development and
mining operations, exploitation and exploration successes, continued
availability of capital and financing, and general economic, market or business
conditions. 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 a result
of new information, future events or otherwise, except as required by law. 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.
U.S. 20-F Registration: 000-51411
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