Emgold Mining Corporation (EMR:
TSX-V) ("Emgold" or the "Company") is pleased to announce that the
2013 surface drilling program proposed for its Buckskin Rawhide
East Property (the "Property") has been approved by the U.S. Bureau
of Land Management (the "BLM"). The Property is located about 40
miles south of Fallon, Nevada in the Rawhide Mining District and is
adjacent to the active Denton Rawhide Mine owned by Rawhide Mining
LLC ("RMC"), a private company. The Company also announces the
resignation of one of its directors, reducing the number of
directors of the company from six to five, as described on page two
below.
Emgold recently acquired a 75
percent interest in the Buckskin Rawhide East Property and is in
the process of acquiring the remaining 25 percent interest from the
underlying property owners (see November 14, 19, and 26, 2012,
December 28, 2012, January 13, 2013, and February 13, 2013 press
releases). As part of these transactions, the Company has completed
two private placements to RMC to date, totaling CDN$750,000. The
Company will complete another CDN$250,000 private placement to RMC
once the remaining 25 percent interest in Buckskin Rawhide East
Property is transferred from the underlying property owners to
Emgold, as part of the title process. Upon acquiring 100 percent
ownership of the Property, the Property will be leased to RMC, who
will conduct the exploration as part of the lease agreement.
Reverse circulation drilling is
planned for the eastern half of the Buckskin Rawhide claim block in
the Chicago Mountain/Chicago Gulch and North Buckskin Mountain
Target areas. The purpose of the 2013 exploration program is to
extend areas of gold-silver mineralization discovered by Kennecott
Exploration ("Kennecott") in the 1990s and by Emgold since 2009.
The Chicago Mountain Target consists of a bulk disseminated gold
and silver exploration target approximately 4,000 feet long by 400
feet width that was identified from historic Kennecott and more
recent Emgold surface rock chip sampling and analysis, as well as
from historic Kennecott drilling (see Emgod's October 4, 2011 press
release). Kennecott drilled approximately 15 reverse circulation
holes in this target area in the 1990s, with 10 of the holes
encountering structurally controlled mineralization from surface to
depths of up to 165 feet. The North Buckskin Mountain Target is a
new target that has been identified by Emgold and RMC from historic
rock chip sampling and analysis of historic Kennecott drilling. It
consists of a bulk disseminated gold and silver exploration target
approximately 2,000 feet long by 400 feet wide. Kennecott drilled
21 reverse circulation holes in this target area in the 1990s with
10 encountering structurally controlled mineralization to depths up
to 500 feet.
The 2013 planned drilling program
includes 11 drill sites at Chicago Mountain/Chicago Gulch and seven
drill sites at North Buckskin Mountain. Planned drilling depths
range from 300-500 feet. Multiple holes may be drilled at any of
the drill sites. The estimated total cost of the 2013 drill program
is $250,000. If this initial program is successful, additional work
will be planned to conduct a larger drill program with the goal of
delineating a bulk disseminated gold and silver resource that could
potentially become a minable satellite deposit for the adjacent
Denton Rawhide Mine. The Chicago Mountain Target is situated about
one mile from RMC mine facilities and the North Buckskin Target is
about 1.5 miles from the mine facilities.
The Denton Rawhide Mine was owned
and operated by Kennecott Minerals Company from 1988 to 2010.
Operations at the mine were suspended in May 2003 due to low gold
prices but the mine continued to produce gold and silver from
existing heap leach pads. From 1990 through 2010, the Denton
Rawhide Mine produced 1.5 million ounces of gold and 12.4 million
ounces of silver (source: The Nevada Mineral Industry 2010, Nevada
Bureau of Mines and Geology Special Publication MI-2010, 2011). In
2010, the Denton Rawhide Mine was acquired by RMC who continued to
produce gold and silver from the heap leach pads. RMC advises that,
in 2012, it recommenced mining activities at the Denton Rawhide
Mine.
David Watkinson, President and CEO
of Emgold, stated: "We are pleased that exploration drilling will
commence on the Buckskin Rawhide East Property. Opportunity exists
to fast track exploration, permitting, and development of any
resources discovered at Buckskin Rawhide East by utilizing the
adjacent Denton Rawhide facilities. Emgold believes that advancing
the Buckskin Rawhide East Property with RMC as the operator is the
best opportunity for the Company to achieve cash flow in the near
term. Cash flow would come in the form of Bonus Payments related to
gold equivalent ounces produced from the Property."
As per a Letter Agreement with RMC
announced by press release on November 14, 2012, RMC has the option
of earning a 100% interest in the Buckskin Rawhide East Property by
bringing it into commercial production. Upon achieving commercial
production, RMC would make Bonus Payments to Emgold. Bonus Payments
would be US$15 per ounce when the price of gold ranges between
US$1,200 and US$1,799 per ounce. Payments would increase to US$20
per ounce when the price of gold exceeds $1,800 per ounce.
Management Update
Emgold announces that, effective
June 14, Mr. Stephen Wilkinson has resigned as a Director for
personal reasons. This reduces the number of directors of the
Company from six to five, including two independent directors.
Management would like to thank Mr. Wilkinson for his work over
these last few years and continued support of the Company.
About Emgold Mining Corporation
Emgold is a junior gold exploration
and project development company that has several exploration
properties located in the western U.S. and Canada. These include
the Buckskin Rawhide East and West and Koegel Rawhide gold
properties in Nevada, and the Stewart and Rozan poly-metallic
properties in British Columbia.
Qualified Person
Technical information in this press
release has been reviewed and approved by Mr. Robert Pease, P.Geo.,
a Qualified Person as defined in National Instrument 43-101. Mr.
Pease is responsible for supervising the technical work related to
Emgold's U.S. Properties.
On behalf of the Board of
Directors
David G. Watkinson, P.Eng.
President & CEO
For further information please contact:
Tel: 778-375-3106
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 planned drilling and potential future mining
of the Buckskin Rawhide East Property, exploration potential,
expected results, and other statements. Forward-looking statements
assume that actual results of permitting and exploration activities
by the Company on its various properties are consistent with
management's expectations, that assumptions relating to exploration
targets are accurate, and that necessary financing will be
available for Emgold and RMC to complete 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 or that may be inferred from 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 a result of new information, future events
or otherwise, except as required by law.
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