Creating Value By Acquiring and Advancing Gold and Base Metal Assets in Nevada and Quebec
This Emgold Mining profile is part of a paid investor education campaign.*
Emgold Mining Corporation (TSXV:EMR,OTC:EGMCF,FWB:EMLM) is a junior gold and base metal exploration company focused on advancing its projects in Nevada and Quebec. Nevada is the number one mining jurisdiction in the world according to the Fraser Institute, which also ranked Quebec fourth worldwide. Emgold has developed a pipeline of early-stage to advanced-stage projects including six located in Nevada and one in Quebec.
Each of Emgold’s properties has been developed through the company’s three-step business model. First, the company makes strategic acquisitions of quality assets that are close to existing mines or advanced-stage projects, have a discounted acquisition costs, have locational or geologic synergies and/or are easily accessible to minimize exploration costs. Second, Emgold creates value by reinterpreting and computerizing historical data and by using modern exploration techniques, such as geophysics, to advance its projects. Finally, the company does monetization of its assets through sale, joint venture, option or royalty transactions with the goal of maximizing shareholder value. Using a baseball analogy, the company is looking for singles, doubles, triples and home runs by creating multiple opportunities and maximizing the potential for success.
Emgold’s management team successfully implemented this model in the past. In June 2018, for example, the company optioned the 11,300-hectare Troilus North property and quickly moved to acquire a 100 percent interest. After releasing an updated technical report and conducting exploration, the company quickly sold it to Troilus Gold (TSX:TLG) in December 2018 for cash and 3.75 million TLG shares. Troilus Gold is advancing the adjacent past-producing Troilus mine, which hosts an exploration target of over five million ounces of gold. Through the transaction, Emgold obtained a significant share position in Troilus Gold and the opportunity to participate in the advancement of the Troilus mine through its share position.
In Nevada, Emgold acquired the advanced-stage Golden Arrow project in late 2018. It is a 7,050-acre property that hosts a measured and indicated resource of 12.2 million tons grading 0.024 oz/t gold and 0.33 oz/t silver, representing 296,500 ounces of gold and 4 million ounces of silver. It has a completed Plan of Operations and Environmental Assessment that allows a major drilling program for resource definition and generation. Emgold intends to review its extensive historical database on the property, conduct exploration, complete internal scoping studies, and potentially move forward with a preliminary economic assessment (PEA) on the property.
Emgold has just optioned the advanced-stage New York Canyon property (139,000 ft. of historic drilling). The property hosts copper oxide skarn mineralization and copper porphyry sulfide mineralization in three known deposits: Longshot Ridge, Copper Queen and Champion. The property is adjacent to the past-producing Santa Fe gold mine and may also host epithermal gold and silver mineralization. A technical report was completed on the Longshot Ridge deposit by Searchlight Resources Inc. in 2010 and the report included a resource estimate for the Longshot Ridge deposit.
The company is in the process of acquiring the advanced-staged Mindora property. The property comes with 43,000 feet of historic drilling and is located 12 miles from the New York Canyon property. The property was drilled in the 1980s and 1990s as previous operators looked for a deposit with similar potential to the nearby Santa Fe mine. Four epithermal exploration targets have been identified by historic drilling as well as a potentially deeper porphyry system.
Emgold also owns three properties in Nevada adjacent to or near the operating Rawhide mine. The Buckskin Rawhide East property, with 61,000 feet of drilling to date, is leased to Rawhide Mining LLC (RMC), the operators of Rawhide mine. The mine produced 1.7 million ounces of gold and 14.5 million ounces of silver between 1990 and 2017.
In 2018 and 2019, RMC completed a Plan of Operations and Environmental Assessment to expand its operations, which include a major drilling program at Buckskin Rawhide East, scheduled to start in 2020. If successful, any resource identified on Buckskin Rawhide East could be mined at Rawhide mine, creating a royalty opportunity for Emgold. Buckskin Rawhide West and Koegel Rawhide are other nearby strategic properties held by Emgold with geologic synergy to Rawhide mine. In Quebec, Emgold is advancing the early-staged Casa South property. The project is south of and abuts Hecla Mining Corporation’s (NYSE:HL) Casa Berardi mine. The mine has produced approximately 2 million ounces of gold since it commenced production in 1988. Hecla reported that the mine produced over 160,000 ounces of gold in 2018. Emgold has recently completed a 3,000-meter drill program at Casa South on targets along the Kama trend, a significant seven-kilometer-long and two-kilometer-wide gold-bearing structure. To date, two other major targets have been identified on the property for testing.
Emgold Company Highlights
- Emgold is focused two mining-friendly jurisdictions in North America: Nevada and Quebec
- The Golden Arrow property is an advanced-stage core asset with a significant measured and indicated resource.
- The Mindora property hosts near-surface epithermal gold mineralization as well as molybdenum-copper mineralization.
- The New York Canyon property hosts near-surface copper oxide skarn and deeper copper sulfide porphyry mineralization and may also host epithermal gold mineralization.
- The Buckskin Rawhide East property is a royalty opportunity as an inlying property to an operating mine (surrounded by Rawhide mine claims).
- The Casa South property is adjacent to Hecla’s operating Casa Berardi mine which produced over 160,000 ounces of gold in 2018.
- Emgold holds a significant share position in Troilus Gold.
- Emgold has an experienced management team that has a track record of success in implementing the company’s business model.
Emgold’s Nevada Properties
Emgold is focused on acquiring and developing exploration projects within the 400-mile-long Walker Lane gold trend in western Nevada. As the number one mining jurisdiction in the world, Nevada offers mining companies stable permitting and geology. Emgold has identified six properties of interest in Nevada. Most are close to past-producing or advanced stage properties and come with extensive historical databases.
The 7,050-acre Golden Arrow property is an advanced-stage gold-silver exploration project located 40 miles east of Tonopah, Nevada. The property has an extensive database that contains over 201,000 feet of drilling. It also has a Plan of Operation and Environmental Assessments in place to allow a major drilling program with the ultimate goal of defining a resource that would support development of an open-pit heap-leach mine.
2018 resource estimate
The Golden Arrow property has a NI 43-101-compliant resource estimate for its two resource areas: Gold Coin and Hidden Hill. The 2018 report outlines a measured and indicated resource of 12.2 million tons grading 0.024 oz/t gold and 0.33 oz/t silver.
To date, drilling on the property exceeds 201,000 feet. Emgold believes the property could host bulk disseminated mineralization and high-grade vein mineralization that could have similar geological characteristics to RMC’s Rawhide mine.
In May 2016, Nevada Sunrise Gold Corporation (TSXV: NEV), the former owner, obtained approval of a Plan of Operation and Environmental Assessment, which allows up to 240,000 feet of drilling on 1,500 acres of the property. The permits are allow Emgold to initiate a major drill zone on the property quickly.
In September 2018, Emgold and Nevada Sunrise filed an updated technical report for the property. The report recommended a two-phased approach to advance the property, culminating in the development of a PEA by the end of phase two. Phase one includes a comprehensive review of the technical data, a new geological map and the preparation of several geographical cross-sections based on maps and drilling information. Phase two will include drilling and metallurgical test work, which is to be followed up with a scoping study and potentially a PEA.
Emgold is in the process of acquiring and consolidating the 600-acre Mindora property, an advanced-stage gold-silver-base metal exploration project 20 miles east of Hawthorne, Nevada. The project has an extensive database that includes 43,000 feet of historical drilling. Emgold intends to review the database and create a new 3D exploration model. Additional exploration work is also expected to be completed on the property to confirm historical results.
The property received the bulk of its exploration in the 1980s and 1990s. It hosts near-surface gold and silver mineralization and molybdenum porphyry mineralization has been drilled at depth. Historical exploration highlights include significant drill hole intercepts of 105 feet grading 0.057 oz/t gold and 3.552 oz/t silver and 295 feet grading 0.59 percent molybdenum. Mindora hosts three exploration targets: a near-surface, higher-grade gold-silver target, a large lower grade gold-silver bulk disseminated gold-silver target and deeper molybdenum and copper targets that could be developed into resources with further exploration. The initial focus of exploration is on developing gold and silver resources from known targets identified by historic drilling.
New York Canyon
Emgold has an option to acquire a 100 percent interest in the 1,500-acre New York Canyon property from Searchlight Resources Inc. (TSXV:SCLT). The property is located in the Santa Fe mining district in west-central Nevada and only 12 miles from Mindora. According to Emgold, the New York Canyon property is an advanced-stage exploration project that has to potential to become a major copper-molybdenum deposit with additional exploration.
Three mineralization zones have been identified along the west-northwest structural trend of the property: Copper Queen (west), Champion (center) and Longshot Ridge (east). During the 1960s to 1970s, several mining companies explored the area for copper porphyry deposits. These companies were able to define mineralization at the Longshot Ridge copper oxide zone and the Copper Queen copper sulfide porphyry prospect. The Copper Queen prospect has a historical resource estimate from 1979 which outlined an inferred resource of 142 million tons grading 0.35 percent copper, 0.015 percent molybdenum, 0.1 percent zinc, four ppm silver and 0.1 ppm gold. Since the 1980s, the Longshot Ridge target was the focus of further drilling and a 2010 Technical Report by Searchlight Resources which outlined an indicated resource of 16.25 million tons grading 0.43 percent copper and an inferred resource of 2.9 million tons grading 0.31 percent copper.
Buckskin Rawhide East
Emgold’s wholly-owned 835-acre Buckskin Rawhide East project is located in the Rawhide mining district and is 40 miles southeast of Fallon, Nevada. In 2014, Emgold leased the property to RMC for 20 years. In addition, RMC completed a series of private placements into Emgold for US$1 million and RMC is a shareholder of the company. RMC hopes to define a resource on the property with the ultimate goal of developing one or more satellite deposits for the Rawhide mine (formerly known as the Denton Rawhide mine).
Gold and silver mineralization occurs throughout the property, which has been sampled and drilled by Kennecott Minerals, among others. To date, four exploration targets have been identified on the property: Chicago Mountain, North Buckskin Mountain, Black Eagle and Toiyabe. Since acquiring the property in 2011, Emgold has focused its exploration efforts on the Chicago Mountain and the newly discovered Black Eagle high-grade vein target. Emgold completed 106 surface rock chip samples and seven grab samples along the Black Eagle fault. The results from the sampling program indicate the potential for low-grade bulk mineralization and higher-grade mineralized zones along strike of the fault and mineralized historical waste dumps.
A significant northwest-trending 4,000-foot-long and 400-foot-wide zone at Chicago Mountain has been defined where grades between 100 ppb and 2,000 ppb have been recovered at the center of the zone. In 2013, RMC drilled 22 holes at Chicago Mountain and Chicago Gulch as part of its lease agreement.
In 2018 and 2019, RMC completed a Plan of Operations and Environmental Assessment to expand its operations. This includes permitting of exploration on Buckskin Rawhide East with the goal of identifying additional resources from the four exploration targets identified above that can potentially be developed as satellite pits for the Rawhide mine. RMC plans to commence drilling in 2020 on the property.
Buckskin Rawhide West
The 420-acre Buckskin Rawhide West property is an early-stage gold and silver exploration property adjacent to the Rawhide mine. It is a strategically located property because of its vicinity adjacent to the Toiyabe exploration target which overlaps RMC’s Rawhide mine claims and Emgold’s Buckskin Rawhide East claims. Structures from these properties appear to trend onto the Buckskin Rawhide West property.
Emgold plans on conducting an initial exploration program on the property to generate drill targets. In the long-term, the hope is to generate resources on the property that have the potential to be mined at the nearby Rawhide mine.
The 720-acre Koegel Rawhide project is located approximately 45 miles south of Fallon, Nevada and five miles southwest of RMC’s Rawhide mine.
Between 1991 and 1992, a total of 464 chip samples and grab samples from the property that had an average grade of 0.02 oz/t gold. The samples hinted at the potential for high-grade vein and low-grade bulk disseminated gold and silver mineralization. Through his sampling program, the T-10 zone was identified as an area that could contain mineralized high-grade vein structures. Historical sampling returned an average grade of 0.52 oz/t gold from 13 samples. Since acquiring the property, Emgold has recovered surface samples from areas of known mineralization in an attempt to confirm historical grades. The company collected 10 rock chip samples and four grab samples that returned an average grade of 0.21 oz/t gold, including 11 samples with an average grade of 0.027 oz/t gold in the T-10. The zone remains open in several directions. Emgold plans on conducting an initial exploration program on the property to generate drill targets. In the long-term, the company hopes to generate resources on the property that have potential to be mined at the nearby Rawhide mine.
Emgold’s Quebec Properties
Emgold is focusing on developing and exploring properties in known gold belts in Quebec that are adjacent to existing or past-producing mines as well as advanced-stage properties with defined resources. The company also looks for properties with extensive historical databases that are accessible by road to minimize exploration costs. Emgold’s Casa South project meets all these criteria.
Emgold has acquired the 10,061-hectare Casa South property which is located approximately 80 kilometers north of La Sarre, Quebec and 105 kilometers west-southwest of Matagami. The project is south of Hecla’s Casa Berardi mine, which has produced approximately 2 million ounces of gold since it commenced production in 1988. Hecla reported production from the mine at over 160,000 ounces of gold in 2018.
The Casa South project is an early-stage exploration property that has similar parallel structures like those that can be found at the Casa Berardi mine. Historical exploration work conducted by previous operators includes soil sampling, rock chip sampling, geophysics and diamond drilling. Emgold believes that the property has the potential to host structurally-controlled gold deposits and sulfide-rich polymetallic deposits.
Emgold has recently completed a 3,000-meter drill program at the Casa South project. The program focused on targets along the Kama trend, a significant gold-bearing structure that’s approximately seven kilometers long and two kilometers wide. The trend hosts numerous anomalous gold zones with historical assays above 300 ppb gold. Assay results are currently pending.
David G. Watkinson, B.Sc., P.Eng. — President, CEO and Director
David Watkinson brings over 30 years of professional engineering experience in underground and open-pit mine development, including mine permitting, engineering, feasibility, construction and operations to Emgold. In addition, he has extensive experience in project management, having taken projects from grass roots start-up to successful operating status. He has been responsible for the management of large capital projects and operations in Canada, the US and the Philippines. He has held progressively senior positions with Placer Dome Inc., Kinross Gold Corporation, Thyssen Mining Construction and Vulcan Materials Company. Watkinson holds a B.Sc. in Applied Science in Mining Engineering from Queen’s University in Kingston, Ontario (1985) and is a Registered Professional Engineer in the Province of Ontario.
Robert Rosner — CFO
Robert Rosner has significant experience as a mining industry entrepreneur and executive. He currently serves as Director, President and CEO of Lucky Minerals, Director and CFO of Chimata Gold Corp, as well as holds Director and Executive positions on several Canadian and US-based public companies. He has over 30 years of experience in the mining industry and acted as an officer and director of both Canadian and US-listed companies, providing senior management of reporting compliance, oversight and fiduciary capacities as well as directing corporate activities. He also has significant experience in initial public offerings, M&A and reverse takeovers.
Andrew MacRitchie, B.Sc., CA — Chair of the Audit and Corporate Governance Committees and Independent Director
Andrew MacRitchie has over 16 years of experience in various mineral exploration finance and accounting roles. He is a Chartered Professional Accountant and holds a B.Sc. Honours degree from the University of British Columbia. He is Chief Financial Officer of Skeena Resources Limited, Eros Resources Corp. and other junior exploration-stage resource companies. He has assisted in raising over $100 million in funding for a number of TSXV-listed companies.
Vincent Garibaldi, LLB. — Independent Director
Vincent Garibaldi has been a lawyer with the law firm, Dunton Rainville, since 2017 and is located in Montreal, Quebec. He has been practicing law since 2015 and has a Master Degree in Business Law, Université d’Aix-Marseille, LL.B., Civil Law and a Master Degree in Economic Law, Institut de Droit des Affaires d’Aix-enProvence. He has been a member of the Paris Bar since 2015 and the Quebec Bar since 2017. He specialized in corporate reorganizations, mergers and acquisitions, private and public financing and commercial contracts.
Steve Cozine — Corporate Secretary
Steve Cozine brings over 25 years of experience in venture capital markets as an officer and director of publicly listed companies in the mining, industrial and high-tech sectors. His experience covers a wide range of corporate management duties with a focus on governance and regulatory compliance, project management, corporate finance including private funding and prospectus offerings, human resources, strategic planning and corporate operations.
Alain Moreau — Director of Exploration
Alain Moreau is a professional geologist and member of the Order of Quebec Geologists. He has 30 years of experience in exploration for minerals and metals and has worked exploring a variety of deposit types across North America and the world. Moreau is Emgold’s Qualified Person as defined by NI 43-101.
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