Emgold Mining Corporation announces the following update on its New York Canyon and East-West Properties
New York Canyon Property, Nevada
Emgold has completed the transfer of 21 patented claims and 60 unpatented claims from Searchlight Resources Corporation (SCLT) (“Searchlight”) into Emgold’s Nevada subsidiary, Golden Arrow Mining Corporation. Total claims owned by Emgold at New York Canyon, through its subsidiary, now include 21 patented claims and 152 unpatented claims. Emgold is in the process of transferring a reclamation bond from Searchlight to Emgold’s subsidiary, which is the final step in its acquisition of the core claims of the New York Canyon Property from Searchlight.
Emgold’s claims, combined with 265 unpatented claims staked by Kennecott Exploration Company (“Kennecott”), a subsidiary of Rio Tinto PLC (RIO), now total 21 patented claims and 417 unpatented claims encompassing about 8,700 acres that make up the current New York Canyon Property. Kennecott and Emgold signed an Earn-in with Option to Joint Venture Agreement (the “Agreement”) whereby Kennecott can earn up to a 75% interest in the Property by completing up to US$22.5 million in exploration expenditures (see press releases dated Feb. 11, 2020 and Mar. 30, 2020). Kennecott is committed to spending US$1.0 million in exploration expenditures at New York Canyon within 18 months of the signing of the Agreement.
East-West Property, Quebec
As announced by press release on December 11, 2019, Emgold is in the process of acquiring a 50% interest in the East-West Property in Quebec, with an option of acquiring an additional 5% interest. The East-West Property is situated in the Val d’Or Mining Camp between Wesdome Mining Corporation’s (WDO) (“Wesdome”) Kiena Mine and O3 Mining Corporation (OIII) (“O3 Mining”) Marban Block Property.
On June 25, 2020, Wesdome announced the filing of an independent Preliminary Economic Assessment (“PEA”) for the Kiena Mine, which was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mining Projects (“NI 43-101”). The Technical Report, titled “Preliminary Economic Assessment for the Kiena Mine Complex Project” was prepared by BBA Inc. The PEA showed positive economics with an After Tax Internal Rate of Return of 102%. The Kiena Complex is a fully permitted former mine with a 930 meter shaft and a 2,000 tonne per day mill. The Technical Report can be found under Wesdome’s corporate filings under www.sedar.com.
On May 22, 2020, O3 Mining announced that it had appointed Ausenco Engineering Canada Inc. as the lead consultant to prepare a PEA in accordance NI 43-101 for its 100% owned Marban Property. According to the press release, “The Marban Project contains three past-producing mines (Marban, Norlartic and Kierens), which collectively produced 585,000 ounces of gold between 1959 and 1992. The land package owned by O3 Mining in the heart of the Cadillac, Malartic, and Val D’Or gold mining camps covers 125 square kilometres and is located 15 kilometres from the Canadian Malartic Mine, and lies along the same shear structure as Wesdome’s Kiena deposit. To date, there has been a total of 4,577 holes drilled on the Malartic Property for a total of 600,369 metres. The current mineral resource estimate on the Marban, Norlartic and Kierens deposits is 38.2Mt at a grade of 1.29 g/t Au for 1.59 Moz in the measured and indicated mineral resource categories and 4.1 Mt at a grade of 1.47 g/t Au for 195,000 oz in the inferred mineral resource category (see “Updated Mineral Resource Technical Report, Marban Block Property, Québec, Canada”, dated July 28, 2016 (effective date of June 13, 2016) and filed on SEDAR (www.sedar.com) under the issuer profile of Osisko Mining Inc.)”.
Note that no mineral resources or reserves have been defined on the East-West Property. The location of the East-West Property adjacent to the Kiena Property or Marban Property is no guarantee of exploration success or that mineral resources or reserves will be defined on the East-West Property.
Emgold is in the process of reviewing historic information it has received on the East-West Property with the goal of delineating a drill program to be conducted in 2020, subject to financing and the Company’s ability to conduct exploration on the Property due to Covid-19 restrictions.
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 our shareholders.
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 (RIO). Buckskin Rawhide East is a gold and silver property leased to Rawhide Mining LLC, who operate the adjacent Rawhide Mine and therefore represents a royalty opportunity for the Company.
In Quebec, the Casa South Property, is an early stage gold property adjacent to Hecla Mining Corporation’s (HL) operating Casa Berardi Mine. The East-West Property is a gold property adjacent to and on strike with Wesdome Gold Mine Ltd.’s (WDO) Kiena Complex and O3 Mining Corporation’s (OIII) Marban Property. Emgold also has a 1% NSR in the Troilus North Property, part of the Troilus Mine Property being explored by Troilus Gold Corporation (TLG). 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. For more information on the Company, investors should review the Company’s website at www.emgold.com or view the Company’s filings available at www.sedar.com.
On behalf of the Board of Directors
David G. Watkinson, P.Eng.
President & CEO
For further information, please contact:
David G. Watkinson, P.Eng.
Tel: 530-271-0679 Ext 101
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.
Cautionary Note on Forward-Looking Statements
Certain statements made and information contained herein may constitute “forward looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management’s expectations. Forward-looking statements and information may be identified by such terms as “anticipates”, “believes”, “targets”, “estimates”, “plans”, “expects”, “may”, “will”, “could” or “would”. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws. The Company’s Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including any technical reports filed with respect to the Company’s mineral properties.
SOURCE: Emgold Mining Corporation
View source version on accesswire.com: