Engineer Gold Mines Ltd. provides update on compilation & targeting work on TAG prospect, Engineer District
ENGINEER GOLD MINES LTD.
804 - 750 West Pender Street Vancouver, B.C. V6C 2T7
Telephone: 604-682-2928
Fax: 604-685-6905
www.engineergoldmines.com
TSXV: EAU OTCQB: EGMLF
Engineer Gold Mines Ltd. provides update on compilation & targeting
work on TAG prospect, Engineer District
February 9, 2023
Vancouver, BC – Engineer Gold Mines Ltd. (TSX -V: EAU; “the Company” or “Engineer”) is pleased to
provide an update on its 100% -owned Engineer District property, which covers 29,593.47 hectares in a
35-km-long contiguous claim grouping near Atlin in northwest British Colum bia. The Property was
consolidated by the Company from 2018 – 2022, and includes the historical high -grade Engineer Gold
Mine, the TAG developed prospect, and 17 additional known mineral occurrences. The Company is
currently compiling prior owner and histo rical data in a way that has not been possible in the past due
to fractured ownership. This holistic view of existing data is allowing the Company to identify
exploration gaps and opportunities for development and discovery, which will continue to be released in
the coming weeks as work progresses.
Chris Huggins, President & CEO of Engineer Gold Mines Ltd., stated “The existing geophysical and
remote sensing data on the Engineer District property are valuable assets to assist in identifying targets
including: possible oblique mineralized veins along the 025FZ, additional faults, and potentially
mineralizing intrusions. Much of the existing geophysics data does not appear to have been followed up
on, providing us with excellent opportunities for quickly developing and advancing targets.”
Mineralization in the TAG area occurs along a NNE-trending shear zone termed the 025FZ, which can be
traced for 6.2 km across the northern portion of the Engineer District property (Fig. 1). Similarities exist
between the 025FZ and Shear A , an important control on mineralization at the Engineer Gold Mine.
Both structures are second-order splays of the metalliferous Llewellyn Fault, contain multi- phase quartz
breccia zones with low -grade gold ranging from metres to tens of metres wide, and are continuous for
more than one kilometre. At the Engineer Gold Mine, high -grade ore was mined from n arrow dilational
veins oblique to Shear A, however similar structures have yet to be discovered along the 025FZ.
Since its discovery in 1987, the TAG area saw limited exploration until 2006, when CZM Capital Corp.
acquired the claims and completed soil ge ochemical sampling, an airborne geophysical survey,
prospecting, surface trenching, and diamond drilling. A total of 11,519 m were drilled in 69 drillholes
along the 025FZ, leading to a resource estimation along ~700 m of mineralization near the southwest
extent (Fig. 2). A historical resource estimate contains 250,000 t of 2.97 g/t Au & 12.09 g/t Ag indicated
and 400,000 t of 2.98 g/t Au & 9.91 g/t Ag inferred material **(Reddick & Armstrong, 2009). Of the 64
drillholes that intersected the 025FZ, only 19 drillholes of higher- grade intercepts were used in the
resource estimation.
The authors of the technical report advised that potential exists for finding additional Au -Ag
mineralization both below the current resource and along- strike and recommended the use of Induced
Polarization (“IP”) surveys to refine targets for further drilling.
In 2016, Taku Gold Corp. conducted a Very Low Frequency Electro -Magnetic (VLF-EM) survey over the
Barney occurrence and interpreted the data in conjunction with 2007 airbo rne magnetic and
radiometric data (Fekete & Huber, 2016; Fekete & Simper, 2009; Fig. 2). The VLF -EM identifies three
strong conductors along the 025FZ and five NNW -trending linear moderate to strong conductive
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lineaments considered prospective for follow -up work (Dubé, 2016; Fig. 2). Approximately 1900 m
southeast of Barney, a magnetic high lineament trends subparallel to the 025FZ for ~1700 m (Fig. 2).
Additionally, three WNW -trending magnetic high lineaments near the north end of the mapped 025FZ
may represent fault zones similar to the east -trending fault tens of metres wide which yielded 0.96 g/t
Au at the Tagish 3 showing (Davies & Justason, 2008).
The 2007 airborne survey also identified two probable intrusions, comprising kidney shaped magnetic
highs with coincident elevated potassium counts (Fekete & Simper, 2009; Fig. 2). At Barney, drilling has
confirmed that this geophysical feature represents a quartz -diorite stock, spatially and possibly
genetically associated with mineralization. Previous worke rs have suggested that mineralization at
Barney may represent an intrusion -related Au system or a deeper -seated extension of the TAG
epithermal system (Pautler, 2021). The second geophysical feature, ~3 km south of Barney and 1.5 km
east of Tag, has not yet been followed up.
In addition to the geophysical targets in the TAG area, strong Au -As-Sb soil geochemical anomalies
delineate the 025FZ and occur sporadically on the periphery (Fekete & Simper, 2009; Fig 2). Prospecting
and shallow trenching of the num erous geophysical and geochemical targets in the TAG area are
recommended, to be followed by localized resistivity / IP surveys in preparation for drilling (Dubé, 2016).
**Resource estimates cited in this release predate the 2019 CIM Guidelines for NI 43 -101 reporting and
are historical in nature.
References
• Davies & Justason, 2007a. Technical report 2006 reconnaissance exploration program on the
Tagish #3 mineral tenure. BC AR 28930.
• Dubé, J. 2016. Technical Report VLF-EM Ground Survey, Tagish Property. Prepared by Dynamic
Discovery Geoscience for Taku Gold Corp. Within BC Geological Survey AR #36281.
• Fekete, M., & Simper, J., 2009. 2007 Final Report for work done on the TAG Property. BC
Geological Survey AR #30931.
• Fekete, M., & Huber, M., 2016. Memorandum Report of 2016 Surface Work on the TAG
Property. Operated by Taku Gold Corp. BC Geological Survey AR #36281.
• Reddick, J. and Armstrong, T.J. 2009. Technical report on the Tag Property, British Columbia.
Report for CZM Capital Corporation by Reddick Consulting Inc.
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Qualified Person
The technical content of this news release has been reviewed and approved by Sue Bird, M.Sc., P.Eng.,
independent consultant, a qualified person, as defined by National Instrument 43-101.
About Engineer Gold Mines Ltd.
Engineer Gold Mine: The historic Engineer Gold mine is a narrow vein past producing underground gold
mine with an Inferred Mineral Resource of 41,000 t grading 19.0 g/t gold for 25,000 oz contained gold.
The resource uses a cutoff grade of 5 g/t Au and assumes a 1m minimum mining width, which is similar
to historical mining. It includes all material inside the mineralized shoots and is based on the payability
(stope) limits. Within this resource is a higher-grade core of 14,000t gr ading 52.5 g/t gold (25 g/t gold
Cut-Off) containing 23,600 oz contained gold. The resource grade was reconciled to a bulk tonnage
sample which contained 175 tonnes at 23.9 g/t Au which is 16% higher than the resource grade of 20.6
g/t Au for the Engineer portion of the resource. This is considered acceptable for a nuggety gold deposit
and exemplifies the potential conservatism of the 2018 resource. This resource estimate was initially
calculated by Snowden Mining Industry Consultants Ltd. in 2011 and re -stated in the 2018 NI 43 -101
Technical Report.
Note that this resource estimate predates the 2019 CIM Guidelines for NI 43-101 reporting. The
company has done no further work to confirm this historical resource.
Tag Property: The 1,070-hectare Tag property covers the 025 or Main zone, which contains an historical
mineral resource estimate including 250,000 tonnes of Indicated material at average grades of 2.97 g/t
Au and 12.09 g/t Ag, and an Inferred resource of 400,000 tonnes at average grades of 2.98 g/t Au and
9.91 g/t Ag. The resource estimate was calculated using the polygonal method with vertical section at
50m spacing, and grades composited over a minimum length of 2.0 meters. The Au was capped at a
value of 4 g/t and Ag was capped at 25 g/t. Underground mining was assumed with all material having a
minimum composited length of 2m, within the interpreted shapes and above the cutoff assumed to be
amenable to underground mining. The cut-off grade used was 3.0 g/t gold equivalent, calculated with a
silver to gold ratio of 59.927. This historical resource was published as an NI 43 -101 report filed on
SEDAR entitled "Technical Report on Resource Estimates for the Tag Property, Northern British
Columbia", prepared for CZM Capital Corporation by R eddick Consulting Inc. and dated December 29,
2009. Note that this estimate predates the 2019 CIM Guidelines for NI 43 -101 reporting. The Company
has done no further work to confirm this historical resource.
Wann River: The Wann River project has seen grab samples from the Lum showing with up to 263 g/t Au
and 1350 g/t Ag reported in 2010. Adjacent to the prolific Llewellyn fault, the Wann River project holds
potential for significant further exploration and discovery.
On Behalf of the Board of Directors
Engineer Gold Mines Ltd.
“Christopher Huggins”
President & CEO
Tel: 604.968.4844
Cautionary Notes
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