EnGold Adds to Lac La Hache Resources with Maiden Aurizon Inferred Resource Estimate, Metallurgical Results Encouraging
EnGold Adds to Lac La Hache Resources with Maiden Aurizon Inferred Resource
Estimate, Metallurgical Results Encouraging
VANCOUVER, Jan. 19, 2018 /CNW/ - David H. Brett, Pr esident & CEO, EnGold Mines Ltd., (TSX-V:
EGM, "EnGold" or the "Company") reports that indepe ndent geologist Garth Kirkham, P.Geo., of Kirkham
Geosystems Ltd ("KGL"), has completed and provided to EnGold a maiden Mineral Resource Estimate on
the Aurizon South Gold Zone located within the Comp any's 100% owned Lac La Hache Property in the
Cariboo Region of BC. The Lac La Hache Property com prises multiple mineralized zones including the
Spout Copper Deposit (SRK 43-101 Technical Report a vailable online here ), a new copper-gold-silver
zone south of Spout discovered in 2017, the Aurizon Central Gold Zone, the Aurizon South Gold Zone,
and several other prospects within a large porphyry-copper mineralizing system.
The maiden, base-case Aurizon South inferred resour ce estimate, using a 2.5 gpt cut-off grade, totals
1,073,000 tonnes grading 3.6 gpt gold equivalent containing 124,206 ounces of gold equivalent. See
tables below for additional detail, including estimates based on higher and lower cut-off grades. Recent
metallurgical testing completed by ALS Metallurgy on Aurizon South drill core materials showed
recoveries of 95%, 92% and 90% for copper, gold and silver respectively.
"This initial estimate at Aurizon South, which is open for expansion, adds important value to the Lac La
Hache project, where excellent infrastructure greatly enhances the attractiveness of currently outline d
copper resources at Spout, the high-potential 2017 discovery area, and many other exciting prospects o n
the property," said EnGold President & CEO David Br ett. "EnGold's goal is to identify multiple potentially
underground minable deposits within the property that could support an economically viable, multi-zone
operation in the future."
The estimate is based on the 65 drill holes that have intercepted the structure to date, which remains
open for expansion on strike and down dip. The gold-bearing Aurizon South also has significant amounts
of copper and silver, and as such, the Company is expressing the resource as a gold equivalent, which
incorporates the value of the copper and silver into the resource.
Table 1: Maiden resource estimate for Aurizon utilizing a 2.5g/t AuEq cut-off value.
Cut -off Tonnes AuEq Au Cu Ag AuEq
g/t x 1,000 g/t g/t % g/t ounces
2.5 1,073 3.6 2.48 0.64 5.98 124,206
Notes: The 2.5g/t AuEq cut-off value was calculated using average long-term prices of $1200/oz. gold, $16/oz. silver, $2.75/lb.
copper, and metal recoveries of 92% gold, 95% copper, and 90% silver. The base case cut-off grade assumed $90/tonne
operating and sustaining costs. All prices are stated in $US.
Table 2: Mineral resource cut-off sensitivities at Aurizon.
Cut -off Tonnes AuEq Au Cu Ag AuEq
g/t x 1,000 g/t g/t % g/t ounces
0.5 5,526 1.70 1.11 0.34 2.95 302,006
1 3,651 2.17 1.41 0.44 3.86 255,251
2 1,529 3.19 2.16 0.60 5.36 156,993
2.25 1,277 3.41 2.32 0.62 5.70 139,835
2.5 1,073 3.60 2.48 0.64 5.98 124,206
3 495 4.69 3.64 0.60 6.01 74,675
4 257 5.87 4.80 0.60 6.99 48,550
5 178 6.53 5.38 0.64 9.34 37,310
6 102 7.26 5.95 0.71 12.58 23,712
Notes:
1) The current Resource Estimate was prepared by Garth Kirkham, P.Geo., Kirkham Geosystems Ltd.
2) All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum
("CIM") definitions, as required under National Instrument 43-101 ("NI43-101").
3) Mineral resources were constrained using mainly geological constraints and approximate AuEq grade domains.
4) AuEq values were calculated using average long-term prices of $1200/oz. gold, $16/oz. silver, $2.75/lb. copper, and metal
recoveries of 92% gold, 95% copper, and 90% silver were used. Base case cut-off grade assumed $90/tonne operating and
sustaining costs. All prices are stated in $US.
5) All contained metal content values (including equivalencies) were calculated assuming 100% recoveries.
6) Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not
account for a resource's mineability, selectivity, mining loss, or dilution. All figures are rounded to reflect the relative accuracy of
the estimate and therefore numbers may not appear to add precisely.
The Aurizon South prospect is one of several copper-gold-silver mineralized zones on the property,
formed by alkali porphyry-style system processes, which include porphyritic intrusion-hosted copper
(gold-silver), intrusion hosted hydrothermal breccia-fracture/vein systems and related
exoskarns/carbonate replacements.
The Aurizon South structure is a near-vertical gold-copper-silver bearing hydrothermal breccia/ fracture
system developed within one of several Late Triassic monzodioritic intrusions on the property. The
structure strikes northerly (020 degrees) and extends >400 m along strike (open) and >700 m to depth
(open). True width varies from a few m to more than 10 m locally, defined by mineralized
splays. Mineralization occurs mainly as copper and iron sulphides (chalcopyrite, lesser bornite and
chalcocite, pyrite) containing variable amounts of gold and silver. Higher grades of gold, copper and silver
are typically hosted by strongly developed hydrothermal breccia formed of clasts of monzodiorite altered
to albite-potassium feldspar-carbonate-minor chlorite-epidote within a matrix of quartz-potassium
feldspar-carbonate-hematite after magnetite. Visible gold is generally rare within the main structure,
however, narrow (10-20 cm wide) quartz veins discovered near-surface in 2016 drilling contain abundant
visible gold specs and massive chalcocite, producing multi-ounce gold and tens of percent copper
assays. These have not been included in the initial resource reported.
Metallurgical testing by ALS Metallurgy, Kamloops (23 drill core samples totalling 52 kilograms) shows
copper, gold, and silver recoveries to the rougher concentrate average 95, 92, and 90 percent,
respectively. KGL suggests that an underground mining scenario is appropriate for Aurizon at this stage
and has recommended a 2.5g/t AuEq cut-off value for the base-case resource estimate. Also listed are
grade-tonnage sensitivities at varying AuEq cut-off values (see Table 2 above) which demonstrate both a
significant increase in contained precious and base metals at lower cut-off values and good tonnage
retention, at increasing overall grade, at incrementally higher cut-off values. A NI 43-101 Technical Report
will be posted on SEDAR within 45 days.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred
Resources are considered too speculative geological ly to have economic considerations applied to them
that would enable them to be classified as Mineral Reserves. There is no assurance that any part of the
Inferred Resource will be converted to Measured or Indicated Mineral Resources or ultimately converted
to a Mineral Reserve.
EnGold VP Exploration Rob Shives, P.Geo., stated: " The metallurgical results and recoveries are very
encouraging. We regard this initial resource at Aurizon South (now the second on the property) as a gr eat
start, which we can grow based on open strike and depth extents to provide a valuable addition to our
inventory as we attempt to build a potentially economic, multiple-deposit resource at the Lac La Hache
Project".
Aurizon South Resource Estimation Parameters
The estimate was carried out using a block model constrained by 3D wireframes of the individual
mineralized zones. The block model is comprised of an array of blocks measuring 10m x 10m x 5m, with
grades for Au, Cu and Ag interpolated using Inverse Distance to the Second Power (ID2) weighting. Gold
equivalent values were subsequently calculated from the interpolated block grades.
The interpolation was carried out in one pass using search radii to a maximum of 100m x 100m x 30m.
The interpolation was restricted to a minimum of 2 and a maximum of 16 composites, with a maximum of
4 composites from any one drill hole (i.e. a minimum of two drill holes required for +4 composites).
An average value of 2.71 t/m3 was used as it was thought to be representative of the densities within the
Aurizon South zone.
Gold and copper values have been capped in order to remove the effects potential overestimation due to
statistical outliers. The threshold chosen was 10 g/t gold and 1% copper. No capping was performed on
silver values.
The mineralized zones were initially defined by EnG old personnel and then validated and refined by KGL .
The mineralized wire frames were defined using a combination of geological constraints, grade contacts
and no minimum thickness.
All resources are classified as Inferred.
About EnGold
EnGold is a Vancouver-based copper/gold exploration company focused solely on its 100% owned Lac
La Hache property in the Cariboo region of BC. EnGold's vision is to identify and delineate mineral
resources at Lac La Hache that could potentially support an economically feasible and environmentally
sustainable underground mining operation. The Spout Deposit, the Aurizon Gold Zone and the 2017 G1
Discovery, located within a 7 kilometer area on the property, are all considered by EnGold to be
potentially underground minable targets. EnGold's significant new copper discovery in 2017 adds to the
already extensively drilled Spout Copper Deposit and Aurizon Gold zones. Discovery potential for new
high-grade zones remains strong, and existing areas are open for expansion. With world class
infrastructure at its doorstep, Lac La Hache is a great location to be exploring. EnGold's corporate
philosophy rests on three interdependent pillars: Environment, Engagement and Gold. Through sound
environmental stewardship, commitment to transparent engagement with local communities, the
Company is dedicated to driving exceptional shareho lder and stakeholder value by fulfilling its vision to
profitably supply valuable and much needed metals to the global marketplace.
Rob Shives P.Geo., VP Exploration and a Qualified P erson as defined under National Instrument 43-101,
has reviewed and approved the technical content of this release.
Engold Mines Ltd.
Per/
David Brett, MBA
President & CEO,
This news release may contain "forward ‐looking statements". Readers are cautioned that any such
statements are not guarantees of future performance and that actual development or results may vary
materially from those in these "forward looking statements." Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Engold Mines Ltd.
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For further information: contact David Brett, 604-682-2421 or david@engold. ca
CO: Engold Mines Ltd.
CNW 08:30e 19-JAN-18