EnGold Drills 31 m of 1.14% Cu at Lac La Hache Geophysical Results Encouraging
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EnGold Drills 31 m of 1.14% Cu at Lac La Hache
Geophysical Results Encouraging
For Immediate Release. May 1, 2018. Vancouver, BC. David H. Brett, President & CEO, EnGold Mines
Ltd., (TSX-V: EGM, “EnGold” or the “Company”) reports that drill hole G18-40 has returned 31.36 m (true
thickness) grading 1.14 % copper, 0.28 grams per tonne (g/t) gold, 6.89 g/t silver and 24.31 % iron. DDH
G18-40, drilled 50 m west of G17 -38, intersected mineralization over a wider core interval than predicted,
successfully extending the thicker, central axis of the G1 Zone to the north. An updated drill plan is
available here. Assay results are tabulated below.
DDH G18-39 is located 50 m east of DDH G17-38 (which intersected 37.13 m true thickness grading 1 %
Cu, including 23.76 grading 1.37 % Cu and 4 m grading 2.15 % Cu). DDH G18-39 intersected similar
carbonate replacement style, semi-massive magnetite-chalcopyrite-lesser pyrite mineralization in two
zones: 10.7 m grading 0.42 % Cu including 2.1 m grading 1.13% Cu, and 7.25 m grading 0.69 % Cu
including 2.55m grading 1.38% Cu. Results delineate the narrowing, eastern edge of th e G1 Zone.
DDH From (m) To (m) Interval (m) Cu (%) Au (g/t) Ag (g/t) Fe (%)
G17-39 310.20 320.90 10.70 0.42 0.05 1.87 17.08
including 310.20 312.30 2.10 1.13 0.13 5.40 27.00
328.30 335.55 7.25 0.69 0.08 3.25 18.76
including 333.00 335.55 2.55 1.38 0.17 6.94 31.33
G17-40 112.50 125.00 12.50 0.44 0.06 1.75 8.90
321.94 376.88 31.36 1.14 0.28 6.89 24.31
including 332.63 346.95 14.32 1.71 0.48 10.63 32.40
including 350.85 353.30 2.45 2.21 0.36 14.00 37.86
Drilling was halted April 8 to allow ground conditions in the area to improve following spring breakup and
pending completion of geophysical surveys and the Company’s recently announced financing.
As announced previously, a series of geophysical tests were conducted by Peter E. Walcott and
Associates Ltd to refine drill targeting in the immediate G1 area, and to search for new anomalies in the
1800 m gap between G1 and Spout Deposit. This work has now been completed and early modelling of
data collected along a single traverse indicates strong positive induced polarization chargeability
anomalies coincide with the at-surface Spout South Zone, and with the relatively deep G1 mineralization
located approximately 350 m below surface. Several additional chargeability fe atures offer positive
targets within the gap area, where earlier ground gravity also shows positive anomalies. Additional
modeling and interpretation continues, to further refine our targeting strategy prior to re -commencement
of drilling anticipated in the first week of June.
EnGold is also pleased to report that it has launched an upgraded version of its website, www.engold,ca
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In other news, the Company wishes to provide an update regarding its previously announced brok ered
private placement with Canaccord Genuity Corp. (the “Agent”) consisting of up to: (i) 10,000,000 flow -
through units of the Company (“F low-Through Units”) at a price of $0.30 per Flow-Through Unit; and (ii)
2,000,000 non -flow-through units of the Company (“ Common Units”) at a price of $0.26 per Common
Unit, to raise aggregate gross proceeds of up to approximately $3 ,520,000 (the “Offering”). The Offering
is also subject to an over-allotment option whereby the Agent may increase the Offering by up to 15%.
The Offering will also now be available to existing securityholders of the Company utilizing BC Instrument
45-534 Exemption from Prospectus Requirements for Certain Trades to Existing Securityholders and
other provincial equivalents (colle ctively, the “Existing Security Holder Exemptions”). The Company will
make the Offering available to all shareholders of the Company as of April 30, 2018 (the “Record Date”)
who are eligible to participate under the Existing Security Holder Exemptions and who have notified the
Company of their intention to participate in the Offering. The Existing Security Holder Exemptions limit a
shareholder to a maximum investment of $15,000 unless the shareholder certifies in the subscription
agreement that he or she has obtained advice regarding the suitability of the investment from a registered
investment dealer or otherwise qualifies to rely on another private placement exemption.
In the subscription agreement, shareholders will be required to certify that, on or b efore the Record Date,
they acquired and held, common share s of the Company. Each existing shareholder on the Record Date
will be entitled to purchase Flow -Through Units and/or Common Units which will be allocated by the
Agent on a first come, first served basis such that it is possible that a subscription received from a
shareholder may not be accepted by the Company if the Offering is over subscribed. Any person who
becomes a shareholder of the Company after the Record Date shall not be entitled to part icipate in the
Offering under the Existing Security Holder Exemptions. There is no minimum size of the Offering.
The Company plans to use the maximum gross proceeds of the Offering as follows:
Use of Proceeds Maximum Gross
Proceeds*
Continue exploration of the Company’s 100% owned Lac La Hache
Copper, Gold, Silver Property in the Cariboo region of BC. All proceeds
from the sale of Flow-Through Units shall be used to incur CEE.
$3,450,000
Commissions and corporate finance fee $318,360
Estimated expenses of the Offering $85,000
General working capital $194,640
TOTAL $4,048,000
*Assumes exercise of over-allotment option in full. There is no minimum size of the Offering.
Although the Company intends to use the proceeds of the Offering as described above, the actual
allocation of net proceeds may vary from the uses set forth above, depending on future operations or
unforeseen events or opportunities.
The closing of the Offering is anticipated to occur on or around May 14, 2018 (the “Closing Date”) and is
subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals,
including the acceptance of the TSX Venture Exchange.
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This news release does not constitute an offer to sell or a solicitatio n of an offer to buy any of the
securities in the United States. The securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and
may not be offe red or sold within the United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such registration is available.
EnGold also reports the results of its Annual General Meeting held Friday, April 27 th, 2018 at its field
office in Lac La Hache. As a result of several motions from the floor of the meeting, the number of
directors was set at six instead of five as circularized, and in addition to the incumbent directors David
Brett, Rolf Van Driesum, Bob Gordon, Jeremy Wiebe and Dale Reimer being elected, EnGold is pleased
to report that former EnGold director Mr. John Brown was also elected to the board. Furthermore,
shareholders passed a motion amending its stock option plan whereb y the total number of incentive stock
options available to grant was reduced from 7.5% of the issued and outstanding shares to a maximum of
5% of the issued and outstanding shares. All other motions at the meeting were passed as per
management’s recommendations.
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 shareholder and stakeholder value by fulfilling its vision to
profitably supply valuable and much needed metals to the global marke tplace.
Rob Shives P.Geo., VP Exploration and a Qualified Person 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
For further info contact David Brett, 604-682-2421 or [email protected]
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 Ven ture Exchange) accepts
responsibility for the adequacy or accuracy of this release.