Frankfurt and Berlin Exchanges : Emlm Emgold’S Partner Kennecott Exploration Expands Diamond Drill Program at the New York Canyon Copper Property, Nv
EMGOLD MINING CORPORATION
Suite 1010 – 789 West Pender Street
Vancouver, B.C. V6C 1H2
www.emgold.com
June 1, 2021 TSX Venture Exchange : EMR
OTC : EGMCF
Frankfurt and Berlin Exchanges : EMLM
EMGOLD’S PARTNER KENNECOTT EXPLORATION
EXPANDS DIAMOND DRILL PROGRAM
AT THE NEW YORK CANYON COPPER PROPERTY, NV
Vancouver, British Columbia - Emgold Mining Corporation (TSXV:EMR, OTC:EGMCF,
FRA:EMLM, BSE:EMLM) (“Emgold” or the “ Company”) is pleased to announce that Ken necott
Exploration Company (“KEX”), a subsidiary of Rio Tinto plc (NYSE:RIO), plans to expand its diamond
drilling program at the New York Canyon Copper Property, Nevada (the “ Property”). The Property is
subject to an Earn-In with Option to Joint Venture Agreement (the “Agreement”) between Emgold and
KEX.
Emgold Mining CEO, David Watkinson, commented, “We are extremely pleased with the progress of the
New York Canyon’s drill program thus far. Expansion of the drill program and acceleration and expansion
of other exploration work on the Property is an indication that the initial results have been promising. We
are looking forward to receiving complete set of data following the completion of the expanded program.”
The Property consists of 417 unpatented claims and 21 patented claims totaling approximately 8,700 acres.
It is in the Santa Fe Mining District, Mineral County, in west -central Nevada, about 30 mi. (48 km) from
the town of Hawthorne. The Property hosts copper oxide and sulfide skarn and porphyry mineralization.
Total historic drilling on the Property, prior to the current drill program, is 234 holes totaling about 139,000
ft. (43,000 m).
KEX can earn up to a 75% interest in the Property by completing up to US$22.5 million in exploration
expenditures (see Emgold’s News Release dated February 11,2020). Under the terms of the Agre ement,
KEX has a First Option to acquire a 55% undivided interest in the Property by incurring US$5.0 million in
expenditures over a 5 -year period, of which US$1.0 million is a committed expenditure that must be
completed prior to the 18-month anniversary of the Agreement.
The Property is an advanced stage exploration project consisting of four copper targets, three of which were
first explored in the mid-1960s to late-1970s. The three main prospects, situated west to east respectively,
were named Copper Queen, Champion, and Longshot Ridge. The fourth target, named Ideal and situated
south of Copper Queen, is a geophysical target that was first identified in the late 1990s. Much of the Ideal
and Copper Queen areas are under pediment alluvium.
Copper Queen
Historic exploration defined copper sulfide skarn and porphyry mineralization at the Copper Queen
prospect. Drilling by Conoco, reported in a May 10, 1979 internal report, included a significant interval of
chalcopyrite and molybdenite mineralization in drill- hole MN-42, drilled in 1977 in the Copper Queen
target, intersecting 1,020 ft. (311m) of 0.41% Cu, 0.012% Mo, 4.5 ppm Ag, and 0.1 ppm Au from 560 ft.
(171 m) to 1,580 feet (482 m) (true width unknown). Note this hole was drilled prior to the implementation
of NI 43-101 Standards of Disclosure for Mineral Projects and QA/QC procedures are unknown.
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Champion
The Champion prospect was explored from the late 1960s through the 1970s, although apparently to a lesser
extent than Copper Queen and Longshot Ridge. Historic core drilling intersected oxide and sulfide copper
skarn mineralization, but historical mineral resources were not delineated.
Longshot Ridge
Oxide skarn mineralization has been drilled at the Longshot Ridge target by various operators since the
1960’s. M ost recently, Searchlight Resources Inc. (TSXV: SCLT) (formerly known as Canyon Copper
Corporation and Aberdeen Mines Limited) drilled the property between 2004 and 2006 and completed a
2010 Technical Report. Searchlight defined an indicated resource of 16.3 million tons (14.8 million tonnes)
of 0.43% Cu and a n inferred resource of 2.9 million tons (2.6 million tonnes) of 0.31% Cu solely in the
Longshot Ridge copper oxide skarn area. A cut-off grade of 0.20% Cu was used. Emgold’s qualified person
has not audited or verified this resource as a current mineral resource and Emgold is therefore treating this
resource as a historical estimate and not as a current mineral resource according to NI 43-101 Standards of
Disclosure. The 2010 Technical Report can be found under Searchli ght’s corporate filings at
www.sedar.com.
Ideal
The Ideal target is located south of Copper Queen and underlies alluvium. The date of its discovery is
unknown at this time, although it is labeled on a 1997 map. Ideal appears to be a previously untested
geophysical anomaly.
Current Exploration by KEX
KEX is conducting a very thorough exploration program which has involved, to date,
examination/utilization of historic data, re-assaying of historic drill core, completion of a UAV magnetics
survey over a portion of the claim block, and diamond core drilli ng. In addition, a detailed geological
mapping program encompassing all four exploration prospects and areas in between is planned to start in
late May and continue through the second and third quarters of 2021. Additional surface sampling is also
being considered.
KEX mobilized a drilling contractor on site on March 22nd. Plans were initially to drill five diamond drill
holes to test three exploration targets, the Copper Queen, Longshot Ridge, and Ideal targets. Four holes in
the 400-500 m length and one hole of 750 m in length were planned (total of up to 2,750 m).
The first drillhole, numbered NYCN0001, has been completed and was drilled to a dept h of 347.78 m to
test the Ideal geophysical target . The hol e intersected a thick sequence of Tertiary volcanic and
volcaniclastic rocks underneath alluvium . The volcaniclastic rocks were the apparent source of historic
chargeability and magnetic anomalies. Unfortunately, this hole did not appear to have any mineralization.
The second drillhole, number NYCN0002, has been completed. Located at the Copper Queen prospect, it
was a step out hole from historic hole MN-42. It was drilled to a depth of 716.28 m and passed through
sulfide skarn, intrusive, and breccia miner alized zones with both copper and molybdenum mineralization
being encountered.
KEX has just completed drilling NYCN0003 to a depth of 390.14 m . This hole is also at Copper Queen
and is situated 320 m west of hole NYCN0002. Drilling of NYCN0004 has commenced, which is a step
out hole 100 m north of hole NYCN0002.
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Information on MN -42 and NYCN0001 through NYCN0004 is provided in Table 1. Assay results are
pending.
Table 1
New York Canyon Drill Hole Information
Hole ID Easting1
(m)
Northing1
(m)
Elevation
(ft)
Elevation
(m)
Azimuth
(degrees)
Dip
(degrees)
Total
Depth
(ft)
Total
Depth
(m)
MN-422 401,905.90 4,263,141.00 4870.00 1484.40 360 -90 1,970.50 600.60
NYCN0001 401,941.55 4,262.188.70 4668.92 1423.09 142 -80 1,141.01 347.78
NYCN0002 401,867.93 4.263,157.40 4769.52 1453.75 32 -85 2,350.00 716.28
NYCN0003 401,553.15 4.263.272.85 4665.35 1422.00 360 -90 1,279.98 390.14
NYCN0004 401,895.38 4.263.281.43 4755.87 1449.59 360 -90 TBD TBD
(1) Coordinate system used is GS84 UTM Zone 11N.
(2) MN-42 is a historic drill hole in the Copper Queen area that was drilled in 1977.
Based on the visual results from hole NYCN0002, KEX has indicated they plan to drill additional holes in
the Copper Queen area, tentatively three to four holes up to 700 m each. Hole lengths and number of holes
are subject to adjustment based on results being obtained in the field as the drilling is being done.
Sample handling and security procedures being used by KEX minimize the time drill core remains on site.
A quick log of the geology is made of the core in the field at the Property. Core is then shipped to a KEX
facility in Salt Lake City, UT where it is logged in detail and photographed. Core is then sawed, and half
of the core is shipped to ALS Laboratories in Elko for analysis. Assays are expected within 30-60 days of
receipt at the lab, however assay laboratories in Nevada are currently backlogged due to Covid-19 and other
factors.
Qualified Person
Robert Pease, C.P.G., a qualified person under the NI 43-101 instrument, has reviewed and approved the
content of this press release.
About Emgold
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
(acquisition and divestiture (A&D) business model).
In Nevada, Emgold’s Golden Arrow Property, the c ore 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 (NYSE:RIO). The Mindora Property is a gold, silver, and base metal property
located 12 miles from New York Canyon. Buckskin Rawhide East is a gold and silver property leased to
Rawhide Mining LLC, operators of the adjacent Rawhide Mine.
In Quebec, the Casa South Property, is an early-stage gold property adjacent to Hecla Mining Corporation’s
(NYSE:HL) operating Casa Berardi Mine. The East-West Property is a gold property adjacent to and on
strike with Wesdome Gold Mine Ltd.’s ( TSX:WDO) Kiena Complex and O3 Mining Corporation’s
(TSX:OIII) Ma larctic Property (Marban Project) . Emgold also has a 1% NSR in the Troilus North
Property, part of the Troilus Mine Property being explored by Troilus Gold Corporation (TSX:TLG).
Note that the location of Emgold’s properties adjacent to producing or past producing mines does not
guarantee exploration success at Em gold’s properties or that mineral resources or reserves will be
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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
Email: [email protected]
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 informat ion
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.