Berlin Exchange : EMLM EMGOLD PROVIDES PROPERTY UPDATE
EMGOLD MINING CORPORATION
Suite 1015 – 789 West Pender Street
Vancouver, B.C. V6C 1H2
www.emgold.com
July 7, 2020 TSX Venture Exchange : EMR
OTC : EGMCF
Frankfurt Exchange : EMLM
Berlin Exchange : EMLM
EMGOLD PROVIDES PROPERTY UPDATE
Vancouver, British Columbia - Emgold Mining Corporation (TSXV:EMR, OTC:EGMCF,
FRA:EMLM, BSE:EMLM) (“Emgold” or the “Company”) 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 (TSXV: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 cla ims sta ked by Kennecott Exploration Company
(“Kennecott”), a subsidiary of Rio Tinto PLC ( NYSE: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 Em gold 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 expend itures (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 (TSX:WDO)
(“Wesdome”) Kiena Mine and O3 Mining Corporation ( TSXV: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 I nc. 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
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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 C adillac, 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 P roperty,
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.
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.
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 (NYSE:RIO). Buckskin Rawhide East is a gold and silver property lea sed 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
(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) 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 ( TSX: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
Email: [email protected]
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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 exploratio n 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 per formance 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 b e 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.