Emgold Mining Closes Royalty Acquisition ON Part of the Troilus GOLD Project, Quebec
EMGOLD MINING CORPORATION
Suite 1015 – 789 West Pender Street
Vancouver, B.C. V6C 1H2
www.emgold.com
March 2, 2020 TSX Venture Exchange : EMR
OTC : EGMCF
Frankfurt Exchange : EMLM
EMGOLD MINING CLOSES ROYALTY ACQUISITION
ON PART OF THE TROILUS GOLD PROJECT, QUEBEC
Vancouver, British Columbia - Emgold Mining Corporation (TSXV: EMR, OTC: EGMCF, FRA:
EMLM) (“Emgold” or the “Company”) announces it has received TSX Venture Exchange approval and
acquired a 1% Net Smelter Royalty (“NSR”) on the Troilus North Property, part of the 16,000 ha Troilus
Gold Project (the “Project”) in Quebec. The Project is being advanced by Troilus Gold Corporation (TSX:
TLG) (“Troilus Gold”) and is one of the largest undeveloped gold deposits in North America.
About the Troilus Gold Project
The Project, which hosts the past producing Troilus Mine, is located northeast of the Val -d’Or mining
district, 160 km north of Chibougamau. From 1997 to 2010, Inmet Mining Corporation operated the Troilus
Mine as an open-pit and underground operation, producing more than 2 million ounces of gold and nearly
70,000 tonnes of copper (1). A recent Technical Report, completed by Troilus Gold, outlines the current
indicated and inferred resource for the Project which is summarized the table below:
Troilus Gold Project
Mineral Resource - Z87 and J Zone (J4 and J5)
Total Open Pit and Underground
(Effective Date, December 20, 2019)
Resource
Classification
Tonnage
(Mt)
Au
(g/t)
Cu
(%)
Ag
(g/t)
AuEq
(g/t)
Contained
Gold
(Moz)
Contained
Copper
(Mlb)
Contained
Silver
(Moz)
Contained
AuEq
(Moz)
Indicated 159.1 0.78 0.09 1.19 0.92 3.97 301.15 6.07 4.71
Inferred 52.7 0.90 0.08 1.01 1.04 1.53 94.89 1.71 1.76
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Pit constrained mineral resources were estimated at a cut-off grade of 0.3 g/t AuEq and were constrained by a Whittle pit shell.
Underground mineral resources were estimated at a cut-off grade of 0.9 g/t AuEq.
3. Mineral Resources were estimated using long-term metal prices of US$1,400 per ounce gold, US$3.25 per pound copper, and
US$20 per ounce silver, and an exchange rate of US$1.00 = C$1.25.
4. High grade capped values vary from 2 g/t Au to 14 g/t Au and 1 g/t Ag based on mineralized lens.
5. Z87 Zone gold equivalent was calculated with formul a AuEq = Au grade + 1.546 * Cu grade + 0.01 * Ag grade, and the J
Zone (J4 & J5) gold equivalent was calculated with formula AuEq = Au grade + 1.47 * Cu grade + 0.013 Ag grade.
6. A recovery of 83% for gold, 92% for copper, and 76% for silver was used in the Z87 Zone; a recovery of 82% for gold, 88%
for copper, and 76% for silver was used at the J Zone (J4 & J5).
7. Bulk density varies from 2.77 g/cm3 to 2.86 g/cm3.
8. Numbers may not add due to rounding.
9. Mineral Resources are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal, title, taxation, socio -political, marketing, or other relevant
issues.
10. The resource estimate was prepared by R oscoe Postle and Associates by Principal Geological Engineer Luke Evans, M.Sc.,
P.Eng, dated December 20, 2019. The report can be found under Troilus Gold’s corporate filings at www.sedare.com.
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About the Troilus North Property
Emgold originally acquired Troilus North in 2018 and filed a technical report titled, “Troilus North
Property, Troilus-Frotet Volcano-Sedimentary Belt, Opatica Geological Sub-province, Quebec, Canada”,
prepared for Emgold Mining Corporation by Donald Théberge, P.Eng., MBA, with Effective Date October
10, 2018 (the “Troilus North Technical Report”). The Troilus North Technical Report is available on
SEDAR under Emgold’s issuer profile.
The Troilus North Technical Report summarized historical work done on the Troilus North Property and
discussed six exploration targets that had been identified. It recommended exploration work proposed for
the Troilus North Property. One of the main exploration targets identified was the “Troilus Mine
Extension”, which was a target identified primarily from geophysics work that shows potential to expand
mineralized zones from the adjacent Troilus Gold Property (4,700 ha in size at that time) onto adjacent the
11,300 ha Troilus North Property.
Note that the proximity of Troilus North adjacent to the historic Troilus Mine or current resources identified
as part of the Troilus Gold Project does not guarantee exploration success at Troilus North. There are
currently no mineral resources or reserves identified on the Troilus North Property.
About the Transaction
In December 2018, Troilus Gold acquired Troilus North from Emgold for C$250,000 in cash and 3.75
million Troilus Gold common shares. Two underlying royalties remained on the property, including a 1%
NSR granted to CAT Strategic Metals (formerly Chimata Gold Corporation) (CSE: CAT) (“CAT”).
Emgold has acquired the CAT royalty for a cash payment of C$75,000. Troilus Gold retains first option to
acquire this 0.5% of this royalty for a cash payment of C$500,000 and a second option to acquire the
remaining 0.5% of this royalty for an additional cash payment of C$500,000. Troilus Gold has completed
a Consent approving the transaction. This was a reviewable transaction and approval was obtained from
the TSX Venture Exchange. For more information on Emgold, visit the Company’s website at
www.emgold.com.
Qualified Person
Robert Pease, CPG, a qualified person under the NI 43 -101 instrument, has reviewed and approved the
technical content of this press release.
(1) Source, Troilus Gold website at www.troilusgold.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.
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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 r eserves, 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 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.
Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources : This press release uses the terms
“measured resources” and “indicated resources.” We advise U.S. investors that while such terms are recognized and permitted
under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned
not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.
Cautionary Note to U.S. Investors concerning estimat es of Inferred Resources : This press release refers to the terms “inferred
resources.” We advise U.S. investors that while such term is recognized and permitted under Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize it. “Inferred resources” have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not
form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred
resource exists, or is economically or legally mineable.