Emgold Obtains Exchange Approval and Moves Forward with the Acquistion of a 100% Interest IN the Golden Arrow Property, Nv
EMGOLD MINING CORPORATION
Suite 202 – 905 West Broadway Street
Vancouver, B.C. V5Z 4M3
www.emgold.com
October 5, 2018 TSX Venture Exchange : EMR
OTC : EGMCF
Frankfurt Exchange : EMLN
EMGOLD OBTAINS EXCHANGE APPROVAL
AND MOVES FORWARD WITH THE
ACQUISTION OF A 100% INTEREST
IN THE GOLDEN ARROW PROPERTY, NV
Vancouver, British Columbia - Emgold Mining Corporation (TSX -V: EMR) ( “Emgold”) or the
"Company") announces it has received TSX Venture Exchange (the “ Exchange”) approval for its
acquisition of a 51% interest in the Golden Arrow Property (the “Property”) in Nevada from Nevada
Sunrise Gold Corporation (“Nevada Sunrise”, TSX-V: NEV), with further option to acquire up to 100%
interest in the Property (the “Transaction”). Emgold also hereby announces it is further exercising such
option to acquire a 100% interest in the Property, subject to the terms of the Definitive Agreement as
previously announced by press release on October 2, 2018.
To complete the initial acquisition of a 51% interest in the Property, Emgold has, as of the date of this
press release, made CDN$100, 000 in cash payments and will issue to Nevada Sunrise 2.5 million
common shares of the Company . To complete the option and acquire a 100% interest in the Property,
Emgold will further issue to Nevada Sunrise an additional 2.5 million common shares, the whole totaling
an amount of 5.0 million common shares of the Company.
Emgold currently has 2 1.07 million common shares issued and outstanding. Upon completion of the
Transaction, Emgold will have a total of 26.07 million shares issued and outstanding and Nevada Sunrise
will own 19. 2% of Emgold’s issued and outstanding shares post -Transaction. Nevada Sunrise will then
become an Insider of the Company.
David Wa tkinson, President and CEO of Emgold stated, “We are pleased to add the Golden Arrow
Property as a core asset to the Company. It has a well -defined mineral resource, an extensive exploration
database, and an Environmental Assessment already in place to allow an extensive drilling program to
expand resources. It has excellent synergy with our other Nevada assets.”
Golden Arrow Property Details
The Property is located approximately 40 miles east of Tonopah in Nye County, Nevada. The Property
consists of 357 unpatented and 17 patented lode mineral claims covering an area of approximately 7,030
acres (2,845 hectares). It is an advanced -stage exploration property with a comprehensive exploration
database including geochemical sampling, geophysics, and over 20 1,000 feet of reverse circulation and
diamond core drilling
To date, two main exploration targets have been drilled on the Property focusing on bulk disseminated
mineralization – the Gold Coin and Hidden Hill deposits. Numerous other targets have been identified
for exploration. Emgold's management believes there is potential to expand both t he Hidden Hill and
Gold Coin resources and for discovery of other bulk disseminated mineralization on the Property. In
addition, historic underground mine workings lie along the Page Fault and other structures on the
Property indicating potential for vein style mineralization that has been subject to limited modern
exploration, if any, to evaluate its potential.
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Golden Arrow Technical Report and Mineral Resource Estimate
A Technical Report, entitled “Amended 2018 Updated Technical Report on the Golden A rrow Project,
Nye County, Nevada, U.S.A. ” (the “ Technical Report”) was prepared for Emgold and Nevada Sunrise
by Mine Development Associates in Reno, Nevada, and has an effective date of August 28, 2018 and a
report date of September 24, 2018 . The Technical Report was prepared by qualified persons Steven
Ristorcelli, CPG, Odin D. Christensen, PhD, CPG, and Jack S. McPartland, MMSA (collectively, the
“Authors”), in support of the Transaction . The Authors are independent of both Emgold, the optionee,
and Nevada Sunrise, the optionor.
The Technical Report discloses a mineral resource, which particulars are set out in Table 1 below. The
mineral resource was modeled for the Property and estimated by evaluating the drill data statistically and
utilizing a three ‐dimensional geological solid model. Mineral domains were interpreted on
northeast‐southwest geological cross sections spaced at approximately 100 foot intervals throughout the
extent of the Property mineralization. The mineral domain interpretations were then rectified to east‐west
cross sections spaced at 20 foot intervals. Estimation was done by inverse ‐distance. The Authors were
certified to mak e their own independent investigations based on w hat they deemed necessary , in their
professional judgment, to be able to reasonably rely on the provided information to make the conclusions
and recommendations presented in the Technical Report.
Table 1
Golden Arrow Property Mineral Resource1,2,3,7,8
Classification Cut-Off
Grade4,5 Tons Au opt Ag opt Au
Ounces
Ag
Ounces
Measured Variable 1,850,000 0.028 0.43 52,400 796,000
Indicated Variable 10,322,000 0.024 0.31 244,100 3,212,000
Measured and Indicated Variable 12,172,000 0.024 0.33 296,500 4,008,000
Inferred6 Variable 3,790,000 0.013 0.33 50,400 1,249,000
1. CIM Standards were followed in reporting the mineral resource estimate.
2. Effective date of the mineral resource is November 28, 2017.
3. Any known legal, political, environmental, or other risks that could materially affect the potential development of the
Mineral Reserves are detailed below in the section entitled "Cautionary Note Regarding Forward-Looking Statements".
4. Cut-off grades are 0.01 gold equivalent opt for oxide material and 0.015 gold equivalent opt for sulfide materi al. Mine
Development Associated derived these cut -off grades using mining costs of US$2.00 per ton, heap -leach costs of
US$4.00 per ton, milling costs of US$12.00 per ton, and G&A costs of US$3.50 per ton. Metallurgical recoveries were
assumed to range f rom 70% to 95% for gold, depending upon the oxidation state and sulfide content of the material,
and heap-leach or milling scenarios envisioned. Multiple economic evaluations were done including pit optimization
that demonstrated the economic viability.
5. Gold equivalent cut -off grade calculated using a 55:1 gold to silver price ratio. No adjustment was made for
metallurgical recovery.
6. The quality and grade of inferred resources are uncertain in nature and there has been insufficient exploration to define
these inferred resources as measured or indicated resources and it is uncertain whether further exploration will result in
upgrading them to measured or indicated resource categories.
7. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
8. The Authors verified the data in the Technical Report through a combination of data audits, where drilling data
compiled in the project database was compared to paper logs, maps, assay certificates and other records, and
independent verification sampling. There have been no limitations on, or failure to conduct the verification
As outlined in the Technical Report, the Authors have determined that the Property is a property of merit
that warrants continued exploration and recommend that Emgold undertake continued systematic
exploration to discover additional centers of mineralization within the Property.
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The Authors recommend a two -phased approach to advance the Property, with the goal of completing a
Preliminary Economic Assessment ( “PEA”) by the end of Phase 2. They recommend Phase 1 include a
comprehensive review of presently available technical data to define potential drilling targets for
discovery of new mineral centers and identify locations for drilling within the current resource areas to
upgrade mineral resources from Inferred to Indicated classification. Following a re view of the technical
data, preparation of a new geological map for the project area is recommended for clarification of district
volcanic stratigraphy, as well as preparation of several geological cross sections based upon the mapping
and drilling information. Rock-chip and soil geochemistry will complement the geological mapping. The
proposed budget for Phase 1 recommended work is US$150,000.
Following the completion of Phase 1, a decision would be made whether or how to proceed with Phase 2.
Phase 2 would include drilling and metallurgical test work followed by a scoping study and potentially a
PEA, depending on the scoping study results. The budget for Phase 2 could potentially range from
$1,000,000 to $3,000,000. Exploration drilling is presently wa rranted even without Phase 1, but Phase 1
will be used to design the drill program for Phase 2.
About Emgold
Emgold is a junior gold exploration and mine development company with several exploration properties
located in the Quebec, Nevada, and British Col umbia. These include the Troilus North property in
Quebec (under option), the Buckskin Rawhide East, Buckskin Rawhide West, and Koegel Rawhide
properties in Nevada, and the Stewart and Rozan properties located in British Columbia. The Company is
in the p rocess of acquiring a 51% interest in the advanced Golden Arrow Property in Nevada with an
option to acquire 100% interest.
Robert Pease, CPG., a qualified person under the NI 43-101 instrument, has reviewed an d approved the
content of this press release.
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]
This release was prepared by the Company's management. 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 t his
release. For more information on the Company, investors should review the Company's filings that are available at
www.sedar.com or the Company's website at www.emgold.com.
Cautionary Note on Forward-Looking Statements
This news release contains forward -looking statements and forward -looking information (collectively, "forward -looking
statements") within the meaning of applicable Canadian and U.S. securities le gislation, including the United States Private
Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including ,
without limitation, statements regarding the anticipated business plans and timing of future activities of the Company; the option
and acquisition of the Golden Arrow Property, the successful completion of associated financing activities are forward -looking
statements. Although the Company believes that such statements are reasonable, i t can give no assurance that such expectations
will prove to be correct. Forward -looking statements are typically identified by words such as: "believe", "expect", "anticipate",
"intend", "estimate", "postulate" and similar expressions, or are those, which , by their nature, refer to future events. The
Company cautions investors that any forward -looking statements by the Company are not guarantees of future results or
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performance, and that actual results may differ materially from those in forward -looking statements as a result of various factors,
including, operating and technical difficulties in connection with mineral exploration and development activities, actual res ults of
exploration activities, the estimation or realization of mineral reserves and mine ral resources, the timing and amount of estimated
future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits,
requirements for additional capital, future prices of precious metals, changes in g eneral economic conditions, changes in the
financial markets and in the demand and market price for commodities, labour disputes and other risks of the mining industry,
delays in obtaining governmental approvals, permits or financing or in the completion o f development or construction activities,
changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any
necessary permits, consents or authorizations required, including TSX -V acceptance o f any current or future property
acquisitions or financings and other planned activities, the timing and possible outcome of any pending litigation, environme ntal
issues and liabilities, and risks related to joint venture operations, and other risks and un certainties disclosed in the Company's
latest interim Management's Discussion and Analysis and filed with certain securities commissions in Canada. All of the
Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are ur ged to review these
materials, including the technical reports filed with respect to the Company's mineral properties.
Readers are cautioned not to place undue reliance on forward -looking statements. The Company undertakes no obligation to
update any of the forward -looking statements in this news release or incorporated by reference herein, except as otherwise
required by law.