Vancouver, British Columbia, September 1, 2021 – Emgold Mining Corporation (TSXV:EMR, OTCQB:EGMCF, FRA:EMLM, BSE:EMLM) (“Emgold” or the “Company”) announces that it has received the results of a UAV-MAGTM survey (the “Mag Survey”) carried out on behalf of Emgold by Pioneer Exploration Consultants Ltd. (“Pioneer”) and Generic Geo Inc (“Generic Geo”) over the Casa South Property (the “Property”) in the Abitibi Region, Quebec, Canada. The Property is located directly south of Hecla Mining Company’s (“Hecla”) (NYSE: HL) Casa Berardi Mine, as shown in Figure 1. The Mag Survey covered the majority of Emergent's 114 sq km property.
Figure 1: Location of the Casa South project (red) with respect to neighboring companies and mineral occurrences
The Mag Survey included 4,016 km of flight lines and 372 km of tie lines, for a total of 4,388 line-km flown in the survey. Lines were flown at 25 m intervals. Several interesting magnetic anomalies and structural features were identified. Highly magnetic intrusions are readily visible from the survey, along with many areas of magnetic disruption and magnetic lineaments that may be associated with structural and hydrothermal activity.
A Preliminary Structural Interpretation of the Casa South Area of Influence, Quebec Canada (the “Interpretation”) was completed by Geokincern Limited (“Geokincern”). The analysis looked at geology, geophysical data from the Mag Survey, high resolution topographic data from NASA’s Suttle Radar Topography Mission, and satellite imagery. The Interpretation identified structures including folds, faults and shears, dykes, and magnetic fabrics. This was overlain with gold anomalies in glacial till identified from historic RC till drilling conducted on the Property in the 1980’s. Geokincern’s Interpretation identified 20 geophysical exploration targets on the Property and ranked them for priority. Eight targets were identified associated with coincident soil anomalies and twelve targets associated with structural and aeromagnetic features were identified as secondary and tertiary targets.
Figure 2 shows a first order vertical derivative analysis (“VD Analysis”) of the MS Survey with exploration targets shown in red. A VD Analysis quantifies the rate of change of the magnetic field as a function of elevation. It is used to delineate contacts between large-scale magnetic domains.
Figure 2: Vertical Derivative Analysis of Drone Magnetic Survey, Casa South Property, QC
Figure 3 shows a 3D analytic signal analysis (“AS Analysis”) of the MS Survey with exploration targets shown in red. The AS Analysis is useful in locating the edges of magnetic source bodies, particularly where remnant magnetic signals and/or low magnetic latitude complicates interpretation.
Figure 3: 3-D Analytic Signal Analysis of Drone Magnetic Survey, Casa South Property, QC
Figure 4 shows a total magnetic field intensity analysis (“TMI Analysis”) of the Mag Survey with exploration targets shown in red. The TMI Analysis is used to highlight geological structures that may be visible in the survey area by their magnetic signature or their magnetic contract to their surroundings.
Going forward, Emgold has retained Mercator Geological Services (“Mercator”) to conduct the following activities:
- Design a drill program for the Property based on the Mag Survey and other geologic data currently available with the goal of initiating a drilling program in late 2021.
- Obtain permits for the drill program.
- Complete 3-D modelling of historic core and RC till drilling, along with core drilling completed in 2019 by Emgold on the Property (i.e., a 3-D exploration model).
- Manage and implement the drill program, including reporting.
- Other work as required.
David Watkinson, President and CEO of Emgold, stated, “We are very excited by the results of the Mag Survey and the results of the Interpretation. The Property, like the adjacent Casa Berardi Mine to the north, is covered by glacial till. This requires exploration at Casa South to rely heavily on geophysics and analysis of historic glacial till sampling as primary techniques to search for potential mineralized deposits. The Mag Survey uses 25 m spacing, much less than helicopter magnetic surveys typically use, and the detailed data derived from this geophysical survey will form the basis guiding exploration on the Property into the future. We believe the Property has potential to host both gold and base metal discoveries, subject to exploration success”.
Figure 4: Total Magnetic Intensity Analysis of Drone Magnetic Survey, Casa South Property, QC
Kelly Malcolm, P.Geo., a qualified person under the NI 43-101 instrument, has reviewed and approved the technical content of this press release.
About the Property
The Property comprises 204 active mining titles covering a total of about 11,400 ha. It extends immediately south of and abuts Hecla’s Casa Berardi Mine operation and extends laterally for 20 km covering different sub-parallel structures corresponding to distinct geophysical signatures and hosting elevated gold values in soil anomalies.
Casa Berardi Mine has produced over 2.4 million recovered gold ounces since commencing production in 1988 (source: Technical Report for the Casa Berardi Mine, Northwestern Quebec, Canada, filed April 1, 2019, and available under Hecla’s filings at www.sedar.com). Note that the presence of mineral resources and reserves found on the Casa Berardi Mine Property do not guarantee discovery or delineation of mineral resources and reserves on the Casa South Property.
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, Emergent'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). 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) Malarctic 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 Emergent's properties adjacent to producing or past producing mines does not guarantee exploration success at Emergent'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]
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 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.