EnGold to Recommence Drilling at Lac La Hache June 11th
Adds 2,566 Hectares New Staking to Property
VANCOUVER, June 4, 2018 /CNW/ - David H. Brett, President & CEO, EnGold Mines Ltd., (TSX-V: EGM, "EnGold" or the "Company") reports that EnGold will re-commence drilling at its 100% owned Lac La Hache Property on Monday, June 11th, 2018. Initial drilling will target down dip and on strike extensions of the high-grade copper Spout North Zone within the Spout Copper Deposit. Drilling in the G1 Copper and Gap zones is expected to get underway in July, 2018. The Company has also added 2566 hectares of new mineral claims on the northern part of the Lac La Hache Property to cover ground believed to have exploration potential.
"EnGold believes the Spout Copper Deposit, previously modeled as a low-grade open-pit copper/magnetite resource, has strong potential to develop into a high-grade underground deposit," said EnGold CEO David Brett. "Our plan with Spout Copper is to publish a recalculation of the resource based on a high-grade, underground mining model later this year, using the new 2018 drilling results and the 200+ Spout drill holes we already have."
"We expect the new drilling at Spout, focusing on depths below 100 metres, to add considerably to the modelled tonnes at Spout," said EnGold VP of Exploration Rob Shives, P.Geo. "This is an important step in our objective to define sufficient tonnes from multiple deposits to support an economically and environmentally responsible underground mine at Lac La Hache."
The Spout Copper Deposit is defined by two known zones, termed the North and South Zones. Both zones outcrop at surface and occur within carbonate-rich Nicola volcaniclastic sediments. The South Zone is horizontal, with true thicknesses varying from a few metres (m) to more than 40 m. The North Zone is also stratabound but is vertical, with a strike of 500 m and true thicknesses ranging up to 20 m locally.
In 2012, SRK Consulting completed a maiden resource estimate based on the assumption of an open-pit mining method typically applied to low-grade copper deposits (details available on the EnGold website here). While this approach allowed inclusion of low grade material (down to 0.25 % copper and less), it also limited the depth of material included in the open pit calculation to only 60m below surface. This was suitable for most of the horizontal, near-surface, South zone, but it excluded a large, unknown volume of higher-grade material (1 to 2% copper) occurring below 60 m within the vertical North Zone. Drilling completed in 2011 has demonstrated that higher grade material occurs within the North Zone below 350 m vertical depth and remains open. Much of the North Zone strike length remains completely untested below 100 m.
Based on previous exploration on the property, including over 200 drill holes, EnGold believes that the Spout Copper Deposit has the potential to host 3.5 to 4.5 million tonnes grading 1.5 to 1.7 % copper. The exploration target potential was derived by modeling the identified mineralized structure, as evidenced by drill intercepts through both zones and, by arbitrarily limiting the interpreted depth extension of the vertical North Zone down to 500 m below surface. The volume of the geologically modeled areas determines the potential tonnage in the exploration target. The grade range given in the exploration target is determined with consideration to the drill results within the modeled exploration target area and of the geological setting, where grades appear consistent within the host strata. The potential tonnages and grades are conceptual in nature and are based on previous drill results that defined the approximate strike length, thickness, depth and grade of the portion of the existing 2012 SRK resource estimate. There has been insufficient exploration to define a current, underground modeled (2018) mineral resource and the Company cautions that there is a risk further exploration will not result in the delineation of additional resources.
About EnGold
EnGold is a Vancouver-based copper/gold exploration company focused solely on its 100% owned Lac La Hache property in the Cariboo region of BC. EnGold's vision is to identify and delineate mineral resources at Lac La Hache that could potentially support an economically feasible and environmentally sustainable underground mining operation. The Spout Deposit, the Aurizon Gold Zone and the 2017 G1 Discovery, located within a 7-kilometer area on the property, are all considered by EnGold to be potentially underground minable targets. EnGold's significant new copper discovery in 2017 adds to the already extensively drilled Spout Copper Deposit and Aurizon Gold zones. Discovery potential for new high-grade zones remains strong, and existing areas are open for expansion. With world class infrastructure at its doorstep, Lac La Hache is a great location to be exploring. EnGold's corporate philosophy rests on three interdependent pillars: Environment, Engagement and Gold. Through sound environmental stewardship, commitment to transparent engagement with local communities, the Company is dedicated to driving exceptional shareholder and stakeholder value by fulfilling its vision to profitably supply valuable and much needed metals to the global marketplace.
Rob Shives P.Geo., VP Exploration and a Qualified Person as defined under National Instrument 43-101, has reviewed and approved the technical content of this release.
EnGold Mines Ltd. Per/
David Brett, MBA
President & CEO
This news release may contain "forward‐looking statements". Readers are cautioned that any such statements are not guarantees of future performance and that actual development or results may vary materially from those in these "forward looking statements."
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SOURCE Engold Mines Ltd.
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