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."
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Engold Mines Ltd.