EnGold Drills 26.57 m Grading 1.76% Cu, 0.27 g/t Au, 10.29 g/t Ag and 35.8% Iron in Discovery Hole at Lac La Hache Second Drill Being Mobilized to Site
Vancouver, March 1, 2017 - David H. Brett, President & CEO, Engold Mines Ltd., (TSXV: EGM), ("EnGold" or the "Company") reports that recently completed drill hole G16-01 targeting a gravity geophysical anomaly has encountered 1.76% copper, 0.27 grams per ton gold, 10.29 g/t silver and 35.8% iron over 26.57 meters in a previously undrilled area of its' 100% owned Lac La Hache Property in the Cariboo region of BC. Within this, a 14 m thick interval exceeds 2% copper. The skarn-type mineralization is located 1.8 km southeast of the existing copper-gold-silver-magnetite resource defined at the Spout Deposit. EnGold is now mobilizing a second drill to the Property to focus on the 1 km X 1.4 km gravity geophysical anomaly. The first drill was moved to the Aurizon Gold target, where it is now drilling, as the Company was waiting for assays from the new zone and developing an exploration plan for the next phase of work to follow up on the new results. The Company may move both drills to the new zone, depending on a variety of factors as the program evolves.
"This discovery has significant size potential and marks a new and greatly accelerated phase of growth for EnGold," said EnGold President & CEO David Brett. "We are fortunate to have the technical talent and infrastructure capacity to expand our operations rapidly."
"Our modeling suggests the new zone is stratabound mineralization that is continuous with the Spout Deposits 1.8 km to the northwest, and that it extends further to the southeast than currently defined by the relatively sparse initial gravity test survey. The size of the geophysical anomaly is already impressive and will be expanded with additional surveying in early March," said VP Exploration Rob Shives, P.Geo. "These results represent a truly text-book example where the combination of geophysical, geochemical and geological modeling supports accurate prediction of this new zone in a previously untested area, as indicated by this success in the very first drill hole."
Vertical drill hole G16-01 intersected semi-massive magnetite-chalcopyrite (minor pyrite) skarn type mineralization over a true width exceeding 26 meters. The mineralization appears stratabound, occurring within sub-horizontal, skarned Nicola volcanoclastic rocks interpreted as the possible down-dip extension of Spout host rocks. The mineralogy and textures of the mineralized zone also appears very similar to Spout Deposit mineralization.
The hole targeted a large and strong, 1.0 milligal residual gravity anomaly defined in 2015 by a detailed ground gravity test survey conducted by Brian Jones, Excel Geophysics Inc. As previously reported (see News Release Feb 22, 2017) the amplitude and size of this anomaly significantly exceed the positive gravity responses observed over the Spout North and South Deposits. The new anomaly measures 1400 m east-west by 1000 m north-south at a contoured value of 0.5 milligal. Similar to the Spout Deposit, the new anomaly is flanked by induced polarization chargeability anomalies to north and south.
Assay results have been received (Table 1) and are reported below:
| Table 1: Drill core assays, Engold Mines Ltd., Gravity anomaly, Feb 28, 2017 | |||||||
| DDH | From (m) | To (m) | Interval (m) | Cu (%) | Au (g/t) | Ag (g/t) | Fe (%) |
| AZS16-01 | 337.30 | 363.87 | 26.57 | 1.76 | 0.27 | 10.29 | 35.8 |
| including | 343.00 | 357.00 | 14.00 | 2.09 | 0.27 | 12.34 | 36.4 |
Although insufficient data is available to precisely determine the true width of the mineralization, company geologists believe the 27 metre intercept is close to a true width.
Quality Control/Quality Assurance Program
Engold Mines Ltd. follows procedures which ensure sample security, chain of custody and Quality Assurance/Quality Control for all drilling and geochemical sampling, conforming to industry practices defined by Canadian Institute for Mining, Metallurgy (CIMM) standards, and required for TSX-listed companies by National Instrument 43-101.
All core was logged and photographed. Sampled intervals were sawed in half, bagged, sealed and sent securely to ALS Canada Ltd for analyses. Half-gram samples were digested with aqua regia acid then analysed by inductively coupled plasma-atomic emission spectrometry (ICP-AES) for 35 elements (ME-ICP41). A 30 gram split is analyzed for gold by fire assay with a gravimetric finish (ME-GRA21). Copper values exceeding 1 percent were analyzed using aqua regia digestion with an ICP-AES finish (ME-OG46) to improve accuracy and precision at higher grades. As part of our comprehensive QA/QC program, one standard, one blank and one in-line replicate were inserted into the sample stream in each group of approximately 20 samples in each analytical batch.
About EnGold
EnGold is focused on finding and developing mining operations at its 100% owned mineral property located near the town of Lac La Hache in BC's prolific Cariboo mining region. 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 discovering and developing mineral resources.
About the Lac La Hache Property
The advanced stage property lies within BC's Quesnel Trough mineral belt, which hosts several past and currently producing copper/gold/silver mines, including nearby Imperial Metals' Mount Polley copper-gold mine and New Gold Inc.'s New Afton copper-gold mine. The Company has drilled numerous prospects on the property, including Spout copper-magnetite-gold-silver deposit (for which a resource calculation has been reported and supported by an NI43-101 Technical Report), the gold-rich Aurizon gold-copper-silver prospect and recent new discoveries with porphyry and skarn copper/gold potential. EnGold is currently focused on evaluation of its Aurizon Gold (gold-copper-sliver) prospect, where drilling continues to extend the host structure and gold-rich grades, and on the new copper-magnetite-gold-silver discovery. Supported by significant local infrastructure including powerlines, all season road access, rail and other amenities, the Lac La Hache project demonstrates excellent logistics for resource extraction.
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
For further info contact David Brett, 604-682-2421 or david@engold.ca
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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