Once-in-a-Lifetime Chance to Purchase Gold for Less Than $1 per Ounce !!!
EMGOLD MINING CORPORATION ("EMR" - VSE) OFFERS INVESTORS UNPRECEDENTED
INVESTMENT OPPORTUNITY
EMGOLD MINING CORPORATION
1610 - 777 Dunsmuir Street, P. O. Box 10435
Vancouver, BC V7Y 1K4 Canada
Phone: (604) 687 - 4622 Fax: (604) 687 - 4212
website: emgold.com
Three Million Ounce Gold Resource Valued
at Less Than $1 per Ounce of Gold In the Ground !!
EMGOLD MINING CORP. has made significant progress in bringing the historic Idaho-Maryland gold mine back into production. Recent engineering studies indicate that less than half of the known gold has been extracted from the deposit, and that a resource of three million ounces remains at the
minesite.
History & Past Production The Idaho-Maryland gold mine was discovered in 1851, and was in
nearly-continuous production from 1862 through 1956. Total recorded production from the mine was 2,383,000 ounces of gold from 5,546,000 tons
of ore (0.43 oz Au/ST recovered grade).
The mine closed in March 1956 due to escalating labor and material costs coupled with a gold price fixed @ US$35/ounce. At the time of closure, the
mining operations were underway on 25 different faces on 6 different levels.
The most significant production stope in the Idaho-Maryland mine was the Idaho #1 ore shoot, which was worked continuously from a depth of 100 feet
to a vertical depth of over 2000 feet over a down-rake distance of 5,500 feet. Between 1862 and 1894, the Idaho #1 shoot produced over 1,000,00
ounces from less than one million tons of ore, a production record that has only been exceeded by one mine in the entire world (the Oroya oreshoot of
the famous Kalgoorlie Golden Mile in western Australia).
The Idaho-Maryland vein system is 9,000 feet long, up to 3,000 feet wide, and has been partially-mined from surface to a vertical depth of 3,280
feet. The Grass Valley (California) District is noted for good quartz vein continuity (both horizontally and vertically).
Access to the mine's 15 working levels is provided by the three-compartment, 3,460-foot deep New Brunswick Shaft. Over 71 miles of underground tunnels and workings provide access to much of the property. The Idaho-Maryland mine has been partially developed and mined from 160
veins, while another 55 veins were partially-delineated (but never produced from) by drilling prior to 1956. The historical exploration database
includes the results of over 42 miles (220,000 feet) of exploration and development drilling.
The Idaho-Maryland vein system lies within the wedge-shaped confines of three bounding faults A 3-D geologic model demonstrates the potential for
continuity of the existing vein system to a vertical depth of 5,000 feet (the adjoining Empire mine produced 6,000,000 oz Au to a depth of 5,200
feet). The area between 3,280 and 5,000 feet is considered highly prospective for the discovery of high-grade gold-quartz vein deposits.
Gold Resources
A 1992 study by James Askew and Associates Inc. estimated that the remaining gold resources between the 2000 and 3280 levels of the
Idaho-Maryland mine are 9,117,500 ST @ 0.326 oz Au/ST (containing 2,972,305 oz Au). This resource estimate excludes both the potential for large, bulk
tonnage targets identified by EMGOLD in 1997, as well as mineralization below the 3280-foot level.
Based on historic mining depths in the adjacent Empire mine (below 5000 feet) and the fact that all mineralized structures developed on the lowest
levels of the Idaho-Maryland mine remain open at depth, EMGOLD believes that an additional 10 million tons of ore at similar grades (containing 3 -
4 million ounces of gold) could be delineated between the 3280 and 5000 levels of the Idaho-Maryland mine.
Development Program (1998 - 1999)
EMGOLD's plans for reviving the Idaho-Maryland mine are to first de-water the mine, and then go underground to do further exploration to prove up the
total resource potential.
The entire development program (including de-watering, shaft rehabilitation, headframe and hoist construction and underground drilling
of the known resource blocks between the 2000 and 3280-foot levels) is expected to cost approximately US$11 million.
EMGOLD has applied for and been granted all permits necessary for re-opening the New Brunswick shaft, de-watering the mine and completing a
bankable feasibility.
Potential Gold Production of at Least 140,000 oz / yr @ US$215 / oz Au EMGOLD plans to resume operations at the Idaho-Maryland mine at an initial
mining rate of 1,500 ST ore / day, which will produce approximately 140,000 ounces of gold per year. With the addition of a second shaft, it would be
possible to significantly increase production: at 5,000 ST/day, the Idaho-Maryland mine would produce between 350,000 and 400,000 ounces of
gold per year (on par with Golden Giant and David Bell mines of the Hemlo District of Ontario).
Recent studies indicate that the Idaho-Maryland mine could be profitably developed and operated at a long-term gold price of US$300/oz based on an
estimated operating cost (including capital and royalties) of US$215 per ounce. The accessibility of higher-grade ore zones (> 0.50 oz Au/ST) in
the initial years of operations will significantly enhance both the mine's profitability and EMGOLD's earnings per share.
Opportunity for Investors
Trading at a fraction of its fair market value, EMGOLD offers investors an unparalleled investment opportunity in the current market environment, and
a chance to accumulate a significant position in a stock that can be expected to rally strongly as work gets underway at the Idaho-Maryland mine in the coming months.
With just 11.5 million shares outstanding (14 million fully-diluted) and a current share price of Cdn$0.19, the equity markets are valuing the
Idaho-Maryland gold mine at just Cdn$0.72 per ounce of gold (Cdn$0.92 / oz Au on a fully-diluted basis). By comparison, peer companies, with similar projects and capital structures, are being valued by the equity markets at the equivalent of Cdn$12 - Cdn$22.
For every Cdn$1.00 invested in EMGOLD, the shares held by investors serve as a proxy for 1.38 troy ounces of gold in the ground; and, for our friends
in the United States, every US$1 invested in EMGOLD buys control of 2.06 ounces of gold.
While some might characterize a gold stock such as EMGOLD as a speculative buy, we believe that the company offers strong (potentially explosive)
upside potential with very, very little risk. For long-term value investors, a core holding in Emgold Mining is a must; this is the type of investment opportunity that Warren Buffet built Berkshire Hathaway upon!
Management (the Lang Group) has a proven track record in discovering and building underground gold mines. Frank Lang, EMGOLD's President, has been
associated with many gold discoveries over the past two decades, including the Hemlo / Golden Giant mine
EMGOLD's Idaho-Maryland mine offers one of the best advanced exploration / developmental prospects available in North America. With inferred
resources of almost three million ounces, nearly one hundred years of operating history, an existing 3,400-foot, three-compartment shaft and 70+
miles of underground workings, EMGOLD has 100% control of a world-class gold project with the vast majority of the expensive infrastructure in
place and ready to go.
With a major financing for the underground drilling program and feasibility study in the works, the stock is a STRONG BUY and should out-perform its
peers.
Mr Metals |
