NEWS RELEASE
Energold Mining Ltd.
For Release: August 12, 1998 TRADING SYMBOL "EGD-V"
SAMPLING RESULTS CONFIRM OXIDE-HOSTED GOLD ZONE AT LONGYEAR
Energold Mining Ltd. is pleased to announce new results from surface work on the Longyear concession in central Dominican Republic. The Longyear concession is located in the Cordillera Central, 3 km southwest of the Pueblo Viejo gold mine. In excess of 5 million ounces of oxide-hosted gold has been mined from Pueblo Viejo, a further 20 million ounces of dominantly sulphide-hosted gold awaits mining.
The Longyear concession is accessible by public roads. Upgrades to a private road which allow access to the main zone were completed in late July. Rock exposures developed by this activity are currently being channel sampled and mapped.
Samples of oxidized to saprolitic rock have been collected as vertical and horizontal channels from a series of 1.5 to 2.0 meter deep pits excavated throughout the main mineralized zone. These new highlighted results represent the full width or height of excavated pits, i.e. the length of the sample is limited by the size of the pit, not because mineralization ceased.
0.9 meters of 5.37 grams of gold per tonne
1.9 meters of 4.57 grams of gold per tonne
1.9 meters of 1.98 grams of gold per tonne
1.5 meters of 2.80 grams of gold per tonne
1.0 meters of 2.76 grams of gold per tonne
The average grade of all 165 pit, outcrop and float samples taken to date from the 300 by 700 meter zone is 1.22 grams of gold per tonne. Several of the better values, including those highlighted above, are from new areas within the zone and indicate that surface values of potential ore grade are widely distributed throughout the zone. A map showing sample distribution (Figure 1) is attached.
Two float samples grading 6.1 grams of gold and 137 grams of silver per tonne and 2.18 grams of gold and 20.4 grams of silver per tonne were found in the vicinity of an E-W trending fault - a possible control to mineralization.
Geophysics
Results from the 17.5 line kilometer IP/Resistivity survey are shown in Figure 2. Anomalous chargeabilities, indicative of sulphides at depth, appear to coincide well with the zone of plus 1 gram of gold per tonne surface samples and suggest that the zone dips beneath cover rock to the west. Anomalous resistivities (1,200 to >2,000 ohm/meters) suggestive of silicified zones, lie adjacent to and in part coincident with the chargeability anomalies and higher gold grades in surface samples.
Previous Drilling
Northbridge Mines Ltd. (Falconbridge Dominicana, C por A.) drilled 3 diamond drill holes and 13 air track holes on the property in the 1960's (approximate collar locations are shown on Figure 3). The three diamond drill holes (DDH-1 to -3), which indicate that the zone of oxidation extends from 9 to at least 31 meters in depth, were not systematically analyzed for gold when drilled; however, several samples collected later at irregular intervals returned values of up to 4 grams of gold per tonne. One of the three holes (DDH-1) cut 53 meters of 0.22% copper. Energold does not have any information on the results of the air track drilling. Four reverse circulation holes (LM-1,2,5 and 6) were drilled in the 1970's by Rosario Resources Ltd. The results from this campaign are presented in the table below and collar locations are shown on Figure 3.
Summary of Rosario Dominicana, S.A. reverse circulation drilling on the Longyear concession
Hole numberLength (m)Au (g/t)Ag (g/t)Cu (%)LM-1140m0.62 (0 to 42m)7.6 (0 to 42m)0.82 (0 to 42m)LM-2150m0.50 (34 to 46m)4.1 (1 to 46m)0.22 (34 to 46m)LM-5156mb.d.l.*3.7 (64 to 134m)Low to traceLM-656m0.33 (26 to 32m)1.5 (40-56m)Low* detection limit for gold in Rosario holes = 250 ppb
LM -1 has a significant intercept of mineralization; LM -2, located about 150 meters to the NW, contains a shorter intercept of near economic grade. Holes LM -5 & 6 were drilled on the downward (western) extension of the IP/Resistivity anomaly and while base metal grades increase with depth, these holes may have failed to intersect the main sulphide body.
The intensity and extent of the multi-element geochemical soil anomaly, the consistently high gold values in outcrop and subcrop with numerous samples greater than 2 grams of gold and up to 10 grams of gold per tonne, the lateral extent of the geochemical anomaly, and the coincidence of geochemical and IP anomalies in favourable rocks make this an outstanding bulk mineable oxide gold target which warrants drill testing.
The Longyear exploration concession was granted on January 22, 1998 to Casa Real, S.A., a Dominican company owned by FMI Technologies Inc. (FMI). FMI is owned 51% by Eldorado Gold Corp. (ELD.T) and 49% by Energold Mining Ltd. (EGD.V).
On behalf of the Board of Directors For more information
please contact:
Keith Schaefer 604-681-9501
(signed) H. Walter Sellmer
The Vancouver Stock Exchange has neither approved nor disapproved this release.
_____________________________________________________________________
900-543 Granville St. Phone: 604-681-9501
Vancouver BC V6C 1X8 Fax: 604-681-6813
energold.com keith@energold.com
Unfortunately, folks, I don't have a drill date yet. But stay tuned. |
