http EMGOLD MINING CORPORATION
1610 - 777 Dunsmuir Street, P.O. 10435
Vancouver, BC V7Y 1K4
Tel: (604) 687-4622 Fax: (604) 687-4212
January 12 , 1999
Ticker Symbol: EMR-vse
Standard & Poors
PRIVATE PLACEMENT / PROPOSED NEW AREA DRILL PROGRAM
Mr. Arthur G. Troup, Vice President, Exploration, is pleased to announce that the Company has arranged a private placement with several placees for the issue of up to 1,500,000 units at a price of $0.25 per unit, subject to regulatory approval. Each unit consists of one share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share at a price of $0.30 for a period of 12 months.
The proceeds of the placement will be used for working capital purposes and to conduct a proposed US$125,000, 4,000 foot surface diamond drilling program. The proposed drill program will test the adjacent Union Hill Mine, the South Idaho Mine and extensions of the Idaho-1, million ounce ore shoot. These targets are separately located from the Company's existing inferred gold resource areas in the Idaho-Maryland Mine and have been identified through an extensive review of thousands of maps and old records from the area in the Company's possession.
The Union Hill Mine reportedly produced between US$500,000 and US$750,000 at US$20 per ounce gold in the 1800's but was filled with water and has been inaccessible since World War One. While it is geologically a part of the Idaho-Maryland Mine, the Union Hill Mine does not connect underground to the existing Idaho-Maryland workings. The Union Hill mine has several targets including a zone of gold-bearing material reported in excess of 20 ft in width. The Company controls the surface of the Union Hill Mine as well as the adjacent New Brunswick Shaft, which is permitted for the Company's planned dewatering and underground exploration program.
The Idaho-Maryland Mine in Grass Valley, California produced approximately 2.4 million ounces of gold up to 1956 when it was closed due to the fixed price of gold at US$35 per ounce and escalating costs. Independent engineering reports indicate the potential for an inferred gold resource of up to 3 million ounces at a grade of 0.326 ounces per ton remaining in the mine.
"Arthur G. Troup"
Vice President, Exploration
For further information, please contact:
Andrew Hunter, Corporate Development of the Lang Mining Group
Tel: (604) 687-4622 Fax: (604) 687-4212
Toll Free: 1-888-267-1400://www.sedar.com/dynamic_pages/assoc_docs_e/d00003653.htm |
