Sounds like a winner Keith:-)
Energold Mining Ltd.
Corporate Profile
Stock Symbol: EGD:VSE Head Office: 900-543 Granville St.
Shares Issued: 14,278,377 Vancouver BC
Shares Fully Diluted: 16.4 million V6C 1X8
P:
604-681-9501
F: 604-681-6813
Cash: $2.6 million energold.com
email: keith@energold.com
Introduction
Energold Mining Ltd. (EGD-V) is focusing its exploration work in the
Dominican Republic in the Caribbean. The DR hosts one of the largest gold
deposits in the world, Pueblo Viejo, with remaining reserves of more than
20 million ounces of gold. Five million ounces have already been mined.
Energold has back-in rights for concession applications immediately
surrounding Pueblo Viejo, and optional rights for a large portfolio of
properties elsewhere in the Dominican Republic. Energold's lead property,
the Longyear, is adjacent to Pueblo Viejo, and has some striking geological
similarities to the large deposit.
As part of its strategy, Energold has joint-ventured many of its
properties, with Energold remaining as operator. As a result, 85% of the
exploration dollars on EGD's Dominican properties will be spent by other
companies.
Energold retains the right to back in for a majority interest after four
years when a significant amount of exploration has identified key target
areas, reducing the total land package which Energold will choose from, and
the financial and geological risk.
Despite the country's ideal geology and the presence of Pueblo Viejo,
little modern mining exploration work has been done in the DR--mainly for
political reasons. The new government elected in 1996 is encouraging
foreign investment in mining. Energold recognized the mineral potential of
the country early, and has been able to acquire rights to some highly
prospective ground.
Today, a syndicate of four brokerage houses bought out the stock position
of the controlling shareholder, Eldorado Gold (4.5 million shares or 37% of
Energold's stock). Energold is now "in play", with no majority
shareholder.
The Longyear Property
Longyear has some similarities to Pueblo Viejo, and management is hopeful
of discovering another major multi-million ounce gold-silver deposit.
A quick history of the property shows that Longyear was once part of Pueblo
Viejo when Amax discovered the deposit in the early 1970s, and was a major
target. What is now Pueblo Viejo, the Moore and the Monte Negro orebodies
had surface oxide gold deposits that made for extremely profitable mining.
Longyear sits 3.5 km (2 miles) from Pueblo Viejo.
It was so profitable the government of the day purchased the mine in 1979
for US$70 million. Unfortunately, soon afterward the oxide caps at Moore
and Monte Negro were depleted, leaving a refractory sulphide mineral
resource of some 32 million ounces of gold. The government of the day did
not put money back into the mill to properly handle the sulphide ores, so
recoveries dropped. The mine began to lose money, and still does to this
day.
Falconbridge drilled Longyear as a massive sulphide target (5 holes, just
east of the Energold gold anomaly) and came up dry. But their core showed
the gold values in oxides went down to 25-30 metres, the same as at Pueblo
Viejo.
Energold received mineral title in January of this year. Energold sold 51%
of the holding company owning Longyear to Eldorado Gold (ELD:TSE) for $2
million cash and a carried 49% interest to production. Energold remains the
operator.
Longyear Geology Highlights
* A geochemical survey on a 1 km square grid has identified a
prominent gold
anomaly in soils, oxidized float boulders and limited outcrops.
* Soils and rocks average 0.5 grams per ton gold and range up to
greater than 5 g/t
gold with numerous plus 1 g/t Au values accompanied by highly
anomalous values in
silver, copper, molybdenum, lead and zinc.
* The anomaly is open to the south, north and northwest and covers
an area of 600
by 700 metres underlain by Maimon quartz sericite schists, Los
Ranchos
Formation volcanics and sediments and Hatillo limestone.
The Rey Midas Property
A detailed surface exploration program is underway at Energold's Rey Midas
concession in the Dominican Republic. Rey Midas is a key property for
Energold as it adjoins a mineral discovery made by Falconbridge in 1997.
Rey Midas is 55 km east of Pueblo Viejo in the middle of the Los Ranchos
Formation.
On the adjacent Managua concession, Falconbridge reported a mineral
inventory of 4,680,000 tonnes of 0.91% copper, 4.88g/t silver and 2.29g/t
gold in the Kiosk vein - a northwest striking, steeply dipping structure,
which extends at least 300 m onto the Rey Midas concession.
Rey Midas Geology Highlights
* a 0.5 km x 1 km zone of strong alteration and mineralization in volcanics
and volcaniclastics of the Los Ranchos Formation, with values up to 1.3
g/t Au in soil/rocks * silver, arsenic and mercury anomalies coincident
with the gold anomaly * the zone remains open * the presence of a strong
northwest trending linear which may be important to mineralization as is
the case elsewhere on the island
Energold is focusing initially on the vein extension in its surface
exploration program. A grid is being established on the Rey Midas
concession for detailed soil, outcrop and float sampling. Geophysical
surveys (I.P. and magnetometer) and geological mapping will be conducted.
An alteration zone in the northern part of the concession will also be
prospected and sampled.
Rey Midas was granted to Actividades Mineras, S.A. Actividades is owned by
MJD Agency Ltd., a private Canadian company. Energold has an option to
earn a 60% interest in Actividades by making exploration expenditures of
$600,000.
Management
H. Walter Sellmer: President, Director
Mr. Sellmer has more than 30 years' experience as an exploration geologist.
He has held senior management positions with Amax Exploration, Canamax and
TOTAL Energold Corp., responsible for overseeing multi-million dollar
exploration budgets. While with Canamax he acquired the Midway, Ketza and
Mount Hundere projects. Mr. Sellmer took Ketza from exploration through
feasibility to construction. With TOTAL, Mr. Sellmer planned and directed
the geology departments at the Mt. Skukum and Erickson mines, and was
instrumental in acquiring a controlling interest in Plexus, which had a
24.5% interest in the Denton-Rawhide mine in Nevada.
He became President of Energold in 1994. He is currently Past-President of
the B.C. and Yukon Chamber of Mines, and has served as industry
representative on the Premiers Forum - a mining advisory group to the
Premier of British Columbia, as well as a director of the PDAC.
Fred Davidson: Vice-President, Chief Financial Officer, Director
Mr. Davidson has helped finance public and private mining companies for 25
years. He has an MBA from the University of British Columbia, and became a
chartered accountant with Price Waterhouse in 1972. He lectured at UBC for
two years, then spent 10 years as Chief Financial Officer of Erickson Gold
Mines Ltd. and Mt. Skukum. The Erickson team took the mine from grassroots
exploration to production.
>From 1984-1993 Mr. Davidson was VP and Chief Financial Officer of TOTAL
Energold Corp., an energy and gold producer with more than $250 million in
assets. In 1993 Mr. Davidson helped engineer the sale of TOTAL's assets,
and then became president of a private mineral investment group. He
currently sits on the board of several public and private mining companies.
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