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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: Gord Bolton who wrote (615)	10/24/1998 5:29:00 PM
From: Mr Metals	Read Replies (1) \| Respond to of 3282

Emgold Mining Corp - Idaho-Maryland tonnage estimates Emgold Mining Corp EMR Shares issued 11,505,903 1998-10-21 close $0.2 Friday Oct 23 1998 Mr. Arthur Troup reports In light of the CIM (Canadian Institute of Mining and Metallurgical) Ad Hoc Committee Report, published in the September 1996 issue of the CIM Bulletin (Volume 89, No. 1003, pp. 39 - 44) which outlines Categories, Definitions and Guidelines for Mineral Resource/Reserve Classification, Emgold Mining wishes to restate prior disclosures of grade and tonnage estimates for the Idaho-Maryland gold deposit in Nevada County, California. CIM Ad Hoc Committee Report, Resource/Reserve Definition A mineral resource is a deposit of concentration of minerals for which there is sufficient sampling information and geologic understanding to outline a deposit of current or potential economic merit. Mineral resources are subdivided, in order of increasing geological confidence, into inferred, indicated and measured categories. An inferred resource should be reported for the estimated grade and tonnages when the sampling data and geologic understanding are only sufficient to outline a deposit of economic merit. An indicated resource is the part of a resource for which grade, tonnage, and other characteristics such as geology and continuity are established so well that they can serve as a base for decisions on major expenditures. The Idaho-Maryland gold deposit was discovered in 1851 and produced from 1862 through 1956. Total recorded production was 2,383,000 ounces of gold from 5,546,000 short tons or a recovered grade of 0.43 ounces of gold per short ton. At the time of closure, there were 25 different working faces on six different levels. The three-compartment, 3,460 foot deep, New Brunswick vertical shaft provided access to the Idaho-Maryland 15 working levels. Over 71 miles of underground workings provide access to much of the property. The Idaho-Maryland mine was partially developed and mines from 160 veins with an additional 55 partially defined veins (no production) delineated by drilling prior to closure in 1956. The historical database includes the results of over 42 miles (220,000 feet) of exploration and development drilling. The Idaho-Maryland vein system lies within a wedge-shaped block, which is confined by three bounding faults. The Idaho-Maryland vein system is about 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, which is the lowest level in the mine. The concept for the next exploration/development stage is to de-water the mine, rehabilitate the levels and diamond drill the defined structures identified by the historical database, to convert the interpreted gold intercepts from the former drilling to a higher degree of reliability sufficient for a feasibility study. Emgold applied for and obtained USE Permit U94-017 from the County of Nevada Planning Department on Jan. 25, 1996 to allow de-watering, rehabilitation of underground workings and exploration drilling. Given that the exploration studies completed by Emgold Mining were done on the extensive historical drill database and given that the mine requires de-watering to complete the exploration/development studies prior to final feasibility, it is the opinion of the consultant to the company that the previously disclosed grade and tonnage estimates are within the CIM classification of inferred resource. There are different assumptions used to produce the various estimates. The grade and tonnage estimates of the inferred resource can be characterized as ranging from a base case unadjusted value of 2,290,000 short tons with a grade of 0.23 ounces per short ton gold to an optimistic case adjusted value of 9,117,000 short tons with a grade of 0.33 opt gold. These inferred resource figures contain a number of assumptions. In the case of the optimistic figures, the interpreted vein volumes are assumed to contain 100 per cent mineable gold mineralization while the base cases were cut by 66 per cent of the optimistic volume and the suggested success rate of finding above cutoff grade mineralization along strike was in the order of one foot in four. In the initial plotting of vein structures, quartz vein intercepts greater than 42 inches in width and above a cutoff grade of 0.14 opt gold were plotted. Cutoff used in this context does not relate to future mine cutoff but rather is used to assess the distribution of gold and width characteristics in the vein structures. Grade values changed when higher grade intercepts were cut to one ounce gold. In the adjusted category, a mine call factor of 1.44 was used to increase the expected grade because of the historic correlation problems between expected mine output in ounces gold, when the deposit was mined, against the recovered ounces of gold. The original drill core was 5/8 inch diameter and the use of a mine call factor to better assess the mine's actual gold production (drill expected versus recovered ounces gold) was a practice used to best use the drill data at that time. This historical practice has been incorporated in the adjusted category because it is the former drill data that has been used. Given that the Idaho-Maryland gold deposit has not yet been de-watered, rehabilitated nor has underground confirmation exploration/development been completed, it is premature to assign definite mining rates, metallurgical recoveries and operation/capital costs. Accordingly, the company withdraws the previous statement that the deposit will produce 140,000 ounces gold per year at an estimated operating cost of $215 (U.S.) per ounce gold. Further exploration/development work is needed to produce the required feasibility study. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com MM