Vancouver, BC / ACCESSWIRE / July 28 2014 / Emgold Mining Corporation / ("Emgold" or the "Company") is pleased to announce that it has completed the acquisition of 100% of the Buckskin Rawhide East Property (the "Property"). The Property is located in the Rawhide Mining District, about 40 miles southeast of Fallon, Nevada. It consists of 52 unpatented mineral lode claims totaling approximately 835 acres. Gold and silver mineralization occurs throughout the property which was sampled and drilled historically by Kennecott Minerals Company ("Kennecott") and others. The Property is surrounded by Rawhide Mining LLC's ("RMC") operating Denton-Rawhide Mine and Regent Property.
The Denton-Rawhide Mine was owned and operated by Kennecott from 1988 to 2010. In 2010, the Mine was acquired by RMC, who continued to produce gold from historic heap leach pads. In 2012, RMC recommenced production from the mine. The Denton-Rawhide Mine produced 1.6 million ounces of gold and 13.5 million ounces of silver from 1990 through 2012 (Source: Nevada Bureau of Mines and Geology Special Publication MI-2012). It should be noted that proximity of the Property to other exploration or mining properties in the area does not mean a resource will be identified or delineated on the Property. However, the presence of similar geology and structures on the properties does increase the potential for exploration success.
Historically, Kennecott drilled over 80 reverse circulation holes on the Buckskin-Rawhide East Property. Those results indicated potential for delineation of both high grade mineralized gold/silver veins and bulk minable disseminated gold/silver zones. Emgold reviewed historic data, conducted geological mapping and field sampling, and subsequently discovered the Chicago Mountain/Chicago Gulch, Black Eagle, and Buckskin Mountain exploration targets. Information on the Property can be found at www.emgold.com.
Emgold originally optioned the Property in 2009 and subsequently acquired 75% ownership from Nevada Sunrise LLC (a private company) in December, 2012 for US$400,000. Emgold has now completed acquisition of the remaining 25% interest in the Property from the Estate of Maurice and Lorraine Castagne for US$110,000, subject to registration of the Deed with Mineral County, Nevada.
David Watkinson, President and CEO of Emgold, stated; "We are pleased to have completed the acquisition of the Buckskin Rawhide East Property and to have consolidated a 100 percent interest in the Property. This acquisition eliminated advance royalty payments that were being paid to Nevada Sunrise LLC and also eliminated a potential future net smelter production royalty. The property was acquired at a significant discount to the original lease and option to purchase agreement. Emgold management believes that the Property has excellent exploration potential and further exploration, may lead to development of both high grade vein and bulk disseminated gold and silver resources."
The scientific or technical information contained in this news release has been reviewed and approved by Mr. Robert Pease, P.Geo., a Qualified Person as defined in National Instrument 43-101.
On behalf of the Board of Directors
David G. Watkinson, P.Eng.
President & CEO
For further information please contact:
Tel: (530) 271-0679
Email: [email protected]
This release was prepared by the Company's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information on the Company, investors should review the Company's filings that are available at www.sedar.com or the Company's website at www.emgold.com. This news release includes certain statements that are "forward-looking statements" within the meaning of applicable securities laws including statements regarding the Property transaction, exploration potential, and other statements. Forward-looking statements are based on certain assumptions. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include the failure to obtain the required financing to advance the Property, failure to obtain the required exploration or operating permits, and failure to achieve exploration success. Other risk factors include changes in metal prices, the price of the Company's shares, the costs of labour, the cost of equipment, the cost of supplies, approvals by federal, state, and local agencies, permitting delays, legal challenges to permits, general economic, market or business conditions, and other factors beyond the control of the Company. The Company does not intend to update or revise any forward-looking information whether as to a result of new information, future events or otherwise, except as required by law.
SOURCE: Emgold Mining Corporation