Adds 2,566 Hectares New Staking to Property
VANCOUVER, June 4, 2018 /CNW/ - David
H. Brett, President & CEO, EnGold Mines Ltd., (TSX-V: EGM, "EnGold" or the "Company") reports that EnGold will
re-commence drilling at its 100% owned Lac La Hache Property on Monday, June 11 th,
2018. Initial drilling will target down dip and on strike extensions of the high-grade copper Spout North Zone within the Spout
Copper Deposit. Drilling in the G1 Copper and Gap zones is expected to get underway in July, 2018. The Company has also added
2566 hectares of new mineral claims on the northern part of the Lac La Hache Property to cover ground believed to have
exploration potential.
"EnGold believes the Spout Copper Deposit, previously modeled as a low-grade open-pit copper/magnetite resource, has strong
potential to develop into a high-grade underground deposit," said EnGold CEO David Brett. "Our
plan with Spout Copper is to publish a recalculation of the resource based on a high-grade, underground mining model later this
year, using the new 2018 drilling results and the 200+ Spout drill holes we already have."
"We expect the new drilling at Spout, focusing on depths below 100 metres, to add considerably to the modelled tonnes at
Spout," said EnGold VP of Exploration Rob Shives, P.Geo. "This is an important step in our objective to define sufficient tonnes
from multiple deposits to support an economically and environmentally responsible underground mine at Lac La Hache."
The Spout Copper Deposit is defined by two known zones, termed the North and South Zones. Both zones outcrop at surface and
occur within carbonate-rich Nicola volcaniclastic sediments. The South Zone is horizontal, with true thicknesses varying from a
few metres (m) to more than 40 m. The North Zone is also stratabound but is vertical, with a strike
of 500 m and true thicknesses ranging up to 20 m locally.
In 2012, SRK Consulting completed a maiden resource estimate based on the assumption of an open-pit mining method typically
applied to low-grade copper deposits (details available on the EnGold website here ). While this approach
allowed inclusion of low grade material (down to 0.25 % copper and less), it also limited the depth of material included in the
open pit calculation to only 60m below surface. This was suitable for most of the horizontal,
near-surface, South zone, but it excluded a large, unknown volume of higher-grade material (1 to 2% copper) occurring below
60 m within the vertical North Zone. Drilling completed in 2011 has demonstrated that higher grade
material occurs within the North Zone below 350 m vertical depth and remains open. Much of the
North Zone strike length remains completely untested below 100 m.
Based on previous exploration on the property, including over 200 drill holes, EnGold believes that the Spout Copper
Deposit has the potential to host 3.5 to 4.5 million tonnes grading 1.5 to 1.7 % copper. The exploration target potential was
derived by modeling the identified mineralized structure, as evidenced by drill intercepts through both zones and, by arbitrarily
limiting the interpreted depth extension of the vertical North Zone down to 500 m below surface.
The volume of the geologically modeled areas determines the potential tonnage in the exploration target. The grade range given in
the exploration target is determined with consideration to the drill results within the modeled exploration target area and of
the geological setting, where grades appear consistent within the host strata. The potential tonnages and grades are conceptual
in nature and are based on previous drill results that defined the approximate strike length, thickness, depth and grade of the
portion of the existing 2012 SRK resource estimate. There has been insufficient exploration to define a current, underground
modeled (2018) mineral resource and the Company cautions that there is a risk further exploration will not result in the
delineation of additional resources.
About EnGold
EnGold is a Vancouver-based copper/gold exploration company focused solely on its 100% owned
Lac La Hache property in the Cariboo region of BC. EnGold's vision is to identify and delineate
mineral resources at Lac La Hache that could potentially support an economically feasible and
environmentally sustainable underground mining operation. The Spout Deposit, the Aurizon Gold Zone and the 2017 G1 Discovery,
located within a 7-kilometer area on the property, are all considered by EnGold to be potentially underground minable targets.
EnGold's significant new copper discovery in 2017 adds to the already extensively drilled Spout Copper Deposit and Aurizon Gold
zones. Discovery potential for new high-grade zones remains strong, and existing areas are open for expansion. With world class
infrastructure at its doorstep, Lac La Hache is a great location to be exploring. EnGold's
corporate philosophy rests on three interdependent pillars: Environment, Engagement and Gold. Through sound environmental
stewardship, commitment to transparent engagement with local communities, the Company is dedicated to driving exceptional
shareholder and stakeholder value by fulfilling its vision to profitably supply valuable and much needed metals to the global
marketplace.
Rob Shives P.Geo., VP Exploration and a Qualified Person as defined under National Instrument
43-101, has reviewed and approved the technical content of this release.
EnGold Mines Ltd. Per/
David Brett, MBA
President & CEO
This news release may contain "forward ‐ looking statements". Readers are cautioned that any
such statements are not guarantees of future performance and that actual development or results may vary materially from those in
these "forward looking statements."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Engold Mines Ltd.
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