Mengold Resources Inc.

Mengold Resources Inc.

February 09, 2010 09:00 ET

Drilling Hits Major Fault on Mengold's Goldcreek Property

MONTREAL, QUÉBEC--(Marketwire - Feb. 9, 2010) - Mengold Resources Inc. ("Mengold") (TSX VENTURE:MNI) completed a 1,031m diamond drilling program on the Goldcreek Property prior to year end and all the assays have now been compiled.

Seven drill holes totaling 1,031m were collared on the Goldcreek Property, more specifically in the area known as the Centre Zone which is characterized by an assemblage of meta-felsic volcanic and meta-sedimentary rocks. In the past few years Mengold has conducted several surveys over Goldcreek and has identified a 4.8km long coincident geochem and geophysical anomaly. Geophysical conductors were identified from a VTEM airborne survey, as well as a HLEM (MaxMin), magnetometric, and IP surveys. Geophysical anomalies are numerous and demonstrate some very high conductance which may be indicative of a volcanogenic massive sulphide (VMS) deposit. 

Although no gold assays of any significance were returned, Drill Hole Number GC09-25 hit a major fault at a depth of 55m which lasted to the end of the hole at 89m. From 37m to the end of the hole at 89m a Felsic Crystal Tuff was intersected. At 52m to 89m the core was extremely blocky, and contained some quartz vein material, has a rusty weathered surfacing, and contains minor pyrite. Core recovery was very poor and only about 7-8 metres of core were recovered. The hole had to be abandoned due to the loss of water and the drill rods being jammed down the hole. It is very important to note that this hole was collared to intersect an IP and HLEM anomaly indicative of disseminated to massive sulphide mineralization. A VTEM airborne conductor was also a target in this hole. According to the magnetometric signature it appears that the volcanic rocks should be in contact with the underlying sedimentary rocks and that the contact zone may be where the metals are concentrating. There is also an extensive gold geochem anomaly in this area previously identified by Mengold. The geophysical conductors can be followed for a strike length of approximately 3.2km to the east where it appears to follow the geological contact. Only 9 samples were sent to the lab from this hole and they did not detect any gold. It is not surprising that no gold was returned from these assays as the zone that was targeted was further down the planned hole and was never intersected. Additional drilling will be required to properly evaluate the gold potential of this fault within the Centre Zone. The holes will all have to be cemented in order to have good core recovery. 

Further to the south in the Centre Zone, five holes tested geophysical and humus geochem anomalies. Only low values were returned, the best of which was in Drill Hole Number GC09-24 which hit a 3.15m zone with a weighted average of 0.36% Zinc. It shows that there is zinc in the system and appears to be remobilized as a replacement mineral within the pyrite or pyrrhotite in the sediments, in particular within conglomerates and graphitic argillites. The mineralized zones typically contain between 5%-10% pyrite and 5%-20% pyrrhotite. The target was indicated by an IP anomaly with a coincident Zinc humus geochem anomaly and the mineralization encountered demonstrates that the surveying techniques are working. A parallel structure is located about 100m to the south and it is characterized by an HLEM anomaly and an abundance of Zinc humus geochem anomalies. This would be a good target to test for massive sulphides due to the HELM conductor. The following table demonstrates the zinc values obtained from this hole:

Drill Hole GC09-24

From (m) To (m ) Intercept Length (m ) Zinc (% ) Weighted Average
19.77 20.45   0.68   0.23    
28.10 28.64   0.54   0.16    
142.22 143.00   0.78   0.23    
150.07 151.07   1.00   0.34    
151.07 152.07   1.00   0.47    
152.07 153.22   1.15   0.27   0.36/3.15m

The Qualified Person responsible for this news release is Joel Scodnick, P.Geo., President & CEO of Mengold Resources Inc.

Mengold is engaged in mineral exploration for precious and base metals. The Company is also exploring the Burchell Lake Property which is prospective for gold, copper, zinc, nickel, and molybdenum, and the Greenwater Lake Project which is prospective for nickel and PGE's, both of which are located in the Shebandowan area of Northwestern Ontario. Mengold has 62,536,088 common shares outstanding and trades on the TSX Venture Exchange under the symbol MNI.

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Contact Information

  • In Canada
    Mengold Resources Inc.
    Joel Scodnick, President and Chief Executive Officer
    (705) 522.4439
    (705) 522.8694 (FAX)
    Mengold Resources Inc.
    Douglas Reeson
    C.F.O. and Director
    (416) 533.9664
    (416) 533.2890 (FAX)
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director (FAX)