Mengold Resources Inc.

Mengold Resources Inc.

October 22, 2007 08:45 ET

Mengold Identifies an Extensive Gold and Base Metal Geochem Anomaly on the Goldcreek Property-Shebandowan, Ontario

MONTREAL, QUEBEC--(Marketwire - Oct. 22, 2007) - Mengold Resources Inc. (TSX VENTURE:MNI) identified an extensive gold and base metal geochemical ("geochem") anomaly at the Centre Zone on the Goldcreek Property located in the Shebandowan area west of Thunder Bay, Ontario. Geochemical surveys on three grids at the Goldcreek Property totalling 92.1 line-km and one 27.0 line-km grid at the Burchell Lake Property were completed in early October. Over 3300 samples have been sent in batches to the laboratory for analysis.

The first batch of 500 geochemical till samples from the Centre Zone have been received and approximately 20% of them or 100 samples are anomalous in gold. Some very high numbers have been returned from the glacial basal till horizon, including one gold sample of 362ppb (0.362 gpt). An area measuring at least 1.2km long by 100m-200m wide has been established as being anomalous in gold and appears to be associated with a NNW-SSE trending fault or shear zone. The base metals results have also been returned and show a parallel anomaly adjacent and west of the gold anomaly and it is as broad and long as the gold horizon. These two newly discovered gold and base metal zones which are open along strike in both directions, measure in total approximately 400m wide and 1.2km long.

The anomaly overlies a felsic metavolcanic unit in contact with a granitic structure to the south. This anomaly is also at the extreme southwest end of a significant geophysical target identified from Mengold's ground survey conducted late last year and early this year. This geophysical target consists of a 4.8km long structure within a series of felsic metavolcanic and sedimentary rocks. The geophysics is identified by numerous Horizontal Loop Electromagnetic (HLEM) anomalies coincident with predominantly magnetic features. The field crew has recently discovered the contact with the granitic rocks to the south and within 150m of the contact a till sample yielding 362ppb (0.362 gpt) was found. This new zone has never been drilled and field crews are being sent there now to establish a more detailed grid for additional geochem sampling and a detailed Induced Polarization ("IP") Survey to detect disseminated sulphide mineralization. Mengold is aggressively completing all the fieldwork in preparation for an upcoming 5,000m drill program.

The geology already mapped around the Centre Zone by Mengold's field crew and the type of geochem signature evolving provides more evidence of an Exhalative Volcanic Centre where it is common to find a Volcanogenic Massive Sulphide (VMS) and gold deposit, such as what has been discovered on Rainy River Resources' Rainy River Project.

Many similarities exist between the Goldcreek Property and the Rainy River Project. The OGS first conducted a reconnaissance till sampling program in the area. Following the discovery of anomalous gold-in-till samples, Nuinsco conducted an overburden drilling program using reverse circulation, and this led to the discovery of several gold-in-till dispersal trains overlying bedrock. A 6 square kilometer "gold-in-bedrock" anomaly averaging 79 ppb was outlined. This discovery was then followed up by diamond drilling which culminated in the delineation of the #17 Zone, #433 Zone and a high-grade nickel-copper-PGE Zone known as the #34 Zone. Some spectacular diamond drill intercepts were discovered in the #17 Zone yielding 17.5m of 31.58 gpt gold. The #17 Zone hosts an indicated resource of 1.736 MT at 1.558 gpt Gold, 0.03% Copper, 0.212% Zinc, and 4.0 gpt Silver, and an inferred resource of 11.025 MT of 1.329 gpt Gold, 0.015% Copper, 0.198% Zinc, and 3.6 gpt Silver (Nuinsco NI 43-101). Other gold-rich VMS deposits, that are hosted in Archean rocks like the ones in the Shebandowan area, are the Bousquet gold camp in Rouyn-Noranda, Quebec (greater than 16 million ounces of gold), the Selbaie Mine (greater than 3 million ounces of gold), the Horne Mine (greater than 10 million ounces of gold), and the Sturgeon Lake Mine (greater than 3 million ounces of gold).

The Qualified Person supervising the work being carried out on the Burchell Lake and Goldcreek Properties is Joel Scodnick, P.Geo., President and CEO of Mengold Resources Inc. and the President & CEO of Helm Exploration Ltd.

The Burchell Lake and Goldcreek Properties are prospective for gold and Volcanogenic Massive Sulphide (VMS) style base metal - copper-lead-zinc-molybdenum-nickel - mineralization. Both properties are qualified by independent NI-43-101 Reports conducted by Geologica Consulting Group and the Reports are available on SEDAR.

Mengold is engaged in mineral exploration for precious and base metals. The Company is currently conducting exploration programs at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, zinc and nickel, in the Shebandowan area west of Thunder Bay, Ontario. Mengold also holds two properties in Quebec, the Mountain River Property near Sainte-Anne-du-Lac, and the Thetford Property in the Eastern Townships. Mengold has 28,245,088 common shares outstanding.

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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 G. 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
    011 41 22 809 9511
    011 41 22 899 9501 (FAX)