Mengold Resources Inc.

Mengold Resources Inc.

December 21, 2007 13:27 ET

New Drill Targets Identified at Mengold's Burchell Lake Property Shebandowan, Ontario

MONTREAL, QUEBEC--(Marketwire - Dec. 21, 2007) - Mengold Resources Inc. (TSX VENTURE:MNI) is pleased to announce that all the base metal and gold geochem results have been returned for the Burchell Lake Property and several anomalous areas for gold, copper, lead, zinc, silver, molybdenum and nickel have been identified. This further demonstrates the gold and base metal potential of the property. A drill campaign will be commencing in early January.

Preliminary maps of the geochem data have just been plotted and demonstrate that most of the results coincide with Induced Polarization (IP) anomalies previously detected at Burchell Lake. The IP anomalies are indicative of disseminated sulphide zones.

One particular anomaly was located near drill hole BU06-03 which was collared in 2006 by Mengold (see Press Release dated Oct.30, 2006) and yielded 7.07 gpt gold over 1.05m from 142.55m to 143.60m. In the drill core, immediately above this newly identified gold zone, is a 40.85m mineralized zone with sporadic gold values within a series of basalts, cherty tuffs, breccia and quartz veins. The new geochem data shows a rather continuous and extensive gold anomaly with a strike length of around 500m - 600m long in the immediate vicinity of this drill hole. The main gold anomaly appears not to have been tested as it lies just south of where the hole was collared. Management is keen to target another hole to investigate this area.

At least three copper zones and four zinc anomalies have been identified, most of the anomalous areas reaching 400m to 500m long. This is of particular importance in the search for a volcacnogenic massive sulphide deposit (VMS). Again the preliminary results for the base metals show excellent coincidence with the IP and horizontal loop (HLEM) data. The HLEM anomalies identified by a ground survey conducted by Mengold last year demonstrate the occurrence of semi-massive to massive sulphide mineralization.

Several other areas within the existing grid system show anomalous lead, nickel, molybdenum, silver and arsenic. One other gold geochem zone measuring 100m wide averages 156ppb and is located right over a 1.1 km IP anomaly. This area has never been drilled. Based on the results to date, Mengold is planning to cut an additional grid over the Burchell Lake Property in order to determine the extensions of these geophysical and geochemical targets, most of which are open to the east, north and south.

A 5,000m drill program is planned to commence in the beginning of January and approximately 40 high-priority targets have already been identified from prospecting, mapping, geophysical and geochemical surveys. The drill program will investigate both of Mengold's Shebandowan Properties, the Burchell Lake and Goldcreek Properties.

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.

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 the Mountain River Property near Sainte-Anne-du-Lac, Quebec. Mengold has 35,695,088 common shares outstanding.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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 (FAX)