Elgin Mining Inc.
TSX : ELG
TSX : ELG.WT

Elgin Mining Inc.

May 16, 2013 17:34 ET

Elgin Mining Releases Further Drill Results at the Bjorkdal Gold Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 16, 2013) - Elgin Mining Inc. (TSX:ELG)(TSX:ELG.WT) ("Elgin Mining" or the "Company") is pleased to announce drill results from its ongoing exploration program at its wholly-owned Björkdal Gold Mine ("Björkdal Mine") in Sweden. This underground drilling is part of an ongoing program to expand the underground resource and also a follow-up to the exploration work reported during 2012, which identified a new gold vein system ("Lake Zone") located at the same level and adjacent to active mining some 200 to 400 metres below surface.

This most recent drilling was planned to test the up-dip and down-dip extensions of the Lake Zone vein system and the down-dip extensions of the 210 and 620 vein systems, located to the southeast (see attached map). The 210 and 610 vein systems are both actively being mined and are developed on several levels.

The results were very successful for all vein systems drilled. Highlights include (see Table 1 and Map 1):

  • Hole 2012037, which returned 1.0 metres of 38.60 g/t Au, and 1.0 metres of 24.20 g/t Au;
  • Hole 2012040, which returned 2.0 metres of 82.54 g/t Au;
  • Hole 2012041, which returned 1.0 metres of 110.50 g/t Au;
  • Hole 2012042, which returned 1.0 metres of 14.10 g/t Au, 1.0 metres of 17.80 g/t Au, and 2.0 metres of 59.69 g/t Au;
  • Hole 2012043, which returned 3.0 metres of 4.45 g/t Au, and 2.0 metres of 15.05 g/t Au;
  • Hole 2012045, which returned 4.0 metres of 14.18 g/t Au;
  • Hole 2012046, which returned 1.0 metres of 103.50 g/t Au;
  • Hole DDU2013-001, which returned 4.4 metres of 15.16 g/t Au;
  • Hole DDU2013-005, which returned 3.05 metres of 30.57 g/t Au, and 3.4 metres of 29.62 g/t Au;
  • Hole DDU2013-006, which returned 1.95 metres of 6.28 g/t Au; and
  • Hole DDU2013-009, which returned 1.3 metres of 8.18 g/t Au, and 1.9 metres of 17.16 g/t Au.

Commenting on the results, Mr. Patrick Downey, President and CEO, stated, "These results continue to show that the Björkdal orebody is open along strike and up and down-dip and the underground resource continues to expand. We also recently received the mining permit for the Lake Zone and have advanced our development drifts out to this zone to commence mining of these veins. This development will also allow drilling further out along strike to test for more new veins."

Table 1 - Assay Results (see Map 1 below)

Hole # Mine Grid
Section
Mine Grid
Azimuth
(°)
Dip
(°)
From
(metres)
To
(metres)
Interval(1)
(metres)
Au(2)
(g/t)
2012035 120 E 330 -4 4.00 5.00 1.00 2.31
2012035 120 E 330 -4 13.10 14.10 1.00 1.57
2012035 120 E 330 -4 35.10 36.10 1.00 10.50
2012035 120 E 330 -4 45.00 46.00 1.00 3.07
2012035 120 E 330 -4 62.40 63.40 1.00 1.16
2012035 120 E 330 -4 65.20 67.90 2.70 14.28
2012035 120 E 330 -4 82.00 83.00 1.00 1.49
2012035 120 E 330 -4 86.90 87.90 1.00 1.40
2012035 120 E 330 -4 95.00 96.00 1.00 1.46
2012036 120 E 329 -11 22.00 23.00 1.00 1.03
2012036 120 E 329 -11 39.00 40.00 1.00 3.85
2012036 120 E 329 -11 78.80 79.80 1.00 3.60
2012036 120 E 329 -11 102.50 103.50 1.00 3.13
2012036 120 E 329 -11 118.90 120.00 1.10 3.69
2012036 120 E 329 -11 127.00 128.00 1.00 1.81
2012036 120 E 329 -11 146.00 147.00 1.00 33.10
2012036 120 E 329 -11 221.00 222.00 1.00 7.91
2012036 120 E 329 -11 227.00 228.00 1.00 2.89
2012037 160 E 330 -11 0.00 1.10 1.10 1.11
2012037 160 E 330 -11 27.00 28.00 1.00 38.60
2012037 160 E 330 -11 82.40 83.40 1.00 7.83
2012037 160 E 330 -11 104.20 105.20 1.00 1.71
2012037 160 E 330 -11 107.00 108.00 1.00 2.16
2012037 160 E 330 -11 152.70 153.70 1.00 24.20
2012037 160 E 330 -11 164.20 165.20 1.00 2.80
2012037 160 E 330 -11 168.30 169.40 1.10 1.54
2012037 160 E 330 -11 185.80 186.80 1.00 3.63
2012037 160 E 330 -11 188.80 189.80 1.00 1.10
2012037 160 E 330 -11 194.70 195.70 1.00 1.00
2012037 160 E 330 -11 196.80 197.80 1.00 0.94
2012037 160 E 330 -11 204.60 205.60 1.00 1.25
2012038 160 E 330 -17 5.10 6.10 1.00 1.23
2012038 160 E 330 -17 28.00 30.90 2.90 1.79
2012038 160 E 330 -17 81.90 82.90 1.00 2.66
2012038 160 E 330 -17 84.80 85.80 1.00 1.75
2012038 160 E 330 -17 122.00 123.00 1.00 4.36
2012038 160 E 330 -17 184.90 185.90 1.00 2.85
2012039 160 E 152 -9 34.90 35.80 0.90 3.56
2012039 160 E 152 -9 48.80 49.80 1.00 1.12
2012039 160 E 152 -9 62.90 63.90 1.00 18.05
2012039 160 E 152 -9 66.00 67.00 1.00 0.96
2012039 160 E 152 -9 86.30 87.30 1.00 2.77
2012040 20 W 152 15 22.10 24.10 2.00 82.54
2012040 20 W 152 15 56.00 57.00 1.00 1.12
2012040 20 W 152 15 57.00 61.90 4.90 2.13
2012040 20 W 152 15 61.90 62.90 1.00 1.53
2012040 20 W 152 15 64.90 66.90 2.00 1.52
2012041 20 W 330 -25 2.00 3.00 1.00 110.50
2012041 20 W 330 -25 49.00 50.00 1.00 1.89
2012041 20 W 330 -25 84.90 85.90 1.00 1.32
2012041 20 W 330 -25 196.00 197.00 1.00 3.75
2012041 20 W 330 -25 258.00 259.00 1.00 1.26
2012042 0 E 331 -16 85.00 86.00 1.00 2.39
2012042 0 E 331 -16 107.20 108.10 0.90 1.41
2012042 0 E 331 -16 117.90 118.90 1.00 14.10
2012042 0 E 331 -16 131.00 132.00 1.00 2.28
2012042 0 E 331 -16 150.10 151.10 1.00 1.55
2012042 0 E 331 -16 153.10 154.10 1.00 1.15
2012042 0 E 331 -16 174.10 175.10 1.00 17.80
2012042 0 E 331 -16 180.90 181.90 1.00 5.64
2012042 0 E 331 -16 196.10 197.10 1.00 2.20
2012042 0 E 331 -16 223.00 224.00 1.00 1.73
2012042 0 E 331 -16 236.80 238.80 2.00 59.69
2012042 0 E 331 -16 240.80 241.80 1.00 0.98
2012043 0 E 151 3 38.80 41.80 3.00 4.45
2012043 0 E 151 3 95.40 97.40 2.00 15.05
2012044 60 E 150 3 12.90 14.10 1.20 3.97
2012044 60 E 150 3 23.00 24.00 1.00 2.12
2012044 60 E 150 3 131.00 132.00 1.00 1.39
2012044 60 E 150 3 164.90 165.80 0.90 7.12
2012045 40 E 150 2 9.90 10.80 0.90 3.20
2012045 40 E 150 2 23.30 27.30 4.00 14.18
2012045 40 E 150 2 51.20 52.10 0.90 1.25
2012045 40 E 150 2 61.20 62.20 1.00 2.30
2012045 40 E 150 2 99.90 100.90 1.00 1.06
2012045 40 E 150 2 148.00 149.00 1.00 2.99
2012045 40 E 150 2 162.60 163.60 1.00 29.90
2012045 40 E 150 2 168.60 169.60 1.00 1.92
2012046 100 E 331 -23 20.80 21.80 1.00 1.55
2012046 100 E 331 -23 29.00 30.00 1.00 1.18
2012046 100 E 331 -23 40.00 41.00 1.00 7.55
2012046 100 E 331 -23 94.00 94.60 0.60 8.67
2012046 100 E 331 -23 111.80 112.80 1.00 2.76
2012046 100 E 331 -23 117.00 118.00 1.00 51.60
2012046 100 E 331 -23 120.00 121.00 1.00 0.99
2012046 100 E 331 -23 127.00 128.00 1.00 31.10
2012046 100 E 331 -23 136.20 137.20 1.00 1.10
2012046 100 E 331 -23 154.00 155.00 1.00 1.45
2012046 100 E 331 -23 156.90 157.80 0.90 2.56
2012046 100 E 331 -23 160.80 163.70 2.90 7.94
2012046 100 E 331 -23 174.50 175.50 1.00 2.29
2012046 100 E 331 -23 191.40 193.40 2.00 1.57
2012046 100 E 331 -23 208.40 209.40 1.00 2.48
2012046 100 E 331 -23 237.50 238.50 1.00 7.06
2012046 100 E 331 -23 252.80 253.80 1.00 103.50
2012047 100 E 152 -3 32.50 35.50 3.00 3.37
2012047 100 E 152 -3 37.50 39.50 2.00 4.09
2012047 100 E 152 -3 112.60 113.60 1.00 1.04
2012047 100 E 152 -3 154.00 155.00 1.00 4.04
2012047 100 E 152 -3 157.00 158.00 1.00 1.63
2012048 80 E 332 -22 43.80 44.30 0.50 2.67
2012048 80 E 332 -22 53.10 55.50 2.40 2.89
2012048 80 E 332 -22 108.40 108.65 0.25 2.00
2012048 80 E 332 -22 119.75 120.10 0.35 4.91
2012048 80 E 332 -22 123.40 123.70 0.30 1.32
2012048 80 E 332 -22 130.40 130.75 0.35 1.66
2012048 80 E 332 -22 140.50 142.00 1.50 3.15
2012048 80 E 332 -22 152.85 153.15 0.30 3.72
2012048 80 E 332 -22 155.00 156.00 1.00 1.53
2012048 80 E 332 -22 171.50 172.05 0.55 12.20
2012048 80 E 332 -22 203.00 203.50 0.50 1.08
2012048 80 E 332 -22 214.50 214.80 0.30 8.30
2012048 80 E 332 -22 239.75 242.30 2.55 2.00
2012048 80 E 332 -22 248.50 250.50 2.00 2.75
DDU2013-001 120 E 330 -24 13.45 14.45 1.00 1.54
DDU2013-001 120 E 330 -24 16.50 17.30 0.80 2.70
DDU2013-001 120 E 330 -24 89.65 90.00 0.35 1.39
DDU2013-001 120 E 330 -24 116.20 116.60 0.40 1.00
DDU2013-001 120 E 330 -24 121.00 125.40 4.40 15.16
DDU2013-001 120 E 330 -24 133.95 136.40 2.45 3.66
DDU2013-001 120 E 330 -24 154.55 154.85 0.30 7.16
DDU2013-001 120 E 330 -24 164.00 165.00 1.00 2.04
DDU2013-001 120 E 330 -24 189.60 191.00 1.40 4.32
DDU2013-001 120 E 330 -24 193.20 194.50 1.30 1.82
DDU2013-001 120 E 330 -24 216.40 218.00 1.60 2.35
DDU2013-001 120 E 330 -24 240.60 244.00 3.40 1.28
DDU2013-001 120 E 330 -24 254.60 255.80 1.20 6.58
DDU2013-001 120 E 330 -24 264.00 266.50 2.50 1.80
DDU2013-002 80 E 149 15 29.00 32.00 3.00 2.60
DDU2013-002 80 E 149 15 69.60 70.60 1.00 1.59
DDU2013-002 80 E 149 15 79.10 80.00 0.90 7.17
DDU2013-002 80 E 149 15 92.70 94.50 1.80 5.20
DDU2013-002 80 E 149 15 139.70 141.10 1.40 1.65
DDU2013-003 60 E 151 16 104.30 104.60 0.30 3.40
DDU2013-003 60 E 151 16 125.20 127.70 2.50 1.25
DDU2013-003 60 E 151 16 136.35 138.00 1.65 2.20
DDU2013-004 40 E 150 15 29.00 30.90 1.90 1.83
DDU2013-004 40 E 150 15 39.10 40.60 1.50 1.62
DDU2013-004 40 E 150 15 146.30 148.90 2.60 1.21
DDU2013-005 200 E 330 -10 20.25 23.30 3.05 30.57
DDU2013-005 200 E 330 -10 26.40 26.80 0.40 1.69
DDU2013-005 200 E 330 -10 35.40 36.60 1.20 0.98
DDU2013-005 200 E 330 -10 39.65 41.00 1.35 1.93
DDU2013-005 200 E 330 -10 58.00 61.40 3.40 29.62
DDU2013-005 200 E 330 -10 77.00 78.20 1.20 2.17
DDU2013-005 200 E 330 -10 85.80 88.00 2.20 6.81
DDU2013-005 200 E 330 -10 94.10 95.80 1.70 124.78
DDU2013-005 200 E 330 -10 125.95 127.90 1.95 8.40
DDU2013-005 200 E 330 -10 148.00 148.25 0.25 2.20
DDU2013-006 200 E 330 -16 3.00 3.40 0.40 1.23
DDU2013-006 200 E 330 -16 9.10 9.50 0.40 1.16
DDU2013-006 200 E 330 -16 19.10 20.00 0.90 1.47
DDU2013-006 200 E 330 -16 26.75 28.10 1.35 1.53
DDU2013-006 200 E 330 -16 38.80 40.75 1.95 6.28
DDU2013-006 200 E 330 -16 55.80 56.30 0.50 1.37
DDU2013-006 200 E 330 -16 61.50 61.90 0.40 4.90
DDU2013-006 200 E 330 -16 85.50 86.65 1.15 1.74
DDU2013-006 200 E 330 -16 98.45 98.75 0.30 3.46
DDU2013-006 200 E 330 -16 133.00 133.35 0.35 4.82
DDU2013-006 200 E 330 -16 203.00 203.90 0.90 2.10
DDU2013-006 200 E 330 -16 207.50 207.80 0.30 2.01
DDU2013-006 200 E 330 -16 215.50 217.20 1.70 3.14
DDU2013-006 200 E 330 -16 225.30 225.60 0.30 1.21
DDU2013-006 200 E 330 -16 231.75 232.00 0.25 1.76
DDU2013-006 200 E 330 -16 239.60 244.00 4.40 5.48
DDU2013-006 200 E 330 -16 289.40 289.70 0.30 1.03
DDU2013-007 240 W 330 -14 2.20 2.55 0.35 1.57
DDU2013-007 240 W 330 -14 5.10 5.70 0.60 1.78
DDU2013-007 240 W 330 -14 23.70 25.10 1.40 1.53
DDU2013-007 240 W 330 -14 50.30 50.50 0.20 1.15
DDU2013-007 240 W 330 -14 52.40 54.70 2.30 2.34
DDU2013-007 240 W 330 -14 63.90 64.20 0.30 2.30
DDU2013-007 240 W 330 -14 71.60 72.00 0.40 1.14
DDU2013-007 240 W 331 -14 102.60 103.50 0.90 5.40
DDU2013-007 240 W 331 -14 121.00 121.35 0.35 0.97
DDU2013-007 240 W 331 -14 131.40 131.75 0.35 8.01
DDU2013-007 240 W 331 -14 136.00 136.70 0.70 2.97
DDU2013-007 240 W 331 -14 145.30 147.00 1.70 1.91
DDU2013-007 240 W 331 -14 182.00 184.60 2.60 1.04
DDU2013-007 240 W 331 -14 190.90 192.60 1.70 1.27
DDU2013-009 240 W 150 11 10.70 12.00 1.30 8.18
DDU2013-009 240 W 150 11 22.70 24.60 1.90 17.16
DDU2013-009 240 W 150 11 28.20 29.20 1.00 2.77
DDU2013-009 240 W 150 11 40.40 40.75 0.35 2.89
DDU2013-009 240 W 150 11 43.20 43.45 0.25 1.00
DDU2013-009 240 W 150 11 77.00 77.40 0.40 1.88
DDU2013-009 240 W 150 11 85.00 85.35 0.35 5.44

(1) True width has yet to be determined.

(2) Accelerated cyanide leach.

Qualified Person

Exploration at the Björkdal Mine is being conducted under the supervision of Mr. Gordon Clarke, P.Geol., who is the Company's Qualified Person as defined by National Instrument 43-101. Mr. Clarke has also reviewed and approved the technical disclosure contained in this news release as applicable.

Quality Assurance and Quality Control ("QA/QC") Procedures for the Bjorkdal Mine

In order to minimize the effects of the coarse nugget gold at the Björkdal Mine, the Company has elected to submit 100% of the core for analysis, rather than retaining half of the core for archive. This provides a much larger sample for gold analysis and theoretically a more representative result. The core is logged and photographed, and for the zones sampled, the entire core is shipped to ALS Chemex laboratory in Piteå, Sweden and 500 grams are analyzed for gold using an accelerated cyanide leach process. A rigorous QA/QC program is employed that involves the insertion of blanks and certified standards.

Elgin Mining Inc.

Elgin Mining is a Canadian based company focused on production at the Björkdal Gold Mine in Sweden, and on advancing the Lupin gold mine, located in Nunavut, Canada, to a production decision. In addition, Elgin Mining's portfolio includes the Ulu gold project located approximately 155 kilometers north of the Lupin gold mine in Nunavut, Canada, a 29.5% interest in Auracle Resources Ltd., which is exploring the Mexican Hat property in Arizona, an exclusive right and option to earn a 60% interest in Lincoln Mining Corporation's Oro Cruz (California) and La Bufa (Mexico) gold projects and an option to earn a 60% interest in North Arrow Minerals Inc.'s Contwoyto gold project located adjacent to the Lupin gold mine in Nunavut, Canada. Elgin Mining also selectively reviews opportunities to add advanced stage development projects to its portfolio. The Company has a strong balance sheet, generates cash flow from gold sales, and remains un-hedged.

For further information, please visit the Company's web site at www.elginmining.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This news release contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan", "expect", "budget", "target", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.

These factors include risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted, changes in development or mining plans due to changes in logistical, technical or other factors, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices and currency exchange rates, possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate resources, changes in project parameters as plans continue to be refined, changes in project development and production time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, successful completion of proposed acquisitions, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes as well as those risk factors discussed or referred to in the Company's Annual Information Form dated March 22, 2013, a copy of which is filed on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the exploration and development plans and objectives and may not be appropriate for other purposes.

To view Map 1 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/874650.pdf

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