SOURCE: Emgold

March 02, 2005 08:00 ET

Emgold Acquires Additional Mineral Rights in Grass Valley, California

VANCOUVER, BC -- (MARKET WIRE) -- March 2, 2005 -- Emgold Mining Corporation (OTC: EGMCF) (TSX-V: EMR) ("Emgold") through its wholly owned subsidiary, Idaho-Maryland Mining Corp. ("IMMC"), is pleased to announce that it has recently purchased approximately 30 acres of additional underground mineral rights adjacent to its current Idaho-Maryland Mine holdings located in Grass Valley, California. These new properties consist of underground rights to the patented Golden Gate West and Golden Gate East Lode claims and the remaining 70% of the patented Dana and Christopher Columbus Treasury Lode Claims not already controlled by IMMC. The claims were purchased from independent and private individuals for US$ 25,000. The acquisition will complement IMMC's approximate 2,800 acres of mineral rights at the Idaho-Maryland Mine and may provide additional extensions to currently identified surface and underground exploration targets. IMCC's present surface land position gives Emgold the only possible portal or access to the historical workings that surround the Idaho-Maryland Mine site.

The Idaho-Maryland Gold Mine, discovered in 1851, produced gold from 1862 through 1956 with recorded production of 2,383,000 ounces of gold from 5,546,000 short tons for a recovered grade of 0.43 ounces of gold per short ton (opt). The mine is the second largest historical underground gold producer in California. The maximum annual production at the mine was 138,000 ounces of gold per year with a five-year output (1937-1941) that averaged 119,000 ounces of gold per year. Based on the extensive data available about the mine and using modern computer modeling, Emgold believes that the Idaho-Maryland still has the potential to exceed the production of its famous neighbor, Newmont's Empire Mine, which produced 6 million ounces of gold.

Currently the Idaho-Maryland has Measured and Indicated Gold Resources of 1,666,000 tons grading 0.28 opt containing 472,000 ounces of gold and an Inferred Gold Resource of 2,526,000 tons grading 0.38 opt containing 952,000 ounces of gold. These gold resources were presented in the NI 43-101 Preliminary Assessment Technical Report prepared by AMEC Americas Limited, dated November 22, 2004, and are based on the historic Mine Call Factor of 1.44 as defined in the report.

In order to initiate underground exploration and development, IMMC presented to the City of Grass Valley on February 8, 2005, application documents for Conditional Use Permits for the Idaho-Maryland Project. As the lead permitting agency for the Idaho-Maryland Project, the City of Grass Valley has 30 days from receipt of the application documents to review and deem the information as substantially complete in order to initiate the permitting process. If the documents are deemed incomplete, deficiencies will be promptly addressed by IMMC and submitted for review by the City until all issues are substantially addressed. The Company is seeking a permit to allow for the dewatering of the existing Idaho-Maryland Gold Mine workings, the construction of an access ramp for underground exploration and possible future staged mine production. Should sufficient gold be discovered during the initial exploration stage, Emgold would consider toll milling to recover gold at an earlier stage of development. The additional cost of toll milling would be initially offset by the significantly lower capital requirements of an integrated processing facility rather than building a stand alone gold plant, while conducting exploration and possibly identifying additional resources.

Once the permit is granted, Emgold is planning to reopen the mine and mine for ore near surface in the process of going underground to explore the deeper extensions of the Idaho-Maryland. Most of the known exploration targets exist between the 600 foot and 3,280 foot levels. Emgold's interpretation of the historic information indicates that the Idaho-Maryland may be extended from the existing 3,280 foot level to below the 5,000 foot level. Furthermore, the Company has significant information on approximately 55 production targets identified at the time the mine closed in 1956 that make up part of 200 resource blocks available for additional underground exploration. The recent acquisitions of additional underground mineral rights extend some of these currently identified underground exploration targets.

The overall project management for the Idaho-Maryland Project is supervised by William J. Witte, P.Eng., President and CEO of Emgold and Ian Chang, P.Eng., V.P. Project Development, both "Qualified Persons" for the purpose of National Instrument 43-101, "Standards of Disclosure for Mineral Projects."

For more information about Emgold, the Idaho-Maryland Project, the Ceramext™ Process, the Stewart, Rozan and Jazz Properties in British Columbia, please visit http://www.emgold.com or http://www.sedar.com.

On behalf of the Board of Directors

William J. Witte, P.Eng.
President and Chief Executive Officer
No regulatory authority has approved or disapproved the information contained in this news release.

SEC 12g3-2(b): 82-3003

Contact Information

  • For further information please contact:
    Mark Feeney
    Investor Relations
    Tel: (604) 687-4622
    Fax: (604) 687-4212
    Email: info@emgold.com