Mengold Resources Inc.

Mengold Resources Inc.

April 11, 2007 10:12 ET

Encouraging Geophysics at Mengold's Burchell Lake Property

MONTREAL, QUEBEC--(CCNMatthews - April 11, 2007) - Mengold Resources Inc. (TSX VENTURE:MNI) has recently received the final report and maps for a ground geophysical survey completed on the Burchell Lake Property by Abitibi Geophysics in January, 2007. The program consisted of 27.0 line-km of Magnetometric ("Mag"); 23.8 line-km of Horizontal Loop Electromagnetic ("HLEM") also referred to as MaxMin; and 24.7 line-km of Induced Polarization ("IP"). These surveys were conducted on one grid in the southwest of on the Burchell Property to follow-up on a hole drilled last summer which encountered extensive mineralization. The purpose of the current program is to define targets for an upcoming diamond drilling campaign. The results of the survey indicate the presence of numerous IP and HLEM anomalies. Management is highly encouraged by the results.

A total of 36 IP anomalies were identified in this program as well as 4 HLEM conductors. Three of the four HLEM anomalies are coincident with the IP chargeability anomalies indicating the possible presence of disseminated to massive sulphide mineralization. The IP anomalies range in length from 100m to 900m with the most extensive conductors located east of Hermia Lake.

In the past, the most significant mineralization on the Burchell Lake Property is south and east of Hermia Lake which consists of disseminated sulphides containing copper-gold mineralization hosted generally within felsic metavolcanic rocks, chert, and silicified amphibole-magnetite-chlorite schists. In 1976 Belore Mines intersected a 96m drill section grading 0.23% copper. In this immediate area the current survey identified, a yet untested, 900m long ground geophysical target, as well as several other IP and HLEM targets.

Drill hole BU-06-03 (NR-06-15 dated October 30, 2006) is located on coincident, 300m long, IP and HLEM anomalies where the original target was an airborne conductor. A single hole was drilled in this area during the summer of 2006. It intersected a 40.85m mineralized zone from 37.70m - 78.55m within a series of basalts, cherty tuffs, breccia and quartz veins and additional zones at greater depths. The best intercepts returned 2.45m of 1.12 gpt gold from 50.70 - 53.15m; 3.65m of 1.51 gpt gold from 119.55 - 123.20m; and 1.05m of 7.07 gpt gold from 142.55m - 143.60m.

Management is currently reviewing all the maps and data in detail to plan an upcoming diamond drilling campaign which is slated for early summer. The 4,200-hectare Burchell Lake Property is located in the Shebandowan area, 110-km west of Thunder Bay, Ontario.

In the Burchell Lake area, disseminated to semi-massive sulphide VMS style and disseminated low-grade gold mineralization appear to be the most prospective targets for exploration. On February 14, 2006, joint venture partners East West Resources and Mega Uranium announced that, on the Hamlin Property that they intersected a 72m drill section grading 0.42% copper or 0.74% copper equivalent (incl. 0.29 gpt silver, 0.107 gpt gold, and 0.321 ppt moly). Also of interest in the immediate area is the Moss Lake Gold Deposit containing an Inferred Mineral Resource of 50.92 million tonnes grading 0.926 gpt gold or 1.515 million ounces of contained gold using a 0.015 opt gold cutoff and a 0.300 opt gold top cut (see Moss Lake Gold Mines Ltd. Press Release dated Dec.1, 2006). The Moss Lake gold deposit is located approximately 5-km to the west of Mengold's Burchell Lake Property. Less than 5-km to the northeast of the Burchell Lake Property is the East Coldstream Property held by Alto Ventures, where Noranda produced 102 million pounds of copper, 22,000 ounces of gold, and 440,000 ounces of silver from 2.7 million tonnes of ore between 1955 and 1967.

The Qualified Person supervising the work being carried out on the Burchell Lake and Goldcreek Properties 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 currently conducting exploration programs at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, and zinc, in the Shebandowan area of 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 20,683,534 common shares outstanding (26,158,984 shares fully diluted).

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 or (807) 629.7516
    (705) 522.8694 (FAX)
    Mengold Resources Inc.
    Douglas G. Reeson
    C.F.O. and Director
    (416) 533.0323
    (416) 533.2890 (FAX)
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director (FAX)