Energold Mining Ltd.

Energold Mining Ltd.

February 28, 2005 17:32 ET

Energold Mining Ltd.: Update of Energold's Exploration and Equity Interests


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENERGOLD MINING LTD.

TSX VENTURE SYMBOL: EGD

FEBRUARY 28, 2005 - 17:32 ET

Energold Mining Ltd.: Update of Energold's Exploration
and Equity Interests

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - Energold
Mining Ltd. (TSX VENTURE:EGD) is pleased to provide an update on its
exploration projects in the Dominican Republic as well as 33% owned
IMPACT Minerals International Inc.'s (TSX VENTURE:IPT) Royal Mines of
Zacualpan Project in Mexico.

Longyear Project, Dominican Republic

GoldQuest Mining Corp. "GoldQuest" (TSX VENTURE:GQC) has started a drill
program on the Longyear property in the Dominican Republic. The program
is planned to consist of 1,000 meters of diamond drilling in ten holes.
The Longyear property adjoins the Pueblo Viejo Mine concession where
Placer Dome is currently carrying out a feasibility study (indicated
resource of 16.8 million ounces gold grading 3.28 g/t: Placer Dome,
December 31, 2002).

Significant gold anomalies have been defined for drill testing in a
number of locations on the Longyear concession by detailed geological
mapping, soil-grid and rock-outcrop sampling. 1195 soil samples were
taken on a grid covering the entire concession and 331 rock-outcrop
samples.

The principal target is Loma La Mina - a 1,600 meter long by up to 400
meter wide, northwest trending soil and rock sample anomaly. Soil
samples returned values up to 2.9 g/t Au, 2.65% Cu and 0.03% Mo. Rock
samples returned values up to 11.6 g/t Au, 15.4% Cu, 0.12% Mo and 0.51%
Zn. Past drilling by Energold at the southeastern end of the anomaly
gave highlights of 2.93 g/t Au over 5 meters, 2.83 g/t Au over 3 meters
and 1.37 g/t over 21 meters. GoldQuest plans to drill the anomaly to
test for the continuation of the mineralization.

GoldQuest has the option to spend US$1.5 million over three years to
earn a 60% interest in the project and up to an 80% interest by taking
the project to a bankable feasibility study.

El Centenario Project, Dominican Republic

GoldQuest has informed Energold of the discovery of a new gold zone in
the western Dominican Republic. The Cerro Dorado ("Golden Hill")
discovery is located partly within the Centenario Project (concession
under reapplication) and partly within a 100% owned GoldQuest
concession. Cerro Dorado lies 6.5 km from the Oro Verde (Centenario)
deposit. Cerro Dorado was discovered during a regional exploration
program that returned strong gold anomalies in stream sediment samples
from the area. A sample from a large boulder of replacement
silica-pyrite taken during this program returned 491 g/t Au (15.2 oz/t)
and 7.69% Cu, and a second rock float sample of quartz vein returned 65
g/t Au. The area has since been followed up with geological mapping,
ridge and spur soil sampling, rock sampling and most recently by soil
grids.

While the source of the high-grade float has not been identified yet,
the follow up work has defined a large gold-in-soil anomaly with an area
of approximately 1,500 m by 1,100 m. The highest values in soils are
2.01 g/t Au and 1.3 g/t Au, with an average gold value of 0.29 g/t Au
from 36 samples above 0.1 g/t Au (out of a total of 381 soil samples).
Rock sampling returned 42 out of 221 outcrop and float samples grading
greater than 0.1 g/t Au, with a highest value in outcrop of 3.62 g/t Au.
Mineralization is hosted by an altered quartz diorite intrusion in
schistose volcanic rocks and is interpreted to be porphyry gold style.
Additional sampling is being carried out and the results will be
reported as soon as available.

GoldQuest has the right to earn 60% of the Centenario Project by
spending US$1 million over 3 years, and subsequently can earn to 80% by
taking the project to feasibility study.

Preparation and geochemical analyses of all samples taken in the
Dominican Republic were carried out by ALS Chemex, Vancouver.

The qualified person for the technical information from the Dominican
projects for the purposes of National Instrument 43-101 is Stewart D.
Redwood, FIMMM.

GoldQuest has completed a preliminary resource calculation for the Oro
Verde zone on the Centenario project. The project has an estimated
Indicated Resource of 1.65 million tonnes grading 2.80 grams gold per
tonne (g/t Au) for 149,030 oz contained gold using a 1 g/t Au cut-off,
or 2.72 million tonnes grading 1.95 g/t Au for 170,857 oz at a 0.5 g/t
Au cut-off.

The resources were determined to NI 43-101 standards under CIM
definitions (August 2000) by Brian Cole, P.Geo., who is the independent
qualified person. They are based on a re-evaluation of historical
exploration carried out between 1991 and 1997 by Battle Mountain Gold
Company, Canyon Resources Ltd. and Energold Mining Ltd. including 6,557
meters of drilling in 104 holes. Brian Cole took check samples of
quartered core for assay and specific gravity measurements. Resources
were estimated using grade contour constraints by the sectional polygon
method. Cross sections were generated at 25 m intervals. Gold assays
were capped at 60 g/t and composited on 5 meter intervals. Additional
work and validation auditing are required to upgrade the estimated
Indicated Resource to a Measured Resource. The resource calculation was
part of GoldQuest's on-going evaluation of the project, including
re-logging of drill core, to define additional exploration targets.

Royal Mines of Zacualpan, Mexico

Energold owns 33% of the outstanding shares in IMPACT Minerals
International Inc.(TSX VENTURE:IPT). Under terms of an agreement with
private Mexican companies signed in June 2004, IMPACT has an option to
purchase producing silver mines, contracts and a 500 tonne per day
processing plant lease located in the Royal Mines of Zacualpan Silver
District of central Mexico. Currently IMPACT is carrying out due
diligence investigations into the legal, corporate, engineering and
exploration aspects of the project that will form the basis for a
purchase decision on the project. To date IMPACT reports these
investigations have been proceeding with satisfactory results.

Recently IMPACT has announced the start of a 2000m Phase 1 core drilling
program utilizing one of Energold's drills. Four priority Phase 1 drill
targets were selected to test both advanced stage areas with potential
for near term production as well as some early stage areas with "blue
sky" exploration potential. The most advanced drill target is the
Compadres Mine area located in the southeastern sector of the property.
It is presently being developed for mining on two levels by the current
owner. Sampling by IMPACT of the limited mine development to date in
Silver Shoot #1 returned values averaging 680 g/t silver, 0.3 g/t gold,
1.47% zinc and 0.80% lead over 0.9m on Level 1 and a sample from Level 2
returned 5,730 g/t silver, 0.63 g/t gold, 7.71% zinc and 5.58% lead over
1.3m. IMPACT's drilling will test the downdip extension of this shoot as
well as other sections of the vein.

Three other targets that returned significant silver values during
fieldwork in 2004 will also be tested during this Phase 1 drill program.
Drilling of other targets developed by field crews and follow up of
Phase 1 drill intersections is planned for a Phase 2 drill program later
in 2005.

George Gorzynski, P.Eng., a Qualified Person under the meaning of
Canadian National Instrument 43-101 and a director of IMPACT, is
responsible for the technical content of the IMPACT portion of this news
release.

Energold Mining Ltd. is an environmentally and socially sensitive
diamond drilling company that services the mining industry. Energold
holds a controlling interest in silver oriented explorer IMPACT Minerals
International Inc. and a project portfolio in the Dominican Republic.

On behalf of the Directors of Energold Mining Ltd.

Frederick W. Davidson, President

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Energold Mining Ltd.
    Darrell Rader
    Corporate Development
    (604) 681-9501
    (604) 681-6813 (FAX)
    info@energold.com
    www.energold.com
    The TSX Venture Exchange has neither approved nor disapproved this news
    release.