Mengold Resources Inc.

Mengold Resources Inc.

June 10, 2008 08:30 ET

Mengold's Burchell Lake Property in Shebandowan Delivers Copper and Moly Over Significant Widths

MONTREAL, QUEBEC--(Marketwire - June 10, 2008) - Mengold Resources Inc. ("Mengold") (TSX VENTURE:MNI) has discovered a new copper-molybdenum (copper-moly) zone with substantial width at its Burchell Lake Property. Drill Hole BU08-15 intersected 113.80m of Copper-Molybdenum mineralization from a depth of 89.20m to the end of the hole at 203m. Two wide intersections of low-grade mineralization were encountered: 37.80m of 0.13% copper and 0.010% molybdenum, including an 18.00m section which averaged 0.20% copper and 0.013% molybdenum, and a 56.40m interval of 0.11% copper and 0.010% molybdenum. The intervening section from 127.00m to 143.85m will be sent in for assaying shortly. The true width of the zone can only be determined by follow-up drilling which is planned for this fall.

Hole BU08-15 targeted a 550m long moly geochem anomaly that is open to the east and west. The hole was collared on the eastern margin of the anomaly where it widens at the edge of the grid. The geochem data provides evidence that the zone is getting wider to the east and plans are underway to extend the existing line-cut grid for an additional 700m to the east. Geochem and Induced Polarization (IP) surveys will follow to identify drill targets.

A suite of intermediate tuffs, cherty tuffs, quartz syenite and quartz feldspar porphyry were intersected in this hole. The nature of the mineralization and intrusive rock types is indicative of a porphyry copper-moly model and has the management team enthused over the possibility of discovering a deposit of substantial tonnage.

"Of significant importance is the fact that the hole was collared in mineralization and ended in mineralization, with some higher grades of up to 0.41% copper and 0.045% moly," commented Joel Scodnick, Mengold's President. "The porphyry copper-moly model would suggest the possibility of discovering a large tonnage and low-grade deposit on Burchell."

The following table provides the results of drill hole BU08-15.

Hole No. (m) To (m) Width (m) Cu(%) Mo(%)

BU08-15 89.20 127.00 37.80 0.13 0.010
" incl. 109.00 127.00 18.00 0.20 0.013
" 143.85 200.25 56.40 0.11 0.010
" incl. 143.85 150.90 7.05 0.20 0.016
" incl. 180.35 199.25 18.90 0.15 0.016

The results from the recently completed drill campaign at the Burchell Lake Property have identified an area, just east of Hermia Lake, with extensive mineralization over significant widths which lie in an area measuring approximately 700m by 700m and is open to the east. This area hosts both volcanogenic massive sulphide style and porphyry copper style mineralization. All of the gold and multi-element assays from the drill campaign have now been received and are being compiled and assessed. Results for both the Burchell Lake and Goldcreek Properties will be released shortly. Field crews are being mobilized and will be staying at the Goldcreek base camp all summer and fall. A crew of about 15 personnel will be conducting line-cutting, geochem and geophysical surveys, prospecting, mapping, mechanical trenching, channel sampling and mapping.

It is very important to note that this new copper-moly zone is approximately three km's south of the old East Coldstream Mine that produced 102 million pounds of copper, 22,000 oz of gold, 440,000 oz of silver from 2.7 million tons of ore. This new zone is also only about 5 km's east of Moss Lake Gold Mines' 50.92 million ton gold deposit grading 0.926 gpt gold and containing 1.515 million oz of gold as indicated in a NI 43-101 Report.

Molybdenum is used mainly by the steel industry as an alloying agent in a wide range of steel products because of molybdenum's unique characteristics. Moly-enhanced steel product alloys are stronger and more resistant to corrosion and heat than other forms of steel. It is often referred to as "the energy metal" because of its numerous applications within the energy industry. About 38% of end-use molybdenum demand comes from the energy industry and is used extensively in oil pipelines, drilling equipment, storage and refining facilities, as a desulphurization agent in petroleum refining, and in nuclear and coal power plants. In the commodity sector, Molybdenum's prices are most closely correlated with oil. The fastest area of growth in molybdenum demand comes from the refining industry, which uses molybdenum extensively in the production of ultra-low-sulfur diesel fuel. As auto emission levels continue to be tightened, so will the continued demand for the metal. Over the past three years, the demand for molybdenum has been growing by an average annual rate of 8%. The price of Molybdenum has increased from about $5/lb in 2003 to its current trading price of about $33/lb and is expected to see continued growth.

The Qualified Person responsible for this news release is Joel Scodnick, P.Geo., President & CEO of Mengold Resources Inc.

Mengold is engaged in mineral exploration for precious and base metals. The Company has recently completed a 4,630m diamond drilling program at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, zinc, nickel, and molybdenum, in the Shebandowan area of Northwestern Ontario. Mengold has 37,806,088 common shares outstanding.

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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)
    Email: or
    Mengold Resources Inc.
    Douglas Reeson
    C.F.O. and Director
    (416) 533-9664
    (416) 533-2890 (FAX)
    Noble Investment
    Dan Patience
    Investor Relations
    (403) 262-7111
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director (FAX)