Mengold Resources Inc.
TSX VENTURE : MNI

Mengold Resources Inc.

June 23, 2008 08:30 ET

Mengold's Drill Campaign at Burchell Lake in Shebandowan Hits Gold and Copper

MONTREAL, QUEBEC--(Marketwire - June 23, 2008) - Mengold Resources Inc. ("Mengold") (TSX VENTURE:MNI) has discovered two areas on the Burchell Lake Property - east of both Hermia and Fountain Lakes - that have yielded several low-grade copper and gold horizons over some substantial widths. All of the results from the recent drilling campaign are now compiled and are provided in the table below. East of Hermia Lake, Hole BU08-07 returned 7.2 gpt gold over 0.40m and hole BU08-12 hit a 176.90m wide intercept with 0.05% copper which includes a 7.65m section grading 0.17% copper. East of Fountain Lake, hole BU08-25 hit a spectacular looking section of intensely altered, quartz-flooded, and pyritized rock grading 0.4 gpt gold over 25.25m.

Two distinct areas of alteration and mineralization were identified from the drilling campaign. Both areas display exhalative style mineralization and rock types indicating a nearby source for the occurrence of volcanogenic massive sulphide (VMS) mineralization as well as gold. About 300m east of Hermia Lake, a 900m x 600m area has been identified that carries significant mineralization and yielded good gold and copper grades in six drill holes as well as the previously reported hole BU08-15 which returned low-grade copper and molybdenum (moly) over significant widths. A number of these drill holes returned some sections with Lapilli Tuffs indicating that they were collared right in a volcanic centre. This is the type of geological setting where a VMS deposit is likely to be found and management is anxious to conduct further exploratory work during this field season. The fact that moly and gold are associated with the base metals brings added value to a possible deposit of significant size. The results of the geochemical pattern in this area suggest the zone is open to the east and west.

The second area, located about 1-km east of Fountain Lake and in the southwest part of the grid is represented by six drill holes, all carrying substantial sulphide mineralization and displaying exhalative-type rocks indicating a nearby volcanic vent. The rocks in this area are intensely altered, folded and contain, in some cases a large amount of silica flooding evidenced by quartz veining along with significant amounts of sulphide mineralization. The area's geochemical anomalies appear to continue to the south in which case the zone may be bigger than currently outlined.

The following table provides assay results of the drill program at Burchell Lake - Winter 2008.



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Hole No. From (m) To (m) Width (m) Cu (%) Au (g/t)
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HERMIA LAKE AREA
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BU08_07 176.60 177.00 0.40 7.2
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BU08_09 32.10 39.70 7.60 0.09
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" 72.25 99.35 27.10 0.13
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" Including 93.50 96.50 3.00 0.29
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" 104.20 108.90 4.70 0.12
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" 141.50 148.65 7.15 1.4
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" 147.50 148.65 1.15 2.3
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BU08_10 81.85 83.00 1.15 1.1
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" 90.60 91.60 1.00 0.25
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" 121.75 123.20 1.45 1.45
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BU08_11 27.00 31.30 4.30 1.3
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BU08_12 8.00 184.90 176.90 0.05
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" Including 65.00 80.00 15.00 0.15
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" Including 127.55 135.20 7.65 0.17
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" Including 162.15 167.15 5.00 0.09
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BU08_14 141.50 153.00 11.50 0.13
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" Including 141.50 146.10 4.60 0.21
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FOUNTAIN LAKE AREA
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BU08_16 35.50 36.50 1.00 1.1
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" 182.30 182.80 0.50 1.2
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" 182.80 183.45 0.65 0.43
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BU08_17 26.00 26.30 0.30 0.19 3.9
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" 71.25 71.85 0.60 0.15
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BU08_18 135.50 137.80 2.30 0.10 1.6
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BU08_20 12.50 22.65 10.15 0.7
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" Including 20.00 21.10 1.10 1.5
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BU08_21 22.75 24.85 2.10 1.7
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" Including 23.95 24.85 0.90 3.0
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BU08_25 51.50 76.65 25.15 0.4
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" Including 70.80 73.30 2.50 1.3
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Most of the drill sections are close to true widths except for hole BU08-25 where the 25.15m section has a true width of about 15m.

It is very important to note that this new copper-gold-moly zone is approximately 3-km 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 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.

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.

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)
    Email: scodnick@mengold.ca or scodnick@netspectrum.ca
    or
    Mengold Resources Inc.
    Douglas Reeson, C.F.O. and Director
    (416) 533-9664
    (416) 533-2890 (FAX)
    Email: reeson@mengold.ca
    or
    Noble Investment
    Dan Patience, Investor Relations
    1-800-499-2388
    Email: noblehouse@shaw.ca
    or
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director
    011.41.22.809.9511
    011.41.22.899.9501 (FAX)
    Email: forrest@mengold.ca
    Website: www.mengold.ca