Mengold Resources Inc.
TSX VENTURE : MNI

Mengold Resources Inc.

March 05, 2007 10:07 ET

Promising Geophysics at Mengold's Goldcreek Property

MONTREAL, QUEBEC--(CCNMatthews - March 5, 2007) - Mengold Resources Inc. (TSX VENTURE:MNI) has received the final report and maps from Abitibi Geophysics for a ground survey conducted on the Goldcreek Property during January 2007. Management is highly encouraged by the results of all three surveys. The 8,722-hectare Goldcreek Property is located in the Shebandowan area, 70-km west of Thunder Bay, Ontario.

The program consisted of 92.1 line-km of Magnetometric ("Mag"); 75.1 line-km of Horizontal Loop Electromagnetic ("HLEM") also referred to as MaxMin; and 22.8 line-km of Induced Polarization ("IP"). These surveys were conducted on three selected grids on the Goldcreek Property in order to identify targets for an upcoming diamond drilling campaign. The results of the survey indicate the presence of numerous anomalies on each of the three target areas; the I-Zone; South Zone; and Central Zone.

At the I-Zone where prior surface samples have yielded results over one ounce per ton gold in a quartz flooded syenite dyke, the surveys identified a 900m long coincident IP-Mag-HLEM anomaly. The IP chargeability response is very strong which may indicate the presence of disseminated sulphide mineralization, and a weak HLEM anomaly may indicate the presence of semi-massive sulphide mineralization.

Previous work over the I-Zone shows the presence of some high-grade gold mineralization associated with east-west trending syenite dykes hosted within a cherty iron formation. The dykes contain extensive north-south trending quartz ladder veins which appear to be the controlling factor in the gold concentration. In 1995 a diamond drill hole was collared on the I-Zone to intersect the gold bearing dyke and 134.5-ft of core (true width of around 12 - 15-ft) assayed 0.126 opt gold. The drill was collared sub-parallel and downdip to the dyke in order to cut the gold-bearing ladder veins at right angles. The intercept returned some very high grade values. Most of the other holes in the I-Zone were collared parallel with the quartz veins instead of at right angles so therefore the chance of intersecting gold in the quartz ladder veins were minimal. The 1995 hole was the most successful as it was drilled sub parallel to the dyke and at close to a right angle with the gold-bearing quartz ladder veins.

On the I-Zone, a total of nine IP anomalies are recommended for stripping and sampling, and seven IP anomalies are targeted for diamond drilling. Of particular interest is a 900m long coincident IP, Mag, and HLEM anomaly which is located directly over the known gold zone within the syenite dyke. According to the interpretive map there appears to be two cross cutting structures near the center of the anomaly. The IP response along the entire 900m length of this anomaly is characterized by very strong chargeability, weak HLEM response, and a Mag high. This anomaly may indicate the presence of disseminated to semi-massive sulphide mineralization. This type of mineralization has been identified on surface. Only some of these anomalies were drill tested in the past. There are several other IP anomalies within this grid which will require further investigation by stripping and sampling. The eastern part of one anomaly, PP-103, lies within 50m of the newly acquired Duckworth property.

On the South Zone which is comprised of a cluster of zones that were previously described in earlier news releases as the T, North, South, and Creek Zones, a 1.0km by 1.5km grid was established. This area is characterized by intensely altered Quartz-Sericite-Pyritiferous Felsic Metavolcanic rocks. Geologica Groupe Conseil in their NI-43-101 Report on the property identified that their geologist selected a grab sample from the T-Zone which yielded a 8.5 opt gold assay. The T-Zone shows very pervasive north-south structures which is apparent from the results of the geophysical surveys. A 500m long HLEM anomaly is present over the T-Zone, and just 400m north of the T-Zone lies a cluster of IP anomalies from 100m to 800m long in a broad resistive zone. Only one diamond drill hole tested a weak IP anomaly in the past on the eastern flank of this anomaly. The survey identified six HLEM anomalies, the weakest of which is coincident with an IP anomaly. A total of twenty high-chargeability IP anomalies are associated with resistive zones, four of which are targeted for follow-up diamond drilling and eleven to be stripped, trenched and sampled.

On the Central Zone nine HLEM anomalies coincident with Mag highs and lows have been defined by the ground surveys. The conductors, some of which are very strong are indicative of Volcanogenic Massive Sulphide ("VMS") mineralization. The conductors run from less than 100m to 4.7-km long. A rather extensive suite of felsic metavolcanic rocks traverse this entire grid and could be host to a VMS style type of deposit.

Management is currently reviewing all the maps and data in detail to plan an upcoming diamond drilling campaign which is slated for early summer.

Anyone interested in viewing the maps and rock samples at the Prospectors and Developers Association Convention (PDAC) in Toronto is encouraged to contact Joel Scodnick, President & CEO or Pierre Allard, Senior Project Geologist at the Strathcona Hotel (416) 363-3321. The Strathcona is located at 60 York Street, just across the street from the Royal York Hotel.

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 20,483,534 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) 933-0464
    (705) 522.8694 (FAX)
    E-Mail: scodnick@netspectrum.ca
    or
    Mengold Resources Inc.
    Douglas G. Reeson
    C.F.O. and Director
    (416) 533.0323
    (416) 533.2890 (FAX)
    or
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director
    011.41.22.809.9511
    011.41.22.899.9501 (FAX)
    Website: www.mengold.com