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THE JAZZ PROJECT
In April 2004, Emgold entered into an option agreement to acquire a 100%
interest in the Jazz Property consisting of twenty-four mineral claims (24
units) located at latitude 49º17'N and longitude 117º21'W in the Nelson
Mining Division near Nelson, British Columbia. The Jazz Property is
contiguous to Emgold's Stewart Property and covers approximately 600
hectares. Under the terms of the agreement Emgold has agreed to make total
cash payments of $215,000 ($20,000 paid to date) to the optionor over a
ten-year period.
In 2004, the Company completed a small diamond drill program in the
Craigtown Creek area and a rock-sampling program in the Free Silver area of
the property. In the Craigtown Creek area, six short holes were drilled
within an area containing two large, strong gold soil geochemical anomalies
(totalling over 4 kilometres in length), with coincident airborne and/or
ground geophysical targets. Assay results of the drill core are pending.
The source of the gold geochemistry was not defined during the exploration
program but, because of its large size and highly anomalous nature, the
target remains an important exploration target. For the Free Silver area,
assay results for grab samples and chips were received for silver, lead and
zinc. Silver grades ranged from 3.9 to 641 g/t, lead grades ranged from
0.12% to 35.47% and zinc grades ranted from 0.11% to 25.99%. In conjunction
with continuing to pursue the source of the gold soil geochemistry in the
Craigtown Creek area, two additional zones of interest will be tested during
the next phase of exploration, the Stewart 2 Moly Zone and the Free Silver
areas.
The exploration budget for 2005 is $47,500, including $10,000 (paid) in
property payments. This program will consist of surface sampling, mapping
and trenching.
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