|  | | | |  |   Tue Jul 31, 2001
Emgold Acquires Stewart Mineral Claims
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| | Emgold Mining Corporation (EMR-cdnx) is pleased to announce the acquisition of an option to acquire 100% interest in the Stewart mineral claims located in the Nelson Mining Division in southeastern British Columbia.
The Stewart property consists of 82 mineral claims owned as to 50% by each of Jack and Eric Denny of Salmo and Nelson, B.C., respectively. The property is located close to the large Gold Mountain gold porphyry discovery on the Kena property held by Sultan Minerals Inc. Two large gold soil anomalies have been reported by previous optionors. One of the anomalies has never been drilled and the second has had only four holes drilled. The reported average of all sample assays taken in the four holes was 0.29 g/t gold. The highest intervals were 1.87g/t gold over 2 metres in altered diorite in Hole 2, and 24.8 grams/tonne gold over one metre in a massive sulfide vein associated with quartz and calcite in Hole 4.
The second gold anomaly reportedly has high gold soil geochem values coincident with a strong I.P. geophysical anomaly. Further work will be required to select drill sites in this area and in other parts of this large property. The property is also noted for hosting significant values in Molybdenite and Tungsten.
Under the agreement, Emgold is required to make payments totaling $150,000 and to issue 200,000 common shares to the optionors over a six year period as follows: $5,000 and 50,000 common shares upon regulatory approval, $5,000 on or before six months; $10,000 and 50,000 common shares within 12 months; $15,000 and 50,000 common shares within 24 months; $20,000 and 50,000 common shares within 36 months; $25,000 within 48 months; $30,000 within 60 months; and $40,000 within 72 months following regulatory approval.
To maintain its option, Emgold has agreed to incur total exploration expenditures of $49,200 over two years; $16,400 in year one and $32,800 in year two.
A royalty equal to 3% of Net Smelter returns is payable to the optionor provided that two-thirds (thus reducing the royalty to 1%) may be purchased for the sum of $1,000,000. Emgold has first right of refusal on the remaining 1% NSR should the vendors wish to sell.
Frank A. Lang, P. Eng.
President
For further information please contact:
Investor Relations at the Lang Mining Group
Tel: (604) 687-4622 Fax: (604) 687-4212
Toll Free: 1-888-267-1400 Email: Investor@langmining.com
No regulatory authority has approved or disapproved the information contained in this news release |
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| You can view the Next News Releases - 2001 item: Mon Oct 15, 2001, Emgold Commences Exploration Adjacent To Sultan's Kena Gold Property
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