EnGold Drilling Further Extends Aurizon South Gold Zone, Cuts 263 g/t Gold (8.45 oz/t) Over 0.1 Metres* in Narrow Quartz Veins
Vancouver, November 23, 2016 - David H. Brett, President & CEO, Engold Mines Ltd., (TSXV: EGM) ("EnGold" and the "Company") reports assay results from five drill holes with new intersections of high gold, silver and copper values within the Aurizon South Gold Structure, and new visible-gold-bearing quartz veins. The new quartz vein assays offer the highest grades ever encountered on the project. The Aurizon South is located within EnGold's 100% owned Lac La Hache Property located in BC's Cariboo region. Highlights of the new results include hole AZS16-59 with an intercept grading 14.25 gpt Au, 2.3 gpt Ag & 0.19% Cu over 1 metre, hole AZS16-57 with an intercept grading 7.96 gpt Au, 4.65 gpt Ag & 0.24% Cu over 2 metres, and the intersection of a narrow quartz vein in holes AZS16-56 & 57 grading respectively 263 gpt (8.45 opt), 90.5 gpt Ag & 1.74% Cu over 0.10 metres and 77.2 gpt (2.48 opt) Au, 31.5 gpt Ag & 0.63% Cu over 0.21 metres. *Note: Reported intervals are core lengths and not true width, as true widths in this section have not yet been determined.
"The Aurizon Gold Zone continues to demonstrate strong high grade gold potential," said EnGold CEO David Brett. "The discovery of bonanza grade gold in quartz veins proximal to the main Aurizon structure adds a whole new dimension to our exploration strategy."
The fall 2016 program at Aurizon Zone South (10 holes, 3,000 m) is primarily designed to extend higher-grade mineralization within a portion of the gold-rich AZS structure, using 50 to 100+ metre step-outs from previous intersections. Nine of these holes have been completed to date. Assays have been received for eight drill holes, including 3 previously reported (DDHs AZS16-52, 16-53, 16-54; see NR Oct 26, 2016) and five drill holes reported in this release (Table 1).
Results in holes 16-55, 56, 57 and 58 extend high gold-copper-silver grades more than 50 metres below previous drilling at the 170 metre level. Mineralization occurs within sulphide-rich (pyrite, chalcopyrite) hydrothermal breccia, and where dark grey silicification and/or quartz veining are developed.
| Table 1: Drill core assays, Aurion South Gold Zone, Fall 2016 | ||||||
| DDH | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (g/t) | Cu (%) |
| AZS16-55 | 54.00 | 56.00 | 2.00 | 1.14 | 0.90 | 0.10 |
| and | 132.50 | 133.00 | 0.50 | 2.51 | 1.00 | 0.20 |
| and | 175.12 | 176.65 | 1.53 | 2.97 | 5.70 | 0.54 |
| and | 260.95 | 161.95 | 1.00 | 1.49 | 12.80 | 2.00 |
| AZS16-56 | 17.50 | 17.60 | 0.10 | 263.00 | 90.50 | 1.74 |
| and | 313.00 | 315.80 | 2.80 | 1.59 | 8.76 | 1.18 |
| AZS16-57 | 13.11 | 13.32 | 0.21 | 77.20 | 31.90 | 0.63 |
| and | 349.00 | 350.00 | 1.00 | 1.31 | 5.10 | 0.41 |
| and | 374.00 | 376.00 | 2.00 | 7.96 | 4.65 | 0.24 |
| including | 375.00 | 376.00 | 1.00 | 13.95 | 7.80 | 0.40 |
| AZS16-58 | 180.70 | 182.35 | 1.65 | 6.27 | 8.00 | 0.08 |
| and | 294.00 | 302.00 | 8.00 | 2.99 | 2.60 | 0.47 |
| including | 298.00 | 300.00 | 2.00 | 5.07 | 2.80 | 0.45 |
| AZS16-59 | 46.10 | 46.77 | 0.67 | 4.53 | 30.50 | 0.23 |
| and | 85.00 | 86.00 | 1.00 | 14.25 | 2.30 | 0.19 |
| and | 172.40 | 174.95 | 2.55 | 3.30 | 3.30 | 0.37 |
| including | 173.70 | 174.95 | 1.25 | 4.17 | 2.00 | 0.19 |
Following a two-week break, drilling recommenced November 15. One of two remaining holes (AZS16-60) has been completed (assays pending) and has successfully extended the 020-striking AZS mineralized structure another 100 metres south, increasing the currently drill-defined strike length to more than 400 metres (remains open). The final hole will cut under AZS16-60 to extend the step-out vertically. Previous drilling has shown the steeply-dipping structure hosts high grades to depth (vertical DDH AZS10-21 cut 6.7 gpt Au over 6 metres from 484 to 490 metres, and 5.1 gpt Au over 10 metres from 590 — 600 metres) and remains open to depth.
As reported previously (see news release dated October 26, 2016) the recent drilling intersected fine visible gold grains in a 10 cm thick, sulphide-bearing quartz vein at shallow depth in two holes. New, metallic screen assays of these two narrow intersections have produced the highest grades encountered to date on the Lac La Hache Project (Table 1). Prospecting through relatively thin overburden located the vein in outcrop. Visible gold is common in the vein and in the adjacent altered wall rock. The vein is near-vertical, strikes 140 degrees and has been traced for more than 110 metres to date (open in both directions). Assays of four grab samples collected from the original surface discovery at the northwestern end of the vein are reported below (Table 2). Copper occurs in abundant chalcocite (previously reported as tennantite). Visible gold specs ranging from less than flour size to 0.5 mm grains are abundant within the quartz and chalcocite. The new discovery represents the first-ever, free gold reported on the property. Additional grab samples collected from the southeastern end of the vein contain visible gold, massive pyrite and chalcocite (assays pending).
| Table 2: Surface Quartz Vein and Altered Wall Rock Grab Samples: NE End | ||||
| Sample | Type | Au (g/t) | Ag (g/t) | Cu (%) |
| 1 | 10 cm quartz vein | 62.5 | 38.8 | 3.38 |
| 2 | 10 cm quartz vein | 55.6 | 55.2 | 28.4 |
| 3 | wall rock | 43.9 | 27.6 | 2.07 |
| 4 | quartz vein composite | 177 | 62.8 | 4.92 |
EnGold's Vice President, Exploration Rob Shives states: "The fall program has been highly successful. We have extended mineralization and the entire AZS structure itself, which remains open in all directions. Although further work is required to establish possible physical relationships between the gold-copper-rich surface quartz veins and the main AZS mineralization, a sulphide-gold-silicification event(s) is common to both. Mobile Metal Ion (MMI) soil geochemical sampling over the Aurizon Zones defines a strong and large gold anomaly, coincident with the new quartz veins, suggesting additional veins remain to be discovered. I am encouraged by the tenor of these quartz veins — they certainly enhance the metal endowment of the AZS system overall."
About EnGold
EnGold is focused on finding and developing mining operations at its 100% owned mineral property located near the town of Lac La Hache in BC's prolific Cariboo mining region. EnGold's corporate philosophy rests on three interdependent pillars: Environment, Engagement and Gold. Through sound environmental stewardship, commitment to transparent engagement with local communities, the Company is dedicated to driving exceptional shareholder and stakeholder value by discovering and developing mineral resources.
About the Lac La Hache Property
The advanced stage property lies within BC's Quesnel Trough mineral belt, which hosts several past and currently producing copper/gold/silver mines, including nearby Imperial Metals' Mount Polley copper-gold mine and New Gold Inc.'s New Afton copper-gold mine.The Company has drilled numerous prospects on the property, including Spout copper-magnetite-gold-silver deposit (for which a resource calculation has been reported and supported by an NI43-101 Technical Report), the gold-rich Aurizon gold-copper-silver prospect and recent new discoveries with porphyry and skarn copper/gold potential.
EnGold is currently focused on evaluation of its Aurizon Gold (gold-copper-sliver) prospect, where drilling continues to extend the host structure and gold-rich grades. Supported by significant local infrastructure including powerlines, all season road access, rail and other amenities, the Lac La Hache project demonstrates excellent logistics for resource extraction.
Quality Control/Quality Assurance Program
Engold Mines Ltd. follows procedures which ensure sample security, chain of custody and Quality Assurance/Quality Control for all drilling and geochemical sampling, conforming to industry practices defined by Canadian Institute for Mining, Metallurgy (CIMM) standards, and required for TSX-listed companies by National Instrument 43-101.
All core was logged and photographed. Sampled intervals were sawed in half, bagged, sealed and sent securely to ALS Canada Ltd for analyses . Half-gram samples were digested with aqua regia acid then analysed by inductively coupled plasma-atomic emission spectrometry (ICP-AES) for 35 elements (ME-ICP41). A 30 gram split is analyzed for gold (Au-AA23) by fire assay with an AA finish. As part of our comprehensive QA/QC program, one standard, and one in-line replicate were inserted into the sample stream in each group of approximately 20 samples, as well as one or more field blanks in each analytical batch.
Rob Shives P.Geo., VP Exploration and a Qualified Person as defined under National Instrument 43-101, has reviewed and approved the technical content of this release.
Engold Mines Ltd.
Per/
David Brett, MBA
President & CEO
For further info contact David Brett, 604-682-2421 or david@engold.ca
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