|December 01, 2003|
Energold Announces Joint Venture On Longyear Property
|Energold Mining Ltd. (EGD:TSX.V) is pleased to announce a joint venture with MinMet plc on the Longyear Property in the Dominican Republic. The highly strategic Longyear property lies adjacent to the Pueblo Viejo mine currently under a feasibility study by Placer Dome (Indicated Resource of 159,500,000 t grading 3.3 g/t Au, Placer Dome Dec 31/02). To date, soil sampling, trenching and the drilling of 20 short diamond drill holes has defined low grade oxide and sulphide gold mineralization on the Loma la Mina target. Geology, alteration and favourable geochemistry identify an untested drill target within 2500 metres of the old Pueblo Viejo pit.|
MinMet will spend US$1.5 million over three years to earn a 60% interest in the project including the commitment to drill 1000 metres within six months of signing the agreement. Subsequently MinMet has the right to earn 80% by taking the project to a bankable feasibility study. Upon the receipt of a bankable feasibility study, Energold may elect to be carried to production or convert its interest to a 2% NSR. Energold will also receive 250,000 shares as an option payment.
MinMet, as operator, has also advised Energold that it has received the drill results of the Bacco y Ofir drill program. The samples were analysed by ALS Chemex of Vancouver B.C. using a 30g fire assay with AA finish for gold as well as a 50 element ICP analysis. The results of the short program failed to show any depth extent to the surface gold geochemistry. The best intervals in holes 1 and 2 were 2 metres of 2.6 g/t Au and 0.3% Cu and 2 metres of 2.27 g/t Au and 0.6% Cu. MinMet and Energold plan no immediate work on this concession at this time.
Vancouver-based Energold Mining Ltd. is a profitable exploration company focusing on precious and base metals targets within the Dominican Republic and South America. Energold owns 50% of Kluane International Drilling Inc., a profitable contract diamond drilling company and 46.7% of IMPACT Minerals International Inc. (IPT: TSX.V), a gold exploration company with properties in the Dominican Republic.
On behalf of the Directors of Energold Mining Ltd.
"Frederick W. Davidson"
For further information, please contact:
Fred Davidson or
Darrell Rader - Corporate Development
The TSX Venture Exchange has neither approved nor disapproved this news release.
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