|December 22, 2003|
Energold Announces An Option Agreement To Acquire The Real de Belem Silver/Gold Project
|Energold has acquired an option on the Real de Belem silver/gold project in Mexico state Mexico. Located in a historic mining district well known for epithermal silver and gold mines, the best known of these is the historic Taxco silver camp located 60km east of Belem. Taxco was the location of one of the first European mines in the Americas beginning production in 1522 and the camp continues to operate today.|
The focus of recent work on the property is the Belem 1 Vein System. The epithermal Belem 1 Vein has been tested with a 120m underground portal by the owner and seven core drill holes drilled by Consejo de Recursos Minerales ("CRM"), a Mexican government agency. Along a strike length of 500m, an average depth of 75m and a 2.2m width, the vein returned an average grade of 2,175g/t Ag and 1.2g/t Au (US$350 per tonne in place metal value using a gold price of $405.00 & a silver price of $5.40 per oz.) within a range of 571 to 3,713g/t Ag and 0.5 to 2.4g/t Au. The zone remains open along strike and to depth. Note these assays are reported by the owner and CRM, and the assay and sampling procedures may not conform to Canadian NI43-101 standards. Preliminary sampling by Energold geologists found similar assay values in a limited number of samples where sample material was available.
Under the terms of the Option Agreement, Energold will advance US$70,000 to fund property maintenance and completion of mine permitting. During the next six months Energold will complete an exploration program consisting of trenching mapping, mining and metallurgical review and a 1,500 m. drill program to verify the existing drill results and expand our knowledge of Belem 1 and additional mineralized structures on the property.
Upon completion of the program Energold then at its option may arrange a further US$1.43 million loan to the current owner for completion of the processing plant and underground facilities and to enable the mine to go into production within a two year period. At any time during the currency of the Option Agreement, Energold will have the right to acquire a 100% interest in the Real de Belem project for an additional US$5.0 million. The option expires 3 months following the Commencement of Commercial production. The Agreement is subject to Board approval.
Vancouver-based Energold Mining Ltd. is a profitable exploration company focusing on precious and base metals targets within the Dominican Republic and more generally Latin 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 precious metals exploration company with properties in the Dominican Republic.
On behalf of Energold Mining Ltd.
"Frederick W. Davidson"
President, CEO, CFO
For further information, please contact:
Fred Davidson or
Darrell Rader - Corporate Development
The TSX Venture Exchange has neither approved nor disapproved this news release.
900 - 543 Granville St.
Vancouver, B.C. V6C 1X8
Telephone 604 681-9501
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You can view the Next News Releases item: Wed Jan 7, 2004, Energold Announces Further Details Of The Recently Acquired Real de Belem Silver/Gold Project
You can view the Previous News Releases item: Mon Dec 15, 2003, Energold Announces Results Of Exploration Program On The San Antonio Project
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