|February 28, 2005|
Update Of Energold's Exploration And Equity Interests
|Energold Mining Ltd. (EGD:TSX.V) is pleased to provide an update on its exploration projects in the Dominican Republic as well as 33% owned IMPACT Minerals International Inc.'s (IPT:TSX.V) Royal Mines of Zacualpan Project in Mexico.|
Longyear Project, Dominican Republic
GoldQuest Mining Corp. "GoldQuest" (GQC:TSX.V) has started a drill program on the Longyear property in the Dominican Republic. The program is planned to consist of 1,000 meters of diamond drilling in ten holes. The Longyear property adjoins the Pueblo Viejo Mine concession where Placer Dome is currently carrying out a feasibility study (indicated resource of 16.8 million ounces gold grading 3.28 g/t: Placer Dome, December 31, 2002).
Significant gold anomalies have been defined for drill testing in a number of locations on the Longyear concession by detailed geological mapping, soil-grid and rock-outcrop sampling. 1195 soil samples were taken on a grid covering the entire concession and 331 rock-outcrop samples.
The principal target is Loma La Mina - a 1,600 meter long by up to 400 meter wide, northwest trending soil and rock sample anomaly. Soil samples returned values up to 2.9 g/t Au, 2.65% Cu and 0.03% Mo. Rock samples returned values up to 11.6 g/t Au, 15.4% Cu, 0.12% Mo and 0.51% Zn. Past drilling by Energold at the southeastern end of the anomaly gave highlights of 2.93 g/t Au over 5 meters, 2.83 g/t Au over 3 meters and 1.37 g/t over 21 meters. GoldQuest plans to drill the anomaly to test for the continuation of the mineralization.
GoldQuest has the option to spend US$1.5 million over three years to earn a 60% interest in the project and up to an 80% interest by taking the project to a bankable feasibility study.
El Centenario Project, Dominican Republic
GoldQuest has informed Energold of the discovery of a new gold zone in the western Dominican Republic. The Cerro Dorado ("Golden Hill") discovery is located partly within the Centenario Project (concession under reapplication) and partly within a 100% owned GoldQuest concession. Cerro Dorado lies 6.5 km from the Oro Verde (Centenario) deposit. Cerro Dorado was discovered during a regional exploration program that returned strong gold anomalies in stream sediment samples from the area. A sample from a large boulder of replacement silica-pyrite taken during this program returned 491 g/t Au (15.2 oz/t) and 7.69% Cu, and a second rock float sample of quartz vein returned 65 g/t Au. The area has since been followed up with geological mapping, ridge and spur soil sampling, rock sampling and most recently by soil grids.
While the source of the high-grade float has not been identified yet, the follow up work has defined a large gold-in-soil anomaly with an area of approximately 1,500 m by 1,100 m. The highest values in soils are 2.01 g/t Au and 1.3 g/t Au, with an average gold value of 0.29 g/t Au from 36 samples above 0.1 g/t Au (out of a total of 381 soil samples). Rock sampling returned 42 out of 221 outcrop and float samples grading greater than 0.1 g/t Au, with a highest value in outcrop of 3.62 g/t Au. Mineralization is hosted by an altered quartz diorite intrusion in schistose volcanic rocks and is interpreted to be porphyry gold style. Additional sampling is being carried out and the results will be reported as soon as available.
GoldQuest has the right to earn 60% of the Centenario Project by spending US$1 million over 3 years, and subsequently can earn to 80% by taking the project to feasibility study.
Preparation and geochemical analyses of all samples taken in the Dominican Republic were carried out by ALS Chemex, Vancouver.
The qualified person for the technical information from the Dominican projects for the purposes of National Instrument 43-101 is Stewart D. Redwood, FIMMM.
GoldQuest has completed a preliminary resource calculation for the Oro Verde zone on the Centenario project. The project has an estimated Indicated Resource of 1.65 million tonnes grading 2.80 grams gold per tonne (g/t Au) for 149,030 oz contained gold using a 1 g/t Au cut-off, or 2.72 million tonnes grading 1.95 g/t Au for 170,857 oz at a 0.5 g/t Au cut-off.
The resources were determined to NI 43-101 standards under CIM definitions (August 2000) by Brian Cole, P.Geo., who is the independent qualified person. They are based on a re-evaluation of historical exploration carried out between 1991 and 1997 by Battle Mountain Gold Company, Canyon Resources Ltd. and Energold Mining Ltd. including 6,557 meters of drilling in 104 holes. Brian Cole took check samples of quartered core for assay and specific gravity measurements. Resources were estimated using grade contour constraints by the sectional polygon method. Cross sections were generated at 25 m intervals. Gold assays were capped at 60 g/t and composited on 5 meter intervals. Additional work and validation auditing are required to upgrade the estimated Indicated Resource to a Measured Resource. The resource calculation was part of GoldQuest's on-going evaluation of the project, including re-logging of drill core, to define additional exploration targets.
Royal Mines of Zacualpan, Mexico
Energold owns 33% of the outstanding shares in IMPACT Minerals International Inc.(IPT:TSX.V). Under terms of an agreement with private Mexican companies signed in June 2004, IMPACT has an option to purchase producing silver mines, contracts and a 500 tonne per day processing plant lease located in the Royal Mines of Zacualpan Silver District of central Mexico. Currently IMPACT is carrying out due diligence investigations into the legal, corporate, engineering and exploration aspects of the project that will form the basis for a purchase decision on the project. To date IMPACT reports these investigations have been proceeding with satisfactory results.
Recently IMPACT has announced the start of a 2000m Phase 1 core drilling program utilizing one of Energold's drills. Four priority Phase 1 drill targets were selected to test both advanced stage areas with potential for near term production as well as some early stage areas with "blue sky" exploration potential. The most advanced drill target is the Compadres Mine area located in the southeastern sector of the property. It is presently being developed for mining on two levels by the current owner. Sampling by IMPACT of the limited mine development to date in Silver Shoot #1 returned values averaging 680g/t silver, 0.3g/t gold, 1.47% zinc and 0.80% lead over 0.9m on Level 1 and a sample from Level 2 returned 5,730g/t silver, 0.63g/t gold, 7.71% zinc and 5.58% lead over 1.3m. IMPACT's drilling will test the downdip extension of this shoot as well as other sections of the vein.
Three other targets that returned significant silver values during fieldwork in 2004 will also be tested during this Phase 1 drill program. Drilling of other targets developed by field crews and follow up of Phase 1 drill intersections is planned for a Phase 2 drill program later in 2005.
George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101 and a director of IMPACT, is responsible for the technical content of the IMPACT portion of this news release.
Energold Mining Ltd. is an environmentally and socially sensitive diamond drilling company that services the mining industry. Energold holds a controlling interest in silver oriented explorer IMPACT Minerals International Inc. and a project portfolio in the Dominican Republic.
On behalf of the Directors of Energold Mining Ltd.
"Frederick W. Davidson"
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange has neither approved nor disapproved this news release.
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