Drilling To Commence On Buckskin Rawhide East

 

TORONTO - Emgold Mining Corporation reported that the 2013 surface drilling program proposed for its Buckskin Rawhide East Property has been approved by the U.S. Bureau of Land Management (BLM). The Property is located about 40 miles south of Fallon, Nevada in the Rawhide Mining District and is adjacent to the active Denton Rawhide Mine owned by Rawhide Mining LLC. Emgold recently acquired a 75 percent interest in the Buckskin Rawhide East Property and is in the process of acquiring the remaining 25 percent interest from the underlying property owners.

Reverse circulation drilling is planned for the eastern half of the Buckskin Rawhide claim block in the Chicago Mountain/Chicago Gulch and North Buckskin Mountain Target areas. The purpose of the 2013 exploration program is to extend areas of gold-silver mineralization discovered by Kennecott Exploration in the 1990s and by Emgold since 2009. The Chicago Mountain Target consists of a bulk disseminated gold and silver exploration target approximately 4,000 feet long by 400 feet width that was identified from historic Kennecott and more recent Emgold surface rock chip sampling and analysis, as well as from historic Kennecott drilling. The North Buckskin Mountain Target is a new target that has been identified. It consists of a bulk disseminated gold and silver exploration target approximately 2,000 feet long by 400 feet wide. The 2013 planned drilling program includes 11 drill sites at Chicago Mountain/Chicago Gulch and seven drill sites at North Buckskin Mountain. Planned drilling depths range from 300-500 feet. Multiple holes may be drilled at any of the drill sites. The estimated total cost of the 2013 drill program is $250,000. If this initial program is successful, additional work will be planned to conduct a larger drill program with the goal of delineating a bulk disseminated gold and silver resource that could potentially become a minable satellite deposit for the adjacent Denton Rawhide Mine. The Chicago Mountain Target is situated about one mile from RMC mine facilities and the North Buckskin Target is about 1.5 miles from the mine facilities. From 1990 through 2010, the Denton Rawhide Mine produced 1.5 million ounces of gold and 12.4 million ounces of silver. In 2010, the Denton Rawhide Mine was acquired by RMC who continued to produce gold and silver from the heap leach pads. RMC advises that, in 2012, it recommenced mining activities at the Denton Rawhide Mine. David Watkinson, President and CEO said, "We are pleased that exploration drilling will commence on the Buckskin Rawhide East Property. Opportunity exists to fast track exploration, permitting, and development of any resources discovered at Buckskin Rawhide East by utilizing the adjacent Denton Rawhide facilities. Emgold believes that advancing the Buckskin Rawhide East Property with RMC as the operator is the best opportunity for the Company to achieve cash flow in the near term.