Emgold Mining Announces Partner Kennecott Exploration Is Commencing Drill Program At New York Canyon Coppery Property

VANCOUVER - Emgold Mining Corporation reported that Kennecott Exploration Company (KEX), a subsidiary of Rio Tinto plc (RIO), is commencing a drilling program at the New York Canyon Property, Nevada. The Property is subject to an Earn-In with Option to Joint Venture Agreement (the "Agreement") between Emgold and KEX.

KEX has received a Permit from the Bureau of Land Management (BLM) under a Notice of Intent (NOI). The NOI allows for drilling and other exploration activities on the Property and limits surface disturbance to a maximum of 4.71 acres from 10 drill sites. The Permit allows drilling with an anticipated project duration of two years. KEX has also completed reclamation bonding for the planned drilling program.

KEX has commenced earthworks (road improvements, road construction, and drill pad construction). The drilling contractor, Boart Longyear, is expected on site in the second half of this month. The drilling schedule is subject to availability of the drill, impacts of Covid-19, weather, and other factors. Current plans are to drill five diamond drill holes to test three exploration targets, the Copper Queen, Longshot Ridge, and Ideal targets. The Ideal target is a previously untested magnetic anomaly that is located south of Copper Queen. Initial plans are for four holes to be in the 400-500 m length and one hole to be 750 m in length. Hole lengths will be subject to adjustment based on results being obtained in the field as the drilling is being done.

KEX has relogged and selectively re-sampled historic drill holes MN-15, MN-42, MN-215, and MN-221. Samples have been sent to the laboratory and are awaiting analysis. Holes were selected to better understand the geology of the deposits and, in the case of MN-42, to compare with historic drill results. Drilling by Conoco, Inc. ("Conoco"), reported in a May 10, 1979 internal report, included a significant interval of chalcopyrite and molybdenite mineralization encountered in drill-hole MN-42, which was drilled in 1977. The drillhole, intersected 1,020 ft. (311m) of 0.41% Cu, 0.012% Mo, 4.5 ppm Ag, and 0.1 ppm Au from 560 ft. (171 m) to 1,580 ft. (482 m) (true width unknown) at the Copper Queen prospect, located approximately 2 mi. (3 km) west of the Longshot Ridge prospect. This data was collected prior to the implementation of National Instrument NI 43-101 (NI 43-101), QA/QC procedures are unknown, and a qualified person has not verified the historic results. One of the drill holes planned by KEX is an offset of this historic hole. A UAV magnetic survey is being planned for second quarter 2021 over a portion of the claim block. Additional geologic mapping and surface sampling is planned for second and third quarters of 2021.