Kennecott Commences Diamond Drilling at the New York Canyon Copper Property

VANCOUVER - Emgold Mining Corporation reported that Kennecott Exploration Company (KEX), a subsidiary of Rio Tinto plc (RIO), has commenced diamond drilling at the New York Canyon Copper Property, Nevada. The Property is subject to an Earn-In with Option to Joint Venture Agreement (the "Agreement") between Emgold and KEX. The Property consists of 417 unpatented claims and 21 patented claims totaling approximately 8,700 acres. It is in the Santa Fe Mining District, Mineral County, in west-central Nevada, about 30 mi. (48 km) from the town of Hawthorne. The Property hosts copper oxide and sulfide skarn and porphyry mineralization. Total historic drilling on the Property, to date, is 234 holes totaling about 139,000 ft. (43,000 m).

Kennecott can earn up to a 75% interest in the Property by completing up to US$22.5 million in exploration expenditures. Under the terms of the Agreement, KEX has a First Option to acquire a 55% undivided interest in the Property by incurring US$5.0 million in expenditures over a 5-year period, of which US$1.0 million is a committed expenditure that must be completed prior to the 18-month anniversary of the Agreement.

The drilling contractor mobilized to the site on March 22nd. 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. A UAV magnetic survey has also commenced over a portion of the claim block. Additional geologic mapping and surface sampling is planned for second and third quarters of 2021.