High Grade Copper-Gold-Silver Discovery in BC

HIGH GRADE COPPER-GOLD-SILVER DISCOVERY IN CENTRAL BC

In February 2017, EnGold drilled a vertical hole to test a new geophysical anomaly in an unexplored part of the Lac La Hache Project. The hole intersected a 27 m thick zone (true width) containing semi-massive magnetite (>40% magnetite) and chalcopyrite (1.76 % Cu, with 14 m exceeding 2% Cu). The new zone is horizontal, stratabound, and we believe it occurs within the down-dip extension of the same rocks which host our Resource at Spout Deposit, located 1800 m to the NW of the new hole.

The intersection also contains substantially higher gold (0.27 gpt/27m) and silver (10 gpt/27m) than at Spout. EnGold believes this first-ever hole in the area represents a new discovery, based on thickness and tenor of the material, and size potential indicated by the related geophysical (gravity and magnetic) signatures. These exciting results have prompted EnGold to bring a second drill on-site, to further delineate the zone. Detailed gravity surveys will be completed over a much larger area, including Berkey, Aurizon and several other high priority exploration targets.

Background

Three styles of mineralization are known at Lac La Hache Project, typical of gold-enriched, alkalic intrusion-related systems throughout the Quesnel Trough. These include gold-silver-copper-rich structures (Aurizon), porphyry-copper-gold-silver (Berkey and many others) and skarn-copper-magnetite (gold-silver) prospects.

Our currently defined 43-101 Spout Resource (Click HERE to view 43-101 Resource PDF) is of the latter style, characterized by semi-massive magnetite, chalcopyrite (gold and silver). The high magnetic signature of the Spout mineralization has supported exploration using airborne and ground magnetic surveys, where strong positive anomalies were used to target drilling with a high success rate. The ores are also very dense (pure magnetite has a density >5.0 g/cc), averaging about 3.6 g/cc at Spout. This contrasts with the density of the enclosing host rocks which average about 2.6 g/cc. The density difference between ore and host rocks is detectable using gravity surveys.

In 2015, EnGold conducted a small ground gravity survey to test responses over Spout and to search geologically-modeled extensions of the host rocks for new deposit potential. The test results are exciting . Positive anomalies occur over Spout and in two NEW unexplored areas. The new anomalies are of higher amplitude (>1 milligal residual gravity), with much larger footprints than the existing Spout Resource. The first drill hole in the area tested the larger of the two new anomalies.

EnGold Lac La Hache 3D Modeled Airborne