West Vancouver, British Columbia – July 6, 2015 – Magnum Goldcorp Inc. (the “Company” or “Magnum Goldcorp”) is pleased to announce that the Company has completed Phase 1 of its helicopter-supported drill program on the LH gold exploration property (the “LH Property”). The LH Property consists of 19 contiguous crown granted claims and six mineral claims, located approximately 7 km south of Silverton, British Columbia, on the east side of Slocan Lake. Access to the LH Property is via Highway 6 for 8 km south of Silverton and then via Red Mountain Road for 2 km and a four-wheel drive road along Fingland Creek for 5 km.
As part of its 2015 exploration program, the Company completed 11 drill holes at one setup location for a total of approximately 675 metres of BTW core. The program was initiated to target high grade gold mineralization previously identified in the LH underground workings. A Phase II program (planned for the Fall of 2015) will undertake additional testing of high grade gold mineralization previously identified and associated with the underground workings of the LH Mine and/or along the Ridge Zone.
Core from drill hole LH-15-30 was split in its entirety, with sampling in subsequent holes limited to mineralized intervals having approximately 2% pyrrhotite over greater than 1 metre. Sampling of the remainder of the holes has been postponed to a later date. Drill core has been split at approximately 1 metre intervals. Samples will be submitted to AGAT Laboratories in Burnaby, BC for analysis. Assay results will be reported by the Company when received and reviewed.
By news release dated May 29, 2015, the Company announced its intention to proceed with a non-brokered “flow through” private placement. As Magnum has now completed Phase 1 of its exploration program from funds previously raised, the Company has elected to defer raising any flow through funds until such funding is needed for exploration expenditures that would qualify as such in accordance with the requirements of the Income Tax Act of Canada.
This news release has been reviewed and approved by Rick Walker, P. Geo., who is acting as the Company’s Qualified Person for the LH Property project, in accordance with regulations under NI 43-101.
By option agreement dated September 6, 2012, the Company was granted an option by International Bethlehem Mining Corp. (TSX-V: IBC) to acquire a 51% interest in the LH Property (the “Option”). Under the Option, the Company has agreed to incur expenditures on the LH Property totaling $500,000 and to issue 3,000,000 shares to International Bethlehem. By purchase agreement dated February 24, 2015, Cobra Venture Corporation (TSX-V: CBV) purchased one half (25.5%) of the Company’s 51% interest in the LH Property for $300,000. Under that agreement, the Company is required to spend $200,000 in exploration expenditures on the LH Property (see News Release dated March 5, 2015 for further information on the agreements with International Bethlehem Mining Corp. and with Cobra Venture Corporation). The LH Property is subject to certain net smelter return royalties.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030.
Magnum Goldcorp Inc.
“Douglas L. Mason”
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Douglas L. Mason, CEO
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “suspects”, “intends”, “estimates”, “projects”, “targets”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.