West Vancouver, British Columbia – August 29, 2016 – Magnum Goldcorp Inc. (the “Company” or “Magnum”) – is pleased to announce commencement of its planned exploration program on its “LH” gold exploration property (the “LH Property”).The LH Property consists of 19 contiguous crown granted claims and four mineral claims. The LH Property is 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 2 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.
The first phase of the proposed exploration program (which is currently underway) will consist of a ground geophysical program comprised of a combined Self Potential, Magnetomoter and Horizontal Loop EM survey. The Self-Potential (“SP”) survey has been completed, which included: 1) several infill lines on the east flank of the Ridge Zone; and 2) several lines over the surface projection of the LH underground workings to further develop the target for future drilling. The subsequent field program (expected to commence in the Fall) is intended to further evaluate significant gold results documented to date, arising from interpretation of recently compiled geological and geochemical data, including results from the 2012 drill program completed by International Bethlehem Mining Corp. (“International Bethlehem”: TSX-V:IBC), ground geophysics in 2014 (SP and Induced Potential surveys) and the 2014 and 2015 drill programs as completed by Magnum.
In June, 2014, an initial SP survey was completed along the existing exploration trail network to make an initial evaluation of the area of interest (i.e. the crown grants) in advance of the 2014 drill program. The survey identified two conductive anomalies of interest. The first anomaly is located on the Baseline immediately south of Line 8N, with the second anomaly located slightly west of the Baseline and north of Line 6N. Initial modelling of the second anomaly was interpreted to suggest the anomaly is located at a depth of approximately 52 metres below surface.
Additional SP data were acquired along several grid lines to supplement the data from the 2014 survey. Two prominent anomalies identified on the trail network, both immediately west of the Baseline, are interpreted to represent a linear zone along the east flank of the Ridge Zone, west of Fingland Creek. Additional data were acquired along Lines 6N, 7N and 8N, as well as along a portion of the Baseline to further evaluate this interpretation.
In addition, SP data were collected along five lines in the immediate vicinity of the LH underground workings. The lines were proposed to cross over the surface projection of the underground workings, developed along one (or more) interpreted mineralized zone(s), oriented essentially east-west and dipping moderately to steeply to the north (see News Release dated August 18, 2015). Acquisition of SP data along the two upper lines was limited to the area south of the underground workings due to the presence of cliffs. Two lower lines extending across, and beyond, the surface projection of the underground workings. The fifth, and lowest line, is located approximately 75 m west of the lower portal to evaluate the potential for the mineralized zone(s) within the underground workings extending farther west and/or the anomalous zone on the east flank of the Ridge Zone extending farther north. The data are currently being evaluated.
The subsequent combined Magnetometer / Horizontal Loop EM survey will commence shortly, intended to further evaluate the mineralized zone(s) associated with the underground workings. The combination of the results from the three separate and distinct geophysical methods is expected to establish the sub-surface extent and continuity of the mineralized zone(s) in the underground workings and, therefore, provide greater confidence in locating, and targeting, the drill holes in the subsequent drill program.
By way of background, a combined Induced Potential (“IP”) / Magnetometer survey was also completed on the LH Property during 2014, comprising approximately 8.3 line km (see News Release dated August 26, 2014). Results from the magnetometer survey confirmed the presence of the two anomalies described above, as being two components of a much larger anomaly. The main portion of this magnetic anomaly lies to the south of Line 6N and southwest of the existing road network.
A review of previous results, particularly historical results from the LH underground workings and results from the 2012, 2014 and 2015 drill programs, are interpreted to suggest that moderately to strongly anomalous gold values are associated with intervals having strong phyrrhotite +/- arsenopyrite mineralization. As pyrrhotite is both magnetic and strongly conductive, a coincident SP (i.e. conductive) / magnetic anomaly is interpreted to indicated the presence of elevated pyrrhotite content, potentially with elevated gold values.
The magnetic anomaly (described above) is part of a trend of at least 6 similar anomalies, ranging from 34 m diameter to an elongate anomaly 82 m wide by a minimum of 170 m length, extending approximately 600 m south-southwest x 85 m wide. The first SP anomaly (described above) represents the northernmost portion of this well developed, strongly magnetic string of anomalies. Therefore, the magnetic anomaly, with a coincident SP anomaly at the northernmost extent, represents a high priority drill target, particularly since a large portion of the anomaly identified has not been tested by any previous holes.
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.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030 or visit the company’s website at www.magnumgoldcorp.com.
Magnum Goldcorp Inc.
“Douglas L. Mason”
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Douglas L. Mason, CEO
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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. 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.