West Vancouver, British Columbia – January 3, 2018 – Magnum Goldcorp Inc. (the “Company” or “Magnum Goldcorp”) is pleased to announce completion of its 2017 exploration program on its “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.
The Company’s 2017 exploration program was comprised of a two-phase program in the upper Fingland Creek basin. Phase I consisted of a ground geophysical survey centred over the LH Underground workings to delineate pyrrhotite-hosted, high grade gold mineralization previously identified in the LH Underground workings. Phase II was comprised of a follow-up diamond drill program to further evaluate results of both the ground magnetic survey and sub-surface, high-grade gold mineralization previously identified, and associated with the underground workings of the LH Mine. (Note: see the Company’s news release dated August 18, 2015 providing all of the results from the Company’s 2015 drill program, including high grade gold intercepts of 16.9 m of 13.58 g/t Gold (Au), including 10.9 m of 20.61 g/t Gold (Au), and 11 m of 20.66 g/t Gold (Au)).
Data from the Phase 1 magnetic survey was acquired along a series of approximately north-south oriented survey lines straddling the surface projection of the LH Underground workings. Line spacing was approximately 50 m so as to provide definition of the vein system over the entirety of its strike length.
The prominent magnetic anomaly associated with the LH Underground workings is interpreted to extend at least 150 m along strike. The magnetic anomaly spatially associated with the LH Underground workings extends east to the steep ridge defining the eastern margin of the Fingland Creek drainage basin. Two additional, sub-parallel anomalies are evident immediately south of the LH anomaly, spaced approximately 50 m apart. These are tentatively interpreted as sub-parallel mineralized trends similar to the LH system. Additional local magnetic anomalies are evident on single lines or extending over at least two adjacent lines and, therefore, approximately 30 to 100 m in strike length. There are a relatively large number of magnetic anomalies identified on the central to eastern portion of the 2017 survey grid for subsequent follow-up.
In addition, an initial comparison of the magnetic data from a 2014 magnetic survey (collected along essentially east-west lines) and the 2017 data (collected along north-south lines) defines a prominent magnetic anomaly immediately south of the 2017 survey. It appears to have a preferred east-west orientation and is tentatively interpreted as a potential fourth east-west mineralized system sub-parallel to the LH system. The two data sets will be leveled and merged for further evaluation and interpretation.
The phase II drill program was immediately initiated following receipt of the approved Mines Act Permit, resulting in recovery of 659 m of BTW size drill core from 5 drill holes completed from a single pad. The holes were drilled to: 1) confirm one (or more) pyrrhotite-hosted, high grade vein(s) identified in the Company’s 2015 drill program; 2) confirm the estimated true width of the vein(s); and 3) attempt preliminary delineation of the mineralized zone with which to prepare an initial resource estimate. Results from the drill program are pending (expected in early 2018) and will be released once received and evaluated.
The Company is investigating the possibility of undertaking a drone mounted, magnetic survey in the spring of 2018 to follow-up results of the combined 2014 and 2017 surveys. The proposed survey will further evaluate the LH magnetic trend eastward into the adjacent drainage and potentially acquire higher resolution (i.e. tighter station sampling) with which to evaluate the potential for multiple, pyrrhotite mineralized systems sub-parallel to the LH trend. The results would be utilized to better guide a proposed follow-up drill program in 2018.
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.
Magnum Goldcorp Inc.
“Douglas L. Mason”
Douglas L. Mason, Chief Executive Officer
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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. 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.