West Vancouver, British Columbia – May 28, 2018 – Magnum Goldcorp Inc. (the “Company” or “Magnum Goldcorp”) announces that it will shortly be commencing its 2018 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. Access to the LH Property is via Highway 6 for 1.1 km south of Silverton and then via Red Mountain Road for 1.6 km to the Hewitt Mine Road, then along a four-wheel drive road along Fingland Creek for approximately 5 km.
For the 2018 exploration program, the Company has proposed a two-phase program to further evaluate the LH Underground workings in the upper Fingland Creek basin. Phase I will include leveling and merging the ground geophysical data from the 2014 and 2017 magnetic surveys. These data will be used to refine the area of an airborne drone orthophoto and magnetic survey. In addition, two short drill holes will be completed from the pad constructed in 2017.
Phase II comprises a diamond drill program to further evaluate sub-surface, high-grade gold mineralization previously identified, associated with the underground workings of the LH Mine (see the Company’s news releases dated August 18, 2015 and February 8, 2018).
Magnetic geophysical data from previous surveys was collected along essentially east-west survey lines, whereas the 2017 program was collected along essentially north-south lines. Leveling, then merging the data from these two surveys will allow: 1) further evaluation of the magnetic anomaly associated with the LH Underground workings along its currently known length, and 2) evaluation of a series of magnetic anomalies approximately 225 m south of the LH Underground workings, having strong similarities to anomalies delineated in the immediate vicinity of the LH Underground workings. Previous drill results have been interpreted to indicate strong magnetic anomalies are associated with pyrrhotite-hosted, high grade gold mineralization.
The 2017 ground geophysical survey was also hindered by local, steep topography which precluded collecting data over the LH Underground workings in the middle of the survey area. An airborne drone survey is expected to provide magnetic data having comparable resolution to the previous ground surveys, but not be hindered by topographic considerations. The merged and leveled magnetic data will be used to determine the optimum orientation of the survey flight lines to best delineate the magnetic anomalies.
In addition to collection of magnetic data, the airborne drone survey will also provide imagery with which to develop a high resolution, georeferenced orthophoto. The orthophoto will be extremely useful for the purposes of programing the drone for the subsequent magnetic survey as well as providing an invaluable reference for planning future surface programs
Initially two, relatively short, drill holes (totalling approximately 225 m) are proposed in Phase I from the same drill pad used for the fall 2017 program. The intent is to drill a vertical fan of two holes back toward the 2015 pad from which multiple intervals of high grade, gold-bearing intercepts were documented. The two short holes are expected to confirm the presence and true thickness of one, or more, mineralized intervals. The 2015 drill intercepts are interpreted to be located at a transition from, essentially, vein-style (i.e. structurally controlled) high grade mineralization to moderate grade, diffuse alteration halo-style mineralization. This transition is interpreted to be documented in the association of a narrow, high amplitude magnetic anomaly associated with high grade gold-bearing drill intercepts (from 2015 drill program) and broader, low to moderate amplitude magnetic anomalies associated with moderate grade gold-bearing intercepts (from 2017 drill program).
The phase I program is expected to be initiated in mid- to late June, with flight lines expected to be oriented essentially north-south, straddling the surface projection of the LH Underground workings. Line spacing is expected to be approximately 25 m so as to provide high resolution definition of the vein system. The survey will extend east at least 300 m along strike. A series of magnetic anomalies identified by the 2014 survey are tentatively interpreted to be associated with an east-west structure, sub-parallel to the structure hosting mineralization in the LH Underground, delineated by data collected along essentially east-west survey lines.
Phase II drilling is expected to follow Phase I (dependent upon geophysical and/or visual identification of high grade mineralization in the Phase I drill holes). Alternatively, Phase II drilling may be initiated in the fall subsequent to receipt of quantitative analytical results from Phase I drilling. Approximately 1,000 m of BTW drilling is proposed from a new drill pad constructed approximately 100 m east of the 2017 pad, on the north side of the LH mineralized structure. A series of relatively short holes (<100 – 150 m) will be drilled in a series of vertical fans and are anticipated to comprise preliminary delineation of the mineralized zone with which to prepare an initial resource estimate. Similar to the 2017 drill program, the proposed drill holes will be oriented at a high angle to the vein system, allowing more confident determination of the true width of mineralized intervals.
The mineralized system is interpreted to strike essentially east-west and dip steeply to the north. Sub-surface drill hole intercepts correlate well with historical mineralized samples reported from mineralization exposed in Level 1 and are interpreted to define a vein-style system which extends to depth just south of Level 3 (the lowest level of development in the LH underground workings). The 2018 program is expected to better define the structurally controlled, mineralized system, both along strike and to depth.
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
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the
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.