Completed on its LH Gold Exploration Property, B.C.
West Vancouver, British Columbia – April 11, 2019 – Magnum Goldcorp Inc. (the “Company” or “Magnum Goldcorp”) is pleased to announce that survey results have been received from two airborne magnetic surveys completed by drone on its “LH” gold exploration property (the “LH Property”) in 2018 (see News Releases dated August 7 and December 5, 2018). 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, and then along a four-wheel drive road along Fingland Creek for approximately 5 km.
The Company completed two contiguous airborne magnetic surveys by drone in the Upper Fingland Creek basin to further evaluate two mineralized areas identified through previous work, the “LH Underground” workings” and the “Ridge Zone”. The LH Underground workings are interpreted to have exposed a pyrrhotite-enriched, gold-bearing system subsequently confirmed by 16 diamond drill holes completed in 2015 and 2017 (see the Company’s News Releases dated August 18, 2015 and February 8, 2018, respectively).
The “Ridge Zone” is comprised of a series of alteration zones developed within pyroclastic host rocks of the Rossland Group. Alteration intensity gradually increases from east to west, beyond the ridge crest to the west. The approximately north-south trending ridge is cored by pervasively silicified volcanics over a wide central zone. Accompanying the zone of pervasive silicification is elevated sulphide content associated with anomalous gold values documented in rock and soil samples. The Company believes that the previous drilling of the Ridge Zone in 1987 (conducted by Goldpac Investments Ltd.) and in 2012 (conducted by International Bethlehem Mining Corp.), confirmed a second style of gold mineralization occurring as a stockwork zone of silicified, calc-silicate altered and hornfelsed volcanics. This mineralization is characterized predominantly by pyrrhotite with highly subordinate arsenopyrite ± pyrite ± minor chalcopyrite (for additional information on the historical drilling and results see International Bethlehem Mining Corp. News Release dated February 4, 2013).
The recently completed drone surveys included the area of the previous 2017 ground magnetic survey (see News Release dated October 26, 2017), which was hindered by local, steep topography. The surveys returned continuous magnetic data, with stations every 1.4 cm and a line spacing of 25 m, flown at a consistent elevation of 25 m above the Digital survey model (DSM), completely covering the upper Fingland Creek basin, including the high priority LH Underground workings and the majority of the Ridge Zone. The surveys returned high-resolution magnetic data, providing continuous measurements along each flight line, which were leveled and merged. Subsequent processing of this data produced a Second Vertical Derivative (“2 VD”) map of the survey area, which confirmed, and significantly improved, the magnetic signature spatially associated with the LH Underground workings.
The Company believes that there is a qualitative correlation interpreted between pyrrhotite content and gold grades, with pyrrhotite-rich magnetic anomalies and/or sub-surface drill intercepts correlated to high grade gold. The prominent magnetic anomaly associated with the LH Underground workings is interpreted to be sourced from a structurally controlled, pyrrhotite-enriched (i.e. magnetic), high grade gold-bearing system. The intensity of the magnetic response is dependent upon the amount of pyrrhotite, with massive pyrrhotite correlated to the strongest magnetic response and, potentially, having higher grade gold relative to a progressively decreasing magnetic response associated with semi-massive to web-style to disseminated pyrrhotite.
The high-resolution magnetic data supplements previously acquired Induced Potential (IP) results collected within the Fingland Creek basin in 2014 (see the Company’s News Release dated September 12, 2014). The available geophysical data were modeled on a limited basis, comprising Lines 100N, 200N, 800N and 900N, utilizing both IP and magnetic data. The modeling results are interpreted to indicate strong potential to identify additional mineralization associated with the LH Underground mineralized system to both the east (as previously interpreted) and west.
Furthermore, the modeling results also indicate strong potential underlying the Ridge Zone. Previous drilling returned high, but spotty, gold results, however, the results of geophysical modeling are interpreted to indicate those drill holes were poorly oriented with respect to the sub-surface target now identified. Additional drilling can be completed from the existing pads remaining on-site at the Ridge Zone.
The combined IP and magnetic geophysical database has provided strong, relatively near surface geophysical anomalies for subsequent drill testing. Furthermore, modeling results have provided a better understanding of why previous drilling did not intersect the mineralized intercepts anticipated. Numerous geophysical targets have been identified for further work, including subsequent drill testing.
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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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 generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “suspects”, “interprets”, “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.