on its LH Gold Exploration Property, B.C.
West Vancouver, British Columbia – May 7, 2019 – Magnum Goldcorp Inc. (the “Company” or “Magnum Goldcorp”) is pleased to announce plans for a two phase diamond drill 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, and then along a four-wheel drive road along Fingland Creek for approximately 5 km.
The Company recently completed two contiguous airborne magnetic surveys in the Upper Fingland Creek basin to further evaluate two mineralized areas identified through previous work, the “LH Underground” workings” and the “Ridge Zone” (see News Release dated April 11, 2019). 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 Company believes that there is a positive correlartion between pyrrhotite content and gold grades, with pyrrhotite-rich magnetic anomalies and/or sub-surface drill intercepts correlated to high grade gold.
The “Ridge Zone” is comprised of a series of alteration zones developed within pyroclastic host rocks of the Rossland Group, with alteration intensity gradually increasing from east to 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 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).
Modeling of the recently acquired magnetic data, together with the IP data from the 2014 ground geophysical survey (see News Release dated Sept. 12, 2014), has resulted in identification of further magnetic anomalies spatially associated with the LH Underground workings and re-confirmed large Magnetic, Chargeability and Resistivity anomalies associated with the Ridge Zone. A proposed two phase drill program is proposed to test these anomalies during the 2019 field season.
A large, prominent magnetic anomaly has been confirmed, associated with the LH Underground workings, and located just east of the portals for the Level 2 and Level 3 workings. The anomaly is interpreted to be sourced from structurally controlled, pyrrhotite-enriched (i.e. magnetic), high grade gold-bearing mineralization. Drilling in 2017, specifically holes LH17-41 and LH17-42, documented moderate grade gold results in the sub-surface immediately east of the prominent magnetic anomaly.
Geophysical results and subsequent modeling results are interpreted to indicate strong potential for gold mineralization underlying the Ridge Zone. Previous drilling returned high, but spotty, gold results, however, on the basis of the geophysical results, the Company interprets those drill holes to have been poorly oriented with respect to the geophysical target now identified.
A Phase 1 drill program will utilize existing drill pads at both the LH Underground Workings and the Ridge Zone to test the respective geophysical anomalies at these locations. Two relatively short holes will be drilled from the 2017 pad and oriented more easterly to further test the mineralization documented in the 2015 (see News Release dated Aug. 16, 2015). Two drill holes are proposed from the same pad as that utilized in 2012 to make an initial test of the large coincident Magnetic, Chargeability and Resistivity anomalies documented at the Ridge Zone. Subject to the Company completing the necessary financing, the Phase 1 drill program is expected to commence in the summer.
A Phase II drill program is proposed once an amended Mines permit has been received authorizing re- locating two proposed pads locations at the LH Underground workings. A series of relatively short holes are proposed to test the prominent magnetic anomaly located immediately west of the Level 2 and 3 workings. A second series of holes are proposed from a new pad location proposed near the collar for hole LH86-06 (drilled by a previous operator). These holes will test: 1) the interpretation of multiple zones of structurally controlled, pyrrhotite-rich, high grade gold-bearing mineralization and 2) the presence of such mineralization farther east along the magnetic trend interpreted to document the mineralization. A total of 6 pads have been approved at the Ridge Zone. Additional drilling at, and along, the Ridge Zone is proposed based on the results of Phase 1 drilling.
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.