VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2012) - Elgin Mining Inc. ("Elgin Mining" or the "Company") (ELG.TO)(ELG.WT) is pleased to announce drill results from its ongoing exploration program at its wholly-owned Bjorkdal Gold Mine ("Bjorkdal Mine") in Sweden. This underground drilling is part of an ongoing program to expand the underground reserves and is a follow-up to the exploration work reported on April 12, 2012, which identified a new gold vein system located at the same level and adjacent to active mining some 200 to 400 metres below surface.
This recent drilling has confirmed the vein system and has expanded the zone some 120 metres to the West and over 80 metres to the North. Drill holes, as per the previous program are spaced at some 20 metres apart either laterally or vertically.
Highlights of this program are below. It should be noted that results from one drill hole generally cut across several individual vertical veins which is shown on the attached map (http://media3.marketwire.com/docs/elg1022-Map1.pdf). Widths are approximately 90% of true width.
Highlights include (see Table 1 and Map 1):
- Hole 2012-007, which returned 5.0 metres of 9.71 g/t Au, and 4.3 metres of 2.07 g/t Au;
- Hole 2012-015, which returned 3.0 metres of 10.53 g/t Au, 2.0 metres at 7.13 g/t Au, 4.0 metres at 4.30 g/t Au, and 2.1 metres at 4.09 g/t Au;
- Hole 2012-017, which returned 3.9 metres at 8.0 g/t Au, 1.0 metre at 116.0 g/t Au, 3.3 metres of 9.16 g/t Au, and 1.0 metre at 5.06 g/t Au;
- Hole 2012-019, which returned 3.0 metres of 3.14 g/t Au, 1.0 metre at 4.98 g/t Au, 1.0 metre at 17.00 g/t Au, 2.9 metres 6.81 g/t Au, and 2.9 metres at 7.36 g/t Au;
- Hole 2012-027, which returned 0.9 metres at 7.84 g/t Au, 4.1 metres at 4.30 g/t Au, 3.0 metres at 13.99 g/t Au, and 3.9 metres at 5.42 g/t Au;
- Hole 2012-031, which returned 2.0 metres at 5.20 g/t Au, 2.0 metres at 5.53 g/t Au, 2.0 metres at 10.32 g/t Au, and 3.0 metres at 4.27 g/t Au;
- Hole 2012-032, which returned 1.9 metres of 9.08 g/t Au, and 1.0 metre at 4.71 g/t Au;
- Hole 2012-033, which returned 2.0 metres at 4.79 g/t Au, 3.0 metres at 14.46 g/t Au, 3.1 metres at 8.20 g/t Au, 2.0 metres at 8.38 g/t Au, and 2.0 metres at 10.92 g/t Au; and
- Hole 2012-034, which returned 3.1 metres at 4.02 g/t Au, 1.0 metres at 3.95 g/t Au, 2.0 metres at 9.29 g/t Au, 1.0 metres at 4.69 g/t Au, and 1.0 metres at 5.35 g/t Au.
Commenting on the results, Mr. Patrick Downey, President and CEO stated, "These results continue to show that the Bjorkdal orebody is open along strike and down dip and we continue to expand the resource. Some of these veins are nearby active mining and development. We plan to expand our development drifts out to better define the resource, and to select veins for future mining. Furthermore, by expanding the development drifts out across these veins we can set up and drill further out along strike to test for more new veins."
|Table 1 - Assay Results (see Map 1 - http://media3.marketwire.com/docs/elg1022-Map1.pdf)
|2012-015||Off Section to NW||300||-8||26.0||29.0||3.0||10.53|
|2012-015||Off Section to NW||300||-8||31.0||33.0||2.0||7.13|
|2012-015||Off Section to NW||300||-8||47.6||48.6||1.0||1.59|
|2012-015||Off Section to NW||300||-8||67.2||71.2||4.0||4.30|
|2012-015||Off Section to NW||300||-8||105.5||106.5||1.0||2.69|
|2012-015||Off Section to NW||300||-8||124.4||125.3||0.9||1.70|
|2012-015||Off Section to NW||300||-8||133.8||134.7||0.9||1.09|
|2012-015||Off Section to NW||300||-8||137.5||138.5||1.0||1.33|
|2012-015||Off Section to NW||300||-8||139.5||142.5||3.0||1.22|
|2012-015||Off Section to NW||300||-8||291.2||293.3||2.1||4.09|
|2012-015||Off Section to NW||300||-8||300.4||303.4||3.0||3.22|
|2012-015||Off Section to NW||300||-8||317.9||321.9||4.0||1.42|
|2012-019||Off Section to NE||19||-27||30.0||31.9||1.9||2.50|
|2012-019||Off Section to NE||19||-27||34.0||36.1||2.1||1.06|
|2012-019||Off Section to NE||19||-27||41.0||42.0||1.0||1.53|
|2012-019||Off Section to NE||19||-27||52.0||55.0||3.0||3.14|
|2012-019||Off Section to NE||19||-27||69.0||70.0||1.0||1.75|
|2012-019||Off Section to NE||19||-27||73.0||76.0||3.0||0.88|
|2012-019||Off Section to NE||19||-27||78.0||79.0||1.0||4.98|
|2012-019||Off Section to NE||19||-27||84.8||85.8||1.0||17.00|
|2012-019||Off Section to NE||19||-27||89.0||93.0||4.0||2.01|
|2012-019||Off Section to NE||19||-27||98.0||99.0||1.0||1.51|
|2012-019||Off Section to NE||19||-27||102.0||103.0||1.0||1.82|
|2012-019||Off Section to NE||19||-27||118.0||119.1||1.1||2.69|
|2012-019||Off Section to NE||19||-27||135.8||138.7||2.9||6.81|
|2012-019||Off Section to NE||19||-27||141.9||144.9||3.0||0.84|
|2012-019||Off Section to NE||19||-27||150.9||151.9||1.0||1.14|
|2012-019||Off Section to NE||19||-27||158.3||159.3||1.0||1.07|
|2012-019||Off Section to NE||19||-27||198.5||201.5||3.0||1.52|
|2012-019||Off Section to NE||19||-27||223.5||225.5||2.0||3.10|
|2012-019||Off Section to NE||19||-27||233.6||235.6||2.0||2.03|
|2012-019||Off Section to NE||19||-27||249.5||250.5||1.0||2.98|
|2012-019||Off Section to NE||19||-27||272.2||275.1||2.9||7.36|
|(1) true width has yet to be determined||(2) accelerated cyanide leach|
Exploration at the Bjorkdal Mine is being conducted under the supervision of Mr. Gordon Clarke, P.Geol., who is the Company's Qualified Person as defined by National Instrument 43-101. Mr. Clarke has also reviewed and approved the technical disclosure contained in this news release as applicable.
Quality Assurance and Quality Control ("QA/QC") Procedures for the Bjorkdal Mine
In order to minimize the effects of the coarse nugget gold at the Bjorkdal Mine, the Company has elected to submit 100% of the core for analysis, rather than retaining half of the core for archive. This provides a much larger sample for gold analysis and theoretically a more representative result. The core is logged and photographed, and for the zones sampled, the entire core is shipped to ALS Chemex and 500 g are analyzed for gold using an accelerated cyanide leach process. A rigorous QA/QC program is employed that involves the insertion of blanks and certified standards.
Elgin Mining Inc.
Elgin Mining is a Canadian-based company focused on production at the Bjorkdal Gold Mine in Sweden, which surpassed its first millionth ounce of gold production in 2010, and the exploration and development of the Lupin gold mine and Ulu gold project, both located in Nunavut, Canada. In addition, Elgin Mining's portfolio includes a 29.5% interest in Auracle Resources Ltd., which is exploring the Mexican Hat property in Arizona, and an exclusive right and option to earn a 60% interest in Lincoln Mining Corporation's Oro Cruz (California) and La Bufa (Mexico) gold projects and to earn a 60% interest in North Arrow Minerals Inc.'s Contwoyto gold project located adjacent to the Lupin gold mine in Nunavut, Canada. Elgin Mining also selectively reviews opportunities to add advanced stage development projects to its portfolio. The Company has a strong balance sheet, generates cash flow from gold sales, and remains un-hedged.
For further information, please visit the Company's website at www.elginmining.com.
Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of Elgin Mining's future plans and operations and are based on Elgin Mining's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Elgin Mining's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Elgin Mining undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
President and Chief Executive Officer