VANCOUVER, Sept. 19, 2011 /CNW/ - Elgin Mining Inc. ("Elgin Mining" or the "Company") (TSX-V: ELG) is pleased to provide the following corporate update and outline
progress and plans for both the Lupin and Ulu Projects in Nunavut,
General Corporate Update
Since the appointment of Patrick Downey as President and Chief Executive
Officer, the Company has proceeded to relocate operations and
administration from Toronto, Ontario, to Vancouver, British Columbia.
This in now essentially completed. All data for both the Lupin and Ulu
Projects has been obtained from the previous owner and has been
integrated into the Elgin system. A new corporate website is being
constructed and will be fully functioning by the end of September,
The Company's objective will be to maintain a strong balance sheet in
order to advance the exploration and development of both Lupin and Ulu
Projects and to fund its option commitments to Lincoln Mining
Corporation with respect to the Oro Cruz and La Bufa gold projects
located in California and Mexico, respectively.
Elgin Mining is pleased to announce that Ms. Vivian Park, P.Geo has
joined the management team. Ms. Park has extensive experience in the
Canadian North, most recently in Yukon. Vivian has also worked at
Kinross' Kupol project in Far East Russia and has led exploration teams
in British Columbia and in Africa. Ms. Park will be responsible for
the planning and execution of the exploration programs at both the
Lupin and Ulu Projects.
Jacques Wortman has also joined the Elgin Mining team, as a consultant,
on the corporate development side. Jacques' focus will be to assist in
the growth and development of the Company and assess opportunities as
they arise. Jacques has worked in mining equity research for over 12
years, including almost 10 years as a Mining Analyst at GMP Securities
covering small to mid-cap companies, several with key assets based in
Nunavut. Most recently, he was Vice President, Corporate Development
with a mid-tier gold producer.
Work Planned at the Lupin Project
The Lupin Project consists of all relevant plant and infrastructure
necessary to commence operations, including a 2,300 stpd process plant,
tailings storage facilities, powerhouse, camp, 1.8 km airstrip, shops,
offices and warehouse facilities. There is also a significant amount
of diesel fuel onsite which will be available for exploration
activities, including drilling. This will save the Company from having
to make significant expenditures in fuel and will facilitate year-round
drilling. Over the past three months, the Company has completed all
necessary work to winterize the camp to allow year-round
exploration. The focus for the Company will be to explore the Lupin
claims in order to outline at or near surface deposits within the
banded iron formation ("BIF") that could rapidly facilitate re-start of
operations, as the Class A water licence is still in force and all
necessary infrastructure is in place.
The Company's consultants have completed a detailed review of the
historical geophysical program and results for the Lupin Project. This
is of particular importance as the previous programs generally focused
on the drilling of "highs" delineated from the ground magnetics and
Horizontal Loop Electro-Magnetic (HLEM) surveys. However, it has subsequently been shown that the main Lupin outcrop
gives a low magnetic response and the gold bearing Lupin West Zone and
Occurrence 8 give no response to these surveys. This has been borne out by the significant exploration success at the
George Lake and Goose Lake deposits of Sabina Gold and Silver
Corporation where major gold bearing zones have been discovered within
de-magnetized iron formations.
The review completed to date has identified several key targets, as
described below, surrounding the Lupin infrastructure (see attached Map
Lupin Outer Ring BIF
A 2004 geophysical survey on the Boot Lake Dome appears to have detected
an outer ring of BIF on its southern edge, clarifying the previous
interpretation of the outcrops. This outer ring of BIF was not
recognized during the life of the mine. Its surface expression is
limited to sporadic patches of sulphide poor and sulphide rich BIF. The
outcrops on this "ring" have no recorded sample data or drilling, and
the main target is covered. The WZ shear/WZ fault of the main Lupin
ore-body is a mineralizing fluid conduit, so this outer ring is
considered a high priority drill target.
Boot Lake Dome
The Boot Lake Dome is located about one kilometre north of the main
Lupin deposit, adjacent to Boot Lake. It appears to be transected by
several possible splays of the Lupin Shear. Early geology maps showed
two outboard folded BIF horizons whose outcrop pattern closely
paralleled that of the Lupin East Zone-Central Zone-West Zone
structure. High-resolution airborne magnetics flown over Boot Lake in
2004 indicated a domal structure dismembered by high strain zones.
The west limb of the Boot Lake Dome lies on an interpreted extension of
the Lupin Shear, is analogous to the Lupin West Zone to the south on
the same WZ shear, and has never been drilled. The western half of the
dome has the highest retrograde chloritic alteration in the Boot Lake
area. Most of the limb, estimated to be 450 meters along strike, is
under glacial overburden, but sulphides in grab samples were recorded
along the strike extent. The best drilling potential at Boot Lake is
likely on this west limb and its north nose.
Sep Lake Area
The area around Sep Lake contains strong evidence of intense
hydrothermal activity, has returned several surface samples with
high-grade mineralization up to 184 g/t Au and also appears to have
significant strike extent. Despite this, the interpretation from the
1980's geophysical surveys resulted in no follow-up drilling ever
The Company has now mobilized crews into the field to complete the
following work prior to the commencement of drilling.
Detailed ground magnetic and HLEM surveys of all identified
targets. This will provide significantly better resolution than
historic data and better define the BIF, structure and variations in
magnetism allowing much more detailed drill targeting.
Detailed sampling and mapping of the targets. Although there is
significant mapping and sampling data available, much of this was
completed in the 1960's by INCO. The plan for this program will be much
more systematic in areas that were previously not considered as targets
due to the perceived lack of a magnetic signature.
Planned Drill Program at the Lupin Project
The Company has recently entered into a drill contract to mobilize one
rig to site in October. The plan will be to drill test several of the
identified targets commencing in Q4 2011. The drill program will be
expanded at the end of Q1 2012 with the mobilization of up to three
Although the focus of the 2011/12 drill program is the identified
near-surface targets there is still potential at depth and considerable
resources underground at the Lupin Project. Although the "West Zone"
mineralized horizon was known to continue south of the shaft (the "SOS
Zone"), limited development and/or exploration was carried out on the
southern extension. A review of the compilation of this horizon
suggests that the SOS Zone has potential to host considerable resources
starting at surface. Additionally, the McPherson Zone and the
on-strike continuation that was found late in the mine's history,
remain wide open up and down dip, and along strike.
Previously disclosed historical drill intersections into the SOS Zone
490 metre Level Drift (Un-mined)
20.95 g/t Au across 2.66 metres
20.16 g/t Au across 1.15 metres
13.95 g/t Au across 2.60 metres
890 metre Level Drift (Un-mined)
11.2 g/t Au across 3.13 metres
36.6 g/t Au across 2.68 metres
17.4 g/t Au across 3.18 metres
Previously disclosed historical drill intersections into the un-mined,
up-dip, portion of the McPherson Zone include:
950 Level Drift (Un-mined)
16.33 g/t Au across 2.4 metres
970 Level Drift (Un-mined)
10.21 g/t Au across 3.65 metres
11.59 g/t Au across 5.4 metres
990 Level Drift (Un-mined)
7.26 g/t Au across 4.18 metres
11.28 g/t Au across 3.65 metres
The Company also considers the underground to be an excellent
exploration environment to define new sources for bulk mining. Based
on the limited review to date, the Company has identified two
underground targets that are nearby existing infrastructure. These are:
The L20 Limb - The L20 limb to the east of the main deposit appears to be a
continuation of the main folded Lupin BIF. It was intercepted from
surface but no follow-up drilling was ever completed. The L20 limb is
continuous and is accessible for drilling from several levels.
Far East Zone - This is a limb of the Lupin style BIF that sits approximately 250 metres
east of the L20 limb. It also had sporadic drilling with some
excellent high-grade intercepts.
The Company therefore plans to fully evaluate both the remaining
resources and the defined targets over the winter season so that a
drill program for these targets can be better defined for 2012 (see
attached Map 2). This will likely be a combination of both underground
and surface drilling.
The Ulu Project, located in the High Lake Greenstone Belt, approximately
140 kilometres north of the Lupin Project, is host to the high-grade
Ulu gold deposit. The current geological resource at Ulu contains an
indicated resource of 751,000 tonnes grading 11.37 g/t Au and an
inferred resource of 418,000 tonnes grading 10.61 g/t Au using a 2.5
g/t Au cut-off grade (see NI 43-101 Technical Report on the Ulu Gold
Property dated June 27, 2011 by Richard A. Graham, P.Geol., and G. H.
Wahl, P.Geol., available on SEDAR). The deposit remains open below the
360 metre level as indicated by deep drill results including
intersections of 7.31 g/t Au across 12.73 metres at the 520 level and
14.9 g/t Au across 7.65 metres at the 610 metre level.
Drilling during 2004 and 2005 by Wolfden Resources Inc. continued to
expand the zones with several holes intersecting mineralization in
areas previously interpreted to be non-mineralized including hole
UL04-04 which intercepted 6.5 metres grading 9.72 g/t Au and hole
UL04-09 which intercepted 1.10 metre grading 17.10 g/t Au.
Also of significant interest is drilling at the Flood Zone which
intercepted high-grade massive sulphide mineralization along a contact
to the gold bearing Flood Zone. This hole UL04-28 returned a high-grade
intersection of 7.48% Cu, 6.94% Zn, 148.6 g/t Ag (4.33 oz/ton Silver)
and 1.05 g/t Au across 1.9 metres.
It appears that no follow-up drilling was completed in this area. The
Company plans to conduct a complete review of this data with a view to
commence follow-up drilling in March 2012. This drilling will focus on
expanding the gold resource and follow-up drilling on the VMS
intercept. Furthermore, there are 14 other gold occurrences on the Ulu
property and the Company plans to complete follow-up exploration
including mapping, sampling, and geophysics early in 2012.
Exploration at the Lupin and Ulu Projects is being conducted under the
supervision of Ms. Vivian Park, P.Geo., who is the Company's Qualified
Person as defined by National Instrument 43-101. Ms. Park has also
reviewed and approved the contents of this news release as applicable.
Elgin Mining Inc.
Elgin Mining is a Canadian based company focused on the exploration and
development of the Lupin Gold Mine and Ulu gold project, both located
in Nunavut Territory, Northern Canada. In addition, Elgin's portfolio
includes an approximate 35% 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's Oro Cruz
(California) and La Bufa (Mexico) gold projects. Elgin Mining is also
selectively reviewing opportunities to add advanced stage development
projects to its portfolio.
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's future
plans and operations and are based on Elgin'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'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 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
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Image with caption: "Map 1 - Surface geophysics showing priority drill targets. (CNW Group/Elgin Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20110919_C4463_PHOTO_EN_3412.jpg
Image with caption: "Map 2 - Isometric view of all Lupin Zones - Red indicated historic mined and developed zones - Green generally indicated targets with some sparse historic drilling. (CNW Group/Elgin Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20110919_C4463_PHOTO_EN_3413.jpg
SOURCE Elgin Mining Inc.
For further information:
For further information, please visit Elgin Mining's web site at www.elginmining.com.
Elgin Mining Inc.
President & Chief Executive Officer
Tel: (604) 669-4777
Fax: (604) 682-3366