TSX Venture Exchange: EMR
OTC Bulletin Board: EGMCF
U.S. 20-F Registration: 000-51411
Frankfurt Stock Exchange: EML
VANCOUVER, Aug. 1 /CNW/ - Emgold Mining Corporation ("Emgold") (EMR -
TSX.V) announces a number of initiatives designed to reinforce its commitment
to the permitting, exploration and development of its Idaho-Maryland Project
in Grass Valley, California (the "IMM"), historically the second largest
underground gold mine in California and presently one of the largest gold
exploration targets in North America. The Company's goal is to complete the
Environmental Impact Review for the IMM and obtain the required Conditional
Use Permit by mid-2008.
The Company will also pursue the ongoing exploration of its three
prospective gold exploration projects near the community of Nelson in
southeastern British Columbia and the acquisition of other mineral properties
of merit. A total of CDN $850,000 has been committed for expenditure on the
British Columbia properties in 2007.
In connection with the spin-off of the Company's wholly-owned subsidiary
Golden Bear Ceramics Company ("Golden Bear"), Emgold has curtailed further
expenditures on the development of the Ceramext(TM) process, other than those
required to preserve the Company's investment. As well, Emgold has reduced its
overhead and administrative expenses by eliminating costs not considered
essential to its ongoing permitting and exploration activities.
Kenneth Yurichuk, the newly-appointed Co-Chairman of Emgold commented:
"With the restructuring described below, we have reaffirmed and revitalized
Emgold's focus on permitting the Idaho-Maryland mining operation. We also are
pleased to have the commitment of Bill Witte and his engineering group to
continue the financing and development of Golden Bear independently of Emgold.
We believe we are well-positioned to secure the additional financing Emgold
presently requires and to develop significant value for all our shareholders.
We remain very confident of the potential value in the Idaho-Maryland Project
and in the Company's future prospects."
Board and Management Restructuring
The Company is pleased to announce the appointment of Mr. Stephen J.
Wilkinson as an additional independent director, effective immediately. Mr.
Wilkinson is President and Chief Executive Officer of ValGold Resources Ltd.
and Chairman of NovaDX Ventures Corp., a publicly traded junior merchant
banking company specializing in raising capital and providing advisory
services to early-stage junior resource companies. Mr. Wilkinson was
President, Chief Executive Officer and Director of Northern Orion Explorations
Ltd. during its successful restructuring over the period from 1999 to 2002 and
from 1996 to 1999, he was the Vancouver based mining analyst for RBC Dominion
Securities Inc., responsible for small capitalization and gold and base metal
companies. Mr. Wilkinson holds an MBA from Clarkson University, Potsdam New
York, a M.Sc.(Geology) from Carleton University and B.Sc. (Geology) from the
University of Western Ontario.
The Company has accepted the resignation of William J. Witte, P.Eng., as
President and Chief Executive Officer of Emgold. Mr. Witte will continue to
serve, however, as a director of Emgold and President of the Company's wholly
owned subsidiary, Golden Bear, with responsibility for financing and the
further development of Golden Bear, independently of Emgold, to create value
for Emgold and its shareholders. John K. Burns has resigned as a director and
Chairman of Emgold. Ian Chang, P.Eng., Vice-President, Project Development and
David Sinitsin, P.Eng., have also resigned from Emgold. Once funding is
secured for Golden Bear, Messrs. Chang and Sinitsin plan to continue with
their respective roles in that company to develop and commercialize the
Ceramext(TM) process. Other than providing any funding necessary to maintain
its patents and intellectual property portfolio and to preserve its investment
in the proprietary Ceramext(TM) technology held by Golden Bear, Emgold ceased
all activities associated with the further development of the Ceramext(TM)
technology in early 2007, but will retain the right to employ this technology
in connection with the operation of the IMM.
The Board has appointed an Executive Committee comprised of Sargent
Berner and Kenneth Yurichuk to carry out the duties and assume the
responsibilities of the Chief Executive Officer and Chairman of the Company.
David Watkinson, P.Eng., has been appointed Chief Operating Officer of Emgold
and will also serve as President and Chief Executive Officer of the
Idaho-Maryland Mining Company, with primary responsibility for pursuing the
ongoing permitting process for the IMM.
Mr. Berner is a businessman who practiced corporate, securities, and
natural resources law as a partner in the Vancouver law firm of DuMoulin Black
from 1976 until 2004, after eight years as a full time faculty member of the
University of British Columbia Law School. Mr. Berner is also a director of a
number of other companies trading on the TSX Venture Exchange, the TSX and the
American Stock Exchange.
Mr. Yurichuk is a Chartered Accountant and senior partner in the public
accounting firm Bobot & Yurichuk LLP, Chartered Accountants, Toronto. Mr.
Yurichuk has been in public practice for over 30 years and has served as both
director and officer of private and publicly-traded corporations involved in a
wide range of businesses including mining, real estate development, investment
and manufacturing. In addition, Mr. Yurichuk is a director of Mavrix Resource
Fund Management Inc. and served as a director and officer of the General
Partners for several Contrarian Resource Fund Limited Partnerships and Mavrix
Fund Limited Partnerships. He is also a director of ValGold Resources Ltd.,
and Chief Financial Officer of NovaDX Venture Corp. Mr. Yurichuk holds a
Bachelor of Commerce degree as well as the CA designation.
Mr. Watkinson is a registered professional engineer with over 20 years of
professional experience in underground and open pit mine development,
including mine permitting, engineering, feasibility, construction, and
operations. In addition, he has extensive experience in project management,
having taken projects from grass roots start-up to successful operating
status. Mr. Watkinson has been responsible for management of large capital
projects and operations in Canada, the United States and the Philippines. He
has held progressively senior positions with Placer Dome Inc., Kinross Gold
Corporation, Thyssen Mining Construction and Vulcan Materials Company. Mr.
Watkinson holds a B.Sc. in Applied Science, Mining Engineering, from Queen's
University in Kingston, Ontario (1985).
Other key management personnel who will be retained in pursuing the
permitting process for the IMM are:
- Shannon Ross, CA - Chief Financial Officer of Emgold and its
- Robert Pease, P.Geo. - Chief Geologist. Mr. Pease is a Professional
Geologist in California with B.S. (1976) and M.S. degrees (1979) in
Geology from the University of Nevada, Reno Nevada. He has 30 years
of experience in mineral development and engineering geology in the
mining industry. Mr. Pease has an extensive background in Mother
Lode, Sierra Nevada, and Basin-Range geology. His experience includes
surface and underground geologic mapping, drilling and sampling,
resource and reserve modeling, and engineering geology.
- William Watters, P.E. - Chief Mining Engineer. Mr. Watters is a
registered Professional Engineer (Civil, CA; Mining, WY). He has a
B.S. in Mining Engineering from the University of Nevada-Reno, MacKay
School of Mines (1978). Mr. Watters has 30 years experience in mine
operations and engineering including several operating gold mines in
California. Mr. Watters is a Mine Rescue Team Trainer, has a
California Safety Representative License, and is a MSHA Trainer (blue
- Patricia Nelson, REA - Director of Environmental Permitting. Ms.
Nelson manages the permitting and environmental compliance programs
for the company. She has over 30 years of experience managing and
directing multidisciplinary environmental projects for government,
industry, and utility organizations that involved regulatory
compliance, natural resource development and hazardous waste
management. In addition, she has experience directing field work and
construction projects; developing and implementing public
participation programs; and conducting project-specific
environmental negotiations among government and industry
stakeholders. She has a Bachelor of Science from the University of
California at Berkeley, a Masters Degree in Business Administration
from the University of San Francisco, and is a Certified Mediator
from John F. Kennedy University. Ms. Nelson is also a Registered
Environmental Assessor (REA) in California and has extensive hazmat
Emgold has applied for and intends to obtain all necessary permits for
exploration, development, and re-opening of the Idaho-Maryland Mine. Emgold's
permitting strategy has been designed to eliminate the need to apply for
additional permits at a later date to commence production
From 2003 to March 31, 2007, Emgold has spent approximately US
$6.3 million directly on permitting, geological studies, digitizing the
database and resource modeling for IMM, and incurred additional expenditures
of approximately US $1.5 million on related drilling, land lease and property
tax payments. The Company has completed the first and longest phase of the
three phase permitting process through the preparation and submission of a
Master Environmental Assessment in support of its application to the City of
Grass Valley. On June 22, 2007, the City of Grass Valley accepted the
Company's revised permit application and has commenced work to complete the
next two phases in the process, with the objective of issuing a final Use
Permit by June 2008.
Upon receipt of the Use Permit, Emgold plans to dewater, rehabilitate,
and explore the historic mine workings with the objective of expanding the
existing Canadian National Instrument 43-101 compliant gold resource at the
Resource and Geology Update
Existing mineral resources consist of 216 resource blocks that were
defined in a NI 43-101 Technical Report completed in November 2004 and
subsequent geologic modeling by Emgold's geologists.
Current resources are:
- Measured and Indicated: 1.67 million tons @ 0.28 opt =
472,000 ounces gold
- Inferred: 2.57 million tons at 0.39 opt = 1,002,000 ounces
Emgold has elected to permit not only the dewatering and exploration of
the mine, but also the development of a 2,400-ton per day operation with
potential to produce over 250,000 ounces of gold per year. The Company has
assembled a large and valuable library of historical information about the
project. This information has been used to establish a NI 43-101 gold resource
as outlined above, and has indicated over 500 additional underground
exploration targets. Currently, work is underway to lay out the drill program
for underground exploration planned to commence once the mine is permitted and
The Equity Financing
As previously announced, Emgold intends to raise a minimum of CDN
$8 million in equity financing to be used primarily to complete the permitting
for the IMM. Emgold has also allocated CDN $850,000 to fund exploration
expenses associated with its British Columbia exploration projects in 2007.
The balance of the proceeds will be used to fund the costs of the offering,
outstanding payables, contingencies and severance payments associated with the
restructuring described above.
On behalf of the Board of Directors,
Sargent H. Berner and Kenneth R. Yurichuk
Executive Committee and Co-Chairmen
No regulatory authority has approved or disapproved the information
contained in this news release.
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements. Although
the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration successes, and
continued availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking statements.
For more information on the Company, Investors should review the Company's
filings that are available at www.sedar.com or the Company's website at
For further information:
For further information: Sargent Berner, Tel: (604) 687-4622, Fax: (604)
687-4212, Email: email@example.com; or Kenneth Yurichuk, Tel: (905) 271-5505,