Emgold Mining Corporation takes new direction
August 01 2007 - 8:30AM
PR Newswire (US)
TSX Venture Exchange: EMR OTC Bulletin Board: EGMCF U.S. 20-F
Registration: 000-51411 Frankfurt Stock Exchange: EML VANCOUVER,
Aug. 1 /PRNewswire-FirstCall/ -- 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 subsidiary companies. - 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 card). - 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 training. Permitting Update -----------------
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 IMM. 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 gold
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 dewatered. 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 http://www.sedar.com/ or the
Company's website at http://www.emgold.com/. CONTACT: Sargent
Berner, Tel: (604) 687-4622, Fax: (604) 687-4212, Email: ; or
Kenneth Yurichuk, Tel: (905) 271-5505, Email: DATASOURCE: Emgold
Mining Corporation CONTACT: Sargent Berner, Tel: (604) 687-4622,
Fax: (604) 687-4212, Email: ; or Kenneth Yurichuk, Tel: (905)
271-5505, Email:
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