News Release 06-18
Endurance Gold Corporation (EDG - TSX.V) announces that it has entered into an option agreement to acquire a 100% interest in the Virginia Silver Property, located in the Smithers area of northwestern British Columbia, and 10 kilometres northeast of the Company's BQ property.
The Virginia Silver property covers a narrow mineralized vein/shear zone hosted in Lower Cretaceous Skeena Group sediments, that was initially discovered in 1966, and aggressively worked by Silver Standard Mines during the period 1968-1969. That work included driving two exploration adits totaling 152 metres, and 22 short diamond drill holes. Based on detailed underground channel sampling, and on the limited diamond drilling, Silver Standard's mining engineer at the time estimated a resource of 30,000 tons grading 25 ounces per ton silver. This resource estimate is not National Instrument 43-101 compliant, but to the best of Endurance's knowledge, is relevant and reliable.
The mineralization is contained in a shear like vein that trends approximately 020 to 040 degrees, and dips approximately 15 degrees to the east. Previous work has defined the vein over a strike length of 150 metres. The vein appears to be cut-off to the north by a paleocreek channel/fault, and down-dip to the east by a pre-mineral fault, although only very limited exploration has attempted to trace the vein in either of those directions. Based on diamond drilling, the vein/shear remains open to the southwest.
The vein consists of partially replaced wallrock and variable amounts of quartz, ankerite and sulphide minerals in bands, blebs, and disseminated grains. Sulphides, in decreasing abundance, are sphalerite, galena, pyrite, tetrahedrite, arsenopyrite, owyheeite and pyrargyrite. Owyheeite, a lead-antimony-silver sulphide, is the primary silver ore mineral. The vein varies locally in character, from a small series of wispy veinlets that horsetail into bedding, to a discrete mass 1.2 metres wide or greater, with minor disseminated mineralization extending into wallrock. Composite channel sample results collected by Silver Standard Mines in 1968-69 include;
----------------------------------------------------------------------- Location Length Average Width Silver Grade ----------------------------------------------------------------------- North Surface Exposure 95 Feet (29.0 M) 5.7 Feet (1.74 M) 21.5 opt (668.7 gpt) ----------------------------------------------------------------------- North Adit 30 Feet ( 9.2 M) 3.4 Feet (1.04 M) 13.3 opt (413.6 gpt) ----------------------------------------------------------------------- North Adit 60 Feet (18.3 M) 5.3 Feet (1.61 M) 13.7 opt (426.1 gpt) ----------------------------------------------------------------------- North Adit 100 Feet (30.5 M) 3.7 Feet (1.11 M) 22.7 opt (706.0 gpt) ----------------------------------------------------------------------- North Bedded Zone 35 Feet (10.7 M) 3.0 Feet (0.92 M) 35.6 opt (1,107.2 gpt) ----------------------------------------------------------------------- North Bedded Zone 35 Feet (10.7 M) 3.0 Feet (0.92 M) 15.0 opt (466.5 gpt) ----------------------------------------------------------------------- South Surface Exposure 90 Feet (27.4 M) 7.2 Feet (2.20 M) 20.5 opt (637.6 gpt) ----------------------------------------------------------------------- South Surface Exposure 35 Feet (10.7 M) 4.2 Feet (1.28 M) 22.0 opt (684.2 gpt) -----------------------------------------------------------------------
The property has largely lain idle since 1969, with the exception of a program of hand sorted high grade bulk sampling in 1976, when a 274 ton shipment of ore returned an average grade of 0.047 opt Au, 81.9 opt Ag, 4% Pb and 3% Zn. In the early 1980's, a limited and undocumented amount of underground development took place prior to the property reverting to the present owner.
Endurance will immediately commence a program of line-cutting, and property wide mapping to re-locate old trenches, drill holes, and adit collars. The company is also compiling and digitizing all pertinent historic data, and placing that information in to "real space" to assist in exploration planning. Pending receipt of all permits, the company is considering a limited diamond drilling program prior to onset of winter, to confirm the presence of ore to the southwest of previous development.
Under the terms of the option agreement, Endurance can acquire a 100% interest in the small, 3 claim, 75 hectare property, by issuing 100,000 warrants of Endurance Gold Corporation, exercisable at a price of $0.20 for a period of two years from the date of TSX Venture acceptance of this transaction. On the third anniversary of TSX Venture acceptance, Endurance must issue either of $250,000 in cash, or 250,000 common shares of Endurance, to vest its 100% earn-in. At that point, the underlying vendor will retain no royalty interest.
Endurance has acquired, by staking, a 100% interest in 7 claims totaling 2,967 hectares surrounding the Virginia Silver Property, which it will evaluate as part of the on-going exploration effort.
Duncan McIvor, P. Geo, is the Qualified Person under National Instrument 43-101, and is responsible for the content of this news release.
ENDURANCE GOLD CORPORATION
Duncan McIvor
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT EITHER
Duncan McIvor (604) 682-2707, or Jeffrey Wilson, Corporate Communications (604) 868-0225, or visit our website at www.endurancegold.com.
The TSX Venture Exchange or any other regulatory authority has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this news release.