VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 05/16/13 — Elgin Mining Inc. (TSX: ELG)(TSX: ELG.WT) („Elgin Mining“ or the „Company“) 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 resource and also a follow-up to the exploration work reported during 2012, which identified a new gold vein system („Lake Zone“) located at the same level and adjacent to active mining some 200 to 400 metres below surface.
This most recent drilling was planned to test the up-dip and down-dip extensions of the Lake Zone vein system and the down-dip extensions of the 210 and 620 vein systems, located to the southeast (see attached map). The 210 and 610 vein systems are both actively being mined and are developed on several levels.
The results were very successful for all vein systems drilled. Highlights include (see Table 1 and Map 1):
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 up and down-dip and the underground resource continues to expand. We also recently received the mining permit for the Lake Zone and have advanced our development drifts out to this zone to commence mining of these veins. This development will also allow drilling further out along strike to test for more new veins.“
Qualified Person
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 laboratory in Pitea, Sweden and 500 grams 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, and on advancing the Lupin gold mine, located in Nunavut, Canada, to a production decision. In addition, Elgin Mining-s portfolio includes the Ulu gold project located approximately 155 kilometers north of the Lupin gold mine in Nunavut, Canada, a 29.5% interest in Auracle Resources Ltd., which is exploring the Mexican Hat property in Arizona, 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 an option 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 web site at .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains „forward-looking information“ within the meaning of Canadian securities legislation and „forward-looking statements“ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company-s strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as „plan“, „expect“, „budget“, „target“, „project“, „intend“, „believe“, „anticipate“, „estimate“ and other similar words, or statements that certain events or conditions „may“ or „will“ occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
These factors include risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted, changes in development or mining plans due to changes in logistical, technical or other factors, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices and currency exchange rates, possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company-s corporate resources, changes in project parameters as plans continue to be refined, changes in project development and production time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, successful completion of proposed acquisitions, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes as well as those risk factors discussed or referred to in the Company-s Annual Information Form dated March 22, 2013, a copy of which is filed on SEDAR at . Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
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. The Company undertakes no obligation to update forward-looking statements if circumstances or management-s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the exploration and development plans and objectives and may not be appropriate for other purposes.
To view Map 1 accompanying this press release, please visit the following link:
Contacts: Elgin Mining Inc. Patrick Downey President and Chief Executive Officer (604) 682-3366 (604) 682-3363 (FAX)
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