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Emgold Announces Successful Results from Its 2011 Core

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Emgold Announces Successful Results from Its 2011 Core Drilling Program Stewart Property, B.C.

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http://finance.yahoo.com/news/Emgold-Announces-Successful-ccn-845712136.html?x=0

Emgold Mining Corporation (TSX VENTURE: EMR)(OTCBB: EGMCF)(FRANKFURT: EML) ("Emgold" or the "Company") is pleased to announce that it has completed the 2011 field exploration program ("2011 Program") for its Stewart Property, located near Salmo, British Columbia. The focus of the 2011 Program was to further delineate a molybdenum exploration target, the Stewart Moly Zone, which has been indentified from historic drilling on the property and from subsequent drilling by Emgold.

The 2011 Program consisted of 19 drill holes totaling 2,526 metres. Both high and low grade molybdenum mineralization was encountered in drilling, as well as other metals including gold. Emgold has also identified the presence of rhenium, one of the rarest elements in the Earth's crust. Rhenium is used as a catalyst in the production of lead-free, high-octane gasoline. It is also used in alloys for jet engines and in tungsten and molybdenum based alloys. Both gold and rhenium have potential to be important byproduct metals within the deposit if found in sufficient quantities.

Highlights of the 2011 Program include:

-- drill hole 11SM06 returned 58.65 metres averaging 0.198% MoS2, with 0.58% MoS2 over 0.9 metres;

-- drill hole 11SM07 returned 4.92 metres averaging 0.233% MoS2,with 0.98% MoS2 over 0.6 metres;

-- drill hole 11SM12 returned 9.25 metres averaging 1.94% MoS2;

-- drill hole 11SM17 returned 1.03 metres of 0.98% MoS2; and

-- drill hole 11SM18 returned 1.87 metres of 0.56% MoS2.



In addition to molybdenum, gold was also encountered including,

-- drill hole 11SM01 returned 1.56 meters of 1.15 grams per tonne gold;

-- drill hole 11SM05 returned 2.50 meters of 1.17 grams per tonne gold and 1.5 meters of 3.93 gram per ton gold;

-- Drill hole 11SM08 returned 1.34 meters of 1.27 grams per tonne gold;

-- Drill hole 11SM10 returned 1.82 meters of 1.65 grams per tonne gold;

-- Drill hole 11SM12 returned 0.21 meters of 7.09 grams per tonne gold; and

-- Drill hole 11SM14 returned 1.30 meters of 1.65 grams per tonne gold.


Elevated values for rhenium returned from the 2011 core samples were, in most instances, closely related to areas of elevated molybdenum. Significant rhenium intersections include:

-- Hole 11SM06 where elevated Re values were returned from 14.02 metres depth down to 191.1 metres in the drill hole, with up to 1,653 ppb over 1.61 metres; and

-- Hole 11SM17 returned the highest Re value of 2,204 ppb over 1.03 metres within a string of elevated values from 163.17 to 186.2 metres depth down the hole.



Details of the drill holes, including mineralization intercepts, are set forth in Table 1 below and Table 2 attached to this news release.

Historic Exploration of the Stewart Moly Zone by Emgold and Others

The Stewart Property (the "Property"), located in the Nelson Mining District, is an attractive poly-metallic exploration property. It contains a variety of styles and types of mineralization, with targets identified in different areas within the Property. Targets include the Stewart Moly Zone, Arrow Tungsten Zone, Craigtown Gold Zone, and Free Silver Zone. The Property consists of 28 contiguous mineral tenures (claims) covering 5,789 hectares, all of which are 100% owned by Emgold.

Previous exploration of the Stewart Moly Zone has included geological mapping, soil and rock geochemistry, geophysics, trenching and drilling. The most extensive of those historic programs was conducted by Shell Canada Resources in 1980-1981 and Selco Inc., a division of BP Exploration Canada Limited, in 1983. The two companies were searching primarily for molybdenum and drilled 23 holes in the area (Sources: Turner, G.W., Assessment Report 7722, 1980; Turner, G.W., Assessment Report 10072, 1981; and Carpenter, T., Assessment Report 12,251, 1983 - reports available at B.C. Ministry of Mines ARIS website).

In 1980 Shell drilled three diamond drill holes and in 1981 another 16 diamond drill holes and defined a narrow, steep dipping podiform breccia zone based on four of those holes. Historic information available from the Shell program includes assessment and project reports, drill logs, assay laboratory reports and summaries of the sampling and assaying procedures.

Selco Inc. conducted extensive exploration on the property for metals, primarily molybdenum, between 1982 and 1984. In 1982 Selco did airborne EM and magnetics surveys and rock chip sampling, and in 1983 they continued with geological evaluations, further geochemical sampling, ground geophysics and drilling. Much of their work was on the Stewart Moly Zone.

Emgold acquired the Stewart Property in 2001 and continued evaluation of the Stewart Moly Zone in 2005 and 2007. Geochemical sampling, geophysics, trenching, and drilling programs were completed to check historic work and further assess the strong molybdenum and other mineralization in the area. The Company drilled eight holes in the area, two of which were twin holes adjacent to historic drilling. The results of the twin holes compared favorably to the original Shell drill holes (see Emgold's Nov. 28 and 29, 2005 and Nov. 28, 2007 press releases).

2011 Program Results for the Stewart Moly Zone by Emgold

The 2011 Program focused solely on the Stewart Moly Zone and drilling intersected granitic rocks along a contact with altered sediments. Molybdenite mineralization was encountered within brecciated granite and sediments with strong silicification and potassic alteration. The drill program was successful at further delineating the extents and content of the molybdenum mineralized body. The location, orientation, depth, and significant results from the 19 holes drilled in the 2011 Program are outlined in Tables 1 and 2.

All of the 2011 core drilling was conducted within an approximate 120 metre strike length along the mineralized structure of the Stewart Moly Zone. The drill hole locations and orientations are provided in the Table 1 below:

Table 1

2011 Drill Hole Location, Orientation and Depth
----------------------------------------------------------------------------


UTM UTM Elevation Depth Depth
Hole_id E N m Azimuth Dip ft m
----------------------------------------------------------------------------
11SM01 480750 5458840 1622 16 -45 726 221.28
----------------------------------------------------------------------------
11SM02 480750 5458840 1622 105 -45 206 62.79
----------------------------------------------------------------------------
11SM03 480750 5458840 1622 285 -45 206 62.79
----------------------------------------------------------------------------
11SM04 480773 5458918 1611 0 -90 508 154.84
----------------------------------------------------------------------------
11SM05 480760 5458910 1608 0 -90 367 111.86
----------------------------------------------------------------------------
11SM06 480766 5458900 1613 55 -64 756 230.43
----------------------------------------------------------------------------
11SM07 480762 5458900 1613 0 -90 497 151.49
----------------------------------------------------------------------------
11SM08 480755 5458884 1604 0 -90 297 90.53
----------------------------------------------------------------------------
11SM09 480726 5458886 1601 0 -90 287 87.48
----------------------------------------------------------------------------
11SM10 480720 5458900 1597 103 -70 384 117.04
----------------------------------------------------------------------------
11SM11 480720 5458900 1597 0 -90 407 124.05
----------------------------------------------------------------------------
11SM12 480721 5458910 1601 68 -64 456 138.99
----------------------------------------------------------------------------
11SM13 480756 5458932 1600 140 -70 467 145.39
----------------------------------------------------------------------------
11SM14 480760 5458951 1596 144 -65 384 117.96
----------------------------------------------------------------------------
11SM15 480795 5458970 1598 204 -65 367 111.86
----------------------------------------------------------------------------
11SM16 480800 5458968 1602 0 -90 337 102.72
----------------------------------------------------------------------------
11SM17 480794 5458951 1601 0 -90 646 196.9
----------------------------------------------------------------------------
11SM18 480800 5458936 1597 0 -90 668 203.61
----------------------------------------------------------------------------
11SM19 480815 5458950 1594 0 -90 307 93.57
--------------------------------------------------------------------------
--




Mineralized drill hole intercepts are summarized in Table 2, attached to this release. The results show intercepts of high and low grade molybdenum mineralization, as well as the presence of gold and rhenium.

Emgold's geologists utilized a strict quality assurance plan during the exploration programs that included communication with contractors about the needs for appropriate quality assurance, procurement of supplies and services capable of delivering the desired level of quality, sample handling to ensure integrity, inspection and testing to ensure that all work met or exceeded quality criteria, using methods that reduced the potential for errors, proper training of staff, and statistical analysis that ensured quality criteria were met. The Company completed drill core logging and processing at its facility in Salmo, BC. Samples were shipped to Acme Analytical Laboratories ("Acme"), an independent assay laboratory, in Vancouver for analysis. Acme Vancouver is ISO 9001 Certified. The exploration program was supervised by Perry Grunenberg, P.Geo. He is a Qualified Person as defined in National Instrument 43-101.

The assay laboratory catalogued all samples, maintained complete chain of custody throughout the analytical process. All sample preparation was done at the laboratory by their staff following standard procedures. As part of their quality assurance, the laboratory incorporated assaying standards, test blanks, and duplicate analyses of samples, and included those results in final reports. The final signed reports completed the chain of custody process. Thus far, no factors of any kind have been encountered in sampling programs conducted by Emgold on the Stewart Property that could materially affect the accuracy or reliability of Emgold's sample data. All assay results to date have now been tabulated and reviewed.

Analysis of the Results

The Stewart Moly Zone is currently interpreted to be a breccia pipe, as previously interpreted from geologic modeling using MineSight(R) software. It is a mineralized block with variable shape. The mineralization is closely associated with a breccia structure with apparent length of approximately 200 metres and variable widths up to 80 metres. The true width is not known. It is exposed at ground surface, and historic drilling indicates depths of 150 metres to date. Potential exists to expand the mineralized zone in several directions and at depth.

The current density of drilling along the mineralized breccia body will now allow for 3-dimensional modeling to further assess the resource potential, as well as delineating areas that may indicate further extents to the mineralization. Emgold is currently focused on completing drill hole compilation and modeling with the objective of ultimately defining an NI 43-101 compliant molybdenum resource in the Stewart Moly Zone. Other potential accessory metals such as gold and rhenium will be modeled as part of this work.

Nickel based super-alloys, for use in jet engines, contain up to 6 percent rhenium, making jet engine construction the largest use for the element, with chemical industry catalytic uses being the next most important. It is widely used as filaments for mass spectrographs. Rhenium is also used as an electrical contact material. Because of low availability relative to demand, rhenium is among the most expensive industrial metals. The average rhenium North American Spot Metal Price (99.9% Re) on January 1, 2012 was US$4,359.64 per kilogram (source www.metalprices.com).

Drilling to date indicates the potential to define a resource that may be recovered by open pit and underground mining extraction. Future exploration at Stewart may consider exploration for other possible breccia pipes in the area, as breccia pipes can often occur in clusters. Potential also exists for a mineralized porphyry system at depth. Exploration may also consider gold and silver targets that have been previously identified on the Property.

Emgold is in the process of completing an Assessment Report for the 2011 Program. Emgold will then develop a plan and budget for its 2012 exploration program at Stewart. In December 2011, Emgold raised CDN$767,750 of flow through funds for exploration on its B.C. properties, Stewart and Rozan, in 2012.

David Watkinson, President and CEO of Emgold, stated, "The Stewart Property represents a highly prospective exploration property with a variety of exciting targets. Emgold is currently focused on completing core drilling with the ultimate objective of defining an NI 43-101 compliant molybdenum resource in the Stewart Moly Zone to improve the value of the property. There are other gold and silver targets that also require additional exploration to assess their potential."

Information in this news release that is of a scientific or technical nature was prepared by or under the supervision of, and approved by, Perry Grunenberg, P.Geo, an independent consultant to the Company. He is a Qualified Person as defined in National Instrument 43-101 and supervised the 2011 Program.

For more information about Emgold, the Idaho-Maryland Gold Project and the Buckskin Rawhide, Stewart, and Rozan Properties, please visit www.emgold.com.

On behalf of the Board of Directors

David G. Watkinson, P.Eng., President & CEO

This release was prepared by the Company's management.

This news release includes certain statements that are "forward-looking statements" within the meaning of applicable securities laws including statements regarding the Company's planned work programs, expected results and potential mineralization and resources on the Stewart Property. Forward-looking statements are based on certain assumptions of the Company, including that the Company has adequate capital to fund its proposed exploration programs, that actual results of exploration and development activities are consistent with management's expectations, that assumptions relating to mineral resource estimates are accurate, the assumption that metal prices remain at current values, and that the Company is able to procure equipment and supplies for its planned work programs 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 exploration results that are different than those anticipated, inability to raise or otherwise security capital to fund planned programs, changes to metal prices, the price of the Company's shares, the costs of labour, equipment and other costs associated with exploration, availability of drilling equipment and operators, development and mining operations, exploitation and exploration successes, 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 actual results or developments may differ materially from those projected in the forward-looking statements. The Company does not intend to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law. 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 www.emgold.com.

Table 2
Results, 2011 Drill Program, Stewart Moly Zone
----------------------------------------------------------------------------

Hole From To Intercept MoS2 Mo Au Re
Number (m) (m) Width(i) (m) (ii) (%) (%) ppb ppb
----------------------------------------------------------------------------
11SM01 16.13 17.68 1.55 804
----------------------------------------------------------------------------
21.50 22.65 1.15 502
----------------------------------------------------------------------------
81.30 82.68 1.38 0.0810 0.049
----------------------------------------------------------------------------
129.84 131.40 1.56 1,148.5
----------------------------------------------------------------------------
201.40 202.40 1.00 620.2
----------------------------------------------------------------------------
11SM02 No Significant Values
----------------------------------------------------------------------------
11SM03 29.80 32.31 2.51 530.2
----------------------------------------------------------------------------
44.50 47.55 3.05 0.0284 0.017
----------------------------------------------------------------------------
11SM04 3.80 5.49 1.69 0.0984 0.059
----------------------------------------------------------------------------
5.49 6.96 1.47 0.0867 0.052
----------------------------------------------------------------------------
16.13 17.68 1.55 0.3069 0.184
----------------------------------------------------------------------------
19.35 20.57 1.22 0.1151 0.069
----------------------------------------------------------------------------
21.50 22.65 1.15 0.1451 0.087
----------------------------------------------------------------------------
29.00 32.02 3.02 0.0567 0.034
----------------------------------------------------------------------------
11SM05 1.51 4.10 2.59 0.0601 0.0360
----------------------------------------------------------------------------
8.23 12.62 4.39 0.1220 0.073
----------------------------------------------------------------------------
including 8.23 9.2 0.97 0.2302 0.138 816
----------------------------------------------------------------------------
and 9.20 11.27 2.07 0.0684 0.041
----------------------------------------------------------------------------
and 11.27 12.62 1.35 0.1268 0.076 505
----------------------------------------------------------------------------
23.47 24.85 1.38 0.1635 0.098
----------------------------------------------------------------------------
32.50 35.00 2.50 1,170.9
----------------------------------------------------------------------------
35.00 36.50 1.50 3,935.5
----------------------------------------------------------------------------
11SM06 14.02 15.50 1.48 0.3086 0.185 1,060
----------------------------------------------------------------------------
31.10 32.61 1.51 0.2419 0.145 780
----------------------------------------------------------------------------
47.25 105.90 58.65 0.1980 0.119
----------------------------------------------------------------------------
including 47.25 48.36 1.11 0.1435 0.086
----------------------------------------------------------------------------
and 48.36 50.60 2.24 0.1618 0.097 540
----------------------------------------------------------------------------
and 50.60 53.64 3.04 0.1985 0.119 623
----------------------------------------------------------------------------
and 54.97 56.69 1.72 0.1151 0.069
----------------------------------------------------------------------------
and 56.69 59.74 3.05 0.1635 0.098
----------------------------------------------------------------------------
and 59.74 61.00 1.26 0.1918 0.115 586
----------------------------------------------------------------------------
and 61.00 62.79 1.79 0.4404 0.264 1,031
----------------------------------------------------------------------------
and 62.79 65.84 3.05 0.1685 0.101
----------------------------------------------------------------------------
and 65.84 67.90 2.06 0.1234 0.074
----------------------------------------------------------------------------
and 67.90 69.60 1.70 0.2035 0.122 526
----------------------------------------------------------------------------
and 71.80 72.87 1.07 0.1668 0.100
----------------------------------------------------------------------------
and 72.87 74.98 2.11 0.2319 0.139 662
----------------------------------------------------------------------------
and 74.98 77.05 2.07 0.4971 0.298 1,160
----------------------------------------------------------------------------
and 77.05 78.50 1.45 0.0367 0.022
----------------------------------------------------------------------------
and 78.50 80.00 1.50 0.2652 0.159 781
----------------------------------------------------------------------------
and 80.00 81.50 1.50 0.2936 0.176 870
----------------------------------------------------------------------------
and 81.50 83.90 2.40 0.5038 0.302 1,240
----------------------------------------------------------------------------
and 83.90 85.07 1.17 0.2469 0.148 698
----------------------------------------------------------------------------
and 85.07 86.85 1.78 0.2969 0.178 879
----------------------------------------------------------------------------
and 86.85 88.00 1.15 0.0767 0.046
----------------------------------------------------------------------------
and 88.00 89.50 1.50 0.0951 0.057
----------------------------------------------------------------------------
and 89.50 91.50 2.00 0.1084 0.065
----------------------------------------------------------------------------
and 91.50 93.50 2.00 0.0601 0.036
----------------------------------------------------------------------------
and 93.50 95.50 2.00 0.0834 0.050
----------------------------------------------------------------------------
and 95.50 97.05 1.55 0.2902 0.174 868
----------------------------------------------------------------------------
and 97.05 98.80 1.75 0.0550 0.033
----------------------------------------------------------------------------
and 98.80 100.80 2.00 0.0934 0.056
----------------------------------------------------------------------------
and 100.80 101.90 1.10 0.1518 0.091
----------------------------------------------------------------------------
and 101.90 103.00 1.10 0.1418 0.085
----------------------------------------------------------------------------
and 103.00 103.90 0.90 0.5822 0.349 1,418
----------------------------------------------------------------------------
and 103.90 105.90 2.00 0.2285 0.137 791
----------------------------------------------------------------------------
187.76 189.49 1.73 537
----------------------------------------------------------------------------
189.49 191.10 1.61 1,653
----------------------------------------------------------------------------
11SM07 1.83 3.33 1.50 0.3153 0.189 1,009
----------------------------------------------------------------------------
3.33 5.18 1.85 0.1451 0.087
----------------------------------------------------------------------------
6.68 8.23 1.55 0.1368 0.082
----------------------------------------------------------------------------
17.67 20.42 4.92 0.2330 0.139
----------------------------------------------------------------------------
including 17.67 18.27 0.6 0.9792 0.587 1,751
----------------------------------------------------------------------------
and 18.27 19.4 1.13 0.1535 0.092
----------------------------------------------------------------------------
and 19.4 20.42 1.02 0.34200 0.205 735
----------------------------------------------------------------------------
46.65 48.65 2.00 0.2235 0.134 702
----------------------------------------------------------------------------
11SM08 34.32 35.66 1.34 1,269.8
----------------------------------------------------------------------------
57 58 1.00 0.1268 0.076
----------------------------------------------------------------------------
11SM09 No Significant Values
----------------------------------------------------------------------------
11SM10 12.8 14.62 1.82 1,649.7
----------------------------------------------------------------------------
50.9 52.17 1.27 0.1301 0.078
----------------------------------------------------------------------------
11SM11 66.14 69.19 3.05 350.2
----------------------------------------------------------------------------
81.38 84.43 3.05 380.9
----------------------------------------------------------------------------
84.43 87.48 3.05 226.7
----------------------------------------------------------------------------
11SM12 6.92 8.45 1.53 0.2552 0.153 605
----------------------------------------------------------------------------
8.45 10.97 2.52 0.1385 0.083
----------------------------------------------------------------------------
17.07 18.57 1.50 0.2352 0.141 609
----------------------------------------------------------------------------
20.12 21.62 1.50 0.1852 0.111
----------------------------------------------------------------------------
29.26 32.31 3.05 0.1401 0.084
----------------------------------------------------------------------------
39.9 41.45 1.55 0.1885 0.113
----------------------------------------------------------------------------
42.87 52.12 9.25 0.1940 0.116
----------------------------------------------------------------------------
including 42.87 44.5 1.63 0.3036 0.182 greater
than
1,000
----------------------------------------------------------------------------
and 44.5 46 1.50 0.1535 0.092
----------------------------------------------------------------------------
and 46 47.55 1.55 0.1701 0.102
----------------------------------------------------------------------------
and 47.55 50.6 3.05 0.2068 0.124 538
----------------------------------------------------------------------------
and 50.6 52.12 1.52 0.1151 0.069
----------------------------------------------------------------------------
132.76 132.97 0.21 7,094.9
----------------------------------------------------------------------------
11SM13 22.06 23.47 1.41 789
----------------------------------------------------------------------------
11SM14 43.3 44.5 1.20 0.4087 0.245 1,412
----------------------------------------------------------------------------
69.19 70.7 1.51 0.1785 0.107
----------------------------------------------------------------------------
70.7 72.24 1.54 0.3119 0.187 861
----------------------------------------------------------------------------
69.19 70.7 1.51 0.1785 0.107
----------------------------------------------------------------------------
76.3 77.6 1.30 1,646.7
----------------------------------------------------------------------------
114.5 115.95 1.45 0.1435 0.086
----------------------------------------------------------------------------
11SM15 65.44 66.74 1.30 0.1802 0.108 688
----------------------------------------------------------------------------
72.24 73.45 1.21 0.2636 0.158 723
----------------------------------------------------------------------------
92.57 93.57 1.00 393.4
----------------------------------------------------------------------------
97.8 100.1 2.30 0.1585 0.095
----------------------------------------------------------------------------
11SM16 No Significant Values
----------------------------------------------------------------------------
11SM17 154.6 155.87 1.27 0.1401 0.084
----------------------------------------------------------------------------
160.32 163.17 2.85 0.1701 0.102
----------------------------------------------------------------------------
163.17 164.2 1.03 0.9825 0.589 2,204
----------------------------------------------------------------------------
167 169.58 2.58 0.2252 0.135 558
----------------------------------------------------------------------------
169.58 171.00 1.42 0.1334 0.080
----------------------------------------------------------------------------
171.00 172.52 1.52 596
----------------------------------------------------------------------------
172.52 174.06 1.54 730
----------------------------------------------------------------------------
174.06 176.2 2.14 0.1568 0.094
----------------------------------------------------------------------------
177.2 178.61 1.41 0.4871 0.292 1,197
----------------------------------------------------------------------------
178.61 180.1 1.49 0.1351 0.081
----------------------------------------------------------------------------
184.71 186.2 1.49 0.2319 0.139 500
----------------------------------------------------------------------------
11SM18 29.4 31.27 1.87 0.5605 0.336 1,566
----------------------------------------------------------------------------
56.5 57.9 1.40 0.2402 0.144 644
----------------------------------------------------------------------------
75.59 77.04 1.45 0.2552 0.153 618
----------------------------------------------------------------------------
90.94 91.94 1.00 0.1418 0.085
----------------------------------------------------------------------------
11SM19 No Significant Values
----------------------------------------------------------------------------

(i) true width of intercept unknown due to variable nature of brecciated
host
(ii) conversion Mo to MoS2 multiply by 1.6681


U.S. 20-F Registration: 000-51411

Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Emgold Mining Corporation
David G. Watkinson, P.Eng.
President & CEO
604-687-4622 or Toll Free: 1-888-267-1400
info@emgold.com
http://www.emgold.com



SOURCE: Emgold Mining Corporation
mailto:info@emgold.com
http://www.emgold.com


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