TSX-V:ELY
VANCOUVER, Aug. 8, 2016 /CNW/ - Ely Gold &
Minerals Inc. ("Ely Gold" or the "Company") (TSX-V: ELY,
OTC: ELYGF) is pleased to announce that it has received assays
from 48 rock samples at its 100%-owned Gold Canyon property located
in Eureka County, Nevada (the
"Property"). The Property is comprised of 26 unpatented lode claims
that lie within the claims held by McEwen Mining Inc. which make up
their Gold Bar development. The Property is held under the
Company's wholly owned subsidiary, Nevada Select Royalty, Inc.
Gold Canyon was one of five pits mined by Atlas Corporation
("Atlas") from 1987-1994 when the Gold Bar Mine was closed due to
low gold prices. According to production records, 41,000 ounces
were recovered. Lower grade material was stockpiled and is
currently located in front of the pit.
The sampling program was designed to test mineralization in the
Gold Canyon pit, to sample the high grade feeder structure at the
northwest end of the pit, to test for cyanide soluble gold ("CN")
and to identify additional targets on the Property. Three of the
rock chip grab samples assayed (Gcj-41 through Gcj-43) were
collected at the pit wall from the high angle feeder structure at
the northeast end of the pit as it trends to the NE out of the pit.
The three samples ran .37 gpt, 1.56 gpt and 9.15 gpt Au and were
completely oxidized. This steeply dipping feeder, strikes toward
historic drill hole 100-45 located just northwest of the pit wall
(60 feet @ 3.48 gpt Au).
Of the 48 samples assayed, 40 were drill cuttings collected from
existing unloaded blast holes on two benches near the bottom of the
Gold Canyon pit, (Gcj-1 through Gcj-40). All 40 samples were
mineralized. Using a .15 gpt cutoff, 33 of the 40 samples ran an
average grade of .42 gpt Au. It also appears that the majority of
the samples had no adverse metallurgical problems indicated by the
CN soluble test assays. Most of the samples showed a CN soluble
rate of over 70% of the fire assay gold value, with many samples
showing over 90%. Additional metallurgical testing will be
necessary but barring silica encapsulation or clay problems, it is
expected that the rock may be amenable to heap leach. The three
samples (Gcj-15, 16, and 17) that did show poor CN recovery rates
were samples that were field identified as clearly carbonaceous.
This could potentially allow for a visual cut to be made for grade
control purposes. Based on these results, Ely Gold intends to expand its sampling program
to include all blast holes, the material stockpile, and a soil grid
of the Northwest Gold Ridge and South French Trail prospects
identified by Atlas.
Trey Wasser, President and CEO of
Ely Gold stated, "We are very
excited about these assay results. It supports our
belief that the Gold Canyon property has leachable
mineralized material remaining in the pit. The high grade
feeder is oxidized and may represent significant additional
mineralized material which could expand
the pit."
Quality Control
All samples were collected in the
field by a Certified Professional Geologist and remained in the
geologist's possession until delivered to the Assay lab. The lab
used was Bureau Veritas, Inspectorate America Corp., in
Sparks, NV. Samples were run
by a 30g fire assay with an AAS finish and a Hot CN Leach 30g/60mL,
AAS using all their standard internal lab QA/QC methods and
procedures. A complete list of assay results, target maps,
historical reports and pictures are available on the Company's
website.
Qualified Person
Scientific and technical information
contained in this press release has been reviewed and approved by
Stephen Kenwood, P. Geo and is a
Director of Ely Gold & Minerals
and is a "qualified person" as defined by National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101").
About Ely
Gold
Ely Gold is
focused on developing recurring cash flow streams through the
acquisition, consolidation, enhancement, and resale of highly
prospective, un-encumbered North American precious metals
properties. Ely's property development efforts maximize each
property's potential for acquisition, while reserving significant
royalty interests. Additional information about Ely Gold is available at the Company's website,
at www.elygoldinc.com
On Behalf of the Board of Directors
Trey Wasser, President &
CEO,
Forward-Looking Statements
This news release
contains statements concerning Ely
Gold and Mineral's acquisition, development, and
marketing of North American precious metal resource properties and
the Company's intent to sell or option portfolio properties, while
reserving any royalties. Such forward-looking statements or
information are based on a number of assumptions, which may prove
to be incorrect.
Although Ely Gold and
Minerals' believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
the Company can give no assurance that such expectations will prove
to be correct. Forward-looking statements or information are based
on current expectations, estimates and projections that involve a
number of risks and uncertainties which could cause actual results
to differ materially from those anticipated by the Company and
described in the forward-looking statements or information. These
risks and uncertainties include, but are not limited to, risks
associated with geological, geometrical and geophysical
interpretation and analysis, the ability of the Company to obtain
financing, equipment, supplies and qualified personnel necessary to
carry on exploration, exploitation or acquisition of properties and
the general risks and uncertainties involved in mineral exploration
and analysis.
The forward-looking statements or information contained in
this news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Ely Gold & Minerals
Inc.