Extended Agreement For The Idaho-Maryland Property
VANCOUVER - Emgold Mining Corporation reported that it has completed a new two year extension agreement (the "Extension") to the Lease and Option to Purchase Agreement (the "BET Agreement") with the BET Group. The BET Agreement covers the lease and purchase of approximately 2,750 acres of mineral rights and 93 acres of surface rights associated with Emgold's core gold asset, the Idaho-Maryland Project in Grass Valley, CA. The lease period of the BET Agreement will be extended from February 1, 2011 for an additional two years to February 1, 2013. Lease payments during the extension period will be US$30,000 per quarter.
David Watkinson, President and CEO of Emgold stated, "We would like to thank the BET Group for their continued support of the Company and the Idaho-Maryland Project. The extension of the lease period was critical to allow the Company sufficient time to complete the Environmental Impact Report and obtain the Conditional Mine Use Permit for the Project prior to having to commit to purchasing the Property." The Idaho-Maryland Mine was historically the second largest gold mine in California, producing 2.4 million ounces of gold at an average recovered grade of 0.43 ounce per ton. It is adjacent to the historic Empire Mine, Newmont Mining Corporation's first operating gold mine and historically California's largest gold mine, producing 5.8 million ounces of gold. Newmont retains the mineral rights to the Empire Mine. The Grass Valley Mining District produced over 17 million ounces of gold from 1850 to 1956. The Idaho-Maryland Mine and Empire Mine shut down in 1956 due to the fixed price of gold at US$35 per ounce and rising labor and supply costs after WWII. The Idaho-Maryland Project contains a NI 43-101 compliant measured and indicated resource of 472,000 ounces of gold and an inferred resource of 1,002,000 ounces of gold. The company's Suite 1400, 570 Granville Street, Vancouver, BC V6C 3P1, 604.687.4622, fax: 604.687.4212.