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Drilling Intersects a 40-Metre Mineralized Zone at Mengold's Burchell Lake Property

Posted on: Wednesday, 30 August 2006, 12:00 CDT

Mengold Resources Inc. (TSX VENTURE: MNI) has encountered a 40.85m wide mineralized zone containing pyrite in recently completed drill hole - BU06-3 - on the Burchell Lake Property. The core from this zone, which has yet to be split and assayed, was intercepted at a drill-hole depth of 37.70m to 78.55m. In addition, at a depth of 142.55m, a 1.05m intersection near the bottom of the same hole encountered some massive sulphide mineralization containing pyrrhotite and chalcopyrite which is indicative of nickel and copper concentrations. The technical team is targeting VTEM anomalies that were identified in a recent helicopter-borne geophysical survey conducted by Geotech Ltd. Over thirteen conductive zones indicative of massive sulphide targets were identified in the survey. The 1,700-hectare Burchell Lake Property is located in the Shebandowan area, 110-km west of Thunder Bay, Ontario.

Drill Hole BU06-3 located in the west-southwest part of the claim group drill tested a strong VTEM anomaly which has never been previously investigated. The Lower Zone from 19.70m to 20.80m (1.10m wide) is characterized by brecciated basalts and chert, and contains from trace to 30% disseminated pyrite (average: 3% pyrite). A 40.85m wide (drill core length) mineralized zone from 37.70m to 78.55m called the South Zone contains sections with up to 60% pyrite (average: 5% to 6% pyrite) within a series of basalts, cherty tuffs, breccia and quartz veins. This section is also locally chloritized. Massive sulphides and stringer-sulphides have been encountered in a 1.05m section near the bottom of the hole referred to as the North Zone which also contains pyrrhotite and chalcopyrite indicating the presence of copper and possibly nickel. This section is sheared and silicified and contains 10% pyrrhotite, 3% pyrite, and 1% chalcopyrite. A narrow section within the same type of rock as the north zone from 155.00m to 155.35 contains 5% pyrrhotite, 1% pyrite, and subordinate chalcopyrite. The rock types encountered in this hole contain proximal facies which indicates that it may be located close to volcanogenic massive sulphide mineralization. If the assay results are positive then further work will be required in this area.

Drill Hole BU06-1 located in the northeast part of the property returned trace amounts of gold within a sequence of feldspar porphyry, intermediate to felsic tuffs locally sericitized, and graphitic argillite with disseminated to massive lenses of pyrite. These are the only assay results that have been returned to date. This mineralized unit from 104.60m to 129.30m (core length of 24.70m) is interbedded with intermediate to felsic tuffs mineralized with 1% - 60% pyrite (average: 20% pyrite) with minor amounts of pyrrhotite.

Drill Hole BU06-2 located in north-central part of the property has intersected intercalated crystal tuffs, intermediate and mafic lapilli tuffs with localized argillic-graphitic units, and is mineralized with pyrite over a core length of 24.45m at a depth of 137.95m to 152.35m. The section is also characterized by quartz-carbonate veining, breccia and slightly sericitized tuffaceous sections. Overall there is approximately 5% - 8% pyrite but sections containing massive pyrite up to 60% can be found locally.

Drill Hole BU06-4 located in the north-central part of the property was abandoned due to numerous boulders in an esker impeding further drilling. This hole was drilled prior to BU06-3.

A 26-km grid is being established in the west-central part of the Burchell Lake Property where historical drilling encountered disseminated sulphide (pyrite and chalcopyrite) mineralization within felsic tuffs and rhyolites. Additional grids are being planned on the Goldcreek Property. Once established, an Induced Polarization (IP) survey is planned to detect disseminated sulphide mineralization.

The last drill hole in the initial drill program on the Burchell Lake Property is currently underway. At both the Burchell and Goldcreek Properties, the technical team will concentrate its ongoing efforts on prospecting, mapping, mechanical stripping and channel sampling, and supervising the line-cutting team and geophysical crews. A beepmat survey is planned to help locate some of the best VTEM anomalies on the ground. Management wants to complete this additional fieldwork prior to conducting further diamond drilling.

The Qualified Person supervising the work being carried out on the Burchell Lake and Goldcreek Properties is Joel Scodnick,P.Geo., President & CEO of Mengold Resources Inc.

The company has a Quality Assurance - Quality Control program in place. Detailed drill logs, digital photographs of the drill core, and the insertion of standards and blanks in assay samples are all part of the QA - QC program. Selected samples are sent for analysis to Accurassay Laboratories in Thunder Bay, Ontario. Accurassay is an accredited laboratory. The core samples are sawn in half with one half being sent to the lab and the other half kept in safekeeping. All of the drill core assayed for gold use a 50g fire assay charge from a 500g split. With each batch of samples submitted to the lab, every tenth sample is checked for quality control. Mengold is also including a certified standard with each twenty-five samples.

Mengold Resources Inc. is engaged in mineral exploration for precious and base metals. The Company is exploring two properties in Quebec, the Mountain River Property near Sainte-Anne-du-Lac, and the Thetford Property in the Eastern Townships. Mengold recently acquired the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, and zinc, in the Shebandowan area of Ontario. Mengold has 18,483,536 common shares outstanding (23,568,986 shares fully diluted).

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

 Contacts: Mengold Resources Inc. - In Canada Joel Scodnick President and Chief Executive Officer (705) 522-4439 or (807) 629-7516 (705) 522-8694 (FAX) scodnick@iamwireless.net  Mengold Resources Inc. - In Canada Douglas G. Reeson C.F.O. and Director (416) 533-0323 (416) 533-2890 (FAX)  Mengold Resources Inc. - In Europe W. Ian L. Forrest Chairman and Director 011.41.22.809.9511 011.41.22.899.9501 (FAX) www.mengold.com

SOURCE: Mengold Resources Inc.

Source: MARKET WIRE

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