Evergold Corp. (“
Evergold”
or the “
Company”) (
TSX-V:EVER,
WKN:A2PTHZ) is pleased to report by far the
highest grades of gold, silver, zinc and lead ever achieved in
drilling at the GL1 Main target, located on the Company’s Golden
Lion property in the Toodoggone epithermal district, northern
British Columbia, Canada. Assay results for drill section 23-24-25
(Figure 1), encompassing the final 3 holes of the program,
definitively establish that the GL1 Main Zone carries high grades
of gold, silver and base metals within a broader envelope of
moderate grade mineralization, with intercepts commencing just
below surface and extending to at least 190 metres down-dip to the
northeast, the deepest drilled to date. The zone remains open for
further expansion and follow up will be a priority for the 2022
season. The Company is well financed and has working capital of
$3.1 million.
Drilling Highlights – GL1 Main
Zone
Hole GL21-025
- 40.3m of 2.0 g/t Au, 24 g/t Ag, 1.2% Zn, 0.5%
Pb, including
- 11.3m of 5.4 g/t Au, 62 g/t Ag, 3.2% Zn, 1.3%
Pb, including
- 2.8m of 10.4 g/t Au, 651 g/t Ag, 10.9% Zn, 3.7%
Pb, including
- 1.0m of 26.1 g/t Au, 619 g/t Ag, 10.0% Zn, 3.5%
Pb, including
- 0.6m of 31.7 g/t Au, 924 g/t Ag, 12.6% Zn, 3.7%
Pb, and
- 1.0m of 13.4 g/t Au, 26 g/t Ag, 11.3% Zn, 8.4%
Pb
Hole GL21-024
- 66.0m of 1.36 g/t Au, 11 g/t Ag, 0.3% Zn, 0.2%
Pb, including
- 3.3m of 11.30 g/t Au, 12 g/t Ag, 1.9% Zn, 2.3%
Pb, including
- 1.0m of 29.10 g/t Au, 19 g/t Ag, 2.7% Zn, 1.6%
Pb, including
- 0.5m of 44.70 g/t Au, 24 g/t Ag, 4.3% Zn, 2.8%
Pb
Hole GL21-023
- 1.2m of 10.9 g/t Au, 5.5
g/t Ag, 0.2% Zn, 1.4% Pb
“We were excited to see bands of base metal
massive sulphides in our drilling this year at Golden Lion”,
commented Kevin Keough, President & CEO. “At the time the
visuals suggested to us a potential increase in grade, which has
been borne out by these results. The grades achieved in this round
of drilling at GL1 Main are certainly the highest ever returned for
precious and base metals and the latter, at the grades we’re
seeing, have the potential to contribute in a meaningful way to
rock value. The results also point to considerable potential to
build high-grade ounces, and high rock value, both near-surface and
down dip, which historically was completely untested, as well as
along adjacent areas of the major fault associated with the zone.
Moving forward into 2022, we’ll aim to increase our drillhole
density to better understand controls on mineralization and expand
the high-grade zones, to advance the GL1 Main prospect as quickly
as possible.”
Discussion of Drill Results
The Company has carried out two programs of
drilling on the Golden Lion property. In 2020, 3,017 metres were
drilled in 16 holes, principally focused on the GL1 Main Zone. This
work delivered broad, shallow, low-grade gold-silver intercepts
(e.g. 88.62 metres of 0.71 g/t Au from 4.88 to
93.50 metres in hole GL20-009) very similar to results achieved by
mining major Newmont in 1984, which completed 2,475 metres of
drilling in 22 holes on the prospect. Importantly, Newmont’s drill
pads were widely spaced with only a single hole per pad, leaving
the depth potential of the GL1 Main Zone entirely untested.
With the goal of evaluating the potential for
higher grades within and below the broad envelope of near surface
mineralization, in July this year the Company returned to the
property and drilled 1,811 metres in 9 holes, results for all of
which are reported in this news release. Induced polarization (IP)
surveys carried out by the Company in 2020 and 2021 had identified
chargeability and resistivity anomalies which were tested during
this year’s program. Program results demonstrate an association of
the best mineralization, and highest metal grades, with IP
resistivity highs, and moderate chargeability. Silicification and
veining associated with the GL1 Main epithermal-style
mineralization is now traceable, with geochemical sampling and
induced polarization surveys, along some 1700 metres of strike.
During the 2021 program 8 of the 9 holes drilled
tested the GL1 Main Zone over a strike length of 175 metres, at
vertical depths ranging from 20 metres (uppermost high-grade
intercepts in hole GL21-024) to 175 metres below surface (lowermost
high-grade intercepts in hole GL21-025). In addition to
intersecting the highest grades to date, the drill program
successfully expanded the GL1 Main Zone to approximately 160 metres
down dip. The zone remains open to further expansion.
Refer to drill section Figure 1, and plan views
Figures 4 & 5. Holes GL21-023, 024 and 025 were drilled
from the same pad, stepped somewhat back from the previous
drilling. The first two holes were drilled on a southwest (220
degrees) azimuth at inclinations of 85 and 45 degrees respectively.
In follow-up to the encouraging visuals delivered by these initial
holes, the drill was turned around to drill the final hole of the
program, GL21-025, on a northeast azimuth (040 degrees), testing to
depth. All three of these holes cut strong hydrothermal alteration
in trachyandesitic rocks, encompassing discontinuous
quartz-sulphide veins, veinlets, fracture fillings and vein
breccias containing sphalerite and galena with subordinate pyrite
and rare chalcopyrite, and including local cm- to dcm-scale
semi-massive to massive sulphide sections. Strongest overall
results were returned from deepest hole GL21-025 and shallowest
hole GL21-024 with, however, encouraging broad intercepts, and
local high grade, in GL21-023.
Refer to drill section Figure 2 and plan views
Figures 4 & 5. Holes GL21-017 and GL21-018 were drilled to the
southwest (azimuth 200 degrees) at minus 45 and 75 degrees
respectively, to evaluate a deeper combined IP chargeability and
resistivity anomaly that suggested a potential system strengthening
to depth in that direction. At 356 metres in total length, GL21-017
was the longest hole of the program. No truly significant gold or
silver intercepts were returned from this hole, and lead and zinc
values were only marginally elevated above background. However, its
minus 75 degree undercut, hole GL21-018, intersected the GL1 Main
Zone with elevated values of lead and zinc, and low values of
silver and gold over broad widths, including individual gold highs
to 6.15 g/t and 6.47 g/t. Overall, results on this section indicate
system strengthening to depth, with a dip direction to the
northeast.
Refer to drill section Figure 3 and plan views
Figures 4 & 5. Holes GL21-020, 021 and 022 were all
drilled to the southwest (azimuth 210 degrees) at dips of,
respectively, minus 50, 83, and 67 degrees. In the shallowest hole,
GL21-020, generally only very low values of gold were returned, to
a single high of 2.08 g/t. Silver values were likewise generally
low, with the exception of individual sample highs to 148, 310, and
223 g/t Ag. Zinc and lead values were moderately elevated, to
individual sample highs of 1.1% Zn and a similar individual high
for Pb. Minus 83 undercut hole GL21-021 returned somewhat more
elevated values of gold to individual sample highs of 5.27 g/t Au,
a relatively shallow, broad intercept of 29.5 metres of 29 g/t
silver and a notable deeper, separate individual high value of 997
g/t silver over half a metre, and more strongly and more
consistently elevated values of lead and zinc to highs of 4.7% and
5.9% respectively. Hole GL21-022, which split the difference
between GL21-020 and GL21-021, had in general weaker values of
gold, silver, zinc and lead than those seen in its overcut hole
GL21-020 and notably less than those in steep hole GL21-021.
Overall, results on this section indicate a strengthening to
depth.
Hole GL21-019 was drilled at a reconnaissance
target 200 metres southwest of GL 1 Main, with no significant
results.
Geology and Geological
Setting
Refer to geological plan, Figure 5. The GL1
Main Zone lies along what has been interpreted as a major,
northwesterly striking, northeast-dipping thrust fault juxtaposing
the host Lower Jurassic Toodoggone formation volcanic rocks with
Upper Triassic and older (?) volcanic and sedimentary rocks that
have been intruded by Early to Middle Jurassic (?) granodiorite.
Gold and silver are closely associated with zinc and lead within
broad low sulphidation epithermal-style mineralized intervals of
discontinuous mm- to cm- and very locally, dcm-scale veins,
veinlets, fracture fillings, and local vein-breccias. The
extensional vein fillings predominantly contain dark grey to honey
coloured sphalerite, along with galena and subordinate mm-scale
fine-grained pyrite seams and disseminations. Gangue typically
consists of quartz, iron carbonate and lesser jasperoid.
Proportions of sulphide mineralization to gangue varies greatly,
and short intervals of semi-massive to massive sulphide
mineralization occur locally within the zones, where they consist
largely of dark grey to honey coloured sphalerite and galena. Dark
grey sphalerite commonly rims the honey coloured variety. Host
rocks to the mineralized zones are commonly “bleached” to an
orange-beige colour that consists largely of iron carbonate,
sericite and silica.
The immediate host rocks to the mineralized
zones at GL1 Main are part of a gently northeast dipping sequence
of high-K intermediate composition volcanic rocks of the Lower
Jurassic Toodoggone formation, chiefly trachyandesite flows and
tuff, which are age-equivalent to Hazelton Group rocks elsewhere in
the region, such as at Benchmark Metals’ nearby Lawyers property
(the former Cheni mine) and farther afield, to much of the Hazelton
Group in the Golden Triangle of northwest B.C. Of significance on
the property is the fault or fault system that juxtaposes the rocks
of the Toodoggone formation with the older rocks to the east and
northeast. While the fault has long been interpreted as a thrust
fault, the extensional style of the mineralization at GL1 Main
suggests that the mineralizing event may be related to extension
associated with the later stages of Toodoggone formation volcanism,
as is interpreted for mineralization elsewhere in the region. Given
that, it is possible that the mineralization at GL1 Main may have
formed within a fault with original normal sense of displacement,
most likely down-to-the-west, that was subsequently “inverted”
through reactivation as a thrust or reverse fault. This could well
have occurred in mid-Cretaceous time, during development of the
nearby Skeena fold belt, a contractional belt well displayed to the
immediate west of the Toodoggone region in the folded and faulted
Middle Jurassic to Late Cretaceous sedimentary rocks of the Bowser
Lake and Sustut groups.
Exploration Potential at GL1
Main
The results of the Company’s 2020 and 2021
drilling highlight the strong potential at the GL1 Main zone for
further exploration drilling, and for high-grade gold-silver
mineralization. Beyond the obvious down-dip potential, another
clear focus should be to test along trend to the north and
northwest of drill holes GL21-023, 024 and 025, east of drill holes
GL21-020, 021 and 022. Encouragement for this approach is evident
in the anomalous soil geochemistry in that direction, which has in
part been masked by downslope dispersion of talus and scree
originating from generally poorly mineralized granodiorite upslope,
as well as from the apparently increasing Au:Ag ratio evident in
the soil geochemistry. There is also some evidence for the system
continuing in that direction from strong values of gold and copper
in soil and rock geochemical samples (including highs to 14.95 gt/
Au from soils) collected from GL1 North Ridge and areas immediately
adjacent. GL1 North Ridge was tested with a single drill hole,
GL20-004, in the previous season, and while little encouragement
was evident in that drill hole, the trend clearly merits further
work. Exploration should also take place to the south-southeast
where extensions to the GL1 Main trend were intersected in several
of Newmont’s 1984 drill holes. Together, all of these drilling
results are indicative of a broad and lengthy mineralizing system
that is well endowed with both precious and base metals, and
remains in the early days of testing and understanding.
Table 1 – GL1 Main Zone Drilling - Assay
Composites
Hole & Pad ID |
|
From (m) |
To (m) |
Width (m) |
Au (g/t) |
Ag (g/t) |
Pb (%) |
Zn (%) |
|
|
|
|
|
|
|
|
|
PAD A |
|
|
GL21-017 |
|
64.00 |
74.50 |
10.50 |
1.15 |
1.0 |
0.3 |
0.7 |
GL21-018 |
|
34.32 |
135.50 |
101.18 |
0.44 |
2.5 |
0.1 |
0.2 |
|
Including |
66.00 |
100.25 |
34.25 |
0.89 |
2.1 |
0.2 |
0.3 |
|
Including |
74.55 |
75.13 |
0.58 |
6.15 |
4.3 |
2.2 |
1.0 |
|
And |
97.00 |
100.25 |
3.25 |
2.37 |
8.6 |
0.4 |
0.6 |
|
|
|
|
|
|
|
|
|
PAD B |
|
|
|
|
|
|
|
|
GL21-019 |
Off trend - No significant intercepts |
|
|
|
|
|
|
|
|
|
|
|
PAD C |
|
|
|
|
|
|
|
|
GL21-020 |
|
17.84 |
18.21 |
0.37 |
0.30 |
148.0 |
0.2 |
0.8 |
|
|
21.92 |
22.22 |
0.30 |
0.08 |
310.0 |
0.3 |
0.8 |
|
|
30.00 |
30.50 |
0.50 |
2.08 |
2.2 |
0.4 |
0.7 |
|
|
80.00 |
81.50 |
1.50 |
- |
223.0 |
- |
- |
|
|
84.66 |
85.34 |
0.68 |
0.38 |
21.5 |
1.1 |
1.1 |
GL21-021 |
|
11.78 |
18.50 |
6.72 |
- |
37.2 |
- |
- |
|
|
43.50 |
57.00 |
13.50 |
0.82 |
6.1 |
0.4 |
0.6 |
|
Including |
44.39 |
45.26 |
0.87 |
1.68 |
8.0 |
3.5 |
5.2 |
|
And |
55.50 |
56.00 |
0.50 |
5.27 |
2.6 |
0.3 |
0.5 |
|
|
64.00 |
93.50 |
29.50 |
- |
29.2 |
- |
- |
|
|
114.12 |
114.63 |
0.51 |
1.17 |
997.0 |
0.7 |
- |
GL21-022 |
|
13.74 |
20.00 |
6.26 |
- |
56.8 |
- |
- |
|
Including |
13.74 |
14.57 |
0.83 |
- |
161.0 |
0.2 |
0.3 |
|
|
|
|
|
|
|
|
|
PAD D |
|
|
|
|
|
|
|
|
GL21-023 |
|
82.12 |
123.00 |
40.88 |
0.98 |
1.8 |
0.4 |
0.5 |
|
Including |
108.00 |
111.50 |
3.50 |
0.90 |
4.3 |
1.9 |
3.2 |
|
And |
98.50 |
99.66 |
1.16 |
10.91 |
5.5 |
1.4 |
0.2 |
|
|
147.00 |
148.00 |
1.00 |
- |
87.9 |
- |
- |
|
|
189.45 |
191.00 |
1.55 |
- |
79.0 |
- |
- |
GL21-024 |
|
43.00 |
109.00 |
66.00 |
1.36 |
11.0 |
0.2 |
0.3 |
|
Including |
45.10 |
48.35 |
3.25 |
11.30 |
12.0 |
2.3 |
1.9 |
|
Including |
45.10 |
46.60 |
1.50 |
21.46 |
13.6 |
1.2 |
2.0 |
|
Including |
45.60 |
46.60 |
1.00 |
29.10 |
19.0 |
1.6 |
2.7 |
|
Including |
46.10 |
46.60 |
0.50 |
44.70 |
24.1 |
2.8 |
4.3 |
|
|
71.00 |
72.50 |
1.50 |
3.43 |
85.0 |
0.3 |
1.3 |
|
Including |
71.50 |
72.00 |
0.50 |
3.71 |
214.0 |
0.3 |
1.2 |
GL21-025 |
|
119.69 |
160.00 |
40.31 |
1.99 |
23.7 |
0.5 |
1.2 |
|
Including |
119.69 |
122.50 |
2.81 |
10.35 |
651.3 |
3.7 |
10.9 |
|
And |
119.69 |
131.00 |
11.31 |
5.40 |
62.0 |
1.3 |
3.2 |
|
Including |
125.44 |
131.00 |
5.56 |
4.55 |
7.6 |
1.9 |
4.3 |
|
Including |
125.44 |
126.00 |
0.56 |
13.45 |
26.1 |
8.4 |
11.3 |
|
And |
120.40 |
121.30 |
1.03 |
26.11 |
619.0 |
3.5 |
10.0 |
|
Including |
120.40 |
121.00 |
0.60 |
31.70 |
924.0 |
3.7 |
12.6 |
|
|
190.05 |
195.78 |
5.73 |
1.95 |
66.0 |
1.9 |
2.3 |
|
Including |
193.30 |
194.50 |
1.20 |
4.49 |
125.0 |
6.7 |
8.3 |
|
|
210.87 |
211.52 |
0.65 |
0.81 |
73.2 |
0.6 |
0.9 |
Notes: Widths reported above are drilled core
lengths. True widths of the individual drill intercepts for those
holes drilled to a southwest azimuth vary between an estimated 90
to 100% of drilled lengths for minus 45 to 50 degree holes,
approximately 70-80% for minus 65-75 degree holes, and 60% for
minus 80-85 degree holes. True widths for hole GL21-025, which
drilled at minus 80 degrees to a northeast azimuth, are estimated
to approximate 50% of drilled lengths.
Table 2 - Drill Hole Azimuths and Dips
Hole & Pad ID |
Azimuth (degrees) |
Dip (degrees) |
PAD A |
|
|
GL21-017 |
200 |
-45 |
GL21-018 |
200 |
-75 |
PAD B |
|
|
GL21-019 |
180 |
-50 |
PAD C |
|
|
GL21-020 |
210 |
-50 |
GL21-021 |
210 |
-83 |
GL21-022 |
210 |
-67 |
PAD D |
|
|
GL21-023 |
220 |
-85 |
GL21-024 |
220 |
-45 |
GL21-025 |
040 |
-80 |
About Evergold
Evergold Corp. has been assembled by a team with
a record of recent success in B.C., namely the establishment of GT
Gold Corp. in 2016 and the discovery in 2017-18 of the Saddle
epithermal and porphyry copper-gold deposits near Iskut B.C., which
hold more than 20 million ounces of gold equivalent in all
categories. GT Gold was recently acquired by Newmont Corporation.
Evergold combines four 100%-owned properties in prime B.C.
geological real estate from well-known geologist C.J. (Charlie)
Greig, with the recently optioned Rockland property in Nevada,
seasoned management, and a qualified board. The Company’s flagship
assets consist of the Golden Lion property, the Snoball property,
and the past-producing high-grade Rockland gold-silver property in
Nevada. All three properties host zones of precious metals that the
Company believes offer considerable upside.
Qualified Person
Charles J. Greig, P.Geo., a Qualified Person as
defined by NI 43-101, has reviewed and approved the technical
information in this news release.
QA/QC
The company has a robust quality
assurance/quality control program that includes the insertion of
blanks, standards and duplicates. Samples of drill core are cut by
a diamond-blade rock saw, with half of the cut core placed in
individually sealed polyurethane bags and half placed back in the
original core box for permanent storage. With the rare exception,
sample lengths generally vary from a minimum 0.5-metre interval to
a maximum 2.0-metre interval, with an average of 0.5 to 1.0 metres
in heavily mineralized sections of core, where precise
identification of the mineralogical source of metal values is
important. Drill core samples are shipped by truck in sealed woven
plastic bags to the ALS sample preparation facility in Terrace, BC,
and thereafter taken by ALS to their North Vancouver analytical
laboratory. ALS operates according to the guidelines set out in
International Organization for Standardization/International
Electrotechnical Commission Guide 25. Gold is determined by fire
assay fusion of a 50-gram subsample with atomic absorption
spectroscopy (AAS). Samples that return values greater than 10
parts per million gold from fire assay and AAS (atomic absorption
spectroscopy) are determined by using fire assay and a gravimetric
finish. Various metals including silver, gold, copper, lead and
zinc are analyzed by inductively coupled plasma (ICP) atomic
emission spectroscopy, following multi-acid digestion. The elements
copper, lead and zinc are determined by ore-grade assay for samples
that return values greater than 10,000 ppm by ICP (inductively
coupled plasma) analysis. Silver is determined by ore-grade assay
for samples that return greater than 100 ppm.
For additional information, please contact:
Kevin M. KeoughPresident and CEOTel: (613)
622-1916www.evergoldcorp.cakevin.keough@evergoldcorp.ca
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain
“forward-looking statements” which are not comprised of historical
facts. Forward-looking statements include estimates and statements
that describe the Company’s future plans, objectives or goals,
including words to the effect that the Company or management
expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “could”, “would”,
“will”, or “plan”. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although
these statements are based on information currently available to
the Company, the Company provides no assurance that actual results
will meet management’s expectations. Risks, uncertainties and other
factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information. Forward looking information in this
news release includes, but is not limited to, the Company’s
objectives, goals or future plans, statements, exploration results,
potential mineralization, the estimation of mineral resources,
exploration and mine development plans, timing of the commencement
of operations and estimates of market conditions. Factors that
could cause actual results to differ materially from such
forward-looking information include, but are not limited to failure
to identify mineral resources, failure to convert estimated mineral
resources to reserves, the inability to complete a feasibility
study which recommends a production decision, the preliminary
nature of metallurgical test results, delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals, political risks, inability to fulfill the duty
to accommodate First Nations and other indigenous peoples, an
inability to predict and counteract the effects of COVID-19 on the
business of the Company, including but not limited to the effects
of COVID-19 on the price of commodities, capital market conditions,
restrictions on labour and international travel and supply chains,
uncertainties relating to the availability and costs of financing
needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital and operating costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry, and those risks set
out in the Company’s public documents filed on SEDAR. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
Photos accompanying this announcement are available at:
Figure
1: https://www.globenewswire.com/NewsRoom/AttachmentNg/30efc9b7-1846-4ff5-b6d5-d4d595e5ef9f
Figure
2: https://www.globenewswire.com/NewsRoom/AttachmentNg/b949062f-74ae-4411-9b4c-a4be3ce0b59e
Figure
3: https://www.globenewswire.com/NewsRoom/AttachmentNg/c5983846-18cf-4ff6-b9ea-b921c63e8694
Figure
4: https://www.globenewswire.com/NewsRoom/AttachmentNg/1843db47-49f6-4226-af84-db35c28e2990
Figure
5: https://www.globenewswire.com/NewsRoom/AttachmentNg/a5b74e81-1920-4885-9bb8-d635c97b290f
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