Evergold Corp. (“
Evergold” or the
“
Company”) (
TSX-V: EVER, OTC:
EVGUF). The Company announces that notwithstanding a
strong cash position of approximately $1.9 million, cost concerns
and exceptionally poor market conditions necessitate postponing the
planned drill program at the remote but promising Golden Lion
project in north-central B.C. Construction this summer of a bridge
and extension of the road north across the Toodoggone River to
Thesis Gold’s adjacent ‘Ranch’ project will provide drive-on access
to within kilometres of the GL1 Main Zone target, reducing the
requirement for helicopters and decreasing costs for the next phase
of drilling at Golden Lion, which will now take place when
conditions allow. Tempting new targets are emerging from recent
fieldwork at both the Company’s Holy Cross, B.C. and Rockland,
Nevada properties, and first-ever drilling at the drive-on,
year-round accessible Holy Cross Property, is being considered
for September this year. A drill permit for Rockland is
anticipated in the August-September timeframe.
Market Conditions:
Market conditions in the junior mining and
exploration space have deteriorated as 2022 has progressed, and are
presently as challenging as they have been in a generation. Market
trading volumes are exceptionally low, investors have an overriding
“risk off” attitude, are not responding to positive news, and
available capital is limited. In this difficult environment
management is conserving capital and operating with a heightened
degree of caution.
Golden Lion Property, GL1 Main Zone
Target
Over the past several years the Company has
advanced the GL1 Main Zone target area with successive programs of
geochemistry, geophysics (magnetic and induced polarization (“IP”)
surveys), geological mapping, drilling and 3D-modeling, to the
point where it has been demonstrated to extend along some 2.7 kms
of strike, to have system true widths exceeding 100 metres, and to
consist of a broad envelope of shallow, low-to-moderate grade Au-Ag
mineralization, locally encompassing high grades over
underground-style widths (see news, November 16, 2021, and January
17, 2022).
The project warrants a substantial next phase of
drilling that is both large enough to materially advance geological
understanding, and large enough also to drive down costs per metre
of drilling, which are presently high given the
helicopter-accessible-only location and relatively small scale of
the Company’s drill programs to date. Exploration costs should
significantly decline with the construction by other operators of a
new bridge this summer over the Toodoggone River, and extension of
the road north across the river to Thesis Gold’s nearby Ranch camp.
The Company intends to take advantage of these improvements to
local infrastructure to return to the GL1 Main zone target,
operating at lower cost, when conditions allow.
Holy Cross Property
The 100% owned Holy Cross Au-Ag property,
located in central B.C. south of Fraser Lake, has been held by the
Company since its founding, has drive-on access (skid-mounted
drills can be used, helicopters are not required), is largely
treeless and has moderate topography. Moreover, hotel accommodation
is available in nearby Fraser Lake, eliminating the need for an
on-site camp. For all these reasons exploration dollars go much
further, and costs per metre drilled are low.
The property hosts a robust siliceous and
pyritic alteration system and carries silver, gold, and copper
values over a large area that is underlain by felsic volcanic
and/or high-level intrusive rocks. The alteration and
mineralization are closely associated with the felsic rocks, which
are interbedded with subordinate feldspar phyric volcanic rocks of
intermediate composition, conglomerate and fine-grained sedimentary
rocks. Work by the Company and previous operators, including IP,
magnetic, and audio-magnetotellurics (“AMT”) surveys, along with
mapping and rock and soil geochemical sampling completed earlier
this year, has revealed attractive coincident geochemical and
geophysical anomalies. The Company plans to carry out an
additional roughly 30 line-km induced polarization survey in July
or August, preparatory to finalizing drill targets, with drilling
to be carried out later in the field season. Further details will
be announced when plans are complete.
Rockland, Nevada Property
The Company has methodically advanced the
Rockland, Nevada Au-Ag property, optioned in 2021, using a spectrum
of exploration techniques including soil and rock geochemical
sampling, drone-borne magnetics in 2021 and, in 2022, a 21 line-km
controlled-source audio-magnetotellurics (“CSAMT”) survey, a 14
line-km IP survey, and hyperspectral sampling of select historical
reverse circulation (“RC”) drilling chip samples to help determine
alteration mineralogy. Much of this work has been focused on the
“Rockland East” area and is currently being modelled in three
dimensions. Both the CSAMT and IP survey have returned intriguing
results, including attractive new coincident chargeability and
resistivity anomalies of significant scale that are complemented by
surface showings and geochemical anomalies. A draft plan of
operations for Phase 1 drilling at Rockland East is currently under
review by permitting authorities. Permit receipt is anticipated for
August or September.
“Evergold has several very fine property assets
that have the potential to make shareholders money in the medium
term,” says Kevin Keough, President & CEO. “In the meantime, we
must manage through the current really tough markets. This entails
husbanding our capital, and deploying what we have to maximum
advantage. We will provide a further update on plans, including
proposed drilling at Golden Lion and Holy Cross, as the summer
progresses.”
Quality Assurance and Quality Control
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.
About Evergold
Evergold Corp. is a Canadian explorer with four
wholly-owned precious metals projects in B.C. (Golden Lion, Holy
Cross, Snoball and Spanish Lake), and a single project under option
in Nevada (Rockland). Company management is proven, with a track
record of exploration success, most recently the establishment of
GT Gold Corp. in 2016 and the discovery (see SEDAR / news, July 25
and Dec. 15, 2017 respectively) of the Saddle South epithermal vein
and Saddle North porphyry copper-gold deposits near Iskut B.C.,
which hold more than 20 million ounces of gold equivalent in all
categories (Saddle North NI 43-101 Technical Report, August 20,
2020). GT Gold was acquired in 2021 by Newmont Corporation.
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.
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