Golden Tag Resources Ltd. (“
Golden Tag” or the
"
Company") (TSX.V: GOG) (OTCQB: GTAGF) is pleased
to provide initial results from the ongoing 4,500 metre
(“
m”) exploration program on the Company’s 100%
owned San Diego Project, one of the largest undeveloped silver
projects in Mexico. A program of infill sampling on historical
diamond drill holes has advanced, results from two holes have
significantly expanded the size of identified mineralized zones and
in one of the holes, increased previously reported grades by 10%.
Key highlights include:
- Infill
sampling from historic hole SD-11-42 identified a significantly
broader zone of mineralization, compared to the area originally
sampled, including 175.30 metres of 88.54 g/t Ag.Eq. Four new
mineralized zones were identified proximal to the Fernandez
Zone, including two shallower zones.
- Infill
sampling from historic hole SD-11-40 resulted in an increase in the
reported grade by 10%, intersecting 298.02 metres of 101.96 g/t
Ag.Eq. Three new shallower zones of mineralization have been
identified above the Fernandez Zone.
- A
comprehensive infill sampling program will be implemented on 2,500
- 3,000 metres of historical diamond drill holes, with a goal of
realizing further improvements in geological, mineralization, and
grade continuity within the broad mineralized envelope.
Collectively these have the potential to significantly increase the
mineralization envelopes and provide further grade
improvements.
Greg McKenzie, President and CEO commented: "We
are pleased to see the current drill program is advancing with
strong productivity, despite challenges associated with COVID.
Infill sampling and assays of previously unsampled areas have
generated insight, and allow us to significantly expand mineralized
areas, improve continuity and has demonstrated higher grades. As
our exploration program continues over the coming months, we look
forward to unlocking further value on the San Diego Project.”
Status of Ongoing 4,500 Metre
Exploration Program
During the fourth quarter of 2020 the Company
initiated a 4,500 metre diamond drill program on the San Diego
Project, the first drill program on the property since 2012. To
date a total of approximately 2,700 m of drilling has been
completed in 6 holes targeting the Trovador Structural Zone, and
the area up-dip, and to the south of the Fernandez Zone. A total of
1,787 samples have been sent to ALS Geochemistry for analysis with
assays pending. Current drilling is being conducted with oriented
core so that the spatial orientation of the mineralization can be
determined.
Infill Sampling Identifies Large Areas
of New Mineralization, Increases Grades & Widths
In preparation for the current program,
historical holes SD-11-40 and SD-11-42, drilled in 2011 prior to
discovery of the Fernandez Zone, were relogged leading to several
key observations. Both holes were previously unsampled throughout
significant portions of the holes, likely a result of focusing
exploration on narrow high-grade silver veins. A total of 852
samples were sent for analysis, initial results are highly
encouraging and demonstrate the bulk tonnage potential of the
zones.
Hole SD-11-42 was collared approximately 130 m
to the west-southwest of SD-11-40 and crosses it obliquely at
approximately 500 m vertically above SD-11-40.
Infill sampling results from Hole
SD-11-42:
Systematic sampling of hole SD-11-42 has now
identified a significantly broader zone of mineralization above,
within, and slightly below the Trovador and MS Zones compared to
what was originally understood to be present. Together, this area
(Trovador Structural Zone) returned 175.30 m grading 88.54
g/t Ag.Eq and is likely related geologically to the
Fernandez Zone. The Trovador and MS Zones are part of a much larger
northwest trending structural zone containing mineralization which
was previously unreported or unrecognized. The relogging of the
core has led to the observation that several areas are mineralized
with both quartz-sulphide veins and disseminated sulphides.
Four new mineralized zones were identified,
including two new shallower zones that could potentially be
amenable to open pit mining within the first 300 metres from
surface as indicated in Table 1.
Table 1 – 2021 Infill Sampling from
SD-11-42
ZONE |
HOLE |
FROM |
TO |
LENGTHm |
Ag.Eq(1)
g/t |
Aug/t |
Agg/t |
Pb% |
Zn% |
Cu% |
New Zone [A] |
SD-11-42 |
239.44 |
248.80 |
9.36 |
75.18 |
0.03 |
51.34 |
0.26 |
0.23 |
0.01 |
New Zone [B] |
SD-11-42 |
287.40 |
311.00 |
23.60 |
50.52 |
0.03 |
25.38 |
0.24 |
0.29 |
0.01 |
Trovador Structural Zone 2021 [C] |
SD-11-42 |
352.00 |
527.30 |
175.30 |
88.54 |
0.09 |
29.92 |
0.64 |
0.55 |
0.03 |
includes New Zone |
SD-11-42 |
358.39 |
406.80 |
48.41 |
109.21 |
0.12 |
34.35 |
0.69 |
0.80 |
0.04 |
includes New Trovador Zone |
SD-11-42 |
431.20 |
453.03 |
21.83 |
130.05 |
0.13 |
47.20 |
1.05 |
0.67 |
0.04 |
includes New Zone |
SD-11-42 |
496.00 |
507.29 |
11.29 |
189.45 |
0.15 |
78.09 |
1.82 |
0.66 |
0.04 |
includes New MS Zone |
SD-11-42 |
496.00 |
523.30 |
27.30 |
155.20 |
0.16 |
57.88 |
1.30 |
0.76 |
0.03 |
Previous sampling of hole SD-11-42 resulted in
two zones being included within the resource model: Trovador Zone
with 7.03 metres of 249.22 g/t Ag.Eq, and MS Zone with 4.97 metres
of grading 339.55 g/t Ag.Eq (2), as indicated in Table 2.
Table 2 – Historical Results from
SD-11-42 Included in Resource Model
ZONE |
HOLE |
FROM |
TO |
LENGTHm |
Ag.Eq(1)g/t |
Aug/t |
Agg/t |
Pb% |
Zn% |
Cu% |
Trovador 2013 Zone
(2) |
SD-11-42 |
445.50 |
452.53 |
7.03 |
249.22 |
0.21 |
87.65 |
2.06 |
1.39 |
0.07 |
MS 2013 Zone
(2) |
SD-11-42 |
515.45 |
520.42 |
4.97 |
339.55 |
0.47 |
111.94 |
2.53 |
2.03 |
0.05 |
(1) All results in this release are rounded.
Assays are uncut and undiluted. Widths are core-lengths, not true
widths as a full interpretation of actual orientation of
mineralization is not complete. Intervals of stockwork
quartz-sulphide vein mineralization were chosen based on a 25 g/t
Ag.Eq cutoff with no more than 7 m of dilution. Silver equivalent:
Ag.Eq g/t was calculated using 3-year trailing average commodity
prices of $17.75 Ag, $0.90 Pb, $1.20 Zn, $1500 Au, and $2.85 Cu.
The calculations assume 100% metallurgical recovery and are
indicative of gross in-situ metal value, the Company is planning to
perform additional metallurgical studies later in 2021.
(2) Ag.Eq numbers have been recalculated to
reflect the parameters presented in Footnote (1).
(3) Notations A-G refer to Figure 2.
Infill sampling results from Hole
SD-11-40:
Systematic infill sampling of hole SD-11-40
extended the Fringe Zone up-dip by 3.29 m (from 487.35 m to 484.06
m) but more importantly increased the Ag.Eq grade by
10% (from 92.22 g/t Ag.Eq to 101.96 g/t Ag.Eq)
over a length of 298.02 m. In addition, three new
zones of quartz-sulphide vein mineralization which were previously
unreported or unrecognized have been identified above the Fernandez
Zone, including a shallower zone that could potentially be amenable
to open pit mining within the first 300 metres from surface.
Table 3 – 2021 Infill Sampling from
SD-11-40
ZONE |
HOLE |
FROM |
TO |
LENGTHm |
Ag.Eq(1)
g/t |
Au g/t |
Ag g/t |
Pb % |
Zn % |
Cu % |
New Zone [D] |
SD-11-40 |
267.25 |
317.30 |
50.05 |
58.09 |
0.04 |
19.36 |
0.43 |
0.41 |
0.01 |
New Zone [E] |
SD-11-40 |
423.95 |
426.06 |
2.11 |
245.38 |
0.01 |
75.24 |
2.21 |
1.55 |
0.19 |
New Zone [F] |
SD-11-40 |
437.50 |
447.40 |
9.90 |
63.05 |
0.06 |
19.21 |
0.51 |
0.37 |
0.04 |
Expanded FRINGE 2021 [G] |
SD-11-40 |
484.06 |
782.08 |
298.02 |
101.96 |
0.03 |
33.17 |
0.73 |
0.77 |
0.05 |
Table 4 – Historical Results from
SD-11-40 Included in Resource Model
ZONE |
HOLE |
FROM |
TO |
LENGTH m |
Ag.Eq(1)
g/t |
Au g/t |
Ag g/t |
Pb % |
Zn % |
Cu % |
2013 FRINGE
(2) |
SD-11-40 |
487.35 |
782.08 |
294.73 |
92.22 |
0.03 |
29.57 |
0.67 |
0.70 |
0.04 |
The current drill program has been amended to
include the Trovador Structural Zone, and results from drilling as
well as infill sampling, will be included in a future resource
update. Based on the positive results from infill sampling of these
two historical drill holes, a comprehensive infill sampling program
will be implemented on 2,500 - 3,000 metres of historical diamond
drill holes (depending upon core recovery) to the east of the
Fernandez Zone, focused on realizing further improvements in
geological, mineralization, and grade continuity within the broad
mineralized envelope. Collectively these have the potential to
significantly increase the mineralization envelopes and provide
further grade improvements.
Sample Analysis and QA/QC
Program
Golden Tag Resources uses a quality
assurance/quality control program that monitors the chain of
custody of samples and includes the insertion of blanks,
duplicates, and reference standards in each batch of samples sent
for analysis. Drill core is photographed, logged, and cut in half
with one half retained in a secured location for verification
purposes and one half shipped for analysis. Sample preparation
(crushing and pulverizing) is performed at ALS Geochemistry, an
independent ISO 9001:2001 certified laboratory, in Zacatecas,
Mexico and pulps are sent to ALS Geochemistry in Vancouver, Canada
for analyses. The entire sample is crushed to 70% passing -2 mm and
a riffle split of 250 grams is taken and pulverized to better than
85% passing 75 microns. Samples are analyzed for gold using a
standard fire assay with AAS (Au-AA23) from a 30-gram pulp. Gold
assays greater than 10 g/t are re-analyzed on a 30-gram pulp by
fire assay with a gravimetric finish (Au-GRA21). Samples are also
analyzed using a 35 element inductively coupled plasma (ICP) method
with atomic emission spectroscopy (AES) on a pulp digested by aqua
regia (ME-ICP41). Overlimit sample values for silver (>100 g/t),
lead (>1%), zinc (>1%), and copper (>1%) are re-assayed
using a four-acid digestion overlimit method with ICP-AES
(ME-OG62). For silver values greater than 1,500 g/t samples are
re-assayed using a fire assay with gravimetric finish on a 30-gram
pulp (Ag-GRA21). No QA/QC issues were noted with the results
reported herein.
True widths of drill intercepts have not been
determined. Assays are uncut except where indicated.
Review by Qualified Person and
QA/QC
The scientific and technical information in this
document has been reviewed and approved by Bruce Robbins, P.Geo., a
Qualified Person as defined by National Instrument 43-101.
About Golden Tag Resources
Golden Tag Resources Ltd. is a Toronto based
mineral resource exploration company. The Company holds a 100%
interest, subject to a 2% NSR, in the San Diego Project, in
Durango, Mexico. The San Diego property is among the largest
undeveloped silver assets in Mexico and is located within the
prolific Velardeña Mining District. Velardeña hosts several mines
having produced silver, zinc, lead and gold for over 100 years. For
more information regarding the San Diego property please visit our
website at www.goldentag.ca. For additional
information, please contact:
Greg McKenzie, President & CEOPh:
416-504-2020Email: info@goldentag.cawww.goldentag.ca
Cautionary Statement:
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this news
release. Certain statements in this news release are
forward-looking and involve a number of risks and uncertainties.
Such forward-looking statements are within the meaning of the
phrase ‘forward-looking information’ in the Canadian Securities
Administrators’ National Instrument 51-102 – Continuous Disclosure
Obligations. Forward-looking statements 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, statements regarding
the effects of the Company’s exploration program, assay results
from the ongoing drill program, the expansion of the Trovador
Structural Zone or the Fernandez Zone, further improvements in
mineralization, continuity or grades. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to: the ability 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, restriction on
labour and international travel and supply chains; 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; changes in equity markets;
uncertainties relating to the availability and costs of financing
needed in the future; the inability of the Company to budget and
manage its liquidity in light of the failure to obtain additional
financing; inflation; changes in exchange rates; fluctuations in
commodity prices; delays in the development of projects; capital,
operating and reclamation 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. No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
Figure 1: Plan Map of SD-11-40 and
SD-11-42 with Fernandez, Trovador and MS
Zoneshttps://www.globenewswire.com/NewsRoom/AttachmentNg/7d54c91c-543c-4e2c-88f6-aa24ebbeac9f
Figure 2: 3D View to NW of SD-11-40 and
SD-11-42 Showing Infill Sampling Results (Tables 1 &
3)https://www.globenewswire.com/NewsRoom/AttachmentNg/8c0bb1e8-258f-431a-8e6a-fe20fd851c65
ZONE |
HOLE |
FROM |
TO |
LENGTH m |
Ag.Eq(1)g/t |
Aug/t |
Agg/t |
Pb% |
Zn% |
Cu% |
New Zone [A] |
SD-11-42 |
239.44 |
248.80 |
9.36 |
75.18 |
0.03 |
51.34 |
0.26 |
0.23 |
0.01 |
New Zone [B] |
SD-11-42 |
287.40 |
311.00 |
23.60 |
50.52 |
0.03 |
25.38 |
0.24 |
0.29 |
0.01 |
Trovador Structural Zone 2021 [C] |
SD-11-42 |
352.00 |
527.30 |
175.30 |
88.54 |
0.09 |
29.92 |
0.64 |
0.55 |
0.03 |
New Zone [D] |
SD-11-40 |
267.25 |
317.30 |
50.05 |
58.09 |
0.04 |
19.36 |
0.43 |
0.41 |
0.01 |
New Zone [E] |
SD-11-40 |
423.95 |
426.06 |
2.11 |
245.38 |
0.01 |
75.24 |
2.21 |
1.55 |
0.19 |
New Zone [F] |
SD-11-40 |
437.50 |
447.40 |
9.90 |
63.05 |
0.06 |
19.21 |
0.51 |
0.37 |
0.04 |
Expanded FRINGE 2021 [G] |
SD-11-40 |
484.06 |
782.08 |
298.02 |
101.96 |
0.03 |
33.17 |
0.73 |
0.77 |
0.05 |
(1) Silver equivalent: Ag.Eq g/t was calculated using 3-year
trailing average commodity prices of $17.75 Ag, $0.90 Pb, $1.20 Zn,
$1500 Au, and $2.85 Cu. The calculations assume 100% metallurgical
recovery and are indicative of gross in-situ metal value, the
Company is planning to perform additional metallurgical studies
later in 2021.
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