Sego drills 26 m of 0.53 g/t Au at Miner Mountain

Sep 18, 2018

2018-09-17 12:44 ET – News Release

Mr. Paul Stevenson reports

SEGO’S 2018 PHASE 1 DRILLING EXPANDS MINERALIZED FOOTPRINT AT MINER MOUNTAIN

Sego Resources Inc. has released diamond drill results from a phase 1 diamond drilling program completed in the summer of 2018 at the company’s Miner Mountain project. Sego Resources is owner (100 per cent) of the Miner Mountain project, an alkalic copper-gold porphyry exploration project located near Princeton, B.C.

The purpose of this program was to determine the continuity, extent and direction of previously understood mineralized fault systems, which are assumed to run in an east-west direction. An east-west line of diamond drill holes was drilled to determine mineralized fault directions and to locate the south edge of the Cuba zone induced polarization chargeability anomaly. A hand-held X-ray florurescence (XRF) gun was used to guide the drilling team. Samples were assayed and double-checked by fire assay at MS Analytical Labs in Langley, B.C. The results are shown in the attached table.

Summer 2018 drill results showed the presence of copper mineralization continuing all the way to the south edge of the induced polarization chargeability high. Of particular and significant interest is the presence of meaningfully elevated gold values within the induced polarization chargeability zone. Of significance also, the copper and gold mineralization was confirmed to be controlled by numerous geological faults. Of great interest, gold mineralization occurred right near surface, which was positive, but also occurred deeper within the chargeability zone in DDH-MM-18-32.

For example, DDH-MM-18-32 revealed 0.53 gram per tonne gold from zero to 26 metres, and also revealed 0.45 gram per tonne gold from 35 to 50 metres. There were also copper and silver associated with these intervals. In addition, at and below a core depth of 107 metres (approximately 60 metres below surface), copper assays yielded six metres of 0.40 per cent copper with gold and silver, and also three metres of 0.865 per cent copper with gold and silver values (please see the attached table).

DDH-MM-18-34 also showed the extension of the mineralized faults. Pointing to this, at a core depth of 206 metres to 263 metres, or for 57 metres (approximately 100 metres to 140 metres below surface), copper grades of 0.26 per cent, including 21 metres of 0.38 per cent, were discovered along with gold and silver values. Also, at a core depth of 278 metres to 296 metres, or for 18 metres (approximately 150 metres to 200 metres below surface), copper grades of 0.56 per cent, including three metres of 0.77 per cent, were discovered along with gold and silver values (please see the attached table).

                      DRILL RESULTS OF 2018 PHASE 1 DRILLING PROGRAM

DDH              From (m)     To (m)     Length (m)     Cu (%)     Au (g/t)     Ag (g/t)

DDH-MM-18-31          69         81             12          -         0.21            -  
and                  144        159             15       0.14         0.09         0.50 
and                  195        204              9       0.31         0.08         1.67 
DDH-MM-18-32           0         26             26       0.15         0.53         0.67 
and                   35         50             15       0.15         0.45         0.60 
and                   56         71             15       0.18         0.14         0.90 
and                  107        113              6       0.40         0.13         1.00 
and                  125        134              9       0.27         0.16         0.50 
and                  170        200             30       0.19         0.06         1.25 
including            194        197              3      0.865        0.198            3   
DDH-MM-18-33         125        170             45       0.23         0.05         1.33 
including            125        140             15       0.32         0.05         1.90 
DDH-MM-18-34          71         95             24       0.16         0.18         0.81 
and                  206        263             57       0.26         0.03         0.79 
including            224        245             21       0.38         0.03         0.71 
and                  278        317             39       0.29         0.05         0.85 
including            278        296             18       0.56         0.06         1.30 
including            284        287              3       0.77         0.03            2

The program was developed to begin a much larger-scale exploration program designed to expand and enhance mineralization at Sego’s Miner Mountain project. The project has numerous geophysical, geological and geochemical targets. The target areas are a confluence of multiple overlapping anomalies, as is consistent with copper-gold alkaline porphyries in British Columbia.

Prior drilling on the project has provided a number of well-mineralized drill holes in both the Cuba zone and the Granby zone. These ranged from vertical holes DDH-21 and DDH-24, grading 100.39 metres of 0.95 per cent copper from surface, 0.55 gram per tonne gold and 3.47 grams per tonne silver in DDH-21, and 128 metres of 0.34 per cent copper, 0.3 gram per tonne gold and 0.98 gram per tonne silver in DDH-24; as well as angle holes DDH-4 and DDH-16, grading, 64 metres of 0.46 per cent copper, 0.08 gram per tonne gold and 3.47 grams per tonne silver in DDH-4, and 96.6 metres of 0.3 per cent copper, 0.08 gram per tonne gold and 1.76 grams per tonne silver in DDH-16.

The results of the 2018 phase 1 drilling program are being utilized to target the next round of drilling, expected to start in early October, 2018. The company’s geologists are currently inspecting the entire Cuba zone in detail, including remapping geology and soil anomalies to determine the best drill hole locations for phase 2 to target.

Paul Stevenson, chief executive officer of Sego Resources, commented: “The drilling in 2018 phase 1, combined with previous exploration data and drilling to date, has unquestionably shown a very large and extensive mineralized volcanic, volcaniclastic and sedimentary package, which is typical of the Nicola belt copper-gold porphyries where the Minor Mountain project is situated. The alteration found in the new 2018 drill holes, as well as in the Cuba zone’s previous drilling, consisting of feldspar, albite, calcite and anhydrite, is typical of that of Nicola belt copper-gold porphyries in British Columbia. The intensity of the alteration indicates we are within the system, but still distal from the all-important mineralizing intrusive, which would be expected to yield much higher grades of copper and gold, and much better economical values. Sego is using an advanced computer model, including a wireframe model, and also conducting a detailed on-the-ground geology study at Miner Mountain, including a comprehensive review of all our core that has been drilled to date, in order to effectively direct the continuing 2018 phase 2 drilling campaign toward the source of mineralization.”

This news release was reviewed and approved by Dr. Selina Tribe, PhD, PGeo, a qualified person under National Instrument 43-101.

About Sego Resources Inc.

Sego Resources is owner (100 per cent) of the Miner Mountain project, an alkalic copper-gold porphyry exploration project near Princeton, B.C. The property is 2,056 hectares in size and is located 15 kilometres north of the Copper Mountain mine operated by Copper Mountain Mining Corp. and Mitsubishi Copper.

We seek Safe Harbor.

https://www.segoresources.com/category/rns/