Avidian Gold outlines resistivity highs at Golden zone

Aug 15, 2018

2018-08-15 07:49 ET – News Release

Mr. Dino Titaro reports

AVIDIAN GOLD CSAMT SURVEY HIGHLIGHTS NEAR-SURFACE INTRUSIVE-RELATED GOLD TARGETS

Avidian Gold Corp. has completed a 44.5-line-kilometre controlled source audio-frequency magnetotelluric (CSAMT) survey of the Copper King, Long Creek and South Long Creek prospects at the Golden zone project in Alaska.

The survey was successful in highlighting near-surface resistivity highs which are interpreted to be intrusions into overlying sediments. The most prominent interpreted intrusion is proximal to known sulphide mineralization in the over-two-kilometre-long Copper King, Long Creek and South Long Creek target areas.

CSAMT survey interpretation

CSAMT profiles in this large area identified multiple resistivity highs which form elongated pinnacle features with flanking resistivity lows which are interpreted to be highly prospective areas for gold and copper mineralization. Many of the CSAMT resistivity high features correspond with magnetic low features observed in a previous helicopter-borne aeromagnetic survey.

The predominant feature at Copper King to Long Creek area stretches over 500 metres and is interpreted to be the intrusive source of the mineralization identified at Copper King and Long Creek, both in surface sampling and in limited historic drilling.

For additional information on surface gold-copper mineralization at Copper King, Long Creek and South Long Creek, please see Avidian’s press release dated, Jan. 15, 2018.

Multiple other interpreted intrusive events were identified in this area, all at relatively shallow depths which suggests excellent opportunities for further discovery. Programs to prioritize interpreted intrusives are under way including geochemical studies, trenching and ultimately drilling. Trenching on one of these targets revealed approximately 20 m of pyrite-chalcopyrite mineralization.

Nick Tintor, president and chief executive officer of Avidian, commented: “The delineation of very near-surface interpreted intrusive bodies coincident with surface mineralization in the Copper King-Long Creek area is an exciting development for our team. We plan to collar holes this week to begin testing priority CSAMT targets in the Long Creek area which are associated with newly discovered pyrite-chalcopyrite sulphide mineralization in trenches.”

CSAMT is a geophysical method for obtaining subsurface resistivity information to assist with 3-D geological interpretations of large areas.

Variations in resistivity values calculated from the CSAMT data are influenced by porosity, pore fluids and the presence of certain mineral assemblages.

The data can be used to provide valuable information on structure and lithology. At the Golden zone property, Avidian is targeting intrusion-related gold systems (IRGS).

IRGS deposits are interpreted to be formed at shallow paleodepths. Mapping of the intrusions based on resistivity data collected by the CSAMT surveys focuses exploration toward priority settings for further discovery either lateral to and/or at depth below the zones of mineralization currently identified at surface.

The survey was completed by Zonge Geophysics using a Zonge GDP-3224 24-bit multichannel receiver and a Zonge GGT-10, 10-kilovolt-ampere transmitter.

Golden zone background

The Golden zone project lies within the gold-endowed Tintina mineral belt and is located 320 km north of Anchorage, Alaska, and is conveniently accessed by a 16 km road west of the main transportation highway between Anchorage and Fairbanks.

Gold mineralization on the property is found in breccias, veins and shear zones, skarns, and other replacement styles of mineralization. These all appear to be of igneous affiliation and are all spatially related to Cretaceous age porphyritic intrusives.

The technical information contained in this news release has been reviewed and approved by Dr. Tom Setterfield, PGeo, vice-president — Exploration for Avidian, who is a qualified person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Other business

The board of directors has approved the grant of 4.44 million stock options to certain newly appointed members of management, directors and consultants of the company. The options granted will be issued in accordance with the company’s current stock option plan.

The options are exercisable into common shares of the company at an exercise price of 60 cents per share. This is a premium to Avidian’s last closing price and the pricing of its last private placement. The options have a five-year term to maturity.

About Avidian Gold Corp.

Avidian brings a disciplined and veteran team of project managers together with a regional-scale advanced-stage gold-copper exploration portfolio in Alaska. Avidian’s Golden zone project also hosts a NI 43-101 indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 grams per tonne Au) plus an inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au).

Additional projects include Amanita which is adjacent to Kinross Gold’s Fort Knox gold mine in Alaska, Jungo and Dome Hill in Nevada, and Strickland in Newfoundland.

We seek Safe Harbor.

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