Avidian spots targets at Golden Zone

Mar 26, 2018

2018-03-26 14:30 ET – News Release

Mr. James Polson reports

IP SURVEY IDENTIFIES POLARIZATION ANOMALIES (POTENTIAL MINERALIZATION) IN KNOWN AREAS OF GOLD MINERALIZATION; POSSIBLE INTRUSIVE CENTRE IDENTIFIED BY RESISTIVITY METHODS

Avidian Gold Corp. has provided an overview and comments on the results of a 2017 induced polarization survey completed at its 100-per-cent-owned Golden Zone project in Alaska. The results were reviewed in conjunction with historical geophysical data including airborne electromagnetic and magnetic data and controlled-source audio magnetotelluric results.

Figures associated with this news release are available on-line.

In 2017, a time domain induced polarization survey was completed on the Golden Zone project covering five areas: Riverside, Breccia Pipe deposit area, Bunkhouse, Copper King and South Long Creek, using a variety of array and dipole separations. A total of 43 line kilometres were surveyed. These data was incorporated and compiled with a 1996 aerial geophysical survey that included total magnetics and five frequencies of electromagnetic data at 100-metre line spacing and a 1982 CSAMT survey. The combined surveys delineated magnetic lows and resistive highs interpreted to represent intrusive events potentially related to the areas of known gold mineralization and to as yet undiscovered mineralization. The airborne magnetic data also provided excellent insight into the structural trends on the property and highlighted the significance of structures in the known mineralized areas. The results of these surveys, along with field geological work, led to the identification of many of the 2017 drill target areas as well as new areas that will require follow-up work during 2018.

Highlights from the geophysical review including the 2017 IP survey:

Magnetic data indicate a strong northeast-southwest structural trend on the property with orthogonal crosscutting faults often in the area of known mineralization. It is believed the crosscutting faults have provided the plumbing system to allow mineralized fluids to flow to surface, such as in the area of the known Breccia Pipe deposit.
A prominent resistivity high identified in the 1982 CSAMT data suggests a intrusive event to the immediate northwest of the Breccia Pipe deposit. Known mineralization at the Breccia Pipe West, the Breccia Pipe deposit, Bunkhouse and Mayflower areas are found along the eastern edge of this interpreted intrusive. The 1996 airborne EM survey and Avidian’s 2017 mapping corroborate the presence of this major intrusion; further geophysical work is necessary to fully delineate it.
The 2017 IP survey was conducted on specific target areas that lie within the eight-kilometre-long trend over which gold mineralization grading more than one gram per tonne gold can be traced (see Jan. 15, 2018, press release). In each of the areas surveyed, polarization/resistivity anomalies have been identified in association with known mineralization. With further expansion of the IP coverage it may be possible that line to line correlation will be established along the roughly eight-kilometre strike length of known mineralization structurally bound by the Golden Zone and Long Creek corridors.
In four of five areas surveyed (Riverside, Breccia Pipe Deposit, Bunkhouse and Copper King), pronounced chargeability anomalies were delineated over strike lengths in excess of 500 metres. Given the proximity of these anomalies to known gold mineralization it is expected, pending further geologic follow-up, that they will be drilled in 2018.
In the vicinity of the Breccia Pipe deposit, the 2017 IP survey identified multiple anomalies subparalleling the main northeast-southwest structural trend of the area. These anomalies fall on the outer edge of the CSAMT resistivity high that is interpreted to reflect an intrusive centre. Drill testing of some of these anomalies in 2017 led to the intersection in hole GZ17-10 a core length of 21.6 m of 1.46 g/t Au in a previously unknown mineralized conglomeratic unit (see Jan. 18, 2018, press release). This stratigraphic unit represents a new substantial target on the property that has not been drill evaluated and is open in all directions.
It should be noted that additional mineralized conglomeratic units have been identified at the Long Creek occurrence, approximately four km to the south of hole GZ-17-10 where a historical trench (orientated in a north-northwest-to-south-southeast direction, perpendicular to the geologic units that trend in a east-northeast-to-west-southwest direction) uncovered a conglomeratic unit that retuned 6.1 m of 13.8 g/t Au, 34.4 g/t silver and 0.85 per cent copper. This conglomerate has never been evaluated on strike or drill tested. Mineralized conglomerate is also known at the Copper King prospect. Conglomerates are common on the Golden Zone property and Avidian considers them to be a potential host for a style of deposit that has not previously been explored for.
The newly discovered Breccia Pipe West occurrence (grab sample of 14.64 g/t Au and 355 g/t Ag) located 500 m west of the known Breccia Pipe deposit has a coincident northeast-southwest-trending chargeability/resistivity anomaly that has not been drill tested.
In the Copper King and Long Creek mineral occurrence areas, the IP survey in combination with the historical airborne magnetic survey identified a number of magnetic low features interpreted to be shallow intrusives, adjacent to the known mineralization, which have associated chargeability highs. The IP results suggest that areas of known mineralization have potential to develop reasonable width and depth extent. In addition to the many high-grade samples in the Copper King mineral occurrence (see Jan. 15, 2018, press release) a grab sample adjacent to a quartz eye stockwork granite returned a value of 4.8 g/t Au, 106 g/t Ag and 1.4 per cent Cu. This sample is adjacent to an identified IP chargeability high.
At South Long Creek only a single two km long reconnaissance line was completed as a test to determine how it relates to known mineralization. Multiple anomalies were identified, with the most significant anomaly coincident within the main area of known mineralization. A historical trench (orientated in a northwest-southeast direction, perpendicular to the geologic units that trend northeast-southwest) returned 3.0 m of 2.74 g/t Au and 174.9 g/t Ag in the immediate area of the IP anomaly. Survey coverage will be extended in 2018.

The geophysical review in conjunction with the 2017 IP survey has identified multiple areas of geophysical significance within the eight-kilometre-long mineralized trend at Golden Zone. In all cases the most prominent geophysical anomalies are coincident with known areas of mineralization. In addition, new geophysical anomalies that have yet to be sampled or evaluated have been identified in these known areas. In all areas additional coverage (in-fill lines) and detailed geological work will be required to assist in prioritizing drill targets.

Background

The Golden Zone property lies within the gold-endowed Tintina belt, is located 320 kilometres north of Anchorage, Alaska, and is accessed by a 16 km road west of the main transportation route between Anchorage and Fairbanks. The property comprises a 2,960-acre uplands mining lease with an expiry date of 2050, surrounded by 92 state claims totalling 11,600 acres and a nearby, non-contiguous, 40-acre mill site lease.

Gold mineralization on the property is found in breccias, veins and shear zones, skarn 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 approved by Dr. Tom Setterfield, PGeo, vice-president. exploration, of Avidian, who is a qualified persons as defined in National Instrument 43-101 — Standards of Disclosure for Mineral Projects.

It should be noted that, due to their selective nature, assay results from grab samples reported in this press release may not be representative of the mineralization hosted on the property.

About Avidian Gold Corp.

The corporation is an exploration and development company whose primary business interest is in four advanced gold properties located in the United States: the Golden Zone and Amanita properties, situated in south-central Alaska, and the Jungo and Dome Hill properties, located in Nevada, each held 100 per cent by the corporation. The Golden Zone property hosts a National Instrument 43-101 (2017) indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 grams per tonne gold) plus an inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au). The deposit is exposed on surface and is open at depth and along strike. Avidian also holds a 100-per-cent interest in the Strickland massive sulphide property located in Newfoundland, Canada.

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