Sego drills 88.11 m of 1.08 g/t Au at Miner Mountain

May 27, 2021

2021-05-27 09:16 ET – News Release

Mr. Paul Stevenson reports

SEGO RESOURCES INTERSECTS 59 METRES AND 88 METRES OF >1 GRAM/TONNE GOLD (GPT AU) AT MINER MOUNTAIN PROJECT

Sego Resources Inc. has released results from two diamond drill holes in the Southern gold zone of the Miner Mountain porphyry copper-gold project near Princeton, B.C. The Southern gold zone is an intrusion-disseminated hosted gold zone discovered during the company’s 2020 field program (see news release dated July 7, 2020).

Shallow (DDH 46) and deeper (DDH 47) holes tested the Southern gold zone, located on a central 160-degree-trending section with collars separated 78 metres apart inclined 50 degrees south. Both intersected greater than 1.0 gram per tonne gold over 59 and 88 metres from surface and include 2.94 grams per tonne gold over 15.2 metres and 2.44 grams per tonne gold over 19.8 metres (see attached table).

J. Paul Stevenson, chief executive officer, commented: “The Southern gold zone drill results are exciting! The zone is open in all directions except to the south, with excellent potential to add bulk gold-bearing mineralization. The Southern gold zone is most likely a distal expression of a blind porphyry copper-gold mineralization within a broader area of porphyry copper-gold system at the Miner Mountain project.”

The two holes penetrate variable microdiorite, minor monzonite or monzodiorite, diorite, tuff, or local bedded tuffaceous sediments. Variable textures in the generally fine-grained units exhibit episodic intrusion events, intrusion breccias, hornfelsed host rocks, many crackled and all overprinted by chloritic or potassium-feldspar-dominant alteration assemblages. Brittle brecciation generates a chaotic fragmental texture and late carbonate veins, veinlets, microfractures or stockwork occur throughout most rock types.

Below approximately five-metre to 10-metre depths, both holes DDH 46 and DDH 47 contain 1 per cent to 2 per cent pyrite. An approximately two-millimetre filigree grain of electrum occurs in a massive very fine-grained potassum-feldspar vein in hole DDH 46 at approximately 29.0 metres; otherwise, gold is not visible in the remaining portions of the holes. Potassium feldspar also occurs as irregular patches or fillings, selvages, veins or dikelets surrounded by pervasive chlorite alteration, where both assemblages normally contain disseminated pyrite or blebs or are cut by pyrite fractures. In the higher-grade zone (greater than two grams per tonne gold), better grades are associated with common potassium-feldspar/pyrite alteration, whereas chlorite-dominant alteration ranges from greater than 0.1 gram per tonne gold to one gram per tonne gold. Blebs of chalcopyrite occur sporadically in the elevated gold zone, particularly in the deeper hole DDH 47 (see attached table) and may indicate deeper, more typical porphyry copper-gold mineralization.

The style of the Southern gold zone is a distal gold mineralization most likely associated with a deeper or lateral alkali distal porphyry copper-gold system. The zone overlaps the north margin of an approximately 500-metre-diameter magnetic high thought to reflect a subjacent intrusion. Magnetite content is very low or non-existent in both drill holes.

Future drilling will be oriented southeast to test the depth extent of the grade and width beneath the zone and subparallel sections on either side of holes DDH 46 and DDH 47 to test the lateral extension of the gold zone. Petrology on select drill core and preliminary metallurgical testing on drill rejects will also be completed in the coming weeks.

The Miner Mountain project combines alkalic porphyry copper-gold mineralization in the Cuba and other zones and the unusual gold mineralization in the Southern gold zone, which may be distal to an alkalic copper-gold porphyry.

Quality assurance/quality control

Drill core and rock samples were shipped to MSALABS in Langley, B.C., for sample preparation and analysis. MSALABS is ISO/IEC 17025 and ISO 9001 certified. Samples were analyzed using an aqua regia digestion with an ICP finish.

Control samples comprising certified reference samples and blank samples were systematically inserted into the sample stream and analyzed as part of the company’s quality assurance/quality control protocol.

This news release was reviewed and approved by Dr. Ron Britten, PhD, PEng, a qualified person under National Instrument 43-101.

About the Miner Mountain project

Sego is 100-per-cent owner 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. Sego has a memorandum of understanding with the Upper Similkameen Indian Band, on whose traditional territory the Miner Mountain project is situated. Sego has received an award of excellence for its reclamation work at Miner Mountain.

We seek Safe Harbor.

https://www.segoresources.com/