Sego drills 94.2 m of 0.86 g/t Au at Miner Mountain

Aug 11, 2021

2021-08-11 11:28 ET – News Release

Mr. J. Paul Stevenson reports

SEGO RESOURCES INTERSECTS 94.20 M OF 0.86 G/T AU TO EXPAND THE EAST AND WEST OF THE SOUTHERN GOLD ZONE AT MINER MOUNTAIN PROJECT & POSITIVE BENCH SCALE METALLURGICAL TEST RECOVERS 95.8% OF GOLD BY GRAVITY/LEACHING

Sego Resources Inc. has released results from four additional 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) and first drilled during April, 2021 (see news release dated May 27, 2021).

DDH49 and DDH50 were collared 52 metres and 46 metres to the east and west, respectively, from the DDH46 and 47 section on the same fence as DDH47. Holes were oriented minus-50 at 160 azimuth similar to DDH46 and DDH47. Both holes intersected significant gold mineralization to the bottom of the holes and both warrant deepening below 84.12 m in DDH49 and 104.48 m in DDH50. DDH48 was collared 72 m to the northwest located on section DDH48-47, and intersected 0.18 gram per tonne gold between 141 to 152 m and 0.85 g/t gold between 172 to 174 m. The results indicate a close proximity to deeper portions to the Southern gold mineralization. DDH51 was collared 28 m north-northwest of DDH48 and was stopped at 108.5 m due to the fire ban, and did not intersect any elevated gold results. For a detailed description of the geology and alteration of the Southern gold zone, please refer to the Sego Resources May 27 news release.

Recent tests of drill core from DDH46 and DDH47 indicate fine-grained moderate to strong amounts of K-feldspar in many of the mineralized sections are associated with less than 1 to 2 per cent disseminated pyrite. Elsewhere, chlorite-sericite assemblages contain similar pyrite contents and gold mineralization, and both assemblages alter mainly intrusions. This relatively new type of bulk minable target has few other indicators to guide explorers and is a challenge to shut down drill holes.

Future exploration will include drill testing to the east and west trend of the Southern gold zone and the region deep below the current mineralized zone trend. The magnetic high anomaly below overburden that extends south of the Southern gold zone would be evaluated as the programs progress.

Bench scale metallurgical testing recovers 95.8 per cent of the gold from the Southern gold zone

An initial bench scale 32.9-kilogram representative sample from DDH46 and DDH47 core (April drill program) was submitted to Met-Solve Laboratories Inc. to investigate recovery gravity and leaching CN tests. The work concluded 9.8 per cent of the gold reports to gravity concentration, and 59.3 per cent recovered in one hour and 72.6 per cent after three hours using a cyanide leaching process. An impressive 95.8 per cent of the gold recovered tests the composite sample with little further testing. The entire Sego Resources metallurgical test work report can be found at the company’s website.

Chief executive officer J. Paul Stevenson comments: “The July program drill results continued to extend the strike length of the Southern gold zone to add the potential of bulk tonnage gold mineralization. The Southern gold zone is most likely a distal expression of blind porphyry copper-gold mineralization within a larger porphyry copper-gold system at the Miner Mountain project. Our next drill program will include deeper drilling of the holes that were terminated in mineralization, and expand the mineralized zone to the east and west. The remarkable bench scale metallurgical test work indicates the potential for a very low-cost bulk minable gold producer.”

Quality assurance/quality control

Drill core was shipped to MSALABS in Langley, B.C., for sample preparation and analysis. MSALABS is ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) 17025 and ISO 9001 certified. Samples were analyzed using an aqua regia digestion with an ICP (inductively coupled plasma) 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 Ron Britten, PhD, PEng, a qualified person under National Instrument 43-101.

About the project

Sego is 100 per cent owner of the Miner Mountain project, an alkalic copper-gold porphyry exploration project near Princeton, B.C. 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. 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/