Awalé Resources - Strong Gold Mineralization Extends as Drilling Continues at the Empire Discovery, Odienné Project

VANCOUVER, Dec. 23 2019 /CNW/ - Awalé Resources Limited ("Awalé" or the "Company") (TSXV: ARIC) is pleased to report from the Odienné Project (Figure 1) that ongoing drilling at the Empire prospect successfully continues to extend gold mineralization reported in discovery holes OEDD0001 and OEDD002 (see Company News Release dated November 19, 2019). Assays for a further 7 holes (OEDD0003-0007 and OEDD0009-00010; Figure 2) have now been received, with results extending gold mineralization to at least 120m vertical depth along the discovery section and an initial 100m along strike on line 2a. Gold mineralization in the holes being reported is hosted within the same diorite unit with brittle/ductile deformation as observed in the discovery holes.

The current drilling at Empire represents the first ever drill testing of the core of the 3km long, 250m wide soil gold anomaly previously defined by the Company (Figure 3). Drilling to date is labelled as NQ diamond drilling ("DD") and reverse circulation drilling ("RC").

Highlights

• Step-back hole OEDD0003 extends previously reported mineralization by 80m down dip from previously reported discovery holes OEDD0001 (18 metres "m" at 4.9 grams per tonne gold "g/t Au" from 40m downhole) and OEDD0002 (27m @ 3.1 g/t Au from 43.2m downhole)
• • OEDD0003* - 19m at 0.9 g/t Au from 151m downhole including 1m at 4.54 g/t Au from 152 m downhole.
• Step-out hole OEDD0009 extends gold mineralization by 100m from the 2 discovery holes along strike to the east with three broad intercepted zones of strong mineralisation with visible gold*
• • 17m at 2.6 g/t Au from 40 m downhole,
  • • including 2.65m at 15.4 g/t Au from 40m,
  • 16.74m at 1.9 g/t Au from 74.26m downhole,
  • • including 9.28m at 2.7g/t Au from 80.72m and,
  • 16m at 1.8 g/t Au from 98m downhole,
  • • including 3m at 7.6 g/t Au from 111m

*True width Intercepts for OEDD0003 are approximately 15m and the three intercepts reported for OEDD0009 are approximately 12 metres each. Broad intercepts above are calculated at a 0.2g/t Au trigger with included intercepts calculated at a 1 g/t Au trigger. All calculated intercepts include 3m of internal waste. Sections for these holes are shown in figures 4 and 5.

The Empire mineralized zone currently remains open both at depth and along strike. Holes drilled on section line 3 (figures 2 and 7) show a southern offset of the altered diorite by approximately 50m. Hole OERC0003/OEDD0006 (RC Collar with DD tail) intercepted some weakly mineralized diorite (18m at 0.2 g/t Au) and step back hole OERC0016 (results Pending) has also intercepted 50m (downhole) of the altered diorite typical of what we are seeing in holes OEDD0001-0003 and OEDD0009/0010. Holes OEDD0004, OEDD0005 and OEDD0007 appear to be drilled north of the mineralized zone into the interpreted footwall volcaniclastic rocks with calc silicate alteration.

OEDD0003 ended in mineralisation. This hole has now been re-entered and extended by 40m to a total depth of 210.06m. The extension has intercepted 2 further zones of the same brittle ductile deformation with visible gold (results pending). This extends visual mineralisation on the discovery section to a vertical depth of 150 metres from surface. The hole ended in deformed diorite and mineralisation is expected to continue at depth. A deep hole in the optimal NNE drill direction has now been planned to intercept mineralisation at a vertical depth of 200m.

Each reported mineralized zone in OEDD0009 has a true width of approximately 12m within a 50 metre envelope of brittle ductile deformation (figure 5). Multiple visual gold zones were also observed in OEDD0009.

OEDD0010 is a step back from OEDD009 and displays identical geology to previously mineralized holes. The hole displayed strong brittle/ductile deformation but has returned weaker mineralisation. Intercepts from OEDD010 include; 6m at 0.3 g/t Au from 61m, 5.9m at 0.2 g/t from 92m, 1m at 3 g/t from 110m, and 6m at 0.43 from 121m (figure 7 is a comparative photo of the deformation in OEDD0010 and OEDD0001). Visible gold was observed in this hole at 93.2m and 110.9m. This weaker mineralisation seems likely due to inherent grade variability that is often present in coarse and nuggety gold systems. An RC twin hole has been planned for section 2a to test for grade variability.

The mineralisation is contained within a 500m greater than 109 ppb core of a 3 kilometre long +18ppb gold in soil anomaly. Visible gold is seen in holes that have intercepted brittle ductile deformation of the diorite body. The strike extent of the diorite hosted mineralisation is at a minimum of 100m and has been potentially extended to the east in hole OERC0016. The mineralisation also remains open at vertical depths below 150m. Multiple zones of mineralisation have now been intercepted on sections 2 and 2a and width of the brittle ductile deformation envelope is up to 100m wide on section 2a and 50m wide on section 2.

The company has now completed a further 13 RC holes at Empire and plans to continue drilling through the Christmas period. Results are expected from mid-January into February.

Link to figures: http://www.awaleresources.com/_resources/maps/Mineralization-Extends-as-Drilling-Continues-at-the-Empire-Discovery-Figures.pdf

Company CEO Glen Parsons commented today:

"An excellent way to end the 2019 year; where we are extremely pleased to see strong mineralisation extending at depth and along strike from our initial 2 discovery holes at Empire. Hole DD3 has confirmed strong mineralisation with visible gold at least 80m down dip. Holes DD9 and DD10 have confirmed continuity of this visible gold mineralisation 100m along strike to the east. As further drilling continues the team is tracking mineralisation which remains open at depth and along strike.

Results flow will continue through January and early February for Empire as well as Vakaba just to the north of Empire.

I look forward to keeping the market updated of progress on the extensions as results come to hand in the New Year."

Table 1: List of Significant intercepts for the Empire Prospect

Technical Background
Empire is a high priority prospect that was systematically explored by Awalé, resulting in a coincident geology, gold/arsenic geochemistry, and an IP geophysics anomaly. The high order soil anomalism coincides with a mapped mylonite-bearing structure that has been intruded by a later diorite body. The resistive chargeable anomaly was interpreted to indicate coincident silicification and sulfidation of the diorite and conforms with both the soil anomalism and the mapped structure (Rock chips from quartz veins on the prospect have returned up to 65 g/t Au* and a channel sample in altered wall rock has returned 8m at 0.7 g/t Au including 2m at 3.17g/t Au and 2m at 1.57 g/t Au).

The soil sampling completed by the company forms a 3km long 18ppb anomaly which includes a 500m long 109 ppb core, artisanal mining activity commenced some months after the completion and reporting of the of the soil program. The pit opened by these artisanal workers does not cover the best soil anomalism nor the best resistive chargeable IP anomaly. This demonstrates the potential for southern extensions of mineralisation in the current drill program. These extensions will be tested with RC drilling in the current program.

The current drilling program has confirmed the mineralisation model developed by the company where gold is hosted in a brittle ductile orogenic shear zone setting at the margin of the diorite intrusion. Further to this, porphyritic dykes have been intersected in the footwall of the mineralisation. The 5 reported drill holes that have intercepted diorite have exhibited brittle ductile deformation and are mineralized; all these holes have intercepted free gold with the first 2 holes returning high grade intercepts. Early Potassic alteration is overprinted by calcsilicate mineralogy, a third later phase of silica-sulfide alteration is associated with free gold and tellurides. The sulfide mineralogy is dominated by pyrite with subordinate chalcopyrite and galena. Disseminated mineralisation is present, but at low tenor in these initial holes (0.2 to 0.5 g/t Au) within the brittle ductile zone.

OEDD0009 and OEDD0010 on drill line 2a have intercepted a thick (100m wide) zone of brittle ductile deformation 100 metres along strike from the discovery section. Further to this the 40m extension to OEDD0003 has also intercepted visible gold within brittle ductile deformation extending mineralization to a vertical depth of 150m. The hole ends in altered and foliated diorite, leaving mineralisation open down dip, the dips on the foliation and deformation in this hole are in a similar direction to the core axis and the hole was ended with a plan to drill a deeper hole in the optimal 020N direction.

Grade variability is evident from results received vs observed geology and visible gold presence, figure 8 shows a photo of a strong deformation zone in holes OEDD0010 and OEDD0001 for comparison. The brittle ductile zones in each photo are close to identical and are defined by strain vein intensity & silica-biotite alteration with pyrite +/- chalcopyrite. However, this zone in OEDD0010 returned 5.9m at 0.25 g/t Au and the other returned 10.4m at 7.9 g/t Au.

Further to the mineralisation extensions described above recent RC drilling (results pending) has intercepted diorite a further 100m along strike from that intercepted on section 2A (OEDD0009 and 0010) but is offset by approximately 50m to the south. At present a fault is postulated to cause this offset (figure 7).

Veins hosting the gold are polyphase or extension only, polyphase veins are shear veins with highly strained margins that have failed and extended with silica-sulfide infill. It is thought the extension veins are the main source of the observed free gold

Note on Screen Fire Assays
Assays above 1 g/t Au are now routinely assayed by the Company using the Screen Fire Assay analytical technique (see description below). Where a Screen fire Assay has been completed these results supersede Fire Assay results for reported intercepts.

Note on Grade Variability
Quarter NQ core duplicate samples taken within mineralized zones have returned variable results, this is viewed as an example of the grade variability within the mineralisation. For reporting purposes screen fire assays have been used rather than the fire assay results.

Quality Control and Assurance

Analytical work for drillcore and RC percussion samples is being carried out at the independent Intertek Laboratories Ghana Ltd. an ISO 17025 Certified Laboratory. Samples are stored at the company's field camps and put into sealed bags; they are stored securely until collected by Intertek for transportation to Ghana. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70%, passing a 2 mm screen. A split of up to 1,000 g is taken and pulverized to better than 85%, passing a 75-micron screen, and a 50-gram split is analysed by Fire Assay with an AAS finish. Blanks, duplicates and certified reference material (standards) are being used to monitor laboratory performance during the analysis. Due to the presence of free gold the lab was requested to run a quartz wash between each sample during preparation. Samples that have returned more than 1g/t Au have been Screen Fire Assayed.

Screen Fire Assay involves screening a nominal 1kg sample and firing the entire coarse fraction, including the screen cloth. Duplicate assays are carried out on the undersize fraction which is more reproducible due to the smaller gold particle sizes. The total gold content is calculated as a weighted mean of the measured grades of the two screen fractions.

ON BEHALF OF THE BOARD

AWALE RESOURCES LIMITED.

"Glen Parsons"

Glen Parsons, President and CEO

Qualified Person
The technical and scientific information contained in this news release has been reviewed and approved for release by Andrew Chubb, the Company's Qualified Person as defined by National Instrument 43-101. Mr Chubb is the Company's Chief Operating Officer and holds an Economic Geology degree, is a Member of the Australian Institute of Geoscientists (AIG), and is a Member of the Society of Economic Geologists (SEG). Mr Chubb has 18 years of experience in international minerals exploration and mining project evaluation.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward-looking information except as required by applicable law.

Cautionary Statement

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SOURCE Awale Resources