Golden Sky Minerals Completes Phase 1 Exploration Program at Bull’s Eye, Mobilizes to Hotspot

VANCOUVER, July 20, 2020 - Golden Sky Minerals Corp. (AUEN.V) is pleased to announce the completion of a surface exploration program at its Bull’s Eye property in the Yukon’s White Gold District.

The Bull’s Eye property is located 50 km south of Newmont’s Coffee Gold deposit in a previously unrecognized gold sub-district. The Bull’s Eye property is adjacent to K2 Gold Corp.’s Wels Gold project which has yielded notable drill intercepts including 2.37 g/t Au over 28.5m and 0.76 g/t Au over 97.5m.

The Phase 1 program involved the collection of 560 soil samples, 50 prospecting rock grab samples, and the completion of a 134 metre-long trench. The majority of exploration, including trenching, was focused on the Gold Crest zone; an open-ended 200x250m geochemical anomaly, with soil samples from a previous program assaying up to 0.22 g/t gold (Au) and prospecting grab samples assaying up to 0.25 g/t Au (see Figure 1).

Visual inspection from trenching within the soil geochemical anomaly indicates widespread quartz stockwork development, silicification, sericite alteration, and pyrite mineralization. Reconnaissance soil sampling and prospecting were also completed on previously unexplored areas of the property.

Due to favourable visual results, 30 additional claims were staked, increasing the total property area to 142 claims (2,968 ha).

Mobilization to Hotspot

Golden Sky Minerals is also pleased to announce the mobilization of an exploration team to its Hotspot property located on the Yukon-Alaska border. This Phase 1 program will involve soil sampling to expand the Sure Bet zone, and preparation for a Phase 2 inaugural drill program to be conducted in September, 2020. The Hotspot property is located 25km southeast of the Taurus copper-molybdenum-gold (Cu-Mo-Au) porphyry deposit (located in Alaska) which has an inferred resource of 68.3 million tonnes grading 0.275% Cu, 0.032% Mo, and 0.166 g/t Au.

Situated along the Big Creek Fault, the Hotspot property hosts a 1.7-kilometer-long mineralized structure with gold-in-soil values up to 4.1 g/t Au and a pathfinder signature indicative of a low-sulphidation epithermal system. A short trenching program in 2018 returned values of 0.42 g/t Au over 44m (see September 10, 2018 news release).

Figure 1: Gold-in-soil values at the Gold Crest zone
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Message from John Newell, President and CEO:

“Although assays will tell the true story, I am excited by the team’s report of favourable visual results from the trenching program. With the addition of new soils, we hope to expand the footprint of the Gold Crest zone, and hopefully define new exploration targets on the property.”

Other

Carl Schulze, P. Geo., Consulting Geologist with Aurora Geosciences Ltd, is a qualified person as defined by National Instrument 43-101, for Golden Sky's Yukon exploration projects, and has reviewed and approved the technical information in this release.

ON BEHALF OF THE BOARD
John Newell, President and Chief Executive Officer

For new information from the Company's programs, please visit Golden Sky's website at www.GoldenSkyMinerals.com or contact John Newell by telephone (604) 568-8807 or by email at info@goldenskyminerals.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. Although Golden Sky has attempted to identify important factors and risks that could affect Golden Sky and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended, including, without limitation: inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with Golden Sky’s expectations; accidents, equipment breakdowns, title and permitting matters; labour disputes or other unanticipated difficulties with or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on its projects; that Golden Sky may not be able to confirm historical exploration results and other risks set forth in Golden Sky's public filings at www.sedar.com. In making the forward-looking statements in this news release, Golden Sky has applied several material assumptions, including the assumption that general business and economic conditions will not change in a materially adverse manner. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Golden Sky does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.