Gold79 Commences Drilling with Improved Understanding from Geophysical Interpretation at Its Gold Chain Project
Ottawa, January 12, 2023 - Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) ("Gold79" or the "Company") is pleased to announce the completion and analysis of an airborne magnetic and radiometric survey over its Gold Chain project located in Mohave Co., NW Arizona. The survey was conducted in March, 2022 by GoldSpot Discoveries Corp. over the entire Gold Chain block. Additionally, the Company is pleased to announce that it has commenced the planned 1,100m drill program at Gold Chain.
Derek Macpherson, President & CEO stated, "The results of this geophysical survey, coupled with ongoing mapping and sampling work, leads us to believe we have the potential to uncover a larger gold system at Gold Chain. We are excited to be embarking on this Phase 2 drill program that includes Gold79's first drilling at the Sheep Trail patents. Recent work at Sheep Trail has returned more than 15 samples with plus 10 g/t gold while this area has never been systematically explored."
Figure 1. Generalized geologic map of the Gold Chain project mine and prospect locations. Highlighted are the Katherine Horst Summary showing the bounding NW-trending Roadside Mine and Frisco Mine faults. Gold-bearing veins (red), major felsic dikes (violet) and argillic alteration (orange stipple) are also shown.
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Summary of Geophysical Results
In low-sulphidation epithermal systems, such as the one at Gold Chain and within the Oatman District, areas of magnetic destruction ('quiet' zones or magnetic lows) and potassium enrichment may reflect the location and aerial extent of hydrothermal alteration and associated gold mineralization. The high-resolution aeromagnetic and radiometric data have been used to identify three magnetic quiet zones: two of these clearly correspond, over about 7 kilometres of strike, with gold-bearing zones associated with Miocene felsic dikes and structures. The distribution of gold values from surface samples, along with the survey results, is shown in Figure 2 & 3.
Figure 2. Outline of the Gold Chain project showing gold-in-rock results for surface samples.
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Figure 3. RMI/RTP map reveals zones of very low magnetic gradient (dashed black line) and surrounding gold prospects; corresponding geology is shown in Figure 1 and gold-in-rock values in Figure 2. Magnetic lows or 'quiet zones' correspond to felsic intrusive rocks and/or hydrothermal alteration. Figure 4 is a section cut across the 3D Susceptibility Model providing additional geologic context based upon surface mapping.
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A third magnetic low closely coincides with the Frisco Graben (Figure 1) which is an emerging target defined by a structurally controlled flow dome complex formed along the margin of a NW-trending, elongate graben. Its proximity to the Tyro vein system and intense argillic alteration provides vectors for shallow (<100m) targets.
The most significant potassium anomaly identified in the radiometric survey closely coincides with the extensive gold mineralization identified in the 'Golden Elbow' composed of the Banner, Sheep Trail and Boulevard mines. Previous drilling returned 3.1m at 10.68 g/t gold from Banner and the Sheep Trail and Boulevard mines are being drill tested by the Company for the first time in the current drill campaign.
Based on the results of the geophysical and radiometric survey's Gold79, has added 18 claims on the southwest portion of the Gold Chain project.
Robert Johansing, Vice President, Exploration stated, "Our interpretation of the airborne magnetic and radiometric survey, along with the mapping and sampling Gold79 has completed over the last two years, suggests a potentially large-scale, low-sulphidation epithermal gold system hosted by several geologic settings." Mr. Johansing continued, "The Phase 2 program is designed to test the near surface portion of this much broader target. The close coincidence between gold mineralization, hydrothermal alteration, potassium enrichment of the felsic rocks and the magnetic 'quiet' zone support this as a deserving target for our current exploration drilling."
Phase 2 Drilling Program Underway
Gold79 Mines is pleased to announce that it has commenced Reverse Circulation (RC) drilling at the Tyro, Sheep Trail and Boulevard mines. A total of 1,100 metres is anticipated with hole depths of less than 150 metres.
The Sheep Trail claim block was purchased by Gold79 in January of 2022 (see Gold79 Press Release from January, 13, 2022) and has now been mapped and partially sampled revealing a structural corridor over the length of the claim block (~1.5km) hosting veins and stockwork zones with elevated gold values (see Gold79 Press Release from June 8, 2022) including 7.0m of 5.06 g/t gold and 3.7m of 19.52 g/t gold from surface outcrops.
Drilling across the Tyro vein system will focus on a broad zone (up to 60m) of quartz veinlets and hydrothermal breccia at the south end of the vein system. Previous work, including drilling in 2021 across the north end, returned 21.3 metres at 2.0 g/t Au (see Gold79 Press Release from October 25, 2021) and sampling of the Tyro mine 200L revealed 25.4 metres at 2.53 g/t Au (see Gold79 Press Release from April 28, 2022). Current drilling at Tyro is designed to provide Gold79 insight into the continuity of gold values along this greater than 1km vein corridor.
All holes are designed to offset surface gold mineralization between 0 to 100 metres below the surface.
Results of Geophysical Survey
The high-resolution aeromagnetic and radiometric data have been used to map regional/district-wide structure and identify the structural controls of hydrothermal alteration and mineralization. This survey has delineated zones of magnetic destruction that reflect the location and aerial extent of hydrothermal alteration and thus fossil geothermal systems.
The Gold Chain project lies within a classic adularia-sericite epithermal gold province best characterized by the historical Oatman district several kilometres to the south. These gold deposits consist predominantly of quartz-adularia-calcite veins hosted in Miocene volcanic rocks (Oatman district), in Precambrian granite (Tyro and Katherine mines) or along and within Miocene felsic dikes emplaced into the Precambrian granite (Banner, Sheep Trail and Boulevard mines; Figure 1). These deposits are characterized by alteration haloes of local, high level silicification and pervasive clay alteration, potassium metasomatism, magnetite destruction, and sulfide mineralization (pyrite) over several square kilometres of aerial extent.
The RMI/RTP image, Figure 3, reveals at least 3 elongate 'lows' or magnetic quiet zones in areas of known hydrothermal alteration and/or gold mineralization predominantly within or along felsic dikes emplaced into the Precambrian granite or along the margin of the Frisco Graben where felsic flow domes have emanated from deep seated structures. Magnetic highs correspond to weakly propylitized Precambrian granite (Figures 3 and 4).
Figure 4. Section 7000 (see Figure 3) cut from the 3D Susceptibility Model providing subsurface interpretation based upon field mapping.
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Potassium content of the surface rocks is of particular interest owing to: (i) potassium contained in white micas, i.e. illite and/or sericite, within alteration haloes related to gold mineralization, and (ii) potassium in adularia which is closely associated with the gold-bearing quartz veins.
Figure 5. Potassium (K) distribution over the Gold Chain project revealing a pronounced K anomaly over the Banner and Sheep Trail mines (Golden Elbow) and corresponding to a broad zone of strong quartz-illite-pyrite alteration enveloping high-level quartz-adularia veining.
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Interpretation of Geophysical Survey
The aeromagnetic and radiometric results presented here provide outstanding insight into the upper levels of a classic epithermal district. The aeromagnetic data reveal at least three well defined magnetic quiet zones which correlate with known gold mineralization, hydrothermal alteration and/or structural corridors.
Areas of high magnetic intensity correlate with unaltered to weakly propylitized Precambrian granite. Magnetic quiet zones in the Precambrian correlate to strong propylitic alteration characterized by strong chlorite development, magnetite destruction and/or strong iron oxides formed by the oxidation of pyrite (via replacement of magnetite and ferromagnesian minerals).
The radiometric survey (Figure 5) over the Gold Chain project was particularly useful in defining areas of potassium enrichment related to low-sulfidation gold mineralization. A pronounced anomaly of potassium enrichment is observed over the Banner, Sheep Trail and Boulevard mines which encompass the Golden Elbow area. The identification of widespread gold-bearing veins, veinlets and breccia along with strong quartz-illite-pyrite alteration in the felsic dikes support this pronounced anomaly.
Conversely, pronounced K depletion, i.e., Frisco Graben (Figure 1), corresponds with argillic alteration in flow dome related sub-volcanic intrusive, pyroclastic and epiclastic rocks deposited into or along this graben environment.
Survey
Gold79 contracted GoldSpot Discoveries Corp. to perform a heli-borne survey over the Gold Chain project during the period of March 20-25, 2022. The total coverage of the survey block was 1,372 line-kilometres, with traverses oriented NE-SW with 75m traverse spacings. The project consisted of triaxial gradiomagnetics, VLF-EM, radiometrics, and LiDAR survey (Multi-Parameter Airborne Survey System or M-PASS) that consisted of three GSMP-35U high sensitivity potassium vapour magnetic sensors along with the GEM EM-VLF mounted on a towed-bird platform (GEM system) with a 30m cable. A Medusa 4L cesium iodide crystal radiometric system was installed in the helicopter. Global Positioning System (GPS) and the radar altimeter were mounted directly on the bird.
Qualified Person / Quality Control and Quality Assurance
Robert Johansing, M.Sc. Econ. Geol., P. Geo., the Company's Vice President, Exploration is a qualified person ("QP") as defined by NI 43-101 and has reviewed and approved the technical content of this press release.
About Gold79 Mines Ltd.
Gold79 Mines Ltd. is a TSX Venture listed company focused on building ounces in the Southwest USA. Gold79 holds 100% earn-in option to purchase agreements on three gold projects: the Jefferson Canyon Gold Project and the Tip Top Gold Project both located in Nevada, USA, and, the Gold Chain Project located in Arizona, USA. In addition, Gold79 holds a 36.6% interest in the Greyhound Project, Nunavut, Canada under JV by Agnico Eagle Mines Ltd..
For further information regarding this press release contact:
Derek Macpherson, President & CEO
Phone: 416-294-6713
Email: dm@gold79mines.com
Website: www.gold79mines.com.
Book a 30-minute meeting with our CEO here.
FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including any future private placement financing, the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, plans and references to the Company's future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com. Gold79 does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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.
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