Gold Zone Field Program Planned in Preparation For Drilling, Granby Zone Extended 80 metres by drilling, Diamond Drill Hole 45 Indicates Nearby Mineralized Intrusion
August 26, 2020 – Sego Resources Inc. (“Sego” or “the Company”) reports that four diamond drill holes that total 1213 m were completed in June and July, testing targets in the Granby-Cuba area (diamond drill hole MM-20-42), Empress Zone (43 – 44), and the Upper Regal (45). Assay results were received in August.
Hole 42, collared in the Granby-Cuba areas intersected variable microdiorite, volcaniclastics, and lesser monzonite to penetrate a major fault zone at 438 m (meters) where it encountered unmineralized steeply dipping hematitic volcaniclastics to the end of the hole at 664 m. Assay results indicate two intervals, one of 20.88 m and the other of 24.51 m in hole 42 that average 0.15% Cu and between 0.043 to 0.205 gpt (grams per tonne) Au (gold). These intervals are likely related to the Granby mineralized system located 80 m to the east and are associated with fine-grained disseminated chalcopyrite, chlorite and K-feldspar alteration. The anticipated Cuba mineralization was not intersected in the deeper portion of the drill hole and post-mineral faults have offset the mineralization, from the north, of uncertain distance. Structural history of Miner Mountain is complex and further interpretation of the recent drill results are required to facilitate future deep drilling.
Hole 45 was drilled below percussion drill hole 109 which intersected 0.33% Cu and 0.16 g/t Au over 26 m in the Upper Regal zone. Results of 0.16% and 0.40% Cu and 0.054 and 0.421 g/t Au were recorded in hole 45 over two intervals of 7.55 and 2.85 m, respectively. The higher grade values are associated with fault breccia fragments of mineralized monzonite in the lower intersection indicating a nearby mineralized intrusion. Future drilling of this target is planned.
Holes 43 (ended at ~310 m) and 44 (91 m) were targeted on results of percussion hole 136 that returned 0.23% Cu and 0.10 g/t Au over a 56 m interval as well as trench results of 0.63% Cu and 0.30 g/t Au over a 13 m length in the Empress Zone. These holes did not intersect significant results, although sporadic 0.1% Cu values were noted at various depths. The near surface mineralization occurs in a slump block, the source of which has not been located, and does not extend to depth.
The South Gold zone was considerably upgraded early in the 2020 season (News Release, July 7, 2020) that includes 0.65 g/t gold over continuous 62 m, which includes 30 m of 1.02 g/t gold, and 0.31 g/t gold over 40 m in 2 trenches. The gold mineralization is disseminated in diorite or microdiorite intrusions associated with pervasive chlorite, sericite, calcite or iron oxide alteration. The South Gold zone measures 150 to 200 m and is open to the northeast and southwest.
Drill core and rock samples were shipped to MSALABS in Langley, BC 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.
A work program in September will involve mapping, channel sampling and trenching on the margins of the South Zone Gold zone to fine tune a late fall drill program.
There is no material change about the issuer that has not been generally disclosed.
This news release was reviewed and approved by Selina Tribe, Ph.D., P.Geo., a Qualified Person under NI 43-101.
Sego is 100% owner of the Miner Mountain project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056 hectares in size and is located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation 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.
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J. Paul Stevenson, CEO (604) 682-2933
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This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.