Advance Gold Corp. (TSXV: AAX) ("Advance Gold" or "the Company") is pleased to announce drilling results from its phase 3 drilling program at the 100% owned Tabasquena project in Zacatecas, Mexico. This 1093m diamond drilling program included 2 deep holes targeting the western extension of a cluster of epithermal veins and one shallow hole to test the potential of the veins in the near surface oxide zone.
The 180m shallow hole targeted the oxide zone of the vein system and returned a 17.65 metre intersection with gold and silver mineralization throughout. Highlight interval included 4.72m with 0.15 g/t gold and 73 g/t silver. The best gold interval was 1.05m of 0.58 g/t gold and 31 g/t silver.
The oxide zone was hit at approximately 75 metres of depth, it is 125m north along strike of the nearest historical mining. More drilling will be needed to determine if this is a strike extension of the historical mining by Penoles of the main Tabasquena vein, or one of the other veins in the cluster. The two deep holes did not intersect the targeted depth extension of the cluster of epithermal veins discovered in Phase 1 and 2 drilling. It is possible that the veins are more vertically dipping than the company had thought.
Allan Barry Laboucan, President and CEO of Advance Gold Corp. commented: “We have completed 3 drilling programs for a total of 10 drill holes, 9 focused on drilling below the oxide zone and one targeted to hit the oxide zone at approximately the same depth as the historical mining by former operator Penoles. In this third phase of drilling, our goal was to test the depth extension of the cluster of epithermal veins hit in our earlier drilling. Based on this drill program, we no longer believe the fault is the mineral source, and that we need to re-evaluate the dip direction of the veins we hit in earlier drilling. We have yet to drill into the boiling zone of the cluster of epithermal veins. After our first shallow hole hit a 17.65 metre vein intersection, at approximately the same depth level as Penoles had mined in the past, we were comfortable we had a good intersection to help us understand the oxide zone better. Our findings suggest that either the Tabasquena vein gets significantly wider in the oxide zone as we move north, or that we hit another vein in the cluster, possibly in the oxide zone. We have more drilling to do in order to test the boiling zone of the cluster of epithermal veins, and to test the oxide zone more thoroughly to determine near surface mining potential at the Tabasquena project.”
Details of Phase 3 Drilling
Phase 3 drilling included the first hole that was focused on testing the oxide potential of the epithermal vein system. Hole AGT-09 was targeted to test down to the depth where historical mining intersected the oxides 125 metres away north of the strike of the known vein. More drilling will be required to determine if this is a strike extension of the Tabasquena vein that Penoles mined, or another vein in the cluster.
Deeper drilling in Phase 3 opened up the potential that the veins could be dipping more vertically. The two deep drill holes in Phase 3 (AGT-08 and AGT-10) were drilled from west to east. The targeted vein cluster was not intersected from these western step-outs. Importantly, drilling in phase 3 went through the fault, and back into the andesites which strongly suggests that the fault is not the plumbing system for the cluster of veins.
AGT-09 Hole location details:
Bearing: N 40° E; Dip: -45°; Total Depth: 188.20m. Coordinates: N 2´497,500 E 785,940
Collar elevation: 2,123.00mosl.
AGT-08 Hole location details:
Bearing: N 40° E; Dip: -80°; Total Depth: 555.15m. Coordinates: N 2´497,195
Collar elevation: 2,112.00mosl.
This hole had 28 core samples taken, they have been submitted to the laboratory for assaying, results are pending.
AGT-10 Hole location details:
Bearing: N 40° E; Dip: -85°; Total Depth: 351.60m. Coordinates: N 2´497,382
Collar elevation: 2,117.00mosl.
This hole had 2 core samples taken, they have been submitted to the laboratory for assaying, results are pending.
Note: All vein widths cut by drills holes are not true widths, they represent the intersection of the incline hole with the dip of the vein. Advance is in the process of estimating true widths for all the vein intersections.
Drill core is logged and sampled in a secure core storage facility located near the Tabasquena claims by Ojocaliente, Mexico. Core samples from the program are cut in half, using a diamond cutting saw, and were sent to Laboratorio Metalurgico Courtade S.A de C.V. in San Luis Potosi, Mexico, for sample preparation and fire assaying for gold and silver. Although, Laboratorio Metalurgico Courtade is not an accredited mineral analysis laboratory, they are a well-respected mineral analysis laboratory with a long history of working for major mining companies in Mexico, as well as a referee laboratory for grade disputes between small scale local miners and the toll mining companies they work with. All samples are analysed for gold and silver using standard fire assay-AA (atomic absorption) techniques. The Company relies on Laboratorio Metalurgico Courtade for QA/QC procedures and protocols for the assaying process.
Dr. Julio Pinto Linares is the qualified person for the Tabasquena project, since June 2018 when drilling began and throughout phase 3. Supervising drilling in the field for drill holes one through ten. He examined and reviewed core boxes in the field, supervised moving core boxes to the secure core storage facility located near the Tabasqueña mine and was present during logging and sampling of the core and kept control of all sample bags until delivered to the Laboratorio Metalurgico Courtade. He checked and was present during the QA/QC procedures and protocols during the preparation of the samples.
Julio Pinto Linares is a QP, Doctor in Geological Sciences with specialty in Economic Geology and Qualified Professional No. 01365 by MMSA., for Advance Gold and is the qualified person as defined by National Instrument 43-101 responsible for the accuracy of technical information contained in this news release.
Follow Up Drilling Plans for Oxide Zone and Depth Potential of Vein Cluster
The next drilling to explore for the boiling zone of the cluster of veins hit in phase 1 and 2, but, missed in phase 3, will focus on the down dip and the eastern strike potential. Early interpretation of the vein system showed the system dipping to the west, with most of the holes drilling to the east, to hit the veins perpendicular to the dip.
The cluster of epithermal veins below the oxide zone has been intersected for approximately 150 metres from east to west and approximately 250 metres from north to south. In the next planned program drilling will focus on intersecting the boiling point of the system and will be focused on testing the variation of grade from surface to 100 metres depth, which is considered the base of the oxide zone. Also, other oxide targets have been delineated on the property which will be drilled in a subsequent program.
Advance Gold is pleased to announce the addition of William Atkinson, CPA, CA to the board of directors as an independent director. William Atkinson is a partner of Atkinson & Company, CPA and has extensive governance, financial reporting and auditing experience. He is an important addition to the board of directors that enhances the board with his accounting experience working with publicly reporting companies.
Advance Gold Corp. will grant 1.9 million stock options to its directors, key employees and consultants entitling them to purchase shares over a five year term expiring May 1, 2024 at an exercise price of $0.12 per share. Pursuant to the company’s stock option plan, it will be a term of each stock option agreement that a mandatory hold period will be imposed upon the sale or disposition of any shares acquired for four months from the date of the grant of the stock options.
About Advance Gold Corp. (AAX.V)
Advance Gold is a TSX-V listed junior exploration company focused on acquiring and exploring mineral properties containing precious metals. The Company acquired a 100% interest in the Tabasquena Silver Mine in Zacatecas, Mexico in 2017, and the Venaditas project, also in Zacatecas state, in April, 2018.
The Tabasquena project is located near the Milagros silver mine near the city of Ojocaliente, Mexico. Benefits at Tabasquena include road access to the claims, power to the claims, a 100-metre underground shaft and underground workings, plus it is a fully permitted mine.
Venaditas is well located adjacent to Teck's San Nicholas mine, a VMS deposit, and it is approximately 11km to the east of the Tabasquena project, along a paved road.
In addition, Advance Gold holds a 14.63% interest on strategic claims in the Liranda Corridor in Kenya, East Africa. The remaining 85.37% of the Kakamega project is held by Acacia Mining (63% owned by Barrick Gold Corporation).
For further information, please contact:
Allan Barry Laboucan,
President and CEO
Phone: (604) 505-4753
Corporate website: www.advancegold.ca
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change, except as required by law.