Golden Tag Resources Ltd. (“
Golden Tag” or the
"
Company") (TSX.V: GOG) (OTCQB: GTAGF) is pleased
to provide a project update, inclusive of the first three diamond
drill holes from the ongoing 4,500 metre (m) exploration program,
on the Company’s 100% owned San Diego Project, one of the largest
undeveloped silver projects in Mexico.
Key highlights include:
- The current drill campaign
has successfully expanded the Fernandez Zone up-dip vertically 40 m
toward surface and 20 m to the south. Hole 21-53 intersected 50.17
m grading 104.64 g/t Ag.Eq (from 434.66 m to 484.83
m). The Fernandez Zone remains open above
hole 21-53.
- Hole 20-51 encountered
127.3 m of skarn / Fernandez style mineralization within two zones
located close to surface, intersecting 35.46 m grading 52.50 g/t
Ag.Eq (from 93.20 m to 128.66 m downhole), and 91.84 m grading
49.48 g/t Ag.Eq downhole (from 202.66 m to 294.50 m). These zones
are located 365 m above the top of the current Fernandez Zone
resource envelope.
- Historical hole 07-24
intersected 50.15 m grading 49.56 g/t Ag.Eq (from 19.80 m to 69.95
m) has been interpreted to be the extension of the Fernandez skarn
mineralization encountered in hole 20-51 (collared 5 m to the east
of 20-51, drilled 65 m up-dip to the north).
- These broad zones of near
surface silver mineralization have been further tested through
holes 21-57 and 21-58, with the objective of potentially developing
a new zone above the top of the current Fernandez Zone
resource.
Greg McKenzie, President and CEO commented: "The
first phase of our exploration program has been successful in two
meaningful ways. First, expanding the Fernandez Zone mineralized
envelope 40 m higher, and 20 m to the south will likely have a
positive impact on future resource calculations. The top of the
Fernandez Zone remains open, and with the encouraging results from
hole 20-51 we followed up with hole 21-58, which was drilled from a
different setup. Secondly, the discovery of near surface broad
silver mineralization points to the potential for much shallower
open pit style mineralization that could be significant catalyst
for the San Diego Project. Combined, these results exceeded our
expectations and have reinvigorated our excitement in this already
substantial silver resource. We look forward to reporting the
assays from the remaining five holes in this drill program, and
fine tuning our future exploration plans.”
Exploration Program Update
A total of 4,510 m of diamond drilling has been
completed in eight holes, including five holes targeting the
Trovador & MS Zones (21-52A, 21-53, 21-54, 21-55, 21-56A), two
holes targeting the upward extension of the Fernandez Zone
(20-51,21-58), and one hole testing the 1849 Zone (21-57) (see
Figure 2). The drilling was conducted with oriented core so that
the spatial orientation of the mineralization could be determined.
Over 3,200 samples have been sent to ALS Geochemistry for analysis,
inclusive of 852 samples from infill sampling of holes 11-40 &
11-42 as reported in the Company’s news release dated February 17,
2021. Assay results reported in this news release are from holes
20-51, 21-52A, and 21-53. Holes 21-54 and 21-55 have been logged
and samples have been sent in for analysis with assay results
pending. Holes 21-56A, 21-57 and 21-58 are in the process of being
logged and sampled.
Fernandez Zone Up-Dip
Extension
The Fernandez Zone remains an important aspect
of the San Diego Project. As outlined in the NI 43-101 Technical
Report Mineral Resource Estimate, prepared by SGS Canada Inc.
effective April 2013, the Fernandez Zone contains 24.1 million
ounces of Ag within the indicated category and 42.4 million ounces
of Ag of inferred within a resource envelope that commences 450 m
below surface (“surface” established as 1650 m Level) extending
down-dip over a vertical depth of 700 m. The
current drill campaign has successfully expanded the Fernandez Zone
up-dip by 40 m and 20 m to the south, as well as identified new
broad zones of silver mineralization located close to
surface.
Hole 20-51
This hole was drilled at a steep angle directly
over the top of the Fernandez Zone to test the potential upward
extension (see Figure 1). Highlighted intercepts are
included in Table 1 and demonstrate mineralization from Fernandez
extends toward surface. Hole 51 intercepted two separate
zones with a combined 127.3 m of mineralization at grades that
could potentially exceed the estimated Ag.Eq cutoff grade for open
pit mining (25 g/t Ag.Eq).
It is important to recognize previous
exploration campaigns on the San Diego Project were focused on
high-grade narrow veins and did not evaluate the potential for open
pit style of mineralization. Upon review of the prior drill sample
database, it was observed that historical hole
07-24 was collared 5 m to the east, drilled 65 m up-dip to
the north, intersected 50.15 m @ 49.56 g/t Ag.Eq
(from 19.80 m to 69.95 m; 0.05 g/t Au, 33.69 g/t Ag, 0.12% Pb,
0.12% Zn, 0.01 % Cu) which has now been interpreted to be
the extension of the Fernandez skarn mineralization encountered in
hole 20-51 (from 93.20 m to 128.66 m). As a
result of these findings, further follow-up drilling and evaluation
of the southern and eastern diorite contact will be
pursued.
Table 1 – Select Assay
Intervals from Hole 20-51
Zone |
Hole |
From |
To |
Length(m) |
Ag.Eq(1) g/t |
Aug/t |
Ag g/t |
Pb% |
Zn% |
Cu % |
New |
21-51 |
26.63 |
28.57 |
1.94 |
83.00 |
0.05 |
66.89 |
0.17 |
0.10 |
0.01 |
Fernandez Extension |
21-51 |
93.20 |
128.66 |
35.46 |
52.50 |
0.06 |
30.27 |
0.14 |
0.24 |
0.01 |
Fernandez Extension |
21-51 |
202.66 |
294.50 |
91.84 |
49.48 |
0.07 |
15.46 |
0.31 |
0.34 |
0.01 |
|
includes |
213.25 |
228.80 |
15.55 |
76.15 |
0.10 |
22.30 |
0.45 |
0.60 |
0.02 |
|
includes |
256.25 |
280.85 |
24.60 |
93.17 |
0.13 |
29.32 |
0.62 |
0.63 |
0.02 |
|
includes |
256.25 |
263.27 |
7.02 |
178.96 |
0.04 |
69.26 |
1.67 |
1.01 |
0.01 |
New |
21-51 |
312.92 |
314.07 |
1.15 |
119.50 |
0.08 |
78.53 |
0.40 |
0.39 |
0.02 |
Elements of the Fernandez Zone skarn system were
successfully intersected at 93 m (approximately 85 m vertical depth
from surface, or 365 m above the previously interpreted top of the
Fernandez Zone), returning 35.46 m grading 52.50 g/t Ag.Eq (93.20 m
to 128.66 m) in a skarn zone spanning the contact between marble
and diorite. A second skarn zone was intersected at 203 m depth in
the hole (approximately 190 m vertical depth from surface, or 260 m
above the previously interpreted top of the Fernandez Zone)
returning 91.84 m grading 49.48 g/t Ag.Eq (202.66 m to 294.50 m) in
a skarn zone spanning the contact between diorite and marble. Two
zones of endoskarn were encountered within the diorite in this
interval: 15.55 m grading 76.15 g/t Ag.Eq (213.25 m to 228.80 m)
and 7.02 m grading 178.96 g/t Ag.Eq (256.25 m to 263.27 m). Massive
sulphide skarn mineralization was observed to the end of the hole
at a depth of 351 m. Unfortunately, due to caving at the top of the
hole, 20-51 was terminated at 351 m well before the planned depth
of 650 m.
Encouraged by the preliminary results from
20-51, the Company decided to undertake a new hole from a different
setup to intersect the planned target and hole 21-58 was completed
in March 2021 to a depth of 674 m.
Hole 21-52A
This hole was drilled to test the western side
of the Trovador Zone at approximately 225 m from surface and
approximately 120 m beneath the previous mine workings (see Figure
1). Three new quartz vein zones were encountered above the
Fernandez Zone and to the north of the Trovador Zone: 1.11 m
grading 165.43 g/t Ag.Eq (42.22 m to 43.33 m); 3.25 m grading
299.69 g/t Ag.Eq (154.95 m to 158.20 m) including 0.75 m @
1,160.95 g/t Ag.Eq; 0.50 m grading 332.57 g/t Ag.Eq
(160.60 m to 161.10 m). The hole entered the Trovador Structural
Zone (TSZ) at 284.70 m and intersected two Trovador Zone veins:
1.44 m grading 102.94 g/t Ag.Eq (286.16 m to 287.60 m) and 1.10 m
grading 373.76 g/t Ag.Eq (293.80 m to 294.90 m). Both intersections
in the Trovador Zone had higher than usual gold grades: 0.46 g/t Au
and 0.28 g/t Au. Unfortunately, from 286 m to the end
of the hole at 350 m, core recovery was only 86% within areas of
mineralization due to open spaces and possible oxide zone soil-like
material and it is possible that mineralized veins that typically
form part of the TSZ were not recovered, sampled, and
assayed.
Hole 21-53
Elements of the Fernandez Zone skarn system were
intersected at 298 m depth in the hole (approximately 275 m
vertical depth from surface or 175 m above the previously
interpreted top of the Fernandez Zone) to a depth of 559.5 m
(approximately 500 m vertical depth from surface) where the hole
crossed into the TSZ (see Figures 3 and 4). The TSZ is
distinguished by the development of an alteration zone of bleached
intensely silicified limestones and dark marble with fluid escape
structures with open-space filling quartz veins associated with
cataclastite and mylonite zones, whereas the Fernandez Zone is
distinguished by skarn alteration
(epidote-chlorite-pyroxene-magnetite-garnet) in diorite and
limestones which have been recrystallized to marble.
A total of 11 zones with quartz-sulphide and
stockwork veining with associated skarn alteration were intersected
from 298 m to 559.5 m. Two zones in particular stand out: 1) A zone
of exoskarn which returned 8.41 m grading 73.86 g/t Ag.Eq (349.07 m
to 357.48 m; approximately 330 m vertical depth from surface or 120
m above the interpreted top of the Fernandez Zone). 2) A zone of
exoskarn with quartz-sulphide stockwork veins, disseminated
sulphides and massive sulphide bands characteristic of the
Fernandez Zone returning 50.17 m grading 104.64 g/t
Ag.Eq (434.66 m to 484.83 m; approximately 400 m vertical
depth from surface). Hole 21-53 successfully
extends the Fernandez Zone approximately 40 m upwards
vertically toward the surface, and 20 m to the south of the
currently defined resource envelope.
Furthermore, there are another three zones of exoskarn
mineralization which lie between the Fernandez Zone envelope and
the Trovador Zone: 2.15 m grading 115.29 g/t Ag.Eq, and 4.48 m
grading 67.82 g/t Ag.Eq, 4.95 m grading 115.61 g/t Ag.Eq. The hole
then progressed into the TSZ intersecting three Trovador Zone
veins: 1.66 m grading 135.65 g/t Ag.Eq (563.00 m to 564.66 m), 0.90
m grading 330.44 g/t Ag.Eq (596.28 m to 597.18 m), 0.49 m grading
235.17 g/t Ag.Eq (600.40 m to 600.89 m). This was followed by two
veins intersected in the MS Zone: 1.80m grading 107.87 g/t Ag.Eq
(624.45 m to 626.25 m), 0.61 m grading 260.51 g/t Ag.Eq (629.77 m
to 630.38 m). Five new veins were discovered further to the south
of the MS Zone: 0.52 m grading 351.00 g/t Ag.Eq (639.53 m to 640.05
m), 1.63 m grading 184.39 g/t Ag.Eq (655.47 m to 657.10 m), 0.91 m
grading 158.01 g/t Ag.Eq (677.70 m to 678.61 m), 0.51 m grading
149.40 g/t Ag.Eq (762.86 m to 763.37 m), 0.48 m grading 147.03 g/t
Ag.Eq (768.83 m to 769.31 m). The TSZ veins generally contain
higher copper and gold grades than that seen in other zones on the
property.
Table 2 – Select Assay
Intervals from Holes 21-52 & 53
Zone |
Hole |
From |
To |
Length(m) |
Ag.Eq(1) g/t |
Aug/t |
Ag g/t |
Pb % |
Zn% |
Cu % |
New |
21-52A |
42.22 |
43.33 |
1.11 |
165.43 |
0.09 |
142.00 |
0.13 |
0.21 |
0.02 |
New |
21-52A |
154.95 |
158.20 |
3.25 |
299.69 |
0.02 |
237.02 |
0.41 |
0.82 |
0.08 |
|
includes |
154.95 |
155.70 |
0.75 |
1,160.95 |
0.03 |
953.20 |
1.41 |
2.64 |
0.30 |
New |
21-52A |
160.60 |
161.10 |
0.50 |
332.57 |
0.02 |
248.00 |
0.52 |
1.28 |
0.05 |
Trovador |
21-52A |
286.16 |
287.60 |
1.44 |
102.94 |
0.46 |
47.82 |
0.07 |
0.16 |
0.05 |
Trovador |
21-52A |
293.80 |
294.90 |
1.10 |
373.76 |
0.28 |
194.80 |
1.70 |
1.92 |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
New |
21-53 |
115.80 |
118.90 |
3.10 |
126.60 |
0.14 |
85.63 |
0.41 |
0.27 |
0.02 |
New |
21-53 |
127.86 |
130.55 |
2.69 |
390.85 |
0.05 |
354.91 |
0.30 |
0.41 |
0.02 |
New |
21-53 |
159.58 |
160.23 |
0.65 |
726.01 |
0.08 |
684.00 |
0.40 |
0.34 |
0.06 |
New |
21-53 |
182.90 |
183.50 |
0.60 |
209.27 |
0.05 |
162.00 |
0.68 |
0.37 |
0.02 |
New |
21-53 |
299.26 |
301.35 |
2.09 |
325.93 |
0.18 |
132.71 |
1.42 |
2.60 |
0.08 |
New |
21-53 |
305.45 |
306.85 |
1.40 |
131.40 |
0.06 |
42.64 |
0.91 |
1.05 |
0.03 |
New |
21-53 |
319.28 |
319.80 |
0.52 |
771.66 |
0.20 |
263.00 |
6.94 |
5.08 |
0.14 |
New |
21-53 |
342.20 |
342.70 |
0.50 |
212.38 |
0.02 |
71.20 |
1.53 |
1.68 |
0.08 |
New |
21-53 |
349.07 |
357.48 |
8.41 |
73.86 |
0.02 |
24.55 |
0.61 |
0.49 |
0.03 |
New |
21-53 |
364.90 |
365.89 |
0.99 |
122.14 |
0.07 |
26.30 |
0.77 |
1.25 |
0.05 |
New |
21-53 |
421.16 |
424.98 |
3.82 |
90.40 |
0.04 |
28.16 |
0.76 |
0.60 |
0.04 |
Fernandez Extension |
21-53 |
434.66 |
484.83 |
50.17 |
104.64 |
0.05 |
31.52 |
0.91 |
0.68 |
0.06 |
New |
21-53 |
495.47 |
497.62 |
2.15 |
115.29 |
0.02 |
36.72 |
0.86 |
0.93 |
0.04 |
New |
21-53 |
505.22 |
509.70 |
4.48 |
67.82 |
0.04 |
20.66 |
0.58 |
0.48 |
0.02 |
New |
21-53 |
528.46 |
533.41 |
4.95 |
115.61 |
0.08 |
40.29 |
0.97 |
0.65 |
0.04 |
Trovador |
21-53 |
563.00 |
564.66 |
1.66 |
135.65 |
0.93 |
17.66 |
0.49 |
0.40 |
0.03 |
Trovador |
21-53 |
596.28 |
597.18 |
0.90 |
330.44 |
0.06 |
119.20 |
1.69 |
2.92 |
0.10 |
Trovador |
21-53 |
600.40 |
600.89 |
0.49 |
235.17 |
0.03 |
125.00 |
0.63 |
1.62 |
0.10 |
MS |
21-53 |
624.45 |
626.25 |
1.80 |
107.87 |
0.06 |
30.50 |
0.62 |
0.99 |
0.04 |
MS |
21-53 |
629.77 |
630.38 |
0.61 |
260.51 |
0.17 |
28.90 |
0.78 |
3.90 |
0.09 |
New |
21-53 |
639.53 |
640.05 |
0.52 |
351.00 |
0.01 |
130.00 |
3.17 |
2.18 |
0.08 |
New |
21-53 |
655.47 |
657.10 |
1.63 |
184.39 |
0.02 |
86.24 |
0.27 |
1.66 |
0.09 |
New |
21-53 |
677.70 |
678.61 |
0.91 |
158.01 |
0.10 |
66.54 |
0.75 |
1.15 |
0.03 |
New |
21-53 |
762.86 |
763.37 |
0.51 |
149.40 |
0.64 |
31.80 |
0.91 |
0.64 |
0.02 |
New |
21-53 |
768.83 |
769.31 |
0.48 |
147.03 |
0.11 |
70.60 |
0.97 |
0.67 |
0.02 |
(1) All results in this release are rounded.
Assays are uncut and undiluted. Widths are core-lengths, not true
widths as a full interpretation of actual orientation of
mineralization is not complete. Intervals of skarn, massive
sulphide or stockwork quartz-sulphide vein mineralization to a
vertical depth of 300 m were chosen based on a 25 g/t Ag.Eq cutoff
with no more than 9 m of dilution and below 300 m were chosen based
on a 53 g/t Ag.EQ cutoff with no more than 4 m of dilution. Silver
equivalent: Ag.Eq g/t was calculated using 3-year trailing average
commodity prices of $17.75/oz Ag, $0.90/lb Pb, $1.20/lb Zn,
$1500/oz Au, and $2.85/lb Cu. The calculations assume 100%
metallurgical recovery and are indicative of gross in-situ metal
value, the Company is planning to perform additional metallurgical
studies later in 2021.
Sample Analysis and QA/QC
Program
Golden Tag Resources uses a quality
assurance/quality control (QA/QC) program that monitors the chain
of custody of samples and includes the insertion of blanks,
duplicates, and reference standards in each batch of samples sent
for analysis. Drill core is photographed, logged, and cut in half
with one half retained in a secured location for verification
purposes and one half shipped for analysis. Sample preparation
(crushing and pulverizing) is performed at ALS Geochemistry, an
independent ISO 9001:2001 certified laboratory, in Zacatecas,
Mexico and pulps are sent to ALS Geochemistry in Vancouver, Canada
and Lima, Peru for analyses. The entire sample is crushed to 70%
passing -2 mm and a riffle split of 250 grams is taken and
pulverized to better than 85% passing 75 microns. Samples are
analyzed for gold using a standard fire assay with Atomic
Absorption Spectrometry (AAS) (Au-AA23) from a 30-gram pulp. Gold
assays greater than 10 g/t are re-analyzed on a 30-gram pulp by
fire assay with a gravimetric finish (Au-GRA21). Samples are also
analyzed using a 35 element inductively coupled plasma (ICP) method
with atomic emission spectroscopy (AES) on a pulp digested by aqua
regia (ME-ICP41). Overlimit sample values for silver (>100 g/t),
lead (>1%), zinc (>1%), and copper (>1%) are re-assayed
using a four-acid digestion overlimit method with ICP-AES
(ME-OG62). For silver values greater than 1,500 g/t samples are
re-assayed using a fire assay with gravimetric finish on a 30-gram
pulp (Ag-GRA21). No QA/QC issues were noted with the results
reported herein.
True widths of drill intercepts have not been
determined. Assays are uncut except where indicated.
Review by Qualified Person and
QA/QC
The scientific and technical information in this
document has been reviewed and approved by Bruce Robbins, P.Geo., a
Qualified Person as defined by National Instrument 43-101.
About Golden Tag Resources
Golden Tag Resources Ltd. is a Toronto based
mineral resource exploration company. The Company holds a 100%
interest, subject to a 2% NSR, in the San Diego Project, in
Durango, Mexico. The San Diego property is among the largest
undeveloped silver assets in Mexico and is located within the
prolific Velardeña Mining District. Velardeña hosts several mines
having produced silver, zinc, lead and gold for over 100 years. For
more information regarding the San Diego property please visit our
website at www.goldentag.ca. For additional
information, please contact:
Greg McKenzie, President & CEOPh:
416-504-2020Email: info@goldentag.cawww.goldentag.ca
Cautionary Statement:
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this news
release. Certain statements in this news release are
forward-looking and involve a number of risks and uncertainties.
Such forward-looking statements are within the meaning of the
phrase ‘forward-looking information’ in the Canadian Securities
Administrators’ National Instrument 51-102 – Continuous Disclosure
Obligations. Forward-looking statements are not comprised of
historical facts. Forward-looking statements include estimates and
statements that describe the Company’s future plans, objectives or
goals, including words to the effect that the Company or management
expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “could”, “would”,
“will”, or “plan”. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although
these statements are based on information currently available to
the Company, the Company provides no assurance that actual results
will meet management’s expectations. Risks, uncertainties and other
factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information. Forward-looking information in this
news release includes, but is not limited to, statements regarding
the effects of the Company’s exploration program, assay results
from the ongoing drill program, the expansion of the Fernandez Zone
or the Trovador Structural Zone, ability to define open pit style
resources, further improvements in mineralization, continuity or
grades. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to: the ability to predict and counteract the effects
of COVID-19 on the business of the Company, including but not
limited to the effects of COVID-19 on the price of commodities,
capital market conditions, restriction on labour and international
travel and supply chains; failure to identify mineral resources;
failure to convert estimated mineral resources to reserves; the
inability to complete a feasibility study which recommends a
production decision; the preliminary nature of metallurgical test
results; delays in obtaining or failures to obtain required
governmental, environmental or other project approvals; political
risks; changes in equity markets; uncertainties relating to the
availability and costs of financing needed in the future; the
inability of the Company to budget and manage its liquidity in
light of the failure to obtain additional financing; inflation;
changes in exchange rates; fluctuations in commodity prices; delays
in the development of projects; capital, operating and reclamation
costs varying significantly from estimates and the other risks
involved in the mineral exploration and development industry; and
those risks set out in the Company’s public documents filed on
SEDAR. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
Photos accompanying this announcement are available at
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https://www.globenewswire.com/NewsRoom/AttachmentNg/be8df6c8-9e42-4d79-bf4a-a1fcd208b94b
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