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Awale Resources Ltd
Symbol ARIC
Shares Issued 79,651,712
Close 2020-01-29 C$ 0.095
Market Cap C$ 7,566,913
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Awale drills 34 m of 1.9 g/t Au at Empire

2020-01-29 09:28 ET - News Release

Mr. Glen Parsons reports

EMPIRE DISCOVERY CONTINUES TO DELIVER HIGH GRADE GOLD AT THE ODIENNE PROJECT

Awale Resources Ltd. has released further gold intercepts from the high-grade gold discovery at the Empire prospect. These new results both extend the mineralized envelope along strike and down dip as well as confirm the internal continuity of mineralization at Empire.

As per the highlights herein, hole OERC0021 confirms the robust nature of mineralization at Empire, whilst OERC008 and the 40-metre extension of hole OEDD003 extend mineralization down dip to a vertical depth of greater than 150 m on the original discovery section.

The current mineralized envelope at Empire has now been extended to approximately 200 m in length, 150 m vertically, and the width ranges from 30 m to 80 m. Encouragingly, the mineralization remains open at depth and along strike. Furthermore, the assay-pending deep hole OEDD0015 has intercepted target geology and mineralization, and extends potential mineralization to a vertical depth of greater than 200 m. Visible gold has been observed at eight separate intervals between 230 m and 300 m downhole, and highlights the potential for mineralization broadening at depth. Further to this, a three-kilometre-long untested soil anomaly extends toward the southeast from current drilling. Visible gold in fresh rock has been noted in every diamond hole that has intersected the mineralized diorite.

The 30-hole (3,573 m) phase 1 drilling program at Empire has now been completed with only two holes remaining to be reported (OERC0022 and OEDD0015 -- the deep hole drilled under current known mineralization). Assays for these holes are expected toward the end of February.

Highlights

Best intercepts from this batch of results include (see full list in the included table):

  • OERC0008 step-back hole to discovery hole OEDD0001:
    • 16 m at 1.3 grams per tonne gold from 81 m downhole, including one m at 11.3 g/t Au from 94 m downhole;
    • 10 m at 2.3 g/t Au from 109 m, including five m at 3.9 g/t Au from 109 m downhole;
  • OERC0021 stepout hole 200 m along strike from discovery section:
    • 32 m at 0.9 g/t Au from 32 m downhole, including two m at 4.8 g/t Au from 53 m downhole;
    • 34 m at 1.9 g/t Au from 96 m downhole, including 18 m at three g/t Au from 97 m downhole and two m at 15.5 g/t Au from 111 m downhole;
    • 29 m at 1.2 g/t Au from 134 m downhole, including 11 m at 2.5 g/t Au from 140 m downhole and two m at 5.6 g/t Au from 140 m downhole;
  • OEDD0003 extension (hole re-entered and extended):
    • Three m at 4.5 g/t Au from 193 m downhole;
  • OERC005 twin of OEDD0001:
    • 22 m at 1.5 g/t Au from 22 m downhole, including one m intervals of 4.4 g/t Au, six g/t Au and 16.6 g/t Au, from 27 m, 41 m and 46 m downhole, respectively.

These results complement the following previously reported results (see releases dated Nov. 19, 2019, and Dec. 23, 2019):

  • OEDD0001:
    • 18.15 m at 4.9 g/t Au from 40 m downhole, including 10.4 m at 7.9 g/t Au from 40 m downhole;
  • OEDD0002:
    • 27 m at 3.1 g/t Au from 43.2 m downhole, including nine m at 5.3 g/t Au from 43.2 m downhole;
  • OEDD0003:
    • 19 m at 0.9 g/t Au from 151 m downhole, including one m at 4.54 g/t Au from 152 m downhole;
  • OEDD009:
    • 17 m at 2.6 g/t Au from 40 m downhole, including 2.65 m at 15.4 g/t Au from 40 m;
    • 16.74 m at 1.9 g/t Au from 74.26 m downhole, including 9.28 m at 2.7 g/t Au from 80.72 m;
    • 16 m at 1.8 g/t Au from 98 m downhole; including three m at 7.6 g/t Au from 111 m downhole.

Note: True width intercepts are approximately 75 to 90 per cent of the reported downhole interval downhole. The broad intercepts are calculated at a 0.2 g/t Au trigger with included intercepts calculated at a one g/t Au trigger. All calculated intercepts include three m of internal waste.

Company chief executive officer Glen Parsons commented today:

"Awale has started the new year with further excellent results from the Empire prospect. The recent results confirm continuity of mineralization within the main drill zone and we now have a robust 200 m long and greater than 150 m deep mineralized envelope. This forms a core of a system, which remains open down dip and along strike with a three km soil anomaly to test.

"The final hole for the program, a 345 m deep diamond hole, has intercepted the target geology from 153 to 300 m downhole, extending the current dimensions of the system to greater than 200 m vertical and 200 m long, and the width of the mineralized envelope ranges from 30 to 80 m.

"The company is currently undertaking a 3,000 m (100 m by 25 m) auger program to tighten the three km soil anomaly for drill testing and results from this program are expected in March. After which, a phase 2 drill program will commence at Empire.

"Awale looks forward to news that will continue to flow from drilling at our exciting Empire prospect at Odienne as well as continued exploration results from Bondoukou, in the northeast, where we continue to develop and progress exploitation targets for drill testing."

Vakaba prospect

Results from four scout diamond holes at the Vakaba prospect have also been returned. Expected moderate- to high-grade mineralization with visible gold was intercepted in the northwest-trending quartz/tourmaline veins, however, widths of mineralization were thin. OEDD013 returned one m at 15.7 g/t Au from 45 m, OEDD0011 returned 0.3 m at 7.8 g/t Au, while OEDD0012 returned two m at 1.4 g/t Au. The Vakaba prospect area has multiple gold-in-soil anomalies and the company will continue to work on building these toward drill-target status.

             LIST OF SIGNIFICANT INTERCEPTS
                 FOR THE EMPIRE PROSPECT

Hole               From (m)  To (m)  Length (m)  Au g/t

                         40   58.15       18.15     4.9
                         40    50.4        10.4     7.9
                         46      47           1    73.1
OEDD0002               43.2    70.2          27     3.1
                       43.2    52.2           9     5.3
                       48.2    49.2           1    34.9
                       61.2    62.2           1    19.3
                     110.49     121       10.51     0.3
                      124.7     130         5.3     0.4
                        151     170          19     0.9
                        152     157           5     1.8
                        152     153           1     4.5
OEDD0003                181     182           1     2.2
Extension               193     196           3     4.6
OEDD0009                  0     8.8         8.8     0.4
                         40      57          17     2.6
                         40   42.65        2.65    15.4
                         64      70           6     0.5
                      74.26      91       16.74     1.9
                      80.72      90        9.28     2.7
                         82      83           1     6.8
                         85      86           1     7.2
                         86      87           1     3.8
                         89      90           1     3.6
                         98     114          16     1.8
                        103     104           1     3.5
                        111     114           3     7.6
                        128  137.67        9.67     0.2
                         61      67           6     0.3
                         92    97.9         5.9     0.3
                     108.05     111        2.95     1.1
                        110     111           1     3.0
                        121     127           6     0.4
OERC0003/OEDD0006         1       3           2     0.6
                          9      27          18     0.2
                         43      44           1     0.2
OERC0005                 27      49          22     1.5
                         27      28           1     4.4
                         41      42           1     6.0
                         46      47           1    16.8
                         55      66          11     0.6
OERC0006                109     113           4     0.9
OERC0008                 62      64           2       1
                         81      97          16     1.3
                         88      89           1       4
                         94      95           1    11.3
                        109     119          10     2.3
                        109     114           5     3.9
                        123     126           3     1.7
                        131     141          10     0.7
                        137     138           1     4.8
                        157     158           1     0.6
OERC0015                126     138          12     0.5
                        145     146           1     0.9
                        161     172          11     0.2
                        177     178           1     1.5
OERC0016                 66      75           9     0.3
                         87      88           1     0.5
OERC0018                 27      28           1     0.5
OERC0019                 50      51           1     1.0
                         11      12           1     2.9
                         31      32           1     0.5
                         43      44           1     0.2
OERC0020                 44      46           2     0.7
                         67      68           1     0.3
OERC0021                 32      64          32     0.9
                         43      45           2     3.3
                         53      55           2     4.8
                         96     130          34       2
                         97     115          18       3
                        111     113           2    15.5
                        134     163          29     1.2
                        140     151          11     2.5
                        140     144           4     3.7

Note: All intervals calculated using a 0.2 g/t Au trigger value and include three m of internal waste. Included intervals calculated at a one g/t Au trigger with three m of internal waste except where individual assays are reported.

Technical background

Empire is a high-priority prospect that was systematically explored by Awale, resulting in a coincident geology, gold/arsenic geochemistry and ground geophysics (induced polarization) anomaly. The high-order soil anomalism coincides with a mapped mylonite-bearing structure that has been intruded by a later diorite body. The resistive chargeable anomaly was interpreted to indicate coincident silicification and sulphidation of the diorite, and conforms with both the soil anomalism and the mapped structure (rock chips from quartz veins on the prospect have returned up to 65 g/t Au and a channel sample in altered wall rock has returned eight m at 0.7 g/t Au, including two m at 3.17 g/t Au and two m at 1.57 g/t Au).

The soil sampling completed by the company forms a three km long, 18 parts per billion anomaly, which includes a 500 m long 109 ppb core; artisanal mining activity commenced some months after the completion and reporting of the soil program. This higher-order core anomaly has formed that focus of phase 1 drilling and has delivered robust and continuous gold mineralization within this zone. Drill fences in this core zone are 100 m apart and, currently, there is demonstrated mineralization to a vertical depth of 150 m on the discovery section (OEDD003 returned three m at 4.6 g/t Au from 196 m) and in Section 2A to a depth of 125 m with OERC21 intercepting 11 m at 2.5 g/t Au from 140 m. The mineralized envelope on Section 2A is approximately 80 m wide and 30 m wide on Section 2.

Further to this, drill hole OEDD0015 (final hole, assays pending) has intercepted the target diorite from 155 m to 300 m downhole with brittle ductile deformation from 190 m; the hole ended at 345 m. Visible gold has been observed in brittle ductile quartz development zones between 230 m and 300 m downhole, possibly demonstrating that the mineralizing system gets broader with depth.

The recently completed drilling program has confirmed the mineralization model developed by the company where gold is hosted in a brittle ductile orogenic shear zone setting at the margin of the diorite intrusion. The foot wall contact of the diorite is strongly potassic altered (almost complete fine-grained replacement of the protolith by biotite) and represents the main fluid pathway into the mineralized system. Gold mineralization appears to weaken distal from the foot wall structure but is still present up to 80 m away. All drill holes that have intercepted diorite have exhibited brittle ductile deformation and are mineralized.

Further to this, all diamond holes that have intercepted the brittle ductile deformation have contained free gold, with the first two holes returning very high-grade intercepts (OEDD0001 returned 10.4 m at 7.9 g/t Au, including one m at 73.1 g/t Au, and OEDD0002 returned nine m at 5.3 g/t Au); follow-up drilling has also returned high grades with one m at 11.3 g/t Au in OERC0008, one m at 16.8 in OERC0005, two m at 15.5 in OERC0021 and 2.65 m at 15.4 g/t in OEDD0009. Potassic alteration is overprinted by a later phase of silica-sulphide alteration and is associated with free gold and tellurides, there is also significant calc silicate alteration present in the system (epidote/pyroxene). The sulphide mineralogy is dominated by pyrite with subordinate chalcopyrite and galena. Disseminated mineralization appears present, but at low tenor in these initial holes (0.2 to one g/t Au) within the brittle ductile zone.

Further to the mineralization extensions described herein, holes drilled on drill Section 3 have intercepted diorite with evidence of the same deformation style as that seen on sections 2 and 2A (OERC0003/OEDD0006, OEDD0005 and OERC0016) intercepted diorite a further 100 m along strike from that intercepted on Section 2A but is offset by approximately 50 m to the south. Mineralization is present in both holes, although at lower tenor (18 m at 0.2 from nine m in OERC0003/OEDD0006 and nine m at 0.32 g/t Au in OERC0016); these holes are viewed as evidence for further strike continuity of the host geology and warrant further drill testing along the three km long soil anomaly. The 300 m stepout on drill Section 4 (OERC0017-0020) has also intercepted moderate amounts of mineralization and some evidence of the host diorite in OERC0018; these results are also viewed as encouraging and warranting follow-up along strike. The company eagerly awaits the detailed auger geochemistry that is currently under way to complete planning of an extension drilling program. The extension drilling program will be combined with infill and plunge test holes in the main zone -- any infill will be on a 50 m line between existing drilling.

Grade variability is evident from results received from the twin of OEDD0001 (OERC0005). OEDD0001 returned 18.15 m at 4.9 g/t Au from 40 m while OERC0005 returned 22 m at 1.5 g/t Au from 27 m. The main difference being a maximum value of 73.2 g/t Au in OEDD001 and only 16.8 g/t Au in OERC0005. Other intercepts are similar. Quarter NQ core duplicate samples taken within mineralized zones have also returned variable results; this is viewed as an example of the grade variability within the mineralization. For reporting purposes, screen fire assays have been used rather than the fire assay results. Screen fire assays have been systematically made for any sample over one g/t Au within the brittle ductile zones. The fire assay table depicts this nugget gold variability in field duplicate samples.

    SELECTION OF DUPLICATE FIRE ASSAY RESULTS
    WITHIN MINERALIZED ZONES, EMPIRE DRILLING

Hole ID   Primary fire assay  Duplicate fire assay

OEDD0001               34.11                 20.73
OEDD0002                2.45                  1.84
OEDD0009                21.1                  1.73
OEDD0009                 0.8                  4.62

Company geologists are also revisiting the IP data collected over the area to see if the data can be trained on the now known host rock geology and the foot wall contact. If this is successful, further IP surveys may also be used as a targeting tool in conjunction with the auger geochemistry.

Note on screen fire assays

Assays above one g/t Au are now routinely assayed by the company using the screen fire assay analytical technique (see description herein). Where a screen fire assay has been completed, these results supersede fire assay results for reported intercepts.

Quality control and assurance

Analytical work for drill core and RC percussion samples is being carried out at the independent Intertek Laboratories Ghana Ltd., an ISO 17025 certified laboratory. Samples are stored at the company's field camps and put into sealed bags; they are stored securely until collected by Intertek for transportation to Ghana. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70 per cent, passing a two-millimetre screen. A split of up to 1,000 grams is taken and pulverized to better than 85 per cent, passing a 75-micron screen, and a 50-gram split is analyzed by fire assay with an atomic absorption spectroscopy finish. Blanks, duplicates and certified reference material (standards) are being used to monitor laboratory performance during the analysis. Due to the presence of free gold, the lab was requested to run a quartz wash between each sample during preparation. Samples that have returned more than one g/t Au have been screen fire assayed.

Screen fire assay involves screening a nominal one-kilogram sample and firing the entire coarse fraction, including the screen cloth. Duplicate assays are carried out on the undersize fraction, which is more reproducible due to the smaller gold particle sizes. The total gold content is calculated as a weighted mean of the measured grades of the two screen fractions.

Qualified person

The technical and scientific information contained in this news release has been reviewed and approved for release by Andrew Chubb, the company's qualified person as defined by National Instrument 43-101. Mr. Chubb is the company's chief operating officer and holds an economic geology degree, is a member of the Australian Institute of Geoscientists, and is a member of the Society of Economic Geologists. Mr. Chubb has 18 years of experience in international minerals exploration and mining project evaluation.

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