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Evergold Corp
Symbol EVER
Shares Issued 34,837,681
Close 2020-11-30 C$ 0.26
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Evergold drills 61.7 m of 0.76 g/t Au at Golden Lion

2020-11-30 07:18 ET - News Release

Mr. Kevin Keough reports


Drilling completed during the 2020 field season on the GL1 Main target, on Evergold Corp.'s Golden Lion property in Northern British Columbia, has returned broad assay intercepts of gold- and silver-bearing epithermal-style mineralization, with local higher-grade intervals, suggestive of the upper part of the system and comparable with historical (1984) Newmont drill results. Importantly, and unknown at the time to Newmont, this generally low- to locally moderate-grade shallow mineralization is associated with coincident induced polarization chargeability and resistivity responses that increase with depth below current drill intercepts. The geophysical data clearly show that all drilling to date that occurred directly on the GL1 Main zone, both historically by Newmont (nine holes) and this year by Evergold (10 holes), has tested only the shallower, weaker geophysical response and indicates that potentially stronger mineralization, and higher grades, may lie directly below, in association with the higher-tenor geophysical response. Presented in this news release are assay results for five holes at GL1 Main (GL-20-002, 003, 006, 007 and 008). Results for another five holes from GL1 Main (GL-20-009, 011, 012, 013 and 016) are pending, along with six reconnaissance holes drilled on targets located elsewhere on the property.

GL1 Main -- drilling highlights

A broad gold-silver vein zone (greater-than-100-metre true width) was intercepted in multiple holes along a 500-metre strike length inclusive of Evergold and historical Newmont drilling, open along strike and to depth. Results include:

  • 53.21 metres at 0.75 gram per tonne gold from 7.52 to 60.73 metres in hole GL-20-002:
    • Including 19.00 metres of 1.61 g/t Au from 35.10 to 54.10 metres;
  • 73.82 metres of 0.50 g/t Au from 5.38 to 79.20 metres in hole GL-20-003:
    • Including 7.60 metres of 2.78 g/t Au from 55.40 to 63.00 metres;
  • 61.70 metres of 0.76 g/t Au from 6.80 to 68.50 metres in hole GL-20-006:
    • Including 17.50 metres of 1.51 g/t Au from 42.50 to 60.00 metres;
  • 73.12 metres of 0.69 g/t Au from 4.88 to 78.00 metres in hole GL-20-008:
    • Including 8.39 metres of 1.72 g/t Au from 27.70 to 36.09 metres.

"We're clearly onto it at GL1 Main and we know exactly where to go next," said Kevin Keough, president and chief executive officer. "Similar to Newmont's results in 1984, we've confirmed with the drill the presence of a plus-100 m true width, plus-500 m long, gold-silver-bearing zone carrying bulk-tonnage-style grades near surface and encompassing local higher-grade intervals. What is fundamentally new and exciting and was unknown to previous operators are our geophysical results. These indicate GL1 Main is potentially much sweeter not far below where we've drilled to date. Our field camp remains in place at Golden Lion, pretty much ready to go, and we're already planning for the 2021 program with anticipation. In the meantime, stay tuned as we await results for another five holes from GL1 Main, and an additional six from targets elsewhere on the property."

C.J. Greig, PGeo, technical adviser to the company, said: "The size of the GL1 system and how well it is expressed in all the geochemical and geophysical parameters is noteworthy. These characteristics are highlighted in the figures the technical team has produced. The soil geochemical anomalies emphasize the strike extent of the near-surface part of the system (two plus-500 m long subparallel trends), and these coincide with both elevated resistivity and chargeability at depth. The drill sections and their broad Au-Ag-enriched intersections help to emphasize the broad width of the mineralizing system, and the accompanying IP inversions show that the system has legs to depth. This is also the case along trend, where drill testing is even more sparse than at GL1 Main, but Newmont's previous drill intersections, and the similar geophysical and soil geochemical response, are suggestive of similar depth potential. The company's technical team is working with the data already received and will be finalizing plans for drill testing along trend and deeper, once all assays are in."

Discussion of drill results

The current interpretation of the drilling at the GL1 Main target indicates a broad (greater than 100 m true width), steeply dipping, northwest-southeast-trending gold-silver, quartz-carbonate low sulphidation epithermal vein system displaying relatively consistent grades and excellent continuity hole to hole. The gold and silver bearing system has been intersected in nine historical (1984) Newmont drill holes, and in all 10 Evergold holes from 2020 targeted directly on the GL1 Main trend. Results for five of these 10 Evergold holes (GL-20-002, 003, 006, 007 and 008) are reported in this news release. Assays for the remaining five holes drilled on the GL1 Main target (holes GL-20-009, 011, 012, 013 and 016) are pending. The 2020 drill program also tested several additional targets elsewhere on the Golden Lion project, besides GL1 Main. Assays for those holes that tested targets off the GL1 Main trend (that is, GL-20-001 and GL-20-004) and on the GL2 and GL3 target areas (holes GL-20-005, 010, 014 and 015) will be announced when received, compiled and interpreted.

The intercepts reported today are from two drill set-ups separated by approximately 65 metres. Holes GL-20-002 and GL-20-003 were drilled from the same set-up in a southwesterly direction (190-degree azimuth), the latter undercutting the former, whereas holes GL-20-006, 007 and 008 were drilled from a second set-up located southwest of the first, in a northeasterly direction (40-degree azimuth). Drilling from the two pads has therefore roughly scissored the GL1 Main zone, providing a minimum estimate for zone true width, one goal of the drilling. Notably, all holes cased into mineralization at surface and all holes carried intermittent gold and silver values downhole well beyond the significant intercepts cited, and did not fully exit the GL1 Main zone at depth. Modelling of these Evergold results (coupled with historical Newmont drill results) indicates the true width of the GL1 Main zone exceeds 100 metres. From Newmont hole GL-84-9 in the northwest, to similar alteration seen by Evergold well to the southeast in hole GL-20-016 (assays pending), the GL1 Main zone is presently interpreted to encompass more than 500 metres of strike length, and is open to the northwest, southeast and to depth.

Andrew J. Mitchell, PGeo, vice-president, exploration, for Evergold and a qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release.

About Evergold Corp.

Evergold has been assembled by a team with a record of recent success in British Columbia, combining four 100-per-cent-owned properties in prime geological real estate from one of B.C.'s best-known geologists, C.J. (Charlie) Greig, with seasoned management and a qualified board. The company's flagship assets consist of the 3,545-hectare Snoball property, located in the heart of B.C.'s famed Golden Triangle only 12 kilometres off Highway 37, where drilling this summer by the company achieved the discovery of a new high-grade gold-silver system on Pyramid Peak, and the 5,099-hectare Golden Lion property, located well to the east of Snoball in similar Stikine terrane rocks, at the north end of the Toodoggone region, where drilling by Newmont in a declining gold price environment in 1984 returned encouraging intercepts that were never pursued until Evergold's recent exploration efforts on the property.

Drill hole               From           To         Length           Au         Ag
                     (metres)     (metres)       (metres)        (g/t)      (g/t)

GL-20-002                7.52        60.73          53.21         0.74       0.58
including               35.10        54.10          19.00         1.60       0.90
including               40.75        42.00           1.25         5.20       1.76
GL-20-003                5.38        79.20          73.82         0.49       0.54
including               55.40        63.00           7.60         2.77       1.84
including               60.08        61.43           1.35         5.89       1.94
GL-20-006                6.80        68.50          61.70         0.76       1.10
including               42.50        60.00          17.50         1.51       0.63
GL-20-007                6.10        16.32          10.22         0.88       0.71
and                     26.10        61.70          35.60         0.11      13.68
including               45.18        57.61          12.43         0.10      29.20
including               45.18        47.34           2.16         0.31      80.35
and                    127.42       131.76           4.34         0.31       5.42
GL-20-008                4.88        78.00          73.12         0.68       1.11
including               27.70        36.09           8.39         1.72       3.86
including               32.55        33.67           1.12         5.06      11.34

We seek Safe Harbor.

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