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Goliath Resources Ltd (2)
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Goliath hits 78m of quartz sulphide veins at Golddigger

2021-07-26 06:07 ET - News Release

Mr. Roger Rosmus reports


Goliath Resources Ltd. has released results from a 78.0-metre intercept from the third drill hole, GD21-003, on the company's 2021 maiden diamond drill campaign at its 100-per-cent-controlled Golddigger property. The campaign is designed to trace the high-grade gold-silver zone exposed at surface along 1,000 metres (one kilometre) of strike and to a downdip depth over 500 metres at the Surebet zone. Currently the Surebet zone averages 9.84 metres wide grading 10.68 grams per tonne gold equivalent (with 7.59 g/t gold) based on channel cut sampling taken in 2020. Surebet also has 500 metres of vertical relief and 1,000 metres of inferred downdip extent. The project is located in a mining-friendly jurisdiction in a world-class geological setting near Stewart, B.C., in the Golden Triangle of British Columbia. The Homestake Ridge deposit (Fury Resources Inc.), Dolly Varden silver mine (Dolly Varden Silver Corp.) and the Kinskuch project (Hecla Mining Company) are in close proximity.

Dr. Quinton Hennigh, technical adviser to Goliath, commented: "Hole GD21-003 displays abundant sulphides, particularly base metal sulphides and sulphosalts. Intensity of mineralization appears to increase with respect to the first two nearby holes, both of which were impressive. The width of the Surebet mineralized zone remains very strong. Given that this hole reaches furthest southwest on this northwest-striking, southwest-dipping structure, the system is clearly open to the southwest where its surface exposure dives under talus cover. In fact, it may be strengthening in this direction, a very intriguing possibility. Goliath is exploring the possibility of drilling further to the southwest to evaluate this possibility. In the meantime, we look forward to completing hole GD21-004, the final hole from this pad, before moving the drill northward."

Roger Rosmus, founder and chief executive officer, stated: "The continuity of the drilling to date strongly indicates the presence of a very large high-grade precious metals system that is showing the ingredients for to be the next big gold discovery in B.C.'s prolific Golden Triangle. With only 50 million shares issued and outstanding, plus a strong treasury with no debt, our shareholders are in a great position to build value in short order. Drill results are expected on GD21-001 and -002 in the near future from our 100-per-cent-controlled Golddigger property."

GD21-003 was drilled at the Cliff showing on the same drill pad as GD21-001 and -002, but with a southwest orientation. GD21-003 targeted approximately 50 metres downdip of the quartz-sulphide mineralization of both previous holes to maximize the intersected span on the quartz-sulphide intervals.

GD21-003 was at the Cliff showing on the same drill pad as GD21-001 and -002, but with a southwest orientation.

The upper quartz-sulphide veining (now termed the Upper zone) was intersected with a much more prominent alteration halo consisting of silica bleaching and biotite (a water-rich potassium, iron-magnesium aluminum silicate) in the metres around the veining relative to GD-001 and -002. Several vein phases form imposing sulphide breccia.

Significant intervals occur for 43.0 metres (1) from 49.0 to 92.0 m downhole length:

  • Initial 17.3 metres (1) from 49.0 to 66.3 metres of: significant quartz veining and vein-hosted galena (a lead sulphide), sphalerite (a zinc sulphide) and pyrrhotite (a magnetic iron sulphide), particularly over a 1.0-metre (1) interval from 58.0 to 59.0 metres with massive quartz-sulphide vein;
  • Followed by 3.7 metres (1) from 66.3 to 70.0 metres of: 50 per cent massive sulphides as veins crosscutting and brecciate/form stockwork of white quartz veining. Sulphides include pyrrhotite, galena, argentite (a silver sulphide), native silver, sphalerite, chalcopyrite (a copper sulphide) and tetrahedrite (a copper-antimony sulphur salt);
  • Followed by 3.2 metres (1) from 70.0 to 73.2 metres of: biotite and iron carbonate-altered wallrock, intensely sheared containing about 5-per-cent angular centimetre-scale fragments of grey quartz vein material, itself crosscut by centimetre-wide white quartz veins, containing about 5 per cent sulphides including galena, sphalerite and pyrrhotite;
  • Followed by 18.8 metres (1) from 73.2 to 96.4 metres of: moderate biotite and silica alteration hosting 10 to 30 per cent centimetre- to decimetre-scale white quartz, plus or minus chlorite and plus or minus pyrrhotite veins;
  • Followed by 5.6 metres (1) from 96.4 to 102.0 metres of: about 20 per cent white quartz and plus or minus scheelite (a calcium-tungsten mineral) (2) vein stockwork containing clusters of sphalerite (about 2 per cent), galena (about 1 per cent) and argentite (a silver sulphide) (2) (about 0.1 per cent);
  • Followed by 0.5 metre (1) from 102.0 to 102.5 metres of: coarse-grained white quartz vein with about 4 per cent clotted sphalerite, about 3 per cent specularite (an iron oxide derived from magnetite) and about 1 per cent galena;
  • Followed by 1.5 metres (1) from 102.5 to 104.0 metres of: orange calcite dusting overprints intense ductile deformation foliation with disseminated and clustered pyrite (an iron sulphide) (about 5 per cent) and pyrrhotite (about 1 per cent);
  • Followed by 23.0 metres (1) from 104.0 to 127.0 metres of: calcite (about 20 per cent), pyrite (5 to 10 per cent), pyrrhotite (about 1 per cent) and chlorite (a water-rich iron-magnesium aluminum silicate) stringers.

GD21-003 undercut an area approximately 37 metres below surface of the southernmost Cliff showing. The Cliff showing previously yielded a fresh angular float sample assaying 967.99 g/t AuEq (29.72 ounces per ton gold and 97.19 oz/t silver), and is located 90 metres along strike to the south of the Lower Waterfall showing of 13.05 g/t AuEq over 15.1 metres (true width).

The upper bounding quartz-sulphide vein in GD21-003 is located approximately 50 metres downdip of the top of mineralization in GD21-002, while the lower bounding quartz-sulphide vein is 85 m downdip of the base of the GD-21-002 intercept. The top of the quartz-sulphide vein intercept in GD21-003 is located 250 metres south of the Lower Waterfall showing, where 2020 channel cut yielded 13.05 g/t AuEq over 15.1 metres.

The fourth hole on the Surebet zone, GD21-04 (at a targeted length of 150 metres), is being drilled to the south from the same drill pad as the first three holes in order to further constrain the geometry (true width and orientation) of the Surebet mineralized shear vein at the Cliff showing.

Goliath has planned for up to about 5,000 metres of fan drilling from multiple drill pads to target the extensive gold-bearing quartz-sulphide veining at Surebet both along strike and to depth from surface exposures at the Lower Waterfall, Waterfall, Main, Central and North Rubble showings. Surface sampling has outlined 1,000 metres of strike length, 500 metres of vertical relief and 1,000 metres of inferred downdip extent. The drilling will focus on testing the continuity at depth of the high-grade gold-silver mineralization zone exposed at surface averaging 9.84 metres wide at 10.68 g/t AuEq (with 7.59 g/t gold), which remains open (see company news release dated Nov. 25, 2020).

(1) The stated lengths in metres are downhole core lengths and not true widths. True widths will be calculated once more drilling can confirm the geometry of the quartz-sulphide system.

(2) Readers are cautioned that portable XRF (X-ray fluorescence) spot counts are not equivalent to laboratory assays; they give an indication of the presence of certain metal elements in the drill core. The portable XRF instrument can detect gold but not as accurately as assays and does detect the geochemical pathfinder elements such as silver, copper, zinc, lead and tungsten that are commonly associated with gold. Assay results are pending.

QA/QC (quality assurance/quality control) protocols

Oriented HQ-diameter diamond drill core from the Surebet drill campaign is placed in core boxes by the drill crew of a company contracted by Goliath. Core boxes are transported by helicopter over a 15-kilometre distance to the Kitsault staging area, and then transported by truck approximately 500 metres to the Goliath core shack. The core is then reconstructed, metreage blocks are checked, metre marks are labelled, recovery and RQD (rock-quality designation) measurements taken, and primary bedding and secondary structural features including veins, dikes, cleavage and shears are noted and measured. The core is then described and transcribed in MX Deposit.

Drill holes were planned using Leapfrog Geo and QGIS software and data from the 2019 and 2020 exploration campaigns, the 2021 airborne Mag and VLF-EM (very low-frequency electromagnetic) geophysical survey, and an in-house lineament study incorporating observed folds, axial planes, geologic contacts, dike swarms, cleavages and all significant lineaments/structures.

Drill core containing quartz, sulphide(s) or notable alteration are sampled in lengths of 0.5 to 1.5 metres. Core samples are cut lengthwise in half, one-half remains in the box and the other half is inserted in a plastic bag with an ALS sample tag. Standards, blanks and pulp duplicates were added in the sample stream at a rate of 10 per cent. Samples are transported in rice bags sealed with numbered security tags. Goliath personnel drive samples from Kitsault to Terrace, and a transport company takes them from there to the ALS lab facilities in North Vancouver. At ALS, samples are processed, dried, crushed and pulverized before analysis using the ME-ICP41, Ag-AA61 and Au-ICP22 methods. Overlimits are reanalyzed using the ME-OG-46, Ag-GRA, Ag-AA62 and Au-GRA22 methods. If gold is higher than five g/t, ALS will reanalyze using metallic screening (Au-SCR24C) method.

Golddigger property

The property has an area of 23,859 hectares (59,646 acres or 239 square kilometres) and is located in the world-class geological setting of the Golden Triangle area on tidewater 30 kilometres southeast of Stewart, B.C.

Surebet is located about eight kilometres southwest of the Homestake Ridge project, which is a high-grade gold-silver deposit that contains 982,700 oz of gold at 4.99 g/t Au and 19.6 million oz of silver at 97.7 g/t Ag, with drill intercepts of up to 73 metres of 21 grams per tonne gold and 12 grams per tonne silver.

At Surebet, multiple high-grade polymetallic gold-silver targets have been identified along one kilometre (1,000 metres) of strike at surface and a half a kilometre (500 metres) of vertical relief with an average true width of 9.84 metres assaying 10.68 g/t AuEq (with 7.59 g/t gold) with one kilometre (1,000 metres) of inferred downdip extent.

Surebet targets are contained within a shear zone and will be tested for the first time in the 2021 drill campaign. Higher-grade polymetallic gold-silver mineralization is contained within a broad alteration halo of strongly silicified Hazelton group sediments up to 43.5 metres wide containing mineralization assaying up to 0.5 g/t AuEq.

Surebet is characterized by a series of northwest-southeast-trending structures that occur within a package of Hazelton group sediments underlain by Hazelton volcanics and are within two km of the Red Line. Lidar imagery, drone imagery and field observations have identified several additional paralleling structures within a four-square-kilometre area. Geochemical analyses have confirmed high-grade gold-silver polymetallic mineralization within these structures.

The company has granted stock options for a total of 390,000 common shares of the company to officers and directors. These stock options are exercisable at $1.29 each, which was the closing price on July 23, 2021.

These options will expire July 23, 2026, and are governed by the company's stock option plan.

Qualified person

Rein Turna, PGeo, is the qualified person as defined by National Instrument 43-101, for Goliath Resources projects, and supervised the preparation of, and has reviewed and approved, the technical information in this release.

About Goliath Resources Ltd.

Goliath Resources is an explorer of precious metals projects in the prolific Golden Triangle of northwestern British Columbia and the Abitibi greenstone belt of Quebec. All of its projects are in world-class geological settings and geopolitical safe jurisdictions amenable to mining in Canada.

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