(TheNewswire)
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KZ-21-01 intersected 1.30 meters at31.80 g/t gold and 47.3 g/t silver
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KZ-21-02 intersected 1.35 meters at46.51 g/t gold and 32.2 g/t silver
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KZ-21-05 intersected 3.00 meters at39.20 g/t gold and 80.4 g/t silver (previously released)
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Kodiak Zone is still open in alldirections, within a largely untested 1.5 km long and 600 meter widehigh-grade soil anomaly open to the east
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To date only 200 meters of the 600meter wide soil anomaly have been tested; Excellent potential foradditional parallel veins below select high-grade floatsamples 1
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8,563 hectares of additional groundacquired along strike in both directions; brings total consolidatedland position in the Copper Mountain district up to 17,519hectares
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New colour anomalies identified,appear stronger than Kodiak zone gossan, presenting strong geochemicaltargets for additional high-grade gold zones
The full PDF news release with high-resolution figureshas been posted to the Company’s website at the following link: https://www.damaragoldcorp.com/2022-news.html
April 7, 2022 – TheNewswire - DAMARA GOLD CORP. (TSXV:DMR) ( “ Damara ” or the “ Company ” ) is pleased to announce morehigh-grade assays from its orogenic-style Kodiak Zone discovery on theCompany’s Placer Mountain project in Southern BC (“ PlacerMountain ” or the “ Property ”) . The mineralization ischaracterized by quartz-sulphide veining with clay-sericite alterationhalos, hosted within intrusive rock near to the contact with NicolaGroup volcanic and sedimentary rocks. Quartz-sulphide veining wasintersected in all holes, and the system remains open in alldirections. Only a small portion of the largegold in soil anomaly was drill tested in Phase I (Figure 1). Thesouth-eastern half of the surface geochemical anomaly where severalhigh-grade select grab samples 1 up to 70.6 g/tgold were collected last summer, has not yet been tested. The overall soil anomaly strikes for 1.5 kilometers east-westand trends under post-mineral volcanic cover to the east.
Table 1 -Select Intercepts from Remaining 2021 Drill Holes
Hole ID | From (m) | To (m) | Interval (m) 2 | Au (g/t) | Ag (g/t) |
KZ-21-01 | 22.10 | 23.40 | 1.3 | 31.80 | 47.3 |
AND | 82.25 | 82.55 | 0.3 | 3.30 | 7.7 |
AND | 91.70 | 93.00 | 1.3 | 3.21 | 8.9 |
KZ-21-02 | 39.55 | 40.90 | 1.35 | 46.51 | 32.2 |
AND | 47.25 | 47.60 | 0.35 | 1.04 | 3.1 |
KZ-21-03 | 32.25 | 32.55 | 0.3 | 0.53 | 2.1 |
KZ-21-04 | 35.70 | 36.00 | 0.3 | 1.46 | 5.9 |
KZ-21-05* | 27.00 | 30.00 | 3.0 | 39.2 | 80.4 |
KZ-21-06 | 21.00 | 22.05 | 1.05 | 0.96 | 8.4 |
KZ-21-07 | 64.65 | 64.95 | 0.3 | 1.11 | 2.3 |
KZ-21-08 | 45.40 | 45.80 | 0.4 | 17.40 | 77.5 |
AND | 84.10 | 122.05 | 37.95 | 0.28 | 0.9 |
AND | 139.35 | 150.25 | 10.9 | 0.23 | 0.8 |
MV-21-07 | 86.80 | 87.30 | 0.5 | 8.92 | 28.5 |
AND | 106.90 | 107.40 | 0.5 | 1.81 | 17.9 |
MV-21-08 | 86.20 | 86.50 | 0.3 | 3.69 | 33.6 |
AND | 88.00 | 89.30 | 1.3 | 1.36 | 4.5 |
MV-21-09 | 76.40 | 77.00 | 0.6 | 3.29 | 3.6 |
*KZ-21-05 previously released –See News Release dated March 24, 2022
CEO Comment
Larry Nagy, CEO, commented “ We are pleased to continue intersectinghigh-grade gold and silver veining at the Kodiak Zone. The snow ismelting rapidly and our crews are gearing up for another productiveseason of exploration at Placer Mountain. Due to the successfuldrilling results, we decided to expand our land position even furtheralong strike in both directions, and added several new targetsidentified from the analysis of satellite imagery. Field evaluation ofthese targets will begin soon. Our modern systematic approach toexploration has been very successful at generating new targets whichare returning very strong drill results. It is exciting to begenerating new orogenic gold discoveries so close to the producingCopper Mountain Mine in Southern BC. We look forward to furtherextending our currently defined mineralization with drilling thissummer as we work toward our ultimate goal of defining a futuremineral resource at Placer Mountain. ”
Figure 1 – Plan Map of 2021 DrillHoles at Kodiak Zone
Figure 2 – Plan Map of 2021 DrillHoles at Kodiak Zone
Figure 3 – Cross-Section of DrillHoles KZ-21-01 and KZ-21-02
Further Land Consolidation
The Company is also pleased to announce it has staked8,563 hectares of additional ground along strike of the PlacerMountain gold system, bringing the total land position to 17,519hectares (Figure 4). The ground was acquired via direct staking by theCompany when it became available on January 1 and April 1, 2022.Mapping by the Company last Summer, as well as airborne geophysicalsurveys have helped to refine the precise location of the importantintrusive-volcanic contact, and the trend of high-grade goldmineralization intersected at the Main Zone andthe Kodiak Zone.
The new claims adjoining the south end of the Propertyoverlap a placer mining claim not owned by the Company, which indicatea potential placer gold bearing stream and bedrock source region tothe south, within the Company’s new ground (Figure 5). This placerclaim and another within Placer Creek to the north overlap theCompany’s bedrock mineral rights.
Figure 4 – New staking by theCompany as of April 1, 2022, covering satellite colour anomalies andoverlapping competitor placer mining claims
Figure 5 – 1:25,000 map showingoverlapping competitor placer mining claim and possible source regionof interest in new 2022 claims
Satellite images reveal an east-west trending series ofgossanous colour anomalies, exposing strongly iron oxide alteredbedrock (Figures 6,7). The colour anomalies are similar but farstronger in appearance to that utilized in the initial discovery ofthe Kodiak Zone (Figure 8). According to the British Columbia MEMPRAssessment Report Database, the area has had no previous exploration.An aggressive regional geochemical survey is planned to cover thislarge and encouraging target area, which is composed of a series ofcolour anomalies lying along a straight line trend spanning over 9 kmwithin Damara’s ground. Examples of just two of the new anomaliesacquired by staking are shown in Figures 6 and 7.
Figure 6 – Satellite image of astrong iron oxide and altered bedrock colour anomaly within theCompany’s newly acquired land package
Figure 7 – Satellite image of asecond iron oxide colour anomaly within the newly acquired landpackage
Figure 8 – Satellite image of theiron oxide anomaly which led to the discovery of the KodiakZone
Deposit Model
The Company has noted strong preliminary similaritiesto the drilling pattern at Gold Mountain Mining Corp’s. ElkDeposit 3 , which recentlybegan commercial production on an orogenic gold system just 76 km tothe north of Placer Mountain. The Elk Gold Deposits, which aredefined by approximately 50,000 meters of drilling in 973 drill holes,are centered along the contact between Nicola Group volcanic andsedimentary rocks with a Jurassic aged intrusion. Both the Main Zoneand the newly discovered Kodiak Zone at Placer Mountain are locatedalong a similar geological contact, which represents an importantstructural control and guide to the Company’s future exploration.
Near Surface Oxidation
Sulphide mineralization within the veins is stronglyoxidized and weathered in the near surface, which results in low corerecovery in the mineralized veins and suggests that the high-pressurewater used in the diamond drilling process may be washing out some ofthe fine gold hosted in the soft, friable oxide minerals such aslimonite. For example, in KZ-21-05, from 27 – 30 meters, corerecovery was 65% (Figure 9). The strongly resistant pieces of quartz were recovered, but it is possiblethat some of the soft oxidized and fine-grained sulphide mineralswhich host the gold may have been washed-out by the diamond drillingprocess. The strongest gold grades in KZ-21-05 are associated with arelatively rare occurrence of unoxidized sulphide mineralization inthe near surface from 28-29 meters (Figure 10). The unoxidizedsulphide mineralization, which was not washed out by the diamonddrilling process returned 87.5 g/t gold and 169 g/t silver (Figures10,11).
To improve recoveries of the fine oxidized mineralswhich may host some of the gold mineralization, the Company isconsidering implementing reverse circulation (RC) drill rigs for theshallow drilling going forward, as RC drills effectively vacuum thefine cuttings up the centre of the drill string and would likelyimprove the recovery of the fine gold-bearing oxide minerals at PlacerMountain. Core drilling will still be utilized for deeper drillingbelow the oxide interface, where better core recoveries can beanticipated.
Figure 9 – Poor HQ size corerecovery in strongly oxidized vein from KZ-21-05
Figure 10 – Close-up of unoxidizedsulphide mineralization from Figure 4 grading 87.5 g/t gold and 169g/t silver from 28-29 meters in KZ-21-05
Figure 11 – Close-up of competent“stick rock” in Figure 5, not washed out by core drilling, grading87.5 g/t gold and 169 g/t silver from 28-29 meters in KZ-21-05
2022 Exploration Program
The Company is currently consolidating it’s 2022exploration plans for Placer Mountain, which will be focused onfurther drilling of this orogenic gold system at depth and alongstrike at both the Main Zone and the Kodiak Zone. The program willalso include extensive soil sampling and geologic fieldinvestigations, both on its existing claims, as well as on the largerregional land package recently acquired.
QA/QC Procedures
Drill core samples were prepared and analyzed at MSALabs laboratory in Langley, B.C. by analytical code AuAg12, whichassays gold by fire assay and silver by aqua regia digest. Prior toshipment, blind quality control samples were inserted at a frequencyof 1 in every 10 samples, including blank material, 3 differentcertified reference standards (high, medium and low grade gold andsilver), ¼ core duplicates and empty bags for pulp duplicates. Samplepreparation at the laboratory was completed by crushing the entiresample to 70% passing -2mm, riffle splitting off 1 kilogram andpulverizing the split to greater than 85% passing 75 microns. Using a30 gram sub-sample, the gold values are determined by fire assaymethod, with atomic absorption finish, which reports results in partsper million (ppm) (equivalent to grams per tonne (g/t)). Silverresults were determined by aqua regia digestion with ICP-ES finish.Analytical results for the quality control samples were independentlyverified to pass.
Qualified Person
Dr. Gerald G. Carlson, PhD, PEng, technical advisor tothe Company, is the Qualified Person as defined by National Instrument43-101 who has reviewed and approved the technical data in thisreport.
About Damara
Damara Gold Corp. is a TSX Venture listed Canadianpublic company with a Board of Directors seasoned in the mineralexploration industry and having extensive and successful internationalexperience with a focus on identifying and acquiring prospective andunder-explored gold properties worldwide.
ON BEHALF OF THE BOARD OF DIRECTORSOF DAMARA
“Larry Nagy”
Larry Nagy, Chief Executive Officer
For additional information visit Damara’s website at www.damaragoldcorp.com or contact:
Damara Gold Corp.
Larry Nagy
Chief Executive Officer
Ph: (250-717-1840)
Disclaimer for Forward-LookingInformation
This news release contains statements that constitute"forward-looking Information", as suchterm is used in applicable Canadian securities laws . Such forward-looking information involves known andunknown risks, uncertainties and other factors that may cause theCompany’s actual results, performance or achievements, ordevelopments in the industry to differ materially from the anticipatedresults, performance or achievements expressed or implied by suchforward-looking information. Forward-looking information includesstatements that are not historical facts and are generally, but notalways, identified by the words "expects,""plans," "anticipates," "believes,""intends," "estimates," "projects,""potential" and similar expressions, or that events orconditions "will," "would," "may,""could" or "should" occur.
Although the Company believes the forward-lookinginformation contained in this news release is reasonable based oninformation available on the date hereof, by its natureforward-looking information involves assumptions and known and unknownrisks, uncertainties and other factors which may cause our actualresults, level of activity, performance or achievements, or otherfuture events, to be materially different from any future results,performance or achievements expressed or implied by such forward-looking information.
Examples of such assumptions, risks and uncertaintiesinclude, without limitation, assumptions, risks and uncertaintiesassociated with general economic conditions; the Covid-19 pandemic;adverse industry events; the receipt of required regulatory approvalsand the timing of such approvals; that the Company maintains goodrelationships with the communities in which it operates or proposes tooperate, future legislative and regulatory developments in the miningsector; the Company ’ sability to access sufficient capital from internal and externalsources, and/or inability to access sufficient capital on favorableterms; mining industry and markets in Canada and generally; theability of the Company to implement its business strategies;competition; the risk that any of theassumptions prove not to be valid or reliable, which could result indelays, or cessation in planned work, risks associated with theinterpretation of data, the geology, grade and continuity of mineraldeposits, the possibility that results will not be consistent with theCompany’s expectations, as well as other assumptions risks anduncertainties applicable to mineral exploration and developmentactivities and to the Company, including as set forth in theCompany’s public disclosure documents filed on the SEDAR website at www.sedar.com .
THE FORWARD-LOOKING INFORMATIONCONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF DAMARAAS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TOCHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ONFORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATIONAS OF ANY OTHER DATE. WHILE DAMARA MAY ELECT TO, IT DOES NOT UNDERTAKETO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIREDIN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this press release.
1 the reader is cautionedthat rock grab samples and their respective photographs are selectiveby nature and may not represent the true grade or style ofmineralization across the Property
2 The intervals reported inthese tables represent drill intercepts and insufficient data areavailable at this time to state the true thickness of the mineralizedintervals. All gold values are uncut.
3 This news release contains informationabout adjacent properties on which Damara has no right to explore ormine. Readers are cautioned that mineral deposits on adjacentproperties are not indicative of mineral deposits on the Company’sproperties
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