FOR IMMEDIAT E RELEASE Aton reports diamond drill results from the Hamama East and Central areas, including 1.38 g/t Au equivalent and 8.20% Zn over 22.5m from surface , and announces the issuance of Bonus Warrants and Early Warning Report
FOR IMMEDIAT E RELEASE
Aton reports diamond drill results from the Hamama East
and Central areas, including 1.38 g/t Au equivalent and
8.20% Zn over 22.5m from surface , and announces the
issuance of Bonus Warrants and Early Warning Report
Vancouver, British Columbia, March 29, 2023: Aton Resources Inc. (AAN: TSX-V) (“Aton” or the “Company")
is pleased to update investors on results from the recent diamond drilling programme at Hamama, located in
the Company’s 100% owned Abu Marawat Concession (“Abu Marawat” or the “Concession”) , in the Eastern
Desert of Egypt, (Figure 1).
Highlights:
• Diamond drilling was completed at Hamama on March 11, 2022, with a total of 1,612.7 metres drilled
from 42 shallow holes. The programme was designed to test for potential oxide mineralisation in areas
that previously had been largely undrilled;
• 22 holes were drilled at Hamama East , with results including 0.82 g/t Au, 47.39 g/t Ag, 1.38 g/t Au
equivalent (“AuEq”) and 8.20% Zn over an interval of 22.5m from surface (HAD-022) and 0.60 g/t
Au, 43.49 g/t Ag, 1.11 g/t AuEq and 3.25% Zn over an interval of 22.7m from 0.45m downhole
depth (HAD-021), associated with the main Hamama silica-carbonate mineralised horizon;
• 5 holes were drilled at Hamama Central, which returned mineralised intersections including 1.20 g/t
Au, 15.17 g/t Ag, and 1.38 g/t AuEq over an interval of 15.9m from 11.0m downhole depth (HAD-
017) also associated with the highly gossanous Hamama silica-carbonate mineralised horizon;
• Aton has issued 20,000,000 bonus warrants to OU Moonrider, a significant shareholder , in respect of
a $4M loan provided to the Company.
“We are pleased to be able to announce this year’s diamond drill results from Hamama East and Central. We
have not drill tested the oxide potential in these areas previously, and we are surely happy with these results
that confirm reasonable thicknesses of oxide gold -silver mineralisation, as indicated by our previous surface
channel sampling and trenching, in these areas” said Tonno Vahk, Interim CEO. “The grades we are seeing
are very much in line with the Hamama West oxide resource, and these newly delineated areas will again be
readily amenable to exceedingly low strip ratio open pit mining methods. These results are particularly
encouraging, when combined with the recent metallurgical test results from the Rodruin oxides, and we are
now considering different potential processing scenarios for the oxide mineralisation at both Hamama West
and Rodruin including the potential use of modular CIL technology. We continue to press on towards our stated
intention of submitting our application for the mining licence at Abu Marawat in Q3 -2023. With further
metallurgical testwork programmes ongoing, Cube Consulting working on the revised mineral resource
statements, and active preparations on the ground for the upcoming RC drilling at some of our highly
prospective regional targets including Semna, Abu Gaharish, Zeno, West Garida, Sir Bakis and Bohlog , we
continue to aggressively push our programmes forward. We are working closely with our partners at the
Egyptian Mineral Resources Authority, and are very excited about Aton being on course to becoming only the
second foreign listed company to be grante d a gold mining licence in Egypt, and the benefits this will bring to
Egypt, our shareholders, and all of our Egyptian stakeholders including EMRA and the Ministry of Petroleum.”
2023 Hamama diamond drilling programme
Diamond drilling re -commenced at Hama ma in mid -January 2023, and was completed on March 11, 2023.
The drilling was undertaken by Energold Limited using the ID500-G track -mounted rig supplied by Global
Drilling (Figure 2), which is specially engineered to be able to drill horizontal and very s hallow holes, as well
as more usual inclined and vertical holes . The flexibility offered by this rig allowed for horizontal or shallow
holes to be drilled in rugged terrain at Hamama East and Central to test the surface mineralisation outcropping
in these areas.
The mineralisation at Hamama is hosted in a stratiform silica -carbonate horizon (“SCMH”) that outcrops over
an approximately 3.2 km strike length, and is variable in thickness. At Hamama West the SCMH is >60m in
thickness in places, while at Hamama East it has a typical thickness of c. 15-20m. THE SCMH is typically iron
oxide-rich and gossanous at surface and throughout the oxide zone, reflecting weathering and oxidation of the
sulphide-rich precursor.
Figure 1: Geology plan of the Abu Marawat Concession showing the location of the Hamama project
During the 2023 diamond drilling programme 42 generally short holes were drilled at Hamama Central,
Hamama East and the Crocs Nose Zone, to test for potential sur face or shallow oxide mineralisation, which
previously had been largely untested by drilling, for a total of 1,612.7m (see Table 1).
Figure 2: Energold’s ID-500G rig drilling on hole HAD-020 at Hamama East
Figure 3: Hamama Central area - geology and drill hole collar plan
5 holes (HAD-014 to HAD-017, and HAD-040) were completed at Hamama Central for a total of 239.4m (see
Table 1 and Figure 3), and 22 holes (HAD -018 to HAD -039) were completed at Hamama East for a total of
827.5m (see Table 1 and Figure 4). The remaining 15 holes were drilled at the Crocs Nose Zone at Hamama
West, and will be reported when assay results become available.
Hole ID
Collar co-ordinates 1
Dip 2 Grid
azimuth 2
EOH
depth (m) Comments
X Y Z
HAD-014 534741.6 2913916.8 491.3 -1.9 174.1 87.8 Hamama Central
HAD-015 534822.5 2913899.3 494.2 0.1 182.1 69.3 Hamama Central
HAD-016 534889.7 2913871.8 498.6 1.2 182.4 22.3 Hamama Central
HAD-017 534935.9 2913878.3 499.7 -10.7 182.1 28.8 Hamama Central
HAD-018 535276.9 2913972.7 509.6 -0.5 122.6 34.3 Hamama East
HAD-019 535280.9 2914033.4 498.2 -15.5 144.4 52.5 Hamama East
HAD-020 535336.0 2914079.7 511.0 -0.1 137.7 36.0 Hamama East
HAD-021 535332.5 2914057.9 510.4 0.1 134.7 32.4 Hamama East
HAD-022 535358.4 2914083.2 520.1 -0.1 136.6 27.1 Hamama East
HAD-023 535358.2 2914083.5 519.0 -32.8 134.0 30.1 Hamama East
HAD-024 535375.4 2914125.8 510.5 0.0 137.7 24.2 Hamama East
HAD-025 535375.2 2914126.0 509.6 -33.5 133.2 17.8 Hamama East
HAD-026 535335.9 2914079.7 509.6 -33.3 135.5 24.3 Hamama East
HAD-027 535409.7 2914222.8 513.4 -1.3 155.0 41.1 Hamama East
HAD-028 535451.8 2914212.4 535.6 -0.2 136.3 13.1 Hamama East
HAD-029 535482.4 2914252.5 540.1 -0.4 133.3 21.9 Hamama East
HAD-030 535511.6 2914274.0 542.4 0.0 134.7 31.4 Hamama East
HAD-031 535542.4 2914296.8 542.3 -0.7 136.3 30.9 Hamama East
HAD-032 535568.8 2914324.2 542.2 -0.7 130.8 46.1 Hamama East
HAD-033 535594.8 2914347.2 539.8 -0.2 136.8 55.0 Hamama East
HAD-034 535433.6 2914237.5 522.6 -0.6 183.6 59.4 Hamama East
HAD-035 535437.1 2914239.4 522.0 -10.4 135.2 36.5 Hamama East
HAD-036 535455.7 2914278.2 520.9 0.2 134.7 53.4 Hamama East
HAD-037 535482.7 2914309.5 517.5 -0.2 136.1 63.1 Hamama East
HAD-038 535515.7 2914332.0 519.9 0.1 136.5 69.0 Hamama East
HAD-039 535328.2 2914059.2 508.7 -35.0 142.8 27.8 Hamama East
HAD-040 534935.9 2913884.5 498.8 -36.7 178.9 31.2 Hamama Central
Notes:
1) Collar co-ordinates surveyed by Leica TCRA1203+ R1000 Robotic total station
2) Collar surveys of drill holes undertaken at c. 5-6m depth, using Reflex EZ-Trac survey tool
3) All co-ordinates are UTM (WGS84) Zone 36R
Table 1: Collar details of diamond drill holes HAD-014 to HAD-040
Discussion of results
Results are now available for the first 27 drill holes, HAD-014 to HAD -040, from the Hamama Central and
Hamama East zones . The c ollar co -ordinates of these holes are provided in Table 1, and details of all
mineralised intersections are provided in Appendix A.
Hamama Central
5 holes (HAD-014 to HAD-017, and HAD-040) were completed at Hamama Central for a total of 239.4m (see
Table 1 and Figure 3). Previous drilling in the general area intersected sulphide mineralisation including a
14.1m interval grading 6.5% Zn, 0.20% Cu, 0.81 g/t Au and 39.1 g/t Ag, from 108m depth (hole AHA-004), and
a 16.0m interval grading 4.71% Zn, 0.22% Cu, 0.81 g/t Au and 33.7 g/t Ag, from 127m depth (AHA-005), see
news release dated October 29, 2012. None of the previous drilling at Hamama Central had targeted potential
oxide mineralisation.
The first 3 holes, HAD-014 to HAD-016, targeting a heavily dissected and faulted outcrop of the SCMH (Figure
3), failed to intersect any significant mineralisation. Holes HA D-017 and HAD -040, however, drilled close to
ancient copper workings, intersected mineralisation associated with gossanous SCMH, returning intervals of
15.9m grading 1.20 g/t Au, 15.17 g/t Ag, and 1.38 g/t AuEq, from 11.0m downhole depth (HAD-017) and 8.7m
grading 0.75 g/t Au, 17.17 g/t Ag, and 0.95 g/t AuEq, from 18.0m downhole depth (HAD-040). Recovery from
hole HAD -040 was quite poor through the mineralised zone, which strongly suggested that ancient mine
workings had been intersected in this hole.
Figure 4: Hamama East area - geology and drill hole collar plan
Hamama East
22 holes (HAD-018 to HAD-018 to HAD-039) were drilled at Hamama East for a total of 827.5m (see Table 1
and Figure 4). Previous drilling at Hamama East intersected base metal dominant sulphide mineralisation
including a 46.5m interval grading 1.67% Zn and 0.11% Cu, from 150.3m depth (hole AHA -053). Sulphide
mineralisation was also intersected in the main SCMH at depth, in cluding a 10.6m interval grading 1.67% Zn,
0.11% Cu, 0.32 g/t Au and 75.6 g/t Ag, from 180m depth (AHA-052), and an 8.0m interval grading 0.47 g/t Au,
31.2 g/t Ag and 0.38% Zn, from 113m depth (AHA-049), see news release dated October 20, 2015.
Most of the holes at Hamama East intersected gold-silver (±zinc-lead-copper) oxide mineralisation, associated
with gossanous SCMH. Selected intersections are shown below in Table 2, and all Hamama East intersections
are provided in Appendix A.
Hole ID
Intersection (m) 1 Au
(g/t)
Ag
(g/t)
AuEq
(g/t) 3
Cu
(%)
Pb
(%)
Zn
(%) Comments
From To Interval 2
HAD-018 29.20 32.30 3.10 0.29 4.56 0.34 0.37 0.49 21.34 SCMH
HAD-020 11.20 29.50 18.30 0.75 33.47 1.15 0.09 0.32 2.85 SCMH
HAD-021 0.45 23.15 22.70 0.60 43.49 1.11 0.21 0.33 3.25 SCMH
HAD-022 0.00 22.50 22.50 0.82 47.39 1.38 0.30 0.71 8.20 SCMH
HAD-023 0.00 16.20 16.20 0.72 37.37 1.16 0.16 0.36 4.09 SCMH
HAD-024 0.00 13.65 13.65 0.61 40.63 1.09 0.11 0.37 2.56 SCMH
HAD-025 0.00 13.40 13.40 0.56 27.29 0.88 0.06 0.26 1.51 SCMH
HAD-029 6.20 18.75 12.55 0.60 56.44 1.26 0.15 0.76 5.34 SCMH
HAD-030 13.00 23.90 10.90 0.65 76.78 1.55 0.04 0.13 0.40 SCMH
HAD-034 36.70 44.80 8.10 1.06 60.98 1.78 0.11 0.39 2.03 SCMH
HAD-035 19.20 26.30 7.10 0.75 40.08 1.22 0.07 0.47 1.23 SCMH
HAD-039 2.10 24.60 22.50 0.47 28.82 0.81 0.27 0.41 6.23 SCMH
Notes:
1) Intersections calculated at a nominal cut-off grade of 0.3 g/t Au in runs of continuous mineralisation
2) Intervals are not true width. True widths are typically c. 80-90% of intersected interval
3) Gold equivalent, AuEq, is calculated at a ratio of 85:1 Au:Ag (ie. 1 g/t Au = 85 g/t Ag)
4) Zones of poor (or no) recovery through voids and cavities were not sampled, and allocated zero grade
Table 2: Selected intersections from Hamama East
The drilling has indicated the presence of outcropping gold -silver (±zinc-lead-copper) oxide mineralisation, at
reasonably consistent grade s, associated with the SCMH, over a strike length of approximately 300m at
Hamama East. The drilling confirms previous mechanical saw-cut channel sampling results from the immediate
area, including intersections of 84m @ 1.13 g/t Au, 49.7 /t Ag and 7.29 % Zn (channel profile HAC-160) and
42.8m @ 1.28 g/t Au, 55.5 g/t Ag and 10.37 % Zn (channel profile HAC-161), see news release dated May 3,
2018. The grade of the mineralisation appears to be increasing towards surface, but this has not been tested
by drilling as the hard gossanous carbonate rocks of the SCMH control the topography in this area , making
drill testing from higher up on the ridge very difficult.
The SCMH is partially stoped out at depth by an intrusive andesite porphyry (Figure 4), which in places reaches
the surface. The mineralisation appears to decrease in strength and width to the south of holes HAD -021 and
HAD-039, and also pinches out to the northeast o f hole HAD -030, even as the thickness of the SCMH
increases (Figure 4).
This incremental oxid e mineralisation at Hamama East identified in the recent drilling has not to date been
included in any ore resource estimates. This mineralisation outcrops at surface, and is expected to be readily
mineable at very low strip ratios, and will now be include d in the development plans for the Hamama West
starter oxide open pit operation.
Sample processing and analytical procedures
Drill core was logged by Aton geologists, and marked up for cutting and sampling at the Hamama core farm.
Samples were typically selected over nominal 1m intervals, but as determined by the logged lithologies. The
core was half-cut by Aton staff at the onsite Hamama sample preparation facility.
The split half-core samples were collected and bagged up in cloth bags, weighed and crushed to -4mm onsite,
and split to a nominal c. 250-500g sample size. The coarse crushed reject samples are retained onsite at th e
Hamama sample prep facility.
QAQC samples are inserted at a rate of approximately 1 certified reference material (or “standard” sample)
every 30 samples, 1 blank sample every 15 samples, and 1 duplicate split sample every 15 samples.
The c. 250-500g dried, crushed and split samples were shipped to ALS Minerals sample preparation laboratory
at Marsa Alam, Egypt where they were pulverised to a size fraction of better than 85% passing 75 microns.
From this pulverised material a further sub-sample was split off with a nominal c. 50g size, which was shipped
on to ALS Minerals at Rosia Montana, Romania for analysis.
Samples were analysed for gold by fire assay with an atomic absorption spectroscopy (“AAS”) finish (analytical
code Au-AA23), and for silver, copp er, lead and zinc using an aqua regia digest followed by an AAS finish
(analytical code AA45). Any high grade gold samples (>10 g/t Au) were re-analysed using analytical code Au-
GRA21 (also fire assay, but with a gravimetric finish). Any high grade Ag and base metal samples (Ag >100
g/t, and Cu, Pb and Zn >10,000ppm or >1%) were re -analysed using the ore grade technique AA46 (also an
aqua regia digest followed by an AAS finish).
Bonus Warrants and Early Warning Report
Aton announces that, further to its news release dated March 7, 2023, it has issued 20,000,000 bonus warrants
(the "Warrants") to OU Moonrider ("Moonrider"), a significant shareholder of the Company, in respect of a $4M
loan (the "Loan") provided to the Company by Moonrider. The Warrants are exercisable at a price of $0.20 per
share until March 6, 2024.
Pursuant to National Instrument 62 -103 - The Early Warning System and Related Take Over Bid and Insider
Reporting Issues, Moonrider acquired the Warrants in consideration for the Loan.
Prior to acquiring the Warrants, Moonrider beneficially owned, controlled, or directed an aggregate of
18,510,638 common shares and 12,566,686 share purchase warrants, representing approximately 33.04% of
the outstanding common shares of Aton on a non-diluted basis and approximately 45.31% on a partially diluted
basis, assuming Moonrider’s exercise of its previously held warrants (the "Prior Warrants").
Following the acquisition of the Warrants, Moonrider beneficially owns, co ntrols, or directs an aggregate of
18,510,638 common shares and 32,566,686 share purchase warrants, representing approximately 33.04% of
the outstanding common shares of Aton on a non-diluted basis and approximately 57.65% on a partially diluted
basis, assuming Moonrider’s exercise of both the Warrants and Prior Warrants.
Moonrider may, depending on market or other conditions, increase or decrease its beneficial ownership,
control or direction over, or exercise its current rights to acquire, common shares through market transactions,
private agreements or otherwise.
Moonrider’s head office is located at Toompuiestee 37, 10133 Tallinn, Estonia.
The early warning report, as required under National Instrument 62 -103, contains additional information with
respect to the foregoing matters and will be filed by Moonrider on Aton’s SEDAR profile at www.sedar.com.
About Aton Resources Inc.
Aton Resources Inc. (AAN: TSX-V) is focused on its 100%
owned Abu Marawat Concession (“Abu Marawat”),
located in Egypt’s Arabian -Nubian Shield, approximately
200 km north of Centamin’s world-class Sukari gold mine.
Aton has identified numerous gold and base metal
exploration targets at Abu Marawat, including the
Hamama deposit in the west, the Abu Marawat deposit in
the northeast, and the advanced Rodruin exploration
prospect in the south of the Concession. Two historic
British gold mines are also located on the Concession at
Sir Bakis and Semna. Aton has identified sever al distinct
geological trends within Abu Marawat, which display
potential for the development of a variety of styles of
precious and base metal mineralisation. Abu Marawat is
447.7 km 2 in size and is located in an area of excellent
infrastructure; a four -lane highway, a 220kV power line,
and a water pipeline are in close proximity, as are the
international airports at Hurghada and Luxor.
Qualified person
The technical information contained in this News Release
was prepared by Javier Orduña BSc (hons), MSc, MCSM,
DIC, MAIG, SEG(M), Exploration Manager of Aton
Resources Inc. Mr. Orduña is a qualified person (QP) under
National Instrument 43 -101 Standards of Disclosure for
Mineral Projects.
For further information regarding Aton Resources Inc.,
please visit us at www.atonresources.com or contact:
TONNO VAHK
Interim CEO
Tel: +1 604 318 0390
Email: [email protected]
Note Regarding Forward-Looking Statements
Some of the statements contained in this release are forward -looking statements. Since forward -looking statements
address future events and conditions; by their very nature they involve inherent risks and uncertainties. Actual results
in each case could differ materially from those currently anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.