Au Gold Announces Results from 20 Holes Drilled at the Ponderosa Gold Project
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Au Gold Corp
NR4-2022
Au Gold Announces Results from 20 Holes Drilled at the Ponderosa Gold Project
Vancouver, British Columbia – August 4, 202 2 – Au Gold Corp (TSXV:AUGC) (“ AUGC” or the
“Co
mpany”) announces that it has received all assays from its recent diamond drill program at its road
accessible Ponderosa epithermal gold project, 16 km southwest of Merritt BC. The program successfully
identified the structural hydrothermal system associated with the gold-bearing Tomahawk trench
exposures and the surface alteration identified at the Flatiron target. Drilling at both targets confirmed
the shallow subsurface geometry of the silica- associated structural zones striking north -northeast and
dipping moderately to the west. All holes encountered varying degrees of silicification and structural
alteration with the most significant intervals cut at shallow depths along the Tomahawk trend. The drill
program only partially tested two of four epithermal gold targets identified on the property.
President and CEO, Marc Blythe commented “Despite challenging early -season weather conditions, the
drill program was executed very efficiently test ing two bedrock exposures along a 400 m trend at the
Tomahawk and Flatiron targets. Broad zones of complex silicification encountered along the Tomahawk
trend yielded narrow to moderate intervals of anomalous gold and silver values. G iven the complex
nature of the mineralization, the shallow intercepts and the tenor of gold grades ; management is
currently consulting an epithermal expert to evaluate the results and determine the next phase of
exploration.”
The drill program comprised 20 HQ diameter holes, totaling 23 35m and partially tested two of four
target areas at Ponderosa; Tomahawk and Flatiron. The program was executed for approximately $288
per meter all in, demonstrating the Company’s ability to execute low cost technical drill programs.
Table 1: Anomalous Results
Hole # From (m) To (m) Interval (m) Gold (g/t) Silver (g/t)
PD22-01* 22.86 26.24 3.38 0.23 0.80
PD22-02* 18.15 25.56 7.41 0.29 1.60
31.90 34.17 2.27 0.25 0.76
including 22.61 23.30 0.69 1.27 0.92
PD22-03* 5.70 10.67 4.34 0.16 0.62
22.40 23.84 1.44 0.49 1.19
PD22-07 17.10 19.20 2.10 0.26 1.96
PD22-09 14.18 17.56 3.38 0.23 3.91
PD22-12* 19.86 25.91 6.05 0.32 1.34
PD22-13* 25.91 44.82 18.91 0.44 0.88
including 26.91 27.87 0.96 1.01 1.45
and 43.82 44.82 1.00 2.20 1.36
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PD22-14* 18.29 30.01 11.72 0.46 1.34
including 22.11 22.86 0.75 1.54 1.26
PD22-15* 30.79 51.31 20.52 0.39 1.73
including 33.53 34.33 0.80 1.58 2.51
and 35.13 35.47 0.34 1.55 0.97
PD22-16* 18.29 34.42 16.13 0.35 0.90
including 18.29 19.26 0.97 1.31 1.52
*silica zone encountered at overburden/till interface – not fully defined
- true widths are interpreted to be 80 to 90% of the reported drill interval
Sixteen drillholes were located along a 200 m section of the Tomahawk Zone from the trench exposures
in the south and northward along the trend defined by weak gold and arsenic-in soil geochemistry and a
subtle elevated linear ridge apparent from the digital terrain data. The moderately westward dipping
Tomahawk structural zone is characterized by a complex series of late destructive silica-rich floods and
breccia events overprinting earlier classic banded epithermal veins and vein zones. This extensive
silicification and brecciation appears to be non-gold bearing.
Epithermal vein clasts commonly occur as breccia fragme nts and range from angular to sub -rounded
indicating multi-stage overprint emplacement with varying degrees of fragment milling. Matrix
supported breccias are white to dark grey, the latter containing abundant fine to- ultrafine grained
pyritization as clusters and concentrations along fragment boundaries resembling epithermal style
banding. Late r-stage alteration overprint includes grey silica-hematite as crackle and mosaic breccias ,
veins, veinlets and stringers. All mineralization contains latest-stage carbonate alteration.
Narrow e pithermal veins and portions of vein zones preserved within the late destructive silica
structural overprint are dominantly quartz -adularia and exhibit classic coliform , comb and cockade
textures with lesser ginguro banding and occasional amethyst. Intervals grading in excess of 1 g/t gold
are mostly associated with preserved epithermal vein mineralization in the broader silica alteration
zone. The footwall of the Tomahawk structural zone hosts the highest concentration of narrow
unaltered epithermal veins and veinlets. The best example is observed from PD22-13 where a 1.0 m
interval of mildly silicified footwall volcanic host contains approximately 15% epithermal veining and
graded 2.20 g/t gold.
Four drill holes located at the Flatiron Zone test ed silicified bedrock exposures along strike from the
historical gold -bearing trenches. Broad zones of silicification, brecciation and mangan iferous-
hematization were encountered as interpreted from the surface exposures but these zones appear to be
similar in nature to the late -stage non-gold-bearing structural alteration observed at the Tomahawk
Zone. Only rare high -level epithermal veins/ve inlets were encountered , unlike the concentrations of
epithermal vein mineralization at surface and lower elevations to the north. No anomalous gold
intervals were sampled from the Flatiron drill holes.
Management was very encouraged during drilling by the presence of extensive silicification, brecciation
and epithermal textures, which, combined with efficient project execution and cost savings, led to
additional drill holes being planned and completed. The Tomahawk silica alteration drill core intervals
can be viewed here: https://augoldcorp.com/Drilling/
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The Tomahawk and Flat iron zones are two of four known targets on the property and were selected
primarily due to the presence of anomalous gold values in rock samples along with outcrop exposures
which enabled accurate interpretation of the mineralizing system geometry.
The T-Bone Zone hosts the strongest and most continuous gold-arsenic geochemistry on the property
but has only received cursory surface exploration to date in the form of minor historical hand pits as
much of the area is overburden/till covered . F ollow-up prospecting of elevated soil sample sites along
the main access road through the central part of the T- Bone target area identified a 3 m wide zone of
bleached and clay altered silicified volcanic subcrop . A composite sample of select material across the
zone yielded 0.47 g/t gold . This zone is believed to be one of a number of high -level mineralized
structures defining the T-Bone gold-arsenic soil geochemical anomaly and remains to be drill tested.
The Company has substantially reclaimed the drill sites, which were selected to minimize disturbance.
In addition, historical trenches were backfilled, co ntoured and revegetated in accordance with
commitments the Company made to local First Nations.
Qualified Person
All scientific and technical information in this press release has been prepared by William
Wengzynowski, P. Eng., a qualified person as defined by NI 43-101. Mr. Wengzynowski is the Exploration
Manager for Au Gold Corp.
All samples were submitted to ALS Canada Ltd. in North Vancouver, BC for sample preparation and
analysis. Samples were fine crushed to 70% passing 2 millimeters before a 250 gram split was pulverized
to better than 85% passing 75 microns. Pulps were then analyzed for gold by fire assay using the Au -
ICP22 technique (Inductively Coupled Plasma – Atomic Emission Spectrometry finish) using a 50 gram
charge.
Multi-element analyses for 51 elements including gold and silver were determined for all sample pulps
using the ME-MS41 procedure which utilizes an ultra- trace aqua regia acid digestion followed by
inductively coupled plasma mass spectroscopy finish.
Ponderosa Gold Property
The Ponderosa Gold Property is located 16 km southwest of Merritt, BC, within the Spences Bridge Gold
Belt which forms a northwest trending belt roughly 180 km long and up to 24 km wide.
Exploration by AUGC and others, notably Westhaven Gold Corp., has id entified the potential for gold
associated with low -sulphidation epithermal mineralization (quartz- adularia). Examples of this style of
mineralization include Kupol (Kinross Gold Corp.), Hishikari (Sumitomo Metal Mining) and Fruta Del
Norte (Lundin Gold).
Rocks of immediate interest in the belt and underlying much of the Property comprise successions of
Cretaceous subaerial and pyroclastic volcanic flows which host significant gold mineralization at
Westhaven Gold Corp.’s Shovelnose project approximately 2 0 km southeast of the Ponderosa Gold
Property. Geology across the Ponderosa Gold Property claim group is broadly divided into two
Cretaceous age volcanic sequences comprising subaerial and pyroclastic volcanic flows of the Pimainus
and Spius Formations.
Work conducted between 2019 and 2021 by AUGC significantly upgraded three historic showings and
identified an entirely new showing. These showings in order of priority are referred to as the Tomahawk,
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Flat Iron, T -Bone and Rib Eye zones. The Tomahawk Zone is the most advanced and highest priority
showing on the Property.
The Ponderosa Gold Property is located within the unceded traditional territory of the Nlaka’pamux
People.
Further information on the Property can be found on the Company’s website:
https://www.augoldcorp.com/ponderosa-property/.
Cautionary Note
Neither the 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.
For further information, please contact:
Au Gold Corp
Marc G. Blythe, MBA, P.Eng., President & Chief Executive Officer
Sandrine Lam, Investor Relations Phone: 1-604-687-3520 Ext. 250
Email: [email protected]
To learn more visit: https://www.augoldcorp.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACC EPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE. STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY
HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS
AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD -LOOKING STATEMENTS. FORWARD-
LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE
RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT,
ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD -LOOKING
STATEMENTS.
Ponderosa Epithermal Gold Drill Target Areas
Tomahawk – high level bedrock vein
zone exposure up to 15 m wide with best
saw channel sample returning 3.99 g/t
Au across 1 m but majority of samples
100 – 200 ppb Au
Flatiron – historical trench reported 25
m grading 0.80 g/t Au with abundant
epithermal and silica flood vein float
around periphery of pond system.
Select samples returned 3.27 g/t Au
T-Bone - Largest coincident Au-As soil
geochemical anomaly on the property
but very limited surface exploration.
Composite sample of altered volcanic
subcrop returned 0.47 g/t Au across 3 m
Ribeye - High level clay alteration zone
along trend of historical 49 g/t Au
prospecting sample
Tomahawk
Flatiron
T-Bone
Ribeye
0 500 m
Ponderosa Zones
T-Bone
Tomahawk
Flatiron
Ribeye
0 500 m
Arsenic Geochemistry
Tomahawk/Flatiron Silica Alteration Intervals and Select Examples
N
Gold Geochemistry
Tomahawk
Flatiron
PD22-10
PD22-09
PD22-06 PD22-07,08
PD22-04,05
PD22-11,12
PD22-01,
02 PD22-03
PD22-13,14,16
PD22-15
0 100 m
PD22-09
PD22-07 PD22-12
PD22-03
PD22-13 PD22-15
Tomahawk/Flatiron Silica Alteration Intervals and Select Examples
PD22-04,05
PD22-15
0 100 m
N
Arsenic Geochemistry
Tomahawk
Flatiron
PD22-10
PD22-09
PD22-06 PD22-07,08
PD22-11,12
PD22-01,
02 PD22-03
PD22-13,14,16
0 100 m
PD22-09
PD22-07
PD22-12
PD22-01
PD22-02
PD22-14
PD22-16
PD22-16
Table 2 – Gold Bearing Intervals
Hole # From (m) To (m) Interval (m) Gold (g/t) Silver (g/t)
PD22-01 22.86 24.07 1.21 0.129 0.87
24.07 24.60 0.53 0.131 0.64
24.60 25.24 0.64 0.657 0.73
25.24 26.24 1.00 0.130 0.85
Weighted Avg. 22.86 26.24 3.38 0.23 0.80
PD22-02 18.15 19.51 1.36 0.369 2.77
19.51 20.92 1.41 0.025 0.22
20.92 22.10 1.18 0.095 3.11
22.10 22.61 0.51 0.322 2.97
22.61 23.30 0.69 1.270 0.92
23.30 23.76 0.46 0.186 0.73
23.76 24.80 1.04 0.264 1.10
24.80 25.56 0.76 0.149 0.60
Weighted Avg. 18.15 25.56 7.41 0.29 1.60
22.10 24.80 2.70 0.52 1.34
31.90 32.84 0.94 0.132 0.56
32.84 33.17 0.33 0.344 0.53
33.17 34.17 1.00 0.322 1.02
Weighted Avg. 31.90 34.17 2.27 0.25 0.76
PD22-03 6.33 6.73 0.40 0.210 0.61
6.73 7.27 0.54 0.051 0.18
7.27 8.06 0.79 0.117 0.67
8.06 9.14 1.08 0.127 0.64
9.14 9.77 0.63 0.132 0.53
9.77 10.67 0.90 0.294 0.86
Weighted Avg. 6.33 10.67 4.34 0.16 0.62
22.40 22.91 0.51 0.722 1.17
22.91 23.45 0.54 0.250 0.81
23.45 23.84 0.39 0.524 1.76
Weighted Avg. 22.40 23.84 1.44 0.49 1.19