Bonanza Mining Corporation Outlines Three High Priority 3D IP Chargeability Drill Targets on its Shag Property in Southeastern British Columbia January 25r2022
Bonanza lvlining Corporation
Suite 2201- B Smithe Mews
Vancouver, B.C.
V6B OA5
Trading Symbol: TSX-V: BNZ Telephone
=
604- 619 -O225
Fax: 604-980-6264
Email: bonanzamining@shaw,ca
Bonanza Mining Corporation Outlines Three High Priority 3D IP Chargeability Drill Targets on its Shag
Property in Southeastern British Columbia
January 25r2022 - Vancouver, British Columbia: Bonanza Mining Corporation ("Bonanza") (TSX-V: BNZ) is
pleased to report that the Shag property time domain 3D IP survey report has been received from SJ Geophysics Ltd.
In addition, a report has also been received from a ground magnetic survey conducted by SJ Geophysics Ltd. on
Bonanza's ShagMag property located approximately 12 km southeast of the Shag property IP survey location.
The ground magnetic survey confirmed a previous airborne magnetic anomaly identified by the Geological Survey of
Canada (the "GSC") and a one day follow up ground investigation found it occurs within altered, zebroid textured
Cambrian carbonate rocks but no igneous rocks were located. The anomalous area needs to be further explored by
expanding the ground magnetic survey area, soil sampling, prospecting and geological mapping to locate a potential
igneous body and any associated sulfide mineralization.
The Shag and ShagMag properties are situated in the Rocky Mountains of southeastern British Columbia
approximately 24km due east of Radium Hot Springs and 35 km northeast of the town of Canal Flats and can be
readily accessed by good logging roads from both of those towns. There are two active mines in the area: Baymag Inc.
mines magnesite at its Baymag mine on the Cross River approximately 20 km north along strike from the Shag
property and CertainTeed Corp. mines gypsum at its Kootenay West mine approximately 45 km southwest of Shag
property, near Canal Flats, British Columbia.
The Shag properly has twenty separate lead, zinc and silver strataform MVT style mineral occurences hosted within
three separate horizons in middle Cambrian age dolostone formations along a carbonate platform to shale basin
transgressive-regressive reef complex margin. Since the first zinc-lead showings were discovered on the Shag property
in 1977, there have been numerous historical exploration programs conducted on the property by Rio Tinto, Esso
Minerals and others, that included soil and rock sampling surveys, IP and VLF-EM geophysical surveys, geological
mapping and four diamond drilling programs.
The GSC conducted the above mentioned regional airbome magnetic survey over a large area of southeastern British
Columbia and southwestern Alberta and it outlined a 30 km wide magnetic low anomaly that passes under the Shag
and ShagMag properties and trends northeasterly for approximately 200 km from Canal Flats, British Columbia to Red
Deer, Alberta. This anomaly appears to be a major basement graben or shear fault zone that is named the Red Deer
lineament.
The style of lead-zinc mineralization on the Shag property and its geological basin margin setting are similar to the
Pine Point district MVT lead-zinc mineralization that is also within a transgressive/regressive barrier reef complex
along a shale basin margin. At Pine Point numerous deposits were formed in Devonian age carbonate rocks above a
basement fault named the Great Slave Shear Zone.
The Shag property is geologically similar to the Pine Point lead-zinc mining district of the NWT where Cominco Ltd.
found that IP surveys were the most effective geophysical technique for locating lead-zinc deposits since they had high
chargeability, and that is the reason why Bonanza decided to conduct a time domain 3D IP survey along the Albert
river valley across the northern portion ofthe Shag property.
There are three zinc-lead mineralized transgressive - regressive carbonate horizons known on the Shag property which
z
occur in the Eldon and Waterfowl formations which are well exposed on the property higher in the stratigraphic
section than the Cathedral formation. The Cathedral formation hosts the past producing Monarch and Kicking Horse
mines -100 km along strike near Field, British Columbia and is the most prospective middle Cambrian formation in
the district.
On the Shag property only the uppermost beds of the prospective Cathedral formation are exposed in the Albert river
valley where the IP survey was conducted and it does not outcrop elsewhere on the properly. The main purpose of the
3D IP survey was to locate high chargeability potential zinc-lead mineralized targets in the blind, subsurface Cathedral
formation for drill testing in2022.
The 3D IP survey consisted of surveying I 1.9 line km on the Shag grid along 7 survey lines spaced 1 50 m apart and
between 700 m and 2,500 m in length, with a station spacing of 50 m.
The IP survey successfully located three distinct groups of high chargeability anomalies along the Albert river valley
within the sub-surface Cathedral formation that have been named the Southwest, Central and Northeast anomalies.
The Southwest chargeability anomaly defines an area approximately 1,000 m in length and 400 m in width. Within the
Southwest anomaly are three approximately north-south to northwest-southeast oriented chargeability bodies, being
Cl, C2 & C3 that appear to be separated by distinct north-northwest to south-southeast oriented zones of low
chargeability.
The western most Cl anomaly is approximately 150 m thick vertically and comes to surface near the main Albert
valley forestry road. It measures approximately 375 m north-south by 250 m east-west and may continue further
north/northwest but is located near the northwestern edge of the survey grid.
The C2 (middle) anomaly is a large body with an amplitude over 30 ms and is strongest in the south where it is over
400 m thick vertically. In plan the anomaly measures over 600 m north-south and 375 m east-west. The Shag C-3 zinc
showing is situated on the southeast side of the C2 chargeability anomaly that comes to surface near the Albert road
approximately 200 m southwest of the C3 showing.
The eastern most C3 anomaly forms a northwest-southeast oriented body approximately 150 m thick vertically and in
plan measures 500 m north-south and 250 m east-west. The chargeability body appears to be offset vertically with the
south part being deeper. This anomaly lies in part under the Albert road.
The Central chargeability anomaly is a semi-circular shaped anomaly that has its highest amplitudes and greatest
depth extent on the southeast side of the survey grid where it is approximately 400 m thick vertically. The anomaly
decreases in depth extent (thickness) and becomes shallower to the north/northwest and comes to surface both to the
south and to the northwest. In plan the anomaly measures approximately 600 m north-south by 250 m east-west and
underlies a road accessible logging clear cut.
The East anomaly is a strong chargeability anomaly > 40 ms situated at the east edge of the survey grid underneath a
road accessible logging clearcut; however to properly model and define its size, the IP grid will need to be extended to
the northeast and southeast.
Low resistivity zones are located adjacent to or coincident with the high charegeability Southwest Cl and C2
anomalies and the Central anomalies. The exception to this is the Southwest C3 chargeability anomaly that is
coincident with the near surface western portion of a large high resistivity anomaly.
The high chargeability anomalies identified by the time domain 3D IP survey are very significant, high priority road
accessible drill targets that Bonanza intends to drill test later this year and in respect of which Bonanza last November
submitted a Notice of Work application to conduct the drill program to the BC government.
Oualified Person
Technical information in this news release has been approved by Christopher Graf P. Eng., the Vice-President
3
Exploration, as well as a Director of Bonanza and a Qualified Person for the purposes of National Instrument 43-l0l
For further information, please contact:
B onanzz Mining Corporation
Suite 2201 - 8 Smithe Mews
Vancouver, B.C. V6B 0A5
Affention: Alfredo De Lucrezia, President,
CEO and Director
Tel: (604) 619-0225
Email : bonanzaminin [email protected]
Cautionary Statements
This press release contains 'forward-looking information" within the meaning of applieable securities laws. Readers
are cautioned to not place undue reliance on forward-looking information. Actual results and developments mqy
differ materially from those contemplated by these statements. The statements in this press release are made as of the
date of this press release. Bonanza undertakes no obligation to update forward-looking information, except as
required by securities lqws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchonge) accepts responsibilityfor the adequacy or accuracy ofthis press release