Compass GOLD: Drilling Success at First Ouassada Bedrock GOLD Targets
COMPASS GOLD: DRILLING SUCCESS AT FIRST OUASSADA
BEDROCK GOLD TARGETS
Toronto, Ontario, January 10, 201 9 – Compass Gold Corp. (TSX -V: CVB) (Compass or the
Company) is pleased to provide an update on the first-ever bedrock drilling on the Ouassada
exploration permit on its Sikasso Property in Southern Mali.
Highlights
● All 8 reverse-circulation (RC) holes completed over the first 5 of 14 prospective targets on
Ouassada permit intercepted gold mineralization, including 13 metres (m) @ 1.97 grams
per tonne ( g/t) gold (Au) (from 51 m) and 1 6 m @ 1 .47 g/t Au (from 9 6 m) in a single
bedrock hole
● Longest mineralized intervals were 46 m @ 0. 65 g/t Au (from 18 m) and 27 m @ 0.92 g/t
Au (from 96 m) from OURC005 (Ouassada RC hole 5)
● Thirty-eight one-metre sample inter vals contained more than 1 g/t Au , and fifteen
contained more than 3 g/t Au, with the highest being 11.8 g/t Au
● Funded and preparing for the next round of exploration in Q1 -2019 to include ground
geophysics and diamond drilling
Compass CEO, Larry Phillips, commented, “We are pleased with the results from our initial
bedrock drilling program on the Ouassada permit, not only because all RC drill holes intersected
gold mineralization in bedrock but also because we have identified two, wide mineralized gold
zones in holes OURC004 and OURC005. Without doubt, this provides us with confidence that
we are on the right exploration track. We are already funded and preparing for the next phase
of work at Ouassada in the coming weeks and months, including additional gr ound geophysics
and bedrock drilling.”
Technical Director, Dr. Sandy Archibald, PGeo, added, “The drilling results are highly
encouraging since they have given us extremely valuable information on the geology, structure
and, most importantly, the style of gold mineralization at Ouassada. We will apply this
knowledge to the remaining nine exploration targets on the permit, and additional targets
identified on the adjacent Sankarani permit. Meanwhile, we are laying out a 500 -m diamond
drilling program at our Farabakoura and Kabangoué targets on Ouassada to generate additional
geological information on the mineralization in aid of our continued examination of the
numerous targets that we have identified thus far.”
Farabakoura and Kabangoué Drilling targets
A total of 2,742 m of air core (AC) drilling (72 holes) and 882 m of reverse circulation (RC) drilling
from 8 holes have been completed over 5 prospective targets on two areas of the Company’s
Ouassada exploration permit located within the Yanfolila Belt in s outhern Mali. The area is
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underlain by Birimian (Lower Proterozoic) meta -volcanic, -volcaniclastic and -sedimentary, and
intrusive rocks, which have been deformed during tectonic movements along the Siekoroli shear
zone. The Yanfolila Belt hosts several multi-million gold deposits, i.e., Yanfolila, Kalana, and
Kodiéran. Numerous artisanal workings are present on the Ouassada permit, and some of the
most extensive areas are illustrated on Figure 1 below. Th is first ever bedrock drilling on the
1,179 km2 Sikasso Property occurred over these artisanal workings.
Air Core Drilling Results
The 73-AC hole program was designed on a nominal spacing of 50 m on five east-west trending
lines to cover five of the previously identified geochemical anomalies (see Compass news release
dated July 31, 2018 ) located just above the bedrock to a maximum depth of 50 metres . One
hole, OUAC039, was not drilled due to surface conditions, so a total of 72 holes were completed.
Two lines were drilled at Kabangoué (see Figure 1), two lines at Farabakoura, and one line on
Farabakoura NW. All holes were drilled at an angle of 55° to the east and were planned to test
shallow soil and auger drilling gold results, and also to provide some geological control on the
bedrock. Nineteen of the AC holes intersected gold concentrations greater than 100 ppb (0.1
g/t) Au over the 2 m sampling interval assayed, with depths varying from the surface (0 to 2 m)
to 48 m. Generally, gold mineralization was restricted to zones 2 to 4 m in thickness, but a wide
zone (up to 1 8 metres) with low-grade gold (0.12 g/t Au) was also present at Kabangoué in drill
hole OUAC061. An adjacent hole (OUAC060) contained a mineralized interval of 8 m @ 0.7 5 g/t
Au (from 10 m), including a 2 -m interval containing 4.0 g/t Au (from 14 m) , which was the
highest grade encountered in the AC portion of this second phase drilling program .
Mineralization was associated with pyrite and quartz veining.
The AC program was modestly successful in confirming the presence of bedroc k gold
mineralization associated with the quartz veining being exploited by artisanal miners on the
various drilling lines. I mportantly, detailed i nterpretation of the drilling results suggested that
the mineralized zones were not parallel to the north -south trending S iekoroli shear zone as
initially expected, but were generally orientated NW or WNW, thus explaining the number of
intercepts over the large Farabakoura artisanal gold workings.
Significant drill intersections from the AC program are summari zed in Table 1. A full listing of
hole locations and assay results is presented in Table 4 at the end of this document.
Table 1. Significant drill intersections for the air core drilling program at Ouassada
Hole No. Down Hole Intercept From Depth
(down hole)
OUAC018 2 m @ 1.49 g/t Au 24 m
OUAC032 4 m @ 0.42 g/t Au 20 m
OUAC060 8 m @ 0.75 g/t Au 10 m
Including 2 m @ 4.00 g/t Au 14 m
OUAC061 18 m @ 0.12 g/t Au 16 m
OUAC062 2 m @ 1.38 g/t Au 16 m
OUAC069 2 m @ 1.84 g/t Au 0 m
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Figure 1 - Location of t he Farabakoura and Kabangoué AC and RC drill holes. The inset map
shows the location of the drilling with respect to the Ouassada permit and the simplified
geology.
Reverse Circulation Drilling Results
Subsequent to the AC drilling program, the Company also undertook a limited 8 -hole reverse
circulation (RC) drilling program at Ouassada. Hole locations for this RC program were b ased on
a combination of the presence of bedrock gold identified from grab samples at Farabakoura (up
to 40 .4 g/t Au) and Kabangoué (89.3 g/t Au), together with geophysical and remote sensing
targeting, and the preliminary AC results. A total of 882 m w ere drilled, with an average length
of 100 m (corresponding to a depth of 82 m) . The deepest hole was 130 m and the shallowest ,
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82 m. The purpose of these holes was to provide geological control of the bedrock lithology and
identify bedrock hosted mineralization (since AC stops at the top of bedrock at an approximate
depth of 50 m). Drilling at Farabakoura was concentrated on a l arge excavation (100 m by 150
m) made by artisanal miners, with five holes drilled within the pit and one hole drilled 50 m to
the north of the pit, but still inside the area of extensive artisanal workings . Holes were drilled
at various azimuths to determine the orientation of mineralization, with dips between 55 and
60°.
RC drilling results were considerably more encouraging tha n the shallow AC drilling at the same
location. Gold mineralization was recorded in discrete intervals that ranged in thicknes s from
1 m up to 16 m and grades up to 11.80 g/t Au over 1 m. The most significant intervals are
presented in Table 2, with all results presented in Table 5.
Table 2. Significant drill intersections for the RC drilling program at Farabakoura
Hole No. Down Hole Intercept From Depth
(down hole)
OURC001 20 m @ 0.30 g/t Au 83 m
OURC002 44 m @ 0.80 g/t Au 59 m
including 1 m @ 9.20 g/t Au 66 m
including 7 m @ 1.75 g/t Au 88 m
including 2 m @ 5.38 g/t Au 103 m
OURC003 3 m @ 0.34 g/t Au 93 m
OURC004 37 m @ 0.87 g/t Au 29 m
including 10 m @ 2.25 g/t Au 29 m
including 9 m @ 0.84 g/t Au 57 m
OURC005 46 m @ 0.65 g/t Au 18 m
including 6 m @ 0.53 g/t Au 18 m
including 13 m @ 1.97 g/t Au 51 m
OURC005 27 m @ 0.92 g/t Au 96 m
including 16 m @ 1.47 g/t Au 96 m
OURC006 2 m @ 1.00 g/t Au 70 m
Assay results show that several broad, well -mineralized zones are present. Particular
significance is placed on the results from OURC004 and OURC005 since they represent
intercepts that the Company believes are likely t o approximate true thicknesses. When plotted
in plan view, Figure 2, it appears that mineralization is trending NW and cross section
interpretation suggests the structure is at a shallow angle (<30°). Diamond drilling is planned to
determine the precise orientation of mineralization.
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Figure 2 - Location of RC drill holes and traces (with gold assays projected to surface) at
Farabakoura within the artisanal open pit. Significant broad gold intercepts have been labeled.
See Table 2 and 5 for full intercepts.
Two additional RC holes were drilled on the Kabangoué prospect located 1.3 km to the
southeast of the Farabakoura workings. OURC007 was a 112-m vertical hole, and OURC008 was
a 90-m inclined hole drilled to the north. Both holes were drilled in an area of artisanal workings
on a NW -trending granodiorite. OURC007 was located 35 m north of artisanal workings that
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contained WNW-trending quartz-pyrite veins assaying up to 89.3 g/t Au from grab samples, and
OURC008 was located adjacent to a mineralized outcrop of granodiorite that contained thin
pyrite-arsenopyrite veins and euhedral pyrite crystals , and assayed 11.55 g/t Au during historic
grab sampling. Both holes collared and remained in the granodiorite for their entire length .
OURC007 encountered several narrow-mineralized zones which, when combined , formed a
wide (29 m) zone with low grade (0.33 g/t Au) gold concentrations ( Table 3 ). OURC008
contained only one zone within bedrock.
Table 3. Significant drill intersections for the RC drilling program at Kabangoué
Hole No. Down Hole Intercept From Depth
(down hole)
OURC007 29 m @ 0.33 g/t Au 36 m
including 3 m @ 1.60 g/t Au 37 m
including 2 m @ 1.06 g/t Au 62 m
OURC008 3 m @ 0.21 g/t Au 30 m
The results indicate that narrow zones of mineraliza tion are present within the intrusion, but it
appears that the best mineralization, as noted by the AC drilling , is located at the northern
margin of the intrusion.
First Quarter 2019 Exploration Outlook
Based on the se results, the Company aims to undertak e additional drilling on the Ouassada
permit. A short diamond drilling program (totaling about 500 m) will be performed following an
induced polarization (IP) survey on all 14 of the exploration targets on Ouassada (see Compass
news release dated September 27, 2018). The purposed of the diamond drilling is to help refine
the geology, mineralogy, and petrophysics, which will be used in conjunction with the IP survey
interpretation to ensure that subsequent AC and RC drilling targets the most promising
structures.
Further, trenching and deep a uger drilling is planned on the Sankarani permit, and follow -up
geological mapping trenching is planned for select areas at Kalé and Kourou that showed
enhanced soil anomalism coincident with crustal-scale faults.
About Compass Gold Corp.
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the
TSX- V. Through the recent acquisition of MGE and Malian subsidiaries, Compass holds gold
exploration permits located in Mali that comprise the S ikasso Property. The exploration
permits are located in three sites in southern Mali with a combined land holding of
1,179 km2. The Sikasso Property is located in the same region as several other multi-million
ounce gold projects, including Morila, Syama, Kalana and Kodiéran. The Company’s Mali-based
technical team, led in the field by Dr. Madani Diallo and under the supervision of Dr. Sandy
Archibald, P.Geo, is initiating a new exploration program. They are examining the first of
numerous anomalies noted for further investigation in Dr. Archibald’s August 2017 *“National
Instrument 43-101 Technical Report on the Sikasso Property, Southern Mali.”
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QAQC
All AC and RC samples were collected following industry best practices, and an appropriate
number and type of certified reference materials (standards) , blanks and duplicates were
inserted to ensure an effective QAQC program was carried out. The samples were prepared and
analyzed at SGS SARL (Bamako, Mali) by fire assay technique FAE505. All standard and blank
results were reviewed to ensure no failures were detected.
Qualified Person
This news release has been reviewed and approved by Dr. Sandy Archibald, P.Geo, Compass’s
Technical Director, who is the Qualified Person for the technical information in this news release
under National Instrument 43-101 standards.
Table 4. Ouassada AC drill hole locations and significant intersections
Hole Easting
(m)
Northing
(m)
Depth
(m)
Azimuth
(°)
Dip
(°)
From
(m)
To
(m)
Interval
(m)1
Au Grade
(g/t)
OUAC001 581451 1278203 42 90 -55 No Significant Intersection
OUAC002 581401 1278203 48 90 -55 No Significant Intersection
OUAC003 581351 1278203 24 90 -55 No Significant Intersection
OUAC004 581301 1278203 24 90 -55 No Significant Intersection
OUAC005 581251 1278203 26 90 -55 No Significant Intersection
OUAC006 581201 1278203 26 90 -55 No Significant Intersection
OUAC007 581051 1278203 18 90 -55 No Significant Intersection
OUAC008 581001 1278203 28 90 -55 No Significant Intersection
OUAC009 580901 1278203 32 90 -55 No Significant Intersection
OUAC010* 580851 1278203 42 90 -55 No Significant Intersection
OUAC011* 580801 1278203 36 90 -55 No Significant Intersection
OUAC012 580751 1278203 20 90 -55 No Significant Intersection
OUAC013 580701 1278203 20 90 -55 No Significant Intersection
OUAC014 580651 1278203 34 90 -55 No Significant Intersection
OUAC015 580601 1278203 32 90 -55 16 18 2 0.19
OUAC016* 580750 1279500 48 90 -55 0 4 4 0.24
OUAC017* 580701 1279500 42 90 -55 No Significant Intersection
OUAC018* 580651 1279500 34 90 -55 24 26 2 1.49
OUAC019* 580610 1279500 48 90 -55 0 2 2 0.39
OUAC020* 580400 1279500 44 90 -55 No Significant Intersection
OUAC021* 580351 1279503 42 90 -55 No Significant Intersection
OUAC022 580851 1280003 28 90 -55 No Significant Intersection
OUAC023* 580801 1280003 40 90 -55 24 38 14 0.16
OUAC024* 580751 1280003 42 90 -55 No Significant Intersection
OUAC025* 580701 1280003 42 90 -55 38 40 2 0.17
OUAC026 580651 1280003 46 90 -55 No Significant Intersection
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Hole Easting
(m)
Northing
(m)
Depth
(m)
Azimuth
(°)
Dip
(°)
From
(m)
To
(m)
Interval
(m)1
Au Grade
(g/t)
OUAC027 580601 1280003 38 90 -55 No Significant Intersection
OUAC028 580551 1280003 36 90 -55 No Significant Intersection
OUAC029 579500 1281003 50 90 -55 No Significant Intersection
OUAC030 579451 1281003 50 90 -55 No Significant Intersection
OUAC031 579401 1281003 50 90 -55 No Significant Intersection
OUAC032 579351 1281003 38 90 -55 20 24 4 0.42
OUAC033 579301 1281003 36 90 -55 10 12 2 0.15
OUAC034 579251 1281003 50 90 -55 No Significant Intersection
OUAC035 579201 1281003 48 90 -55 0 4 4 0.13
OUAC036 579151 1281003 48 90 -55 36 40 4 0.11
OUAC037 579101 1281003 48 90 -55 No Significant Intersection
OUAC038 579051 1281003 40 90 -55 No Significant Intersection
OUAC039 579100 1281003 Hole not drilled due to surface conditions
OUAC040 581100 1279500 42 90 -55 6 8 2 0.12
OUAC041 581050 1279500 42 90 -55 No Significant Intersection
OUAC042 581000 1279500 42 90 -55 No Significant Intersection
OUAC043 580950 1279500 42 90 -55 No Significant Intersection
OUAC044 580900 1279500 48 90 -55 42 44 2 0.11
OUAC045 580850 1279500 48 90 -55 No Significant Intersection
OUAC046* 580800 1279500 48 90 -55 No Significant Intersection
OUAC047 581750 1278200 50 90 -55 No Significant Intersection
OUAC048 581700 1278200 50 90 -55 No Significant Intersection
OUAC049 581650 1278200 50 90 -55 No Significant Intersection
OUAC050 581600 1278200 50 90 -55 No Significant Intersection
OUAC051 581550 1278200 50 90 -55 14 16 2 0.32
OUAC052 581500 1278200 50 90 -55 No Significant Intersection
OUAC053 579750 1281000 32 90 -55 No Significant Intersection
OUAC054* 579700 1281000 34 90 -55 No Significant Intersection
OUAC055* 579650 1281003 30 90 -55 6 10 4 0.12
OUAC056* 579600 1281003 46 90 -55 No Significant Intersection
OUAC057 579550 1281015 30 90 -55 No Significant Intersection
OUAC058* 581200 1278400 30 90 -55 No Significant Intersection
OUAC059* 581150 1278400 24 90 -55 No Significant Intersection
OUAC060* 581100 1278400 32 90 -55 10 16 6 0.97
OUAC061* 581050 1278400 36 90 -55 2 6 4 0.20
12 34 22 0.12
OUAC062 581000 1278400 24 90 -55 16 20 4 0.38
OUAC063 580950 1278400 32 90 -55 No Significant Intersection
OUAC064 580913 1278400 28 90 -55 No Significant Intersection
OUAC065 580850 1278400 22 90 -55 No Significant Intersection
OUAC066 581151 1278203 28 90 -55 No Significant Intersection