Broad Intercepts, Local High Grades of Precious and Strategic Metals Including Gold, Silver, Cobalt, Molybdenum and Tungsten Results Suggest a Large and Somewhat Unusual Intrusion-Related System
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NEWS RELEASE
E
vergold – First Drill Assays from DEM Porphyry Prospect, B.C., Return
Broad Intercepts, Local High Grades of Precious and Strategic Metals
Including Gold, Silver, Cobalt, Molybdenum and Tungsten
Results Suggest a Large and Somewhat Unusual Intrusion-Related System
Toronto, Ontario – January 15, 2024 - Evergold Corp. (TSX-V: EVER, WKN: A2PTHZ) (“Evergold” or the “Company”)
is pleased to report assays for initial batches of core from a small reconnaissance drill program (947 metres in 3 holes –
see Figure 1 & 2 plan views) completed in late fall 2023 at the large new DEM prospect in central B.C. Assays show broad
intercepts of precious metals (gold, silver) encompassing, locally, narrow intercepts of high-grade precious and, notably,
high-grade / high value strategic metals (molybdenum, cobalt, tungsten), from two drill pads spaced some 400 metres
apart. Additional assays are pending for all 3 holes.
The high-grade intercepts include a first porphyry-hosted intercept: high-grade (0.82% Mo) molybdenum with associated
gold (1.2 g/t), rhenium (3.7 g/t) and silver-enriched (8 g/t) sulphides from veining within high-K porphyry intrusive from 299
to 301 metres in hole DEM23-02 (Figure 3). This, along with ubiquitous pyrrhotite hornfels and skarn-style assemblages,
the high density of porphyritic dykes in the lower third of DEM23 -03 (Figure 4), as well as induced polarization (IP) data,
point to high potential for underlying and/or nearby bodies of porphyry-style mineralization. The broad gold and silver
predominant intercepts are accompanied throughout the holes by strongly elevated gold pathfinder element geochemistry,
particularly arsenic, antimony , bismuth and locally elevated tellurium , indicating the presence of a richly mineralized
precious metals system that is considered likely to produce both broad and/or high- grade intercepts with higher -density
drilling now in planning for the 2024 field season.
Reported below are partial assays for intervals in diamond core holes DEM23-01, 02 and 03. Sampling of the remainder
of the holes is ongoing. Arsenic values have been determined to be the key indicator of system presence. Core photos
of high -grade intercepts are included below and may also be viewed on the Company’s website at Evergold Corp. –
Property Photo and Video Gallery.
Highlights:
DEM23-03: Partially delineated system envelope: 48.2 metres of 0.58 g/t Au, 11 g/t Ag and 3,696 ppm As from 303 to
351.2 metres – open in all directions. Assays of remainder of hole pending.
o Including: high-grade gold: 11.98 g/t Au, 24 g/t Ag and 71,293 ppm As from 339 to 340.5 metres
o Including: high-grade cobalt: 0.11% Co , 29.5 g/t Au, 0.19% Cu, 42 ppm Te and 35,800 As from 340 to 340.5
metres
DEM23-01: Partially delineated system envelope: 135 metres of 0.12 g/t Au, 2 g/t Ag and 901 ppm As from surface - 6 to
141 metres – open to depth. Assays of remainder of hole pending.
o Including: high-grade tungsten and high-grade silver: 0.32% W, 155 g/t Ag, 5 ppm Te, 11,850 As from 131 to
132 metres
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DEM23-02: First intercept of high- grade porphyry intrusive: high-grade molybdenum (0.82%), with associated gold
(1.2 g/t), silver (8 g/t), rhenium (3.7 g/t) and arsenic (2,340 ppm), from 299 to 300 metres . Assays of remainder of hole
pending.
“These are very encouraging results for a first pass program, with results to date suggesting we are on the fringes of a
large, and somewhat unusual, intrusion-related system,” said Kevin Keough, President & CEO. “We are genuinely excited
about following up. From a very small initial program on a generally poorly -exposed and barely tested target we appear
to have discovered a rich new system with many of the metals that the world is eager for these days. We’ve seen an
impressive array of sulphide minerals throughout our first drill holes, high grades (locally) and broad system widths, coupled
with a rather unique array of high -value elements including gold and silver, and narrow but high -grade intercepts of
molybdenite with associated rhenium, as well as cobalt and tungsten, plus lesser copper, lead, zinc and locally elevated
tellurium. All of this bodes well for better to come as we work this year to advance the DEM project.”
D
iscussion of Drill Results
Two holes (DEM23-01 & 02) were drilled due east from a first pad, and a single hole (DEM23 -03) was drilled due west
from a second almost 400 metres southeast (Figures 1 & 2). The holes were targeted on one prominent magnetic high.
Each of the three holes intercepted a broad sulphide vein system (Figures 3 & 4 section views) , hosted within variably
calcareous fine-grained sedimentary rocks cut locally by metre-scale porphyritic dykes, with the host rocks, and locally the
dykes, strongly infused over significant core lengths of up to 20 metres by cross-cutting sulphide-bearing veinlets and
veins, locally of semi -massive to massive character , along with associated disseminated sulphides. These intervals are
encompassed by broader halos of lower-intensity disseminated and sulphide-bearing veinlets and veins. Sulphide minerals
observed in core include abundant disseminated and vein -hosted arsenopyrite, pyrite, and pyrrhotite, with lesser but
significant sphalerite, galena, chalcopyrite, and molybdenite . Sulphosalts are also commonly observed. High -grade
precious metals, cobalt and tungsten values are localized to the best developed parts of the vein system, particularly the
massive sulphide sections, whereas the molybden um, although present at elevated levels generally throughout the vein
system, achieves high grades within a single narrow porphyritic intrusive (dyke) intercepted from 299 to 301 metres in
DEM23-02, where it is accompanied by elevated rhenium, gold and silver and the suite of elements characterizing other
parts of the DEM mineralizing system. Intriguingly, this dyke may represent an apophysis (projecting finger) off a larger
body of porphyry-style mineralization nearby.
G
eophysical Interpretation and Exploration Implications
Magnetic susceptibility readings taken of core and observations of core mineralogy suggest that the positive magnetic
response generated over some areas of the DEM target area by an aeromagnetic survey flown in 2017 (Figure 1) is likely
largely due to the magnetic properties of pyrrhotite, a common sulphide constituent of the core. Magnetic susceptibility
readings taken systematically of the core down the holes also clearly demonstrate that the magnetic response has been
largely destroyed in the most intensely developed, silica -rich and generally highest -grade part of the vein system as
observed, for example, from 303 to 351 metres in DEM23-03 (see Figure 5). Figure 2, which shows drill hole traces with
assays superimposed on the first vertical derivative (1VD) magnetics, reinforces the observation that the best precious
metals mineralization may be localized along structures highlighted by magnetic gradients. If correct, this observation
suggests that prominent magnetic lineaments (relative magnetic intensity lows) observed within the DEM target area
(Figure 1) represent high priority exploration targets. It also highlights the fact that further magnetic surveys, both in detail
over the present target area (see below), and elsewhere across the recently expanded DEM property, may prove fruitful.
In 2021, a small, 2.6 line-km induced polarization (IP) survey consisting of two east-west oriented lines separated by 200
metres was run over the general area of the recent drilling. Figure 6 shows hole DEM23-03 projected onto an image of
the IP chargeability for IP line 668000, which was run approximately 100 metres north of the site of DEM23-03. Although
the IP survey did not extend to the depth of the best of the DEM23-03 intercept, Figure 6 does appear to suggest that the
best developed parts of the vein system (and assay values) may flank the highest chargeability.
Importantly, both the 2017 airborne magnetometer survey and the 20 21 IP survey were optimized for exploration
reconnaissance – not drill targeting. It is anticipated that new, detailed surveys of both will be carried out for drill targeting
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purposes, in-filling between existing lines, looking more deeply and broadening coverage to areas not yet surveyed.
Table 1 – Significant Initial Assay Results for Diamond Core Holes DEM23-01, 02, and 03. Note: Widths reported
are drilled core lengths. True widths for the intercept in hole DEM23-03 are estimated to be greater than 95%. True widths
for the intercepts in holes DEM23-01 and 02 cannot presently be determined. Core diameter is 47.6 mm (NQ). Arsenic
values in core and soils have been determined to be the key indicator of system presence.
Hole ID From
(m)
To
(m)
Width
(m)
Au
(g/t)1
Ag
(g/t)2
Mo
(%)3
Co
(%)4
Cu
(%)
Te
(ppm)2
W
(%)5
Re
(g/t)
As
(ppm)
DEM23-03 (additional assays pending)
0.00 303.00 303.00 Assays pending
Partial System
Envelope 303.00 351.21 48.21 0.58 11 - - - - - - 3,696
Including 310.29 313.00 2.71 1.12 44 - - - - - - 19,592
Including 310.29 310.79 0.50 2.89 182 - - - - - - 43,200
Including 339.00 340.50 1.50 11.98 24 - 0.08 - 18 - - 35,290
Including 339.00 339.50 0.50 6.08 47 - 0.12 - 11 - - 67,500
And Including 340.00 340.50 0.50 29.50 22 - 0.11 0.19 42 - - 35,800
Assays pending 340.50 393.00 52.50 Assays pending
DEM23-01 (additional assays pending)
Assays pending 0.00 6.00 6.00 Casing & rubble - assays pending
Partial System
Envelope 6.00 141.00 135.00 0.12 2 - - - - - - 901
Including 60.00 64.00 4.00 0.42 1 - - - 6 - - 4,689
Including 60.00 61.00 1.00 0.92 1 - - - 16 - - 10,000
And Including 70.00 80.00 10.00 0.60 1 - - - - - - 1805
Including 76.00 78.00 2.00 0.65 2 - - - - - - -
And Including 78.00 79.00 1.00 3.04 2 - - 0.13 - - - 112
And Including 87.50 89.00 1.50 0.20 48 - - - - - - 5,680
And Including 121.00 122.00 1.00 0.54 4 - - - - - - 758
And Including 130.00 132.00 2.00 0.35 82 - - - 5 0.16 - 11,575
Including 131.00 132.00 1.00 0.34 155 - - - 7 0.32 - 11,850
Assays pending 132.00 228.00 96.00 Assays pending
DEM23-02 (additional assays pending)
Assays pending 0.00 9.00 9.00 Casing & rubble - assays pending
Zone 9.00 14.00 5.00 0.08 6 - - - - - - 1,461
Assays pending 14.00 33.50 19.50 Assays pending
Zone 33.50 38.00 4.50 0.18 1 - - - - - - -
Assays pending 38.00 88.00 50.00 Assays pending
Zone 88.00 96.00 8.00 0.49 2 - 0.01 0.09 - - - -
Including 90.00 93.00 3.00 0.66 2 - 0.01 0.12 - - - -
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Hole ID From
(m)
To
(m)
Width
(m)
Au
(g/t)1
Ag
(g/t)2
Mo
(%)3
Co
(%)4
Cu
(%)
Te
(ppm)2
W
(%)5
Re
(g/t)
As
(ppm)
Assays pending 93.00 242.00 149.00 Assays pending
Zone 242.00 253.00 11.00 0.10 3 - - - - - - 681
Assays pending 253.00 298.00 45.00 Assays pending
Zone 299.00 301.00 2.00 0.67 5 0.44 - - - - 1.96 1,526
Including 299.00 300.00 1.00 1.20 8 0.82 - - - - 3.66 2,340
Assays pending 301.00 326.10 25.10 Assays pending
Notes: 1. Values rounded to two decimals. 2. Values rounded to no decimals. 3. The molybdenum content of viable primary ore
bodies worldwide ranges between 0.01 and 0.25% (Source: International Molybdenum Association). 4. 98% of world cobalt production
is mined as a by -product. Cobalt is only extracted alone in Morocco and some Canadian arsenide ores (Source: Cobalt Institute).
Vale’s Voisey’s Bay mine in Labrador has a cobalt grade of 0.13% ( Source: Canadian Mining Journal , 2021). 5. 0.32% tungsten
equates to 1.1% WO3, the principal compound by which tungsten is priced and traded. Typical grades of WO3 in primary deposits
worldwide are in the range of 0.3–1% (Source: International Tungsten Industry Association).
About the DEM Project
The 10,451-hectare DEM property, located in moderate terrain only 40 kms northwest of Fort St. James in central B.C.,
lies toward the south end of the Nation Lakes porphyry camp and within the Quesnel Terrane, the latter of which hosts
large deposits and long-life mines including the nearby Mount Milligan (50 kms to the northeast of DEM) mine, and Lorraine
deposit, and, farther south, the Mt. Polley, Afton, Copper Mountain, Brenda mines, and the Highland Valley mines and
deposits (Figure 7). Located central to the DEM property is the “DEM Halo” prospect, a roughly 4km2 target area defined
by alteration and miner alogy suggestive of the presence of a porphyry system, by a multi -element soil geochemical
signature, including soil highs to 2.1 ppm Au, 160 ppm Ag, >10,000 ppm As, and 651 ppm Cu, by compelling high-relief
magnetic and IP-chargeability anomalies, and by the presence of nearby regional scale structures . Extensive logging in
the area and associated forest service roads provide drive-on access directly to the DEM prospect. All of these factors,
when combined, indicate excellent discovery potential for a gold-silver-copper porphyry and related vein systems. Further
details on the DEM prospect may be found on the Company’s website at www.evergoldcorp.ca/projects/dem-property/ and
in a NI 43-101 technical report entitled “Technical Report on the DEM Property ” dated August 30, 2023, posted thereon
and on the Company’s issuer profile at SEDAR+.
Qualified Person
Charles J. Greig, M.Sc., P.Geo., the Company’s Chief Exploration Officer and a Qualified Person as defined by NI 43-101,
has reviewed and approved the technical information in this news release.
QA/QC
The company has a robust quality assurance/quality control program that includes the insertion of blanks, standards and
duplicates. Samples of drill core are cut by a diamond-blade rock saw, with half of the cut core placed in individually sealed
polyurethane bags and half placed back in the original core box for permanent storage. With the rare exception, sample
lengths generally vary from a minimum 0.5-metre interval to a maximum 2.0-metre interval, with an average of 0.5 to 1.0
metres in heavily mineralized sections of core, where precise identification of the mineralogical source of metal values is
important. Drill core samples are shipped by truck in sealed woven plastic bags to the ALS sample preparation facility in
Langley, BC, and thereafter taken by ALS to their North Vancouver analytical laboratory . ALS operates according to the
guidelines set out in International Organization for Standardization/International Electrotechnical Commission Guide 25.
Gold is determined by fire assay fusion of a 50-gram subsample with atomic absorption spectroscopy (AAS). Samples that
return values greater than 10 parts per million gold from fire assay and AAS (atomic absorption spectroscopy) are
determined by using fire assay and a gravimetric finish. Various metals including silver, gold, copper, lead and zinc are
analyzed by inductively coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion. The elements
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copper, lead and zinc are determined by ore-grade assay for samples that return values greater than 10,000 ppm by ICP
analysis. Silver is determined by ore-grade assay for samples that return greater than 100 ppm.
Figure 1: Wide Area Plan View, 2023 Drilling on 1VD Magnetics
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Figure 2: Close Up Plan View, 2023 Drilling with Assays on 1VD Magnetics
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Figure 3: DEM Drilling Section, Holes DEM23-01 & 02
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Figure 4: DEM Drilling Section, Hole DEM23-03