K2 Gold Identifies New Gold Zone and Five New Targets at the Mojave Project
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Suite 1020 – 800 West Pender Street, Vancouver, BC V6C 2V6
Tel: 604-646-8354 Fax: 604-646-4526
TSX-V: KTO
NEWS RELEASE
K2 Gold Identifies New Gold Zone and Five New Targets at
the Mojave Project
Vancouver, B.C. – June 1, 2020 – K2 Gold Corporation (“K2” or the “ Company”) (KTO:TSX-V)
is pleased to report that it has identified a new target area, Gold Valley, at the Company’s
Mojave Project (“Mojave”) in southern California. In addition, K2 has received the results of the
WorldView-3 high-resolution, multi-spectral, remote sensing survey of the property which has
identified at least five new target s, two of which are m ore than a kilometre in length . The
Mojave project spans 5,830 hectares and is located 240km north west of Las Vegas and 30 km
south east of the town of Lone Pine.
Highlights Include:
• New gold target identified in colluvium at Gold Valley from soil sampling, interpreted as
the NNW extension of Dragonfly Zone
• Completion of WorldView -3 remote sensing survey over the Mojave Property and
discovery of two strong linear alteration zones (~2km and 1.5km in length) at Upland
Valley and several other secondary priority anomalous areas throughout the property.
• Grab rock sampling at Dragonfly returned up to 15.2 g/t Au, and limited trench sampling
including 2.5g/t Au over 4.6m has confirmed previous work by BHP
“The new discovery at Gold Valley is exciting and significant; it may result in the discovery of the
extension of the previously drill ed Dragonfly mineralization beneath cover and over a strike
length of approximately 2km,” stated Stephen Swatton, President and CEO of K2. “Additionally,
the preliminary WorldView results have given the company new targets to follow up which have
similar alteration footprints to known mineralization; two of the new anomalies are over 1km in
length and have never previously been explored or sampled.”
K2 completed preliminary target definition exploration of the Mojave property in early March
2020. The Company took a total of 1,335 soil and 622 rock samples (of which 486 were
chip/channel samples). In addition, K2 completed a 189 line-km ground magnetic survey on the
eastern portion of the property and staked 151 new claims increasing the land position to 5,830
hectares. Highlights from the Newmont, East, and Broken Hill targets on the south -eastern
portion of the property were previously released and included trench results of 3.78 g/t Au over
43m (East Zone); 2.46 g/t Au over 34m (Newmont Zone); and grab samples up to 24.7 g/t Au
(see the Compan y’s new release dated April 6, 2020 , a vailable on SEDAR). Results of s oil
sampling completed on the north-eastern portion of the property, including the Dragonfly and
Gold Valley targets, are presented in this release, in addition to, the results of a recently
completed WorldView-3 remote sensing survey covering the Mojave property.
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Gold Valley – New Target
Recent soil sampling has defined a new target area which is approximately 750m NW of
Dragonfly. The Gold Valley target area consists of a 700m x 650m NNW trending Au soil
anomaly. The samples range from trace to 385 ppb Au, with 8 samples returning >100 ppb Au.
The samples were taken at the NE end of a broad 5km NE-SW trending valley which comprises
colluvium and unconsolidated soils. The depth of the colluvium is unknown. The south -west
end of the valley is host to two strong linear unexplored multi-spectral Alunite-muscovite
anomalies that are more than a kilometre in length.
The Gold Valley appears to occur along a NNW extension of the structural trend that hosts the
Dragonfly zone. Dragonfly and Gold Valley are separated by colluvial cover that potential
masks the geochemical response in this area. It is interpreted that the two targets are
connected beneath cover and would form a 2.3km trend of alteration and anomalous gold
mineralization. The Dragonfly-Gold Valley target area is considered a high priority for follow up
work and plans are underway for follow up rock chip/channel sampling and geo logic mapping to
refine the targets.
The Dragonfly was discovered by BHP and hosts some of the strongest oxide gold
mineralization reported on the property to date including historic chip results of 4.2 g/t Au over
42.67m, rock samples up to 22.53 g/t Au; and significant intercepts in historic drilling including
1.54 g/t Au over 24.38m starting at surface and 3.84 g/t over 12.19m starting at 42.19m depth
from CM97-4. Mineralization on the Dragonfly occurs along a series of NNW oriented structures
lithologic contacts and is associated with quartz -sericite alteration, strong iron oxide staining,
brecciation, and minor quartz-carbonate veining.
Eastern Target Area
A total of 972 grid soil samples were taken over the Eastern target area and were designed to
follow up and expand upon h istoric sampling conducted in the area. This includes 411
previously released samples over the Newmont, East, and Broken Hill target areas (see the
Company’s new release dated April 6, 2020, available on SEDAR). Individual values for the
soils ranged from trace to 1,040 ppb Au with 36 of the samples returning >100 ppb Au. The
samples were collected 50m apart on E-W oriented lines spaced 150m apart.
WorldView Remote Sensing
The Company also recently completed a WorldView -3 remote sensing survey (“WV3”) on the
Mojave Project . The WV3 satellite shows a dramatic improvement in spatial and spectral
resolution compared to the previous generation of resource sa tellites – Landsat and ASTER -
and is the best remote sensing satellite technology commercially available to assist mineral
exploration at high -resolution project scales. The W V3 satellite data was processed by the
Exploration Mapping Group , Las Vegas, NV, and includes a variety of spectral processing
techniques to discriminate surface geology and map high concentrations of iron, clay and silica
minerals potentially associated with alteration and mineralization on the property.
In addition to helping refine known targets on the property, the survey identified at least five new
targets on the property. The most significant target is in the south-central portion of the property
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between the Stega and Newmont target areas called Upland Valley. WV3 results indicate the
potential for significant alteration over a 2.5km x 1km, N -S, trending area with overlapping
assemblages of quartz, argillic, phyllic, and iron -oxide (hematite -goethite-jarosite) styles of
alteration detected by the survey. The area i s unexplored, though, USGS geologic mapping
indicate multiple faults in the area that correspond to the alteration footprints. The target is
considered a high priority for follow up work including geologic mapping, prospecting, and soil
sampling to confirm the reported alteration and potential for mineralization.
Rock sampling - Dragonfly
K2 confirmed previous rock sampling by BHP in the 1990’s by undertaking a limited rock
sampling survey over Dragonfly. Highlights of the program include two grab samples of 16.5 g/t
Au and 15.2 g/t Au, and limited chip sampling include 2.5g/t over 4.6m, 2.0g/t over 7m and 0.59
g/t over 10m.
History of the Mojave Property
Mobil first discovered gold miner alization at what is known as Soda Ridge, located in the
northwest corner of the Mojave property , in 1984. Prior to K2’s recently completed work , at
least eight other gold rich areas on the property had been recorded and partially investigated by
exploration and mining companies, most notably Newmont and BHP. To date, 145 drill holes
have been completed by three companies: Newmont in 1985 (22 RC holes ), Asamera in 1986
(113 RC and diamond drill holes), and BHP in 1997 (10 RC holes) on three of the nine gold
targets. Other companies that have explored on the Mojave property include Great Bear
Resources and SSR Mining but the recent work by K2 is the most extensive and comprehensive
since 1997. There are now 12 gold and base metal exploration targets on the Mojave property.
The historical drill programs focused on three different target areas on the property, Newmont,
East Zone and Dragonfly. Highlights of historical drill results include 16.8m of 2.1 g/t Au, 24.4m
of 1.54g/t Au, and 12.2m of 3.8 g/t Au (see Table 1, below). The best trench result to date is an
undrilled section of the Dragonfly are a where BHP reported 42.7m of 4.2 g/t Au (Great Bear
Resources news release October 2013).
Table 1. – Highlights of historical drilling results from Newmont, East Zone and Dragonfly
Target Hole ID From (m) To (m) Int (m) Au (g/t)
Newmont
CGL-1 8.23 11.28 1.52 8.23
CGL-3 38.40 55.17 16.76 2.08
CGL-12 208.79 225.55 16.76 1.09
CGL-19 74.68 99.06 24.38 0.91
Incl. 74.68 80.78 6.10 3.07
CM97-9 120.40 135.64 15.24 1.00
East CGL-8 51.816 56.388 4.572 1.82
Dragonfly
CM97-3 47.24 53.34 6.10 2.00
And 163.07 172.20 9.13 1.17
CM97-4 0.00 24.38 24.38 1.54
Incl. 16.76 22.86 4.95 6.10
And 42.67 54.86 12.19 3.84
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And 88.59 97.54 9.14 1.55
CM97-5 146.30 158.50 12.20 1.48
Geology of the Mojave Project
The Mojave property is underlain by a Palaeozoic, carbonate-dominated stratigraphic sequence
of siltstone, shale, limestone, and conglomeratic units that have been subjected to multiple
deformational events. The units are commonly folded and thrusted and are cut by late, steeply
dipping, normal to strike-slip faults. Jurassic intrusive plug, dikes, and sills also locally disrupted
the units.
Gold mineralization at Mojave is typically oxide, sediment hosted, and structurally controlled by
steeply dipping faults and lithologic contacts . The alteration, mineralization, and geochemistry
have similarities to both Carlin and epithermal type gold systems. Polymetallic Au -Ag, Cu,
and/or base-metal occurrences are also recognised on the property and typically form proximal
to Jurassic intrusive units indicating the potential for porphyry and other intrusion-related
mineralization.
Assay Methodology & QA/QC
The analytical work on the Mojave project was performed by MSALABS an internationally
recognized analytical services provider, at its Langley, British Columbia laboratory. All rock
samples were prepared using procedure PRP -910 (Dry, crush to 70% passing 2mm, riffle split
off 250g, pulverize split to better than 85% passing 75 microns) and analyzed by method FAS -
111 (30g fire assay with AAS finish) and IMS -130 (0.5g, aqua regia digestion and ICP-AES/MS
analysis). Samples containing >10g/t Au were reanalyzed using method FAS -415 (30g Fire
Assay with gravimetric finish). Samples containing >100 ppm Ag and/or >1% Cu, Pb, & Zn
were reanalyzed using method ICF -6 (0.2g, 4 -acid di gest and ore grade ICP -AES analysis).
Samples containing >1000 g/t Ag were reanalyzed using method FAS -418 (30g Fire Assay with
gravimetric finish). All soil samples were prepared using procedure PRP -757 (Dry, screen to -
80 mesh) and analyzed using metho d IMS -131 (20g, aqua regia digestion and ICP -AES/MS
analysis).
The reported work was completed using industry standard procedures, including a quality
assurance/quality control (“QA/QC”) program consisting of the insertion of certified standard,
blanks and duplicates into the sample stream. The Qualified Person has reviewed the data and
detected no significant QA/QC issues.
Qualified Person
Jodie Gibson, Vice President of Exploration and a Qualified Person under National Instrument
43-101, has reviewed and approved the technical information on this release.
About K2
K2 is a well financed gold and silver exploration company with approximately $1.5M cash and
projects in SW USA, Yukon and Alaska. The Company is focussed on the Mojave property in
California, a 5, 830 hectare oxide gold project with base metal targets . The ambient climatic
conditions at Mojave enable the Company to have year -round news flow on many targets
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including multiple previously recognized surface gold targets that have been successfully drilled
in the past by majors BHP and Newmont.
On behalf of the Board of Directors,
“Stephen Swatton”
President and CEO
K2 Gold Corporation.
For further information about K2 Gold Corporation or this news release, please visit our website
at www.k2gold.com or contact Investor Relations at 604-354-2491, or by email at
K2 Gold Corporation is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca.
Cautionary Statement on Forward-Looking Statements
This news release contains forward -looking statements that are not historical facts. Forward -
looking statements involve risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from those expressed or implied by
such forward -looking statements, including statements regarding the exploration program at
Mojave, including results of drilling, and future exploration plans at Mojave. Factors that could
cause actual results to differ m aterially from these forward -looking statements include, but are
not limited to, variations in the nature, quality and quantity of any mineral deposits that may be
located, the Company's inability to obtain any necessary permits, consents or authorizations
required for its planned activities, and the Company's inability to raise the necessary capital or
to be fully able to implement its business strategies. The reader is referred to the Company's
public disclosure record which is available on SEDAR ( www.sedar.com). Although the
Company believes that the assumptions and factors used in preparing the forward -looking
statements are reasonable, undue reliance should not be placed on these statements, which
only apply as of the date of this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. Except as required by securities laws and the
policies of the TSX Venture Exchange, the Company disclaims any intention or obli gation to
update or revise any forward -looking statement, whether as a result of new information, future
events or otherwise.
This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall
there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful, including any of the securities in the United States of America. No
securities of the Company have been or will, in the foreseeable future, be registered under the
United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not
be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as
defined in Regulation S under the 1933 Act) unless registe red under the 1933 Act and
applicable state securities laws, or an exemption from such registration requirements is
available.
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