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Outcrop Drills Thicker Veins Beneath Megapozo Workings And Identifies Bulk Mineralized Zones

Drill Results

Outcrop Drills Thicker Veins Beneath

Megapozo Workings And Identifies Bulk

Mineralized Zones

VANCOUVER, BC

,

Aug. 26, 2020

/CNW/ -

Outcrop Gold Corp.

(TSXV: OCG) (OTCPK:

MRDD.F) (DE: MRG1) ("

Outcrop

") is pleased to provide an update on drilling and target

advancement on its 100% owned Santa Ana project in north Tolima,

Colombia

. Outcrop is mobilizing

a second drill rig with a start planned by

September 8

th

. Drilling in Megapozo to date totals 1,210

metres in ten core holes with an eleventh hole in progress.

Highlights

Megapozo drilling successful in reaching thicker unmined massive sulfide veins and

sulfidic hydrothermal breccia at depth with assays pending on five holes.

One-hundred percent success rate of targets providing three high-grade shoots to date.

Desktop calculation for Roberto Tovar indicates straight-line dilution of a three vein

package including intervening wall rock provides up to 18 metres at 450 equivalent g

Ag/t.

Outcrop was successful in drilling below numerous workings at the Megapozo target by drilling

below the surveyed depths of a historic production shaft. It appears that there are no workings

below the bottom of the shaft at 108 metres, and unmined vein packages are preserved in current

drilling. Shallow drilling in Megapozo cut narrow residual unmined veins up to 1.0 metre-wide but also

historic workings from 1.1 to 3.5 metres in intercept widths. Current drilling has intercepted

numerous veins up to 2.7 metres wide with assays pending for five holes. Core photos 1-4 illustrate

textures and strong sulfides within these veins.

At Megapozo, drilling will follow the Paraiso veins for an additional distance of 300 metres to the

southeast to test the intersection of the northwest low-angle Paraiso veins with the north-south and

high-angle Santa Ana veins. If the Santa Ana veins are intercepted at the southeastern projection of

the Paraiso veins, then drilling will verge south onto a new target,

Roberto Tovar North

.

A second drill rig will test the El Dorado target which is ready to drill and well supported by

anomalous soils and five follow up trenches that define an inferred high-grade shoot over 200 metres

at surface. El Dorado provides the same target footprint as the La Ivana discovery located 500

metres to the east. The El Dorado trenches as previously reported, show ten samples greater than

1.0 g Au/t. These samples range from 1.44 to 180 g Au/t with an average of 41.1 g Au/t. Silver

values range from 30 to 1,500 g Ag/t. The average width of ten samples is 1.56 metres. Comparing

surface sampling to correlated drill intercepts, silver values are attenuated in the surficial oxide zone.

"The success of drill targets at Santa Ana is dramatic", remarks Outcrop CEO

Joseph Hebert

. "So

far we are three for three in identifying high-grade intercepts from targets. We continue to quickly

and efficiently add to the count of high-grade shoots on the project as we predicted, showing the

continued potential of the project."

Core in the Paraiso vein at Megapozo shows abundant hydrothermal breccia and indicate that three

or more phases of mineralization are contributing to the bonanza grades common on the Santa Ana

project. Each of the phases of mineralization appear to contribute metal-bearing sulfides to the vein

and locally to adjacent wall-rock.

Photo 1: Megapozo drill hole SAMP20DH26 with 1.4 metre vein below workings that shows multi-

event hydrothermal breccia. (CNW Group/Outcrop Gold Corp.)

Photo 2: Megapozo drill hole SAMP20DH29 with 2.7 metres of vein and altered wall rock internal to

vein. (CNW Group/Outcrop Gold Corp.)

Photo 3: Detail of 2.7 composite vein showing hydrothermal breccia as tertiary phase of

mineralization. (CNW Group/Outcrop Gold Corp.)

Vein Packages as Bulk Mineralized Zones

Santa Ana is a system of intersecting high and low-angle veins. The typical occurrence is packages

of three parallel veins. Where these veins are high-angle, they are close-spaced with three veins

within an interval of less than 20 metres. Outcrop has done some preliminary desktop calculations of

composited grades of vein and internal wall rock in the Roberto Tovar target of up to 18 metres at

450 equivalent g Ag/t diluted grades.

Outcrop refers to these areas in the overall narrow vein system as "Bulk Mineralized Zones". The

occurrence of these zones is expected especially in the high-angle vein packages in the vein system

and may contribute significantly to average widths of mineralization.

QA/QC

Core samples were sent to ALS Chemex in

Medellin

for preparation and then to ALS Chemex in

Toronto

for analysis, with approximately three control samples inserted (one blank, one standard

and one field duplicate for each twenty samples). The samples were analyzed for gold using

standard fire-assay on a 50-gram sample with a gravimetric finish. Multi-element geochemistry was

determined by ICP-MS using either aqua regia (ME-MS41) or four acid (ME-MS61) digestion.

Comparison to control samples and their standard deviations indicates acceptable accuracy of the

assays and no detectible contamination.

About Santa Ana Project

The Santa Ana project comprises over 25,000 ha located in northern Tolima Department,

Colombia

,

190 km from

Bogota

. The project consists of five regional scale parallel vein systems across a trend

12 kilometres wide and 30 kilometres long. The Santa Ana project covers a significant part of the

Mariquita District where mining records date to at least 1585. The Mariquita District is the highest-

grade primary silver district in

Colombia

, with historic silver grades reported to be among the highest

in

Latin America

from dozens of mines.

Historic mining depths support a geologic and exploration model for composite mesothermal and

epithermal vein systems having mineralization that likely extends to great depth. At Santa Ana it is

unlikely that there is sharp elevation restriction common to high-grade zones in many epithermal

systems with no mesozonal component.

At the core Santa Ana target, located at the northern extent of just one of the regional vein systems,

at least eleven principle vein zones are recognized that cumulatively provide up to 14 km of

cumulative strike length – La Ivana (La Porfia vein system), Roberto Tovar (

Royal Mines

, including

the Santa Ana vein system), El Dorado, Morales, Pollera, Guanabanera,

San Antonio

, Palomos,

Murillo

, Culebra and Megapozo (El Paraiso vein system). The zones commonly each contain multiple

parallel veins. The veins can show both high-grade silver and high-grade gold mineralization and may

be both low and high angle depending on local controls.

About Outcrop Gold

Outcrop is a hybrid prospect generator active in

Colombia

acquiring gold and silver exploration

projects with world-class discovery potential. Outcrop performs its own grass roots exploration and

then employs a joint venture business model on its projects to maximize investor exposure to

discovery and minimize financial risk. Outcrop has seven primary projects in

Colombia

with three at

an advanced stage of exploration. Outcrop will conduct focused drilling on flagship properties such

as Santa Ana to create its own catalysts for value creation.

Qualified person

The technical information in this news release has been approved by Joseph P Hebert, a qualified

person as defined in NI43-101 and President and Chief Executive Officer of Outcrop.

ON BEHALF OF THE BOARD OF DIRECTORS

Joseph P Hebert, Chief Executive Officer

+1 775 340 0450

[email protected]

www.outcropgoldcorp.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in

the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of

this release. Certain information contained herein constitutes "forward-looking information" under

Canadian securities legislation. Generally, forward-looking information can be identified by the use

of forward-looking terminology such as "potential", "we believe", or variations of such words and

phrases or statements that certain actions, events or results "will" occur. Forward-looking

statements are based on the opinions and estimates of management as of the date such

statements are made and they are subject to known and unknown risks, uncertainties and other

factors that may cause the actual results, level of activity, performance or achievements of Outcrop

to be materially different from those expressed or implied by such forward-looking statements or

forward-looking information, including: the receipt of all necessary regulatory approvals, capital

expenditures and other costs, financing and additional capital requirements, completion of due

diligence, general economic, market and business conditions, new legislation, uncertainties

resulting from potential delays or changes in plans, political uncertainties, and the state of the

securities markets generally. Although management of Outcrop have attempted to identify

important factors that could cause actual results to differ materially from those contained in

forward-looking statements or forward-looking information, there may be other factors that cause

results not to be as anticipated, estimated or intended. There can be no assurance that such

statements will prove to be accurate, as actual results and future events could differ materially

from those anticipated in such statements. Accordingly, readers should not place undue reliance

on forward-looking statements and forward-looking information. Outcrop will not update any

forward-looking statements or forward-looking information that are incorporated by reference

herein, except as required by applicable securities laws.

Photo 4: Detail of 2.7 metre composite vein showing brecciated massive sulfide as second phase of

mineralization. (CNW Group/Outcrop Gold Corp.)

SOURCE

Outcrop Gold Corp.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/August2020/26/c5297.html

%SEDAR: 00005232E

For further information:

Mars Investor Relations, +1 416 888 4219,

[email protected]

CO: Outcrop Gold Corp.

CNW 20:14e 26-AUG-20