Precipitate Receives Dr. Stewart Redwood Report Supporting Multiple Untested Targets for the Pueblo Grande Project, Dominican Republic
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Precipitate Receives Dr. Stewart Redwood Report Supporting Multiple
Untested Targets for the Pueblo Grande Project, Dominican Republic
Vancouver, B.C. – February 27, 2019 - Precipitate Gold Corp. (the “Company” or “Precipitate”) (TSXV: PRG)
is pleased to announce it has received the geologic al evaluation report and recommendations from
independent geological consultant Dr. Stewart Redwo od for the Company’s 100% owned Pueblo Grande
Project in the Dominican Republic.
Dr. Redwood’s report interprets the Pueblo Grande project’s Lithocap Zone to be an extensive area of silica
and advanced argillic lithocap-style alteration rel ated to the neighboring Pueblo Viejo deposit, deemi ng
Precipitate’s Lithocap Zone to be highly prospective for high suphidation epithermal gold-silver-copper-zinc
and concealed porphyry copper-gold mineralization. Additionally, Dr. Redwood’s report postulates that the
neighboring Pueblo Viejo deposit is epigenetic in o rigin which opens significant new exploration targe ts
within Precipitate’s whole Pueblo Grande project ar ea, most notably the potential to test a new porphy ry
lithocap model within the Lithocap Zone. Dr. Redwood’s report highlights significant new ex ploration
targets, as follows:
1) Three types of gold-silver and/or copper-zinc targets identified within the Pueblo Grande project:
a) high sulphidation epithermal oxide Au-Ag mineralization in outcrop or shallow de pth, and
concealed sulphide Au-Ag-Cu-Zn mineralization at shallow depth (Lithocap Zone);
b) porphyry Cu-Au mineralization concealed beneath the alteration lithocap; and
c) volcanogenic massive sulphide (VMS) Au-Ag-Cu-Zn mineralization (Tres Bocas Zone)
and/or epithermal replacement or veins (La Lechoza Zone).
2) Pueblo Viejo high sulphidation epithermal mineraliz ation is likely of epigenetic origin following a
buried porphyry + overlying alteration lithocap deposit model.
3) The lithological contact between the outcropping strongly silicified and advanced argillically altered
Hatillo Formation limestone unit (which forms an aq uiclude to the mineralizing fluids) and the
underlying Los Ranchos Formation volcanic-sedimenta ry unit (the host rock of gold-silver
mineralization) is a conformable one and not a stru ctural unconformity contact as earlier
interpretations suggest.
Jeffrey Wilson, Precipitate President & CEO, stated , "We are very pleased with the contents of Dr.
Redwood’s report, as many of his observations suppo rt the Company’s views about the unrecognized and
untested potential of several target areas within o ur new property package. Importantly, the report
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highlights the untested potential of the priority Lithocap Zone by reinforcing the Company’s belief that high
sulphidation epithermal gold-silver mineralization could exist at shallow depth within the lithocap. T his
thesis has not been adequately tested by prior oper ators, allowing us to augment our exploration plans
with many of Dr. Redwood’s suggestions in executing our current and future exploration programs. Dr.
Redwood’s geological expertise and unique insight a nd familiarity with the Pueblo Viejo Mining region
provide our technical team with invaluable guidance on how best to target possible gold and copper
mineralization in the region and is certain to be a critical component of our ongoing exploration in multiple
zones within the project.”
Hypothetical schematic section produced by Precipitate Gold (not taken from the Redwood Report).
Michael Moore, Precipitate VP Exploration, stated, "There is an ongoing debate about the age and origin of
the Pueblo Viejo mineralization and whether the dep osit is syngenetic or epigenetic. Dr. Redwood et al .’s
epigenetic origin model proposes a mineralization system where gold-silver and base metal enriched fluids
emanate from a concealed porphyry intrusive to the conformable contact between the Hatillo Formation
limestone and the Los Ranchos Formation volcanic-se dimentary rock units. Precious and base metals are
deposited along vertical fault structures and later ally through permissive lithologies of the Los Ranc hos
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Formation, in conjunction with the development of e xtensive silica and advanced argillic lithocap styl e
alteration which was ponded beneath the overlying o r “capping” Hatillo Formation limestone rock unit.
This epigenetic Pueblo Viejo deposit model interpretation will shape our exploration at Pueblo Grande, not
just at our priority Lithocap Zone located immediately west of the Pueblo Viejo Mine site, but also for deep
porphyry and VMS-Replacement style deposits targets outlined by Dr. Redwood.”
Evaluation and Recommendations Highlights:
Lithocap Zone (Loma la Cuaba) high-sulphidation epithermal Observations & Recommendations:
(Lithocap Zone aster image and magnetic map here )
1. The primary mineralization controls at the Pueblo V iejo deposit are north-south and northwest
trending structures. These are also the main struct ures identified in the lithocap. Exploration should
define these structures by geological and structura l mapping, lineament analysis and geophysics, and
use of geochemistry to look for leakage anomalies.
2. The second control on mineralization is the flat ly ing, volcaniclastic, chemically reactive sediments of
the Pueblo Viejo Member of the Los Ranchos Formatio n resulting in a stratabound and stratiform
control. These sediments are known to occur in parts of the lithocap and should be targeted as a host
for concealed, stratabound and stratiform mineraliz ation beneath the silicification and within the
lithocap.
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3. In the absence of the Pueblo Viejo Member sediments (Los Ranchos Formation), porosity and
permeability to host epithermal mineralization can be created in other ways such as structurally-
prepared zones with a high fracture density, by bre ccias, or hydrothermal alteration to vuggy silica,
within the Los Ranchos Formation volcanic units.
4. The high pyrite content of the mineralization will respond well to electrical geophysical surveys such as
induced polarization (IP) and electromagnetic (EM) geophysical surveys. However, barren pyrite is
widespread in the lithocap and underlying volcanic rocks, and thus may limit its usefulness.
5. 3D magnetic modelling will help to define the geome try of bodies of alteration-mineralization in the
lithocap and deeper underlying intrusions. Abundant magnetite in the shallow part of the lithocap
gives a strong magnetic high. The advanced argillic alteration is magnetite-destructive and will give a
magnetic low.
6. Airborne hyperspectral imaging could be used to map alteration in the lithocap and look for “hot-spot”
targets.
7. Short-wave infrared (SWIR) core scanning such as Co rescan or TerraCore is recommended to log
alteration in drill core.
8. The Hatillo Formation limestones underwent massive silicification with veins and pods of massive
hematitized magnetite at the contact with the underlying Los Ranchos Formation.
For more Pueblo Viejo deposit model technical infor mation review the 2006 Economic Geology article
(v.101, p 1427-1435), titled ‘Pueblo Viejo High Sul phidation Epithermal Gold-Silver Deposit, Dominican
Republic: A New Model of Formation Beneath Barren L imestone Cover’, co-authored by Dr. R. Sillitoe,
David Hall, Dr. Redwood and Precipitate Director, Alistair Waddell.
About Dr. Stewart Redwood, BSc (Hons), PhD, FIMMM, FGS:
In the early 2000’s Dr. Redwood served as the first President & CEO of GoldQuest Mining, where he worked
extensively exploring and evaluating multiple projects throughout the Dominican Republic.
Dr. Redwood is a renowned economic geologist, havin g worked for numerous mining and exploration
companies in over 35 countries around the world, with a specific focus and expertise within Latin America.
During his 30+ year career, Dr. Redwood has authore d multiple technical reports and published papers i n
Economic Geology and other journals and has authore d (or co-authored) several technical reports and
publications on Dominican Republic geology and ore bodies, including the Pueblo Viejo gold deposit
located immediately adjacent to Precipitate’s new P ueblo Grande Project in central Dominican Republic.
Full details of Dr. Redwood’s credentials, work his tory and publications can be found on his website a t
sredwood.com .
About Precipitate Gold:
Precipitate Gold Corp. is a mineral exploration company focused on exploring and advancing its two district
scale landholdings in the Dominican Republic’s two most significant mining and exploration camps,
specifically its flagship Pueblo Grande Project imm ediately adjacent to Barrick’s world-class Pueblo V iejo
mine operation, and its Juan de Herrera Project adj acent to GoldQuest’s Romero Project. The Company
also maintains assets in southeast Yukon Territory, specifically the Company’s Reef property located
immediately adjacent to Golden Predator’s 3 Aces Pr oject in the Upper Hyland River area. The Company
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has entered into an Option to Purchase Agreement wi th Golden Predator whereby Golden Predator can
earn a 100% interest in the Reef claims by making c ertain staged payments in cash and shares and
warrants. Precipitate is also actively evaluating a dditional high-impact property acquisitions with th e
potential to expand the Company's portfolio and increase shareholder value.
Additional information can be viewed at the Company’s website www.precipitategold.com .
On Behalf of the Board of Directors of Precipitate Gold Corp.,
“Jeffrey Wilson”
President & CEO
For further information, please contact:
Tel: 604-558-0335 Toll Free: 855-558-0335 [email protected]
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approvals; changes in legislation, including environmental legislation affecting mining; timing and av ailability of external financing on acceptable
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looking information. Precipitate does not undertake to update any forward-looking information, except in accordance with applicable securities
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