Snowline GOLD Drills 404.8 M of 2.3 Grams PER Tonne GOLD Including 100.8 M of 4.7 Grams PER Tonne GOLD from Surface, Outperforming Valley Deposit Initial Resource Estimate IN First Holes of 2024
SNOWLINE GOLD DRILLS 404.8 M OF 2.3 GRAMS PER TONNE GOLD INCLUDING
100.8 M OF 4.7 GRAMS PER TONNE GOLD FROM SURFACE, OUTPERFORMING
VALLEY DEPOSIT INITIAL RESOURCE ESTIMATE IN FIRST HOLES OF 2024
• Hole V-23-071, collared in a large gap in coverage at the Rogue Project’s Valley
deposit, returned 449.7 m averaging 1.77 g/t Au from surface, including 169.2 m of
2.89 g/t Au, surpassing initial MRE block model grade predictions by +36%
• Hole V-23-072 returned 404.8 m averaging 2.27 /t Au, including 100.8 m
averaging 4.67 g/t Au from surface, consistent with MRE block model prediction
overall and slightly outperforming the model near surface
• Mineralization, including visible gold, encountered in large step-outs in first holes of
Phase II program at Einarson Project’s Jupiter target.
Vancouver, B.C ., July 24, 2024: SNOWLINE GOLD CORP ( TSX-V: SGD) (OTC:
SNWGF) (the “Company” or “Snowline”) is pleased to announce analytical results from the
first two drill holes of its 2024 exploration campaign and to provide an exploration update from
its ongoing 5-drill program in Canada’s Yukon Territory. Hole V-24-071, collared in the high-
grade, near-surface section of the Valley deposit, averages 1.77 g/t Au over 449.7 m from
surface, including 2.89 g/t Au over 169.2 m . This result exceeds th at predicted by the
Company’s initial mineral resource estimate (MRE) for Valley by 36% overall. Hole V-24-072
averages 2.66 g/t Au over 295.3 m, including 4.67 g/t Au over 100.8 m from surface, in line
with expectation but with slightly (1%) more gold than predicted in the top half of the hole. At
the Jupiter target on the nearby Einarson Project, trace visible gold has been encountered in a
174 m step-out from previous holes, along with widespread mineralization. Drilling is ongoing
at Valley and on other targets, with assays pending for an additional 13,000 m drilled to date.
Drillhole
ID
Interval* (metres) Grade
(Au g/t) From To Width*
V-24-071 6.8 456.5 449.7 1.77
including 6.8 176.0 169.2 2.89
V-24-072 3.7 299.0 295.3 2.66
including 3.7 104.5 100.8 4.67
with 58.0 70.0 12.0 8.38
“We are encouraged by such a strong start to our 2024 exploration campaign and excited to
have regional drilling underway,” said Scott Berdahl, CEO & Director of Snowline. “Our first
two holes of the season at our Rogue Project’s Valley deposit underscore the strength and
consistency of the deposi t, particularly when it comes to high -grade, near -surface gold
mineralization. We eagerly await assay results from the many additional holes drilled within
and adjacent to the current deposit, and we look forward to seeing results from additional
Valley-style gold targets that are set to be drilled soon.
Table 1 –Highlight summary of Snowline’s latest assay results . Note that the
headline interval for V -24-072 comprises multiple intervals separated by small
gaps; see Table 2 for details. *Interval widths reported ; true widths of the system
are not yet known.
“I would also like to congratulate Snowline’s team on their exploration success at on our
Einarson Project’s Jupiter target, an orogenic gold system, where careful structural mapping
and interpretation informed bold step -out holes that meaningfully expand the mineralized
footprint of the target, which remains open in all directions. We are excited by these initial
observations, and we look forward to the analytical results from current holes along with the
rest of the ongoing Phase II drill program at Jupiter.”
VALLEY DRILLING, ROGUE PROJECT
Drilling at the Rogue Project’s Valley deposit is ongoing, with three drill rigs working to
upgrade and expand the current resource. To date, roughly 11,000 m have been drilled at Valley
in 21 holes (Figure 1) along with 3 additional holes in progress. Trace instances of visible gold
and sheeted quartz vein arrays have been observed both within and beyond the confines of the
current, initial mineral resource estimate for Valley . The Company awaits assay results from
the ongoing drill campaign to assess the significance of these observations.
Figure 1 – Plan map of drill results and progress on the Rogue Project’s Valley deposit, highlighting current results in drill holes V -24-
071 and V-24-072. Past analytical results are faded, while instances of visible gold in holes awaiting assay are marked by yellow spheres.
Hole V-24-071
Snowline’s first hole of 2024, V-24-071, is collared within a 100 x 200 m gap in previous drill
coverage on the Valley deposit (Figure 1). The hole was collared in a mineralized section of
the Valley intrusion and remained in continuous mineralization until exiting the intrusion at
434.5 m downhole depth, with lower grades continuing into the surrounding hornfels
sedimentary rock (0.24 g/t Au over 22.1 m from 434.5 m downhole).
The hole averages 1.77 g/t Au over 449.7 m from surface, with the top 169.2 m from bedrock
surface (at 6.8 m downhole) averaging 2.89 g/t Au. Within this, a 76.0 m interval from 100.0
m downhole averages 3.50 g/t Au. Of note, applying a 10 g/t Au cut -off does not affect the
results (Table 2), given that no assays in the hole returned >10.0 g/t Au. This result emphasizes
the consistent and continuous nature of the gold mineralization at Valley.
V-24-071 tests a transitional zone from high grades seen in V -23-061 (519.6 m @ 2.5 g/t Au,
including 265.6 m @ 3.6 g/t Au from surface, see Snowline news release dated December 6,
2023) collared 59 m to its southeast into lower, but still highly anomalous, grades seen in V-
23-055 (359.4 m @ 1.34 g/t Au from surface, see Snowline news release dated November 9,
2023) collared 49 m to its northwest. In weighting observed grades by sample distance —
effectively the amount of gold contained within the drill core —versus that predicted for the
Figure 2 – Cross-section A, showing V-24-071 in the context of the initial Valley MRE block model and MRE-constraining revenue factor 0.72
pit shell. The block model has not been updated to reflect the current results, and blocks shown outside of the current pit shell constraint are
not included in the initial MRE for Valley. Instances of visible gold in holes awaiting assay results are marked by yellow spheres.
hole by the Company’s initial mineral resource estimate, the results outperform the MRE by
36% overall, and by 65% within the top 189.9 m downhole from bedrock surfac e. This result
suggests that the zone of near-surface, high grade mineralization at Valley may be more robust
than already understood. The ultimate effect of this result will be quantified along with
analytical results of all subsequent holes in an updated mineral resource estimate at a later time.
Hole V-24-072
Hole V-24-072 is also collared in the Valley intrusion, infilling a 92 m gap on section between
V-23-039 (553.8 m @ 2.48 g/t Au from surface including 132.0 m @ 4.98 g/t Au, see Snowline
news release dated August 3, 2023 ) and V-23-048 (265.2 m @ 2.2 g/t Au including 100.2 m
@ 3.28 g/t Au from surface, see Snowline news release dated September 11, 2023 ). The hole
begins in the high-grade, near surface zone of gold mineralization and ends shortly after exiting
the intrusion into surrounding hornfels at 414.5 m downhole.
Including several short (5-6 m downhole length) barren (<0.1 g/t Au) zones near the bottom of
the interval, V-24-072 averages 2.27 g/t Au over 404.8 m from bedrock surface at 3.7 m
downhole. The first continuous ly mineralized interval averages 2.66 g/t Au over 295.3 m ,
including 100.8 m of 4.67 g/t Au, both from bedrock surface at 3.7 m downhole (Table 2). This
high grade, near surface zone is consistent with those seen in surrounding holes (4.98 g/t Au
over 132.0 m from bedrock surface in V-23-039, 5.03 g/t Au over 30.2 m from bedrock surface
in V-23-048), demonstrating strong continuity of multiple gram-per-tonne gold mineralization
within this high-level zone at Valley.
Figure 3 – Cross-section B, showing V-24-072 in the context of the initial Valley MRE block model and MRE-constraining revenue factor 0.72
pit shell. The block model has not been updated to reflect the current results, and blocks shown outside of the current pit shell constraint are
not included in the initial MRE for Valley. Instances of visible gold in holes awaiting assay results are marked by yellow spheres.
V-24-072 exits the current MRE pit-constraint at approximately 310 m downhole, and thus all
intervals below this point, including 17.0 m of 3.98 g/t Au and 42.0 m averaging 1.01 g/t Au
are outside of the space considered in the present, initial MRE.
EXPLORATION UPDATES
Eagle Mine Incident and Regional Exploration Program
Following the heap leach failure incident at Victoria Gold’s Eagle Mine on June 24th, Snowline
has been in ongoing communication with the First Nation of Na -Cho Nyäk Dun (FNNND),
within whose Traditional Territory the Rogue and Einarson projects are located. Snowline
recognizes that FNNND’s resources and staff are currently committed to the immediate
response to the Eagle Mine incident and ongoing threat of wildfires in the Mayo area. The
Company remains respectful and responsive to FNNND’s concerns relating to mining activities
and mineral exploration in light of the current situation.
Snowline shares in the concerns held by FNNND relating to the environment, potential impacts
and community wellbeing and has made adjustments to its planned program. The Company is
committed to the responsible undertaking of its seasonal exploration activities, while respecting
our relationships with First Nations, local communities, our contractors and our workers.
Table 2 – Summary of significant mineralization returned from current holes at Valley. The consistency of strong mineralization on the target is
reinforced by the capped values in the rightmost column, wherein any assay result >10 g/t Au is replaced by 10.0 g/t Au to ca lculate the average
interval grades. Note that the headline interval for V-24-072 is a combination of four separate mineralized intervals separated by small (5 -6 m) gaps
below <0.1 g/t Au. *Interval widths reported; true widths of the system are not yet known, with different vein generations, orientations, and grade
distributions present within various intervals through the bulk tonnage gold target at Valley.
Jupiter Target, Einarson Project
Phase II drilling is underway at the Company’s Jupiter target, following up on the drill
discovery by Snowline of an extensive orogenic gold system at Jupiter in 2021 ( see e.g.
Snowline news release dated January 12, 2022 ) and the recent consolidation of the Einarson
Project (see Snowline news release dated April 25, 2024). The first four drill holes of the 2024
campaign are complete, with assays pending for roughly 1,500 m from the target and drilling
ongoing.
Following detailed surface mapping and structural interpretation, the new drillholes test the
southeastern end of the system, both as step-backs across the width of the system and as step -
outs along strike (Figure 5). The holes are successful in demonstrating additional mineralized
structures to the east of the structures intersected in Phase I drilling in 2021, expanding the
known width of the system by at least 200 m, showing continuity to depth and demonstrating
an increased strike length of known mineralization. Assays are pending for all holes drilled at
Jupiter in 2024.
Figure 4 – Visible gold in a fractured quartz carbonate vein in J-24-024, the south ernmost hole drilled at the Einarson
Project’s Jupiter target to date. The occurrence , at 256.2 m downhole depth, is roughly 1.2 km along strike from the
northernmost hole, J -21-020, which also encountered visible gold ( 8.3 g/t Au over 4.7 m downhole, see Snowline news
release dated January 12, 2022 ). The vein is roughly 5 cm true width and sits atop an 8 m interval of clay alteration in the
hanging wall of a fault zone.
Cujo Target, Rogue Project
At the Cujo target, roughly 32 km west of Valley, a 3-hole, 1,067 m Phase II drill program has
been completed. Drilling intersected broad zones of sheeted quartz vein mineralization hosting
minor amounts of bismuthinite. Visible gold was not observed during logging. Interestingly, a
50-cm dyke of fine-grained porphyritic intrusive was observed in CU-24-003, the first hole of
the season at Cujo. This dike is similar in appearance and character to a porphyritic intrusive
phase at the Valley target that is thought to be a primary factor in driving the unusually high-
grade gold mineralization at that target . The Company views the presence of this unit at the
Cujo target as a promising indicator for regional prospectivity across the Rogue Plutonic
Complex. Assays are pending for all holes at Cujo.
Following completion of the Cujo drill program, the drill rig has mobilized to the Rogue
Project’s Aurelius target for Phase I drilling on the newly delineated target (see Snowline news
release dated February 20, 2024).
Sydney Target, Cynthia Project
At the Sydney target on the Cynthia Project, located roughly 24 km south of Valley, a 72 m
outcrop surface channel sampling program has been completed, targeting the high-density (>10
Figure 5 – Simplified schematic geological map (left) and cross section (right) of the Jupiter target, showing the locations of the four holes drilled
to date in 2024. Note the multiple structures identified, expanding the breadth of the Jupiter system, and the continuity of strong mineralization
encountered at depth. “Mineralization” denotes areas of patchy, veinlet -hosted and/or disseminated sulphide s in vein wall rocks. The system
remains open in all directions, with only 1.2 km of strike length partially drill tested to date within a broader 3 km zone of elevated (>10 ppb Au)
to anomalous (>50 ppb Au) soil geochemistry.
veins/m) quartz vein arrays present on surface over a 900 x 500 m area. One instance of visible
gold was found in outcrop during this sampling program , the first observation of visible gold
at this new target and Snowline’s sixth discovery of visible gold on a distinct exploration target
in the vic inity of Valley . Assays for this sampling program are pending and will be used to
prioritize Sydney against other potential targets for near-term drill testing.
WARRANTS & RSUs
Snowline announces the early exercise of 1,171,146 warrants, for proceeds to the Company of
CDN $2,927,865. The warrants were initially set to expire in August 2024. Following this
exercise, Snowline has only 200,000 additional warrants outstanding, at a strike price of $3.50.
In addition, following the recent appointment of Gil Lawson to the Board of Directors as an
Independent Director, the Company has issued 75,000 deferred share units (DSUs) as a long-
term equity incentive in accordance with the Company’s Omnibus Incentives Plan. The DSUs
will not vest until the recipient ceases to be a Director of the Company.
QA/QC
On receipt from the drill site NQ 2-sized drill core was systematically logged for geological
attributes, photographed and sampled at Snowline’s “Forks” Camp. Sample lengths as small
as 0.5 m were used to isolate features of interest, but most samples within moderate to strong
mineralization were 1.0 m in length; otherwise, a default 1.5 m downhole sample length was
used. Core was cut in half lengthwise along a pre -determined line, with one half (same half,
consistently, dictated by orientation line where present or by dominant vein orientat ion where
absent) collected for analysis and one half stored as a record. Field duplicates were collected
at regular intervals as ¼ core samples by splitting the ½ core sent for sampling, leaving a
consistent record of half core material from duplicate and non -duplicate samples alike .
Standard reference materials and blanks were inserted by Snowline personnel at regular
Figure 6 – High quartz vein densities with multiple vein orientations in outcrop at the Cynthia Project’s Sydney target (left) and the R ogue Project’s
Valley target (right), highlighting similarities between the two.