Aguila American GOLD Announces Wusa Drilling Results and Updates Exploration Program
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AGUILA AMERICAN GOLD ANNOUNCES WUSA DRILLING RESULTS AND UPDATES
EXPLORATION PROGRAM
Vancouver, British Columbia – April 29, 2021: Aguila American Gold Limited (“Aguila” or the
“Company”) (TSX-V: AGL) (OTCQB: AGLAF) (WKN: A2DR6E) is pleased to announce results from the
early winter drilling program completed at the Company’s WUSA Gold Project in Oregon, USA. Assay results were
delayed due to high workload and COVID-19 restrictions at the analytical laboratory. A total of four holes were
drilled to test the recently discovered Scorpion-Cinnabar prospect that is defined by a gold-arsenic in soil anomaly
which trends for over 2km south from the historic Black Butte mercury (Hg) mine.
Key Points
• 4 holes were drilled along 1.6km strike of prospective shear zone structure, all intersecting gold or
epithermal pathfinder elements.
• Identification of a strike extensive epithermal system with gold discovered in 3 of 4 drill holes.
• Results confirm a low-sulphidation epithermal deposit style which is well known in Western USA with
potential for high gold grades and grade variability.
• Mineral rights are secured for 8.5km of projected shear zone trend.
• Project remains highly under explored – one prior exploration drill hole known within 18km of current
program.
Drill holes tested 1.6km of the soil anomaly trend and identified an extensive north-south striking low-sulphidation
epithermal system associated with a shear and breccia zone up to 50m in width. Widespread argillic, iron oxide
and silica alteration, open space vein textures, and carbonate-(barite) veins have been observed in mapping and
drilling. These are positive indicators of an epithermal mineralization style, alongside the association with nearby
mercury mines and occurrences to the north and south of the drilled area.
Drilling returned elevated pathfinder metals (As, Sb, Te, Cu) in all holes, while gold above 0.1 g/t was intersected
in three holes across 1.6km (see Table 1). Notable intersections included:
SDH-02-20: 6.1m @ 0.17 g/t Au, 1.1 g/t Te from 50.3m
SDH-03-20: 1.5m @ 0.20 g/t Au from 184.4m
2.7m @ 0.14 g/t Au from 213.4m
SDH-04-20: 4.9m @ 0.5% As from 203.9m
SDH-05-20: 1.2m @ 0.22 g/t Au, >1% As, 0.14% Sb
SDH-04-20 and SDH-05-20 were drilled in the south of the prospect area (Cinnabar) and intersected strongly
leached and oxidized rocks lacking visible sulphide, apart from minor cinnabar (HgS), due to stronger weathering.
Holes SDH-02-20 and SDH-03-20, and the previously drilled SDH-01-18 in the north (Scorpion) encountered
sulphide veining and returned higher gold values (see Figure 1, 2, 3).
“We are early in the exploration cycle at the WUSA project but have achieved a number of discovery objectives
from the drill program at Scorpion-Cinnabar. Prior to this program, we were aware of only one exploration drill
hole within 18km, and have now discovered gold in multiple drill holes over 1.8km of strike. T he extent of
structural preparation and low-sulphidation alteration remains impressive and encouraging for the WUSA project
more broadly.
The southernmost hole SDH-05-20 lies at the southern edge of our soil sampling grid and presents an immediate
target for further mapping and sampling. Our mineral interests extend for a further 8.5km south along the
Scorpion-Cinnabar structural trend, along which there has been little to no exploration work.”
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Host rock drilled at WUSA consist s of homogeneous plagioclase porphyritic andesite , typical of the Western
Cascade Ranges. A prominent north-south trending shear zone up to 50m wide transects the andesite pile, with
a mapped extent exceeding 2km. Along the shear structure, rocks are strongly fractured and locally brecciated.
When unoxidized, the shear structure hosts pyrite stringers and stockwork up to 2cm width. Alteration consists
of argillic and iron oxide of varying intensity, and to a lesser extent silica.
Results to date indicate the shear structure is a hydrothermal conduit with potential for high level low-sulfidation
epithermal mineralization. Such systems are well known from Nevada and around the Pacific Ring of Fire
characterized by rapid vertical and lateral change in Au grade, and the potential for very high grades. Soil and
rock sampling and drilling has shown gold to be present in the system along with As, Te, Sb and Se, all epithermal-
associated pathfinder elements.
Drilling results along with previously reported sampling and a recently completed remote sensing structural and
alteration study (see press release dated March 11 2021) provide a strong basis for on -going exploration work.
Stream sediment and soil sampling is underway to definite targets to the south of Scorpion -Cinnabar and
elsewhere on the property.
The WUSA Gold Project exceeds 70,000 Ha in area. As the surface and mineral rights for the WUSA Gold Project
have been held by a single landholder without significant exploration for more than 150 years, historic exploration
data is very sparse. Aguila’s work is focused on identification and testing of high merit Au-Ag targets.
2021 Exploration Program
Aguila has commenced the 2021 field season at WUSA with s emi-regional soil and stream sediment sampling .
The 2021 program will include field checking and testing of the alteration and structural targets, and mapping
and sampling at the Walker Creek prospect, in preparation for future drilling.
Target Areas
Scorpion-Cinnabar is a low-sulphidation mineralization system defined by a gold in soil geochemical anomaly
across a 2.2 km long and up to 400-metre-wide area. More than 1200 soil samples have been collected associated
with highly acid altered volcanic and volcaniclastic rocks. Gold in soil ranged from below detection limits (3 ppb
Au) up to 5.51 g/t Au with 91 samples exceeding 0.1 g/t Au. The site lies only 1.8km south of the historic Black
Butte mercury mine, providing strong evidence of the potential for epithermal mineralization. One hole was
drilled at Scorpion in 2018 which intersected 0.6 metres @ 3.25 g/t Au, 27.3 g/t Ag, 6680 ppm As, 485 ppm Sb,
2.8 ppm Te from 21.3 metres . Aguila completed 4 holes to December 2020, all of which inters ected gold or
pathfinder mineralization.
Walker Creek is a high-level maar-type low sulphidation epithermal alteration developed over an area of more than
3 square kilometres. 10 vertical RC holes were drilled in early 1990’s which intersected anomalous gold including 12.2m
@ 1.41 g/t Au. No further work was completed after drilling.
The Cascade Ran ge in Oregon is underlain by Eocene to Holocene intermediate to felsic volcanic and
volcaniclastics rocks erupted along the western margin of North America. Immediately adjacent to the WUSA
project lies a well-mineralized district containing multiple mineral deposits including polymetallic veins (Bohemia,
a gold-rush mining area discovered in 1858) and historic hot -spring style mercury mines. Placer gold mining is
still undertaken within the WUSA exploration area.
Technical Background
A diamond drill rig from American Drilling Corp of Spokane, Washington was used for the drill program. Core
diameter is HQ, core recovery was close to 100% in all ground conditions, and core was orientated . Core was
photographed and logged near the WUSA site, then marked for core cutting and sampling. Cutting and assaying
of half core was completed by ALS Global in Reno, Nevada, with sample intervals averaging 1.52m (5 feet). The
remaining half core is retained for verification and reference purposes. Samples were prepared and analyzed for
gold using the Au-ICP22 technique and 48 additional elements using the ME-MS61 technique. Certified standards
of known gold content were inserted into the sample flow by Aguila at industry standard frequency. In addition,
ALS Global insert blanks and standards into the analytical process.
The qualified person for the Company's projects, M r. Mark Saxon, the Company’s Chief Executive Officer, a Fellow of the
Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists, has reviewed and
verified the contents of this release.
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About Aguila American Gold Ltd (TSX.v: AGL) (OTC: AGLAF) (WKN: A2DR6E)
Aguila American Gold is an emerging gold company enhancing shareholder value through exploration and
discovery.
ON BEHALF OF THE BOARD,
“Mark Saxon”
Mark Saxon
President & CEO
For further information, please contact:
aguila.gold
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain information set out in this news release constitutes forward -looking information. Forward looking statements are
often, but not always, identified by the use of words such as "seek", "anticipat e”, "plan", "continue”, "estimate”, "expect",
"may”, "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward -looking statements are
based upon the opinions and expectations of management of the Company as at the effective d ate of such statements and, in
certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations
reflected in such forward -looking statements are based upon reasonable assumptions, and that informatio n obtained from
third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers
are cautioned not to place undue reliance on forward-looking statements.
These forward-looking statements are sub ject to a number of risks and uncertainties. Actual results may differ materially
from results contemplated by the forward-looking statements. Accordingly, the actual events may differ materially from those
projected in the forward-looking statements. When relying on forward-looking statements to make decisions, investors and
others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to update any forward-looking statements, except as may be
required by applicable securities laws.
DRILL HOLE EAST NORTH AZIMUTH DIP TOTAL DEPTH (M)
SDH-02-20 495319 4822677 293 -80 119.0
SDH-03-20 495502 4822583 275 -50 240.0
SDH-04-20 495371 4821361 278 -50 237.0
SDH-05-20 495236 4821025 268 -65 52.0
Table 1: Drillhole Collar co-ordinates (NAD27 / UTM zone 10N)
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Figure 1: Regional Setting of the Scorpion and Cinnabar Prospects, Western Oregon. The prospects lie along a north-south shear and
breccia zone within an interpreted north-south domain characterised by mercury occurrences suggesting a high-level epithermal setting.
The largest mercury occurrence is the Black Butte Mine. (NAD27 / UTM zone 10N)
Figure 2: Combined Drilling results from the Scorpion and Cinnabar Prospects, Western Oregon. Gold and pathfinder elements have been
discovered over a 2km long strike length associated with epithermal vein and alteration textures. No surface sampling completed to south
of Cinnabar Prospect.
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Figure 3: Example of Intense silica alteration associated with epithermal (open space) vein texture in drill core from Scorpion (scale = 5cm)