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Zephyr Reports El Plomo Drilling

Corporate Updates

Zephyr Reports El Plomo Drilling

Trading Symbol: TSX-V: ZFR OTC-ZPHYF

Shares Outstanding: 66,107,910

HALIFAX, NS

,

Aug. 28, 2020

/CNW/ - Zephyr Minerals Ltd. (TSXV: ZFR) (OTC: ZPHYF) ("

Zephyr

"

or the "

Company

") announces that drill hole EP-20-01 was terminated on

August 27, 2020

at a

depth of

416.5 m

(1,366 ft.) and was not successful in intercepting significant sulphide mineralization.

The targeted mineralized zone which measured

30.5 m

(100 ft) (drill intercept length) in historic drill

hole GC-9 and hosted magnetic silver-lead-zinc mineralization was largely absent in EP-20-01, which

intersected a magnetic sulphide mineralized zone of

2.9 m

(9.5 ft.) (drill intercept length) from 220.0

to

222.9 m

(721.5 to 731.0 ft). Initial observations of the drill core suggest either a pinched section

of the mineralized zone occurs at this depth and/or destruction of the zone has occurred as a result

of younger age silica and pegmatite flooding. Pinch and swell is not an uncommon feature in

mineralized zones thus discovery potential, although diminished, remains. Below this zone discrete

bands of mafic rocks with disseminated sulphides occur within quartz-biotite-feldspar gneiss over an

interval of

122.0 m

from 228.6 to

350.6 m

(750.0 to 1,150.0 ft.). In addition to samples from the

mineralized zone, composite samples collected from the mafic rocks over lengths of

15.2 m

(50 ft.)

from 228.6 to

350.6 m

were collected for gold assaying. Assay results for this drill hole are not yet

available.

Loren Komperdo

, President and CEO, stated "At this stage it is prudent to postpone any further drill

testing of the Broken Hill Type silver-lead-zinc targets in the El Plomo area until assays are received

and all data is further evaluated by Zephyr's geologists and Technical Advisor, Dr.

Paul Spry

. In the

meantime, Zephyr will recommence its activities centered on the

Dawson

gold deposit by working to

build additional gold resources on the

Dawson

and Green Mountain sections of the property where

multiple drill targets have been identified. The property is characterised by high grade gold which is

particularly attractive in the current bull market in gold which shows every sign of continuing to grow

in the medium term. The Company is well funded to continue its exploration program."

The Company will focus exploration on the

Dawson

gold deposit and on the mineralized trend along

strike to the east and west. The

Dawson

gold deposit is located on the eastern side of the

Dawson

-

Green Mountain property and is fully permitted for drilling. The gold deposit is host to an *Inferred

Mineral Resource prepared in accordance with National Instrument 43-101 that totals 116,300

ounces gold (343,000 tonnes at 10.55 g/t defined at a 5 g/t cutoff and 40 g/t topcut), (uncut:

133,500 ounces grading 12.11 g/t gold), and is open at depth. This estimate has an effective date of

July 19, 2013

(see Company news release dated

July 23, 2013

). Average width of the gold

mineralized zone is approximately

3.5 m

(11.5 ft.) and ranges between approximately 1 and

15 m

(3.3 to 49.2 ft.). A **Preliminary Economic Assessment prepared in accordance with National

Instrument 43-101 and having an effective date of

March 21, 2017

was subsequently completed and

showed robust economics at a

$1,250

/oz gold price (see Company news release dated

February 7,

2017

). Mineral Resources that are not Mineral Reserves do not have demonstrated economic

viability. Management feels that current and projected gold prices support proceeding immediately

with gold exploration at the

Dawson

and Green Mountain sections; both of which boast excellent

potential for resource discovery/growth. The combined length of the gold prospective mineralized

trend at

Dawson

and Green Mountain is approximately 8 km (5 mi).

About Zephyr Minerals Ltd.

Zephyr Minerals Ltd. continues to advance its 100% owned high grade

Dawson

-Green Mountain

property in

Colorado, USA

. After expanding it's land package to 1,385 hectares (3,430 acres) the

Company now controls a 12.2 km long

Dawson

-Green Mountain mineralized trend. The

Dawson

section is currently host to a high grade Inferred category gold Mineral Resource. The Company

believes the combined

Dawson

and Green Mountain sections encompassing approximately 5 km of

potentially mineralized trend provide excellent resource expansion and new discovery potential.

To be included in the Zephyr email database for Company updates please contact

[email protected]

.

Notes:

* The Report is titled Resource Estimate Technical Report for the Dawson Property

Fremont

County, Colorado

, USA, dated

September 6, 2013

, and was prepared for Zephyr by

Andrew

Hilchey

, P.Geo., Mercator Geological Services Limited,

Isobel Wolfson

, M.Sc., P.Geo, and

Mark

Graves

, P.Geo..

** The report is entitled "National Instrument 43-101 Technical Report for the Dawson Property,

Colorado, USA

", effective

March 21, 2017

(the "Technical Report"). The Technical Report was

prepared by independent engineering firm, Golder Associates Ltd., with input from a number of other

specialized and experienced consulting firms, and is in accordance with National Instrument 43-101 -

Standards of Disclosure for Mineral Projects.

This PEA is preliminary in nature and includes inferred mineral resources that are too speculative

geologically to have economic considerations applied to them that would enable them to be

categorized as mineral reserves. There has been insufficient drilling to define the inferred resources

as indicted or measured mineral resource; however, it is reasonable to expect that the inferred

mineral resources could be upgraded to indicated and possibly measured resources with continued

drilling. There is no guarantee that any part of the mineral resources discussed herein will be

converted into a mineral reserve in the future.

Mr.

Scott Parks

, P.Geo., is a qualified person as defined by National Instrument 43-101 and has

reviewed and is responsible for the technical information in this news release pertaining to the El

Plomo drill program.

Mr.

Michael Cullen

, P.Geo., is a qualified person as defined by National Instrument 43-101 and has

reviewed and is responsible for the 2013 Mineral Resource Estimate information presented in this

press release.

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

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

release. The forward-looking statements contained in this document are based on certain key

expectations and assumptions made by the Company, including, readiness of contractors and

equipment, expectations and assumptions concerning timing of receipt of required regulatory

approvals and third party consents and the satisfaction of other conditions to the completion of the

exploration work on the Dawson-Green Mountain Property. The forward-looking statements

contained in this document are made as of the date hereof and the Company undertakes no

obligation to update publicly or revise any forward-looking statements or information, whether as a

result of new information, future events or otherwise, unless so required by applicable securities

laws.

SOURCE

Zephyr Minerals Ltd.

View original content:

http://www.newswire.ca/en/releases/archive/August2020/28/c1666.html

%SEDAR: 00030509E

For further information:

Loren Komperdo, President & CEO or Will Felderhof, Executive Chairman,

Zephyr Minerals Ltd., T: 902 446-4189, F: 866 941-4715

CO: Zephyr Minerals Ltd.

CNW 11:30e 28-AUG-20