Gold79 Acquires the Sheep Trail Patented Claims at Its Gold Chain Project and Reports 51.9 g/t Gold from Initial Sampling

Gold79 Acquires the Sheep Trail Patented Claims at Its Gold Chain Project and Reports 51.9 g/t Gold from Initial Sampling

Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) ("Gold79" or the "Company") is pleased to announce the purchase of the Sheep Trail Group of patented claims and reports the initial sampling results from these claims. The patented ground, covering 113.2 acres, is immediately east of the Banner patented claims (Figure 1). It encompasses an extensively altered and mineralized zone which has been traced for over 1.2 kilometres within the Sheep Trail block, forming a portion of the approximately 10km North Oatman trend the Company is exploring at Gold Chain. Widespread, shallow mine workings (pre-1920) can be seen throughout the claim block. Preliminary grab samples of mine dumps have yielded up to 51.9 gt Au and rock chip samples have returned up to 2.0 metres at 20.4 gt Au.

The Company's Gold Chain Project in Arizona is now comprised of 15 patented claims, covering approximately 264 acres and 361 lode claims on BLM land comprising about 7,180 acres (2,907 Ha).

Mr. Derek Macpherson, President & CEO stated, "The 51.9 g/t gold value is the highest-grade sample to date from the Gold Chain project. The Sheep Trail block is the last of three critical blocks acquired by Gold79 Mines which collectively form the nucleus of our Gold Chain project. This is the first time that these patented claims and the surrounding lode claims have been consolidated by a single operator explaining the lack of modern exploration despite its excellent location and widespread gold mineralization." Mr. Macpherson continued, "Our focus now at Gold Chain is boots on the ground exploration and geophysics covering the entire project in early 2022 in preparation for the next round of drilling."

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_001.jpg

Figure 1: Perimeter of the Gold Chain claim block showing project areas, acquired patented blocks and gold-in-rock values.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_001full.jpg

Terms of Sheep Trail Acquisition

Gold79 USA Corp., a wholly owned subsidiary of the Company, has completed the acquisition from a private vendor of a 100% interest in the 113.2 acre patented claim block with a cash payment of US$250,000. There are no royalties associated with these claims and there are no further payments owing to the vendor of these patented claims.

Sheep Trail Geology

The generalized geology of the Sheep Trail claim block is shown in Figure 2 along with the results from the initial rock sampling program. Geologic highlights include:

  • Widespread quartz veinlets and stockwork (Figure 3) are contained within a structural corridor (damage zones) historically referred to as the Sheep Trail ledge which is a Type A vein (see Gold79 press release; June 22, 2021) where veins and veinlets are parallel to the rhyolite dike complex at the footwall contact with the Precambrian granite and internally between distinct phases of the dike complex.
  • Broad zones of moderate to strong quartz-illite-pyrite alteration of the rhyolite hosting irregular 'damage zones' of quartz-chalcedony veining.
  • Minor historical mining, i.e. pits, adits and stopes, on narrow (0.5 to 2.0 m wide) veins both parallel (Type A) and perpendicular (Type B) to the rhyolite contacts.
  • Increased fracturing and veining at the 'elbow.'
  • Strong quartz-illite-pyrite (iron oxides) at the 'elbow' between the Sheep Trail and Red Hill ledges and consistent with concealed gold mineralization at depth within the 'elbow.'

Initial work suggests that the Red Hill Ledge passes south of the Sheep Trail claim block while the Sheep Trail Ledge extends westerly into the Banner claims and has been documented to be about 100 metres below the Red Hill structure. The Sheep Trail claims are positioned on what we refer to as the "elbow" where there is a pronounced bend in the felsic dike swarm from N40oW to N85oW, or about 45o. The cause of this bend is not understood but later, pre-mineral strike-slip movement along the dike - Precambrian contact likely resulted in broad 'damage' zones which were later filled by the gold-bearing events in the HW of the Sheep Trail Ledge. Between the two structural corridors at the 'elbow,' a large zone within the rhyolite dike complex has been strongly altered to illite + pyrite (now iron oxides). The 'elbow,' between the two ledges, is considered a first-order target and will receive immediate attention (Figure 2).

Preliminary Rock Sampling

A total of 90 rock samples have been collected within and adjacent to the Sheep Trail claim block and along the widely fractured and veined rhyolite and Precambrian granite. Initial sampling was designed to provide a basis for the acquisition and was reconnaissance in nature. Sampling included prospect piles and dumps along with mineralized outcrops over a strike length of about 1.5 kilometres (Figure 2). Mineral styles were highly variable and ranged from discrete veins up to 2 metres of quartz-chalcedony-calcite to quartz stockwork and breccia to micro-veinlets in silicified rhyolite.

Gold values ranged up to 51.9 g/t Au with the highest values associated with fine-grained, sucrosic lime- to olive-green quartz and chalcedony (Figure 4). Adularia, which is widely observed along the Tyro vein system, as well as the Oatman district, was not observed within the Sheep Trail area; bladed calcite or 'lattice' texture is widespread in areas hosting higher gold values. The distribution of gold values is presented below in Table 1. The high percentage of values exceeding 10 g/t Au partially reflects sampling of the dumps but several samples were taken from outcrops.

This reconnaissance sampling provides guidance for additional sampling campaigns to be conducted in the early 2022 field activities.

Table 1. Grade distribution of surface samples.

Gold Interval (g/t)# Observations% Samples
>101314.4
5-1044.4
1-51516.7
0.5-1.066.7
0.1-0.51820
3437.8

 

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_002.jpg

Figure 2: Preliminary geologic map of the Sheep Trail claim block showing gold-in-rock values (g/t Au). Area surrounding patented blocks is claimed by Gold79 Mines.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_002full.jpg

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_003.jpg

Figure 3. Looking north across the Sheep Trail zone at the 'Elbow'; road to the Tyro mine at lower left. Stopes at top right are at the Tertiary rhyolite/Precambrian granite contact. Outcrops are mostly silicified to quartz-illite-pyrite replaced rhyolite hosting quartz-chalcedony veins and veinlets between the road and FW contact.

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_003full.jpg

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_004.jpg

Figure 4. Fractured quartz-illite-pyrite altered rhyolite dike veined and cemented by light green quartz-chalcedony veinlets; sample contained 14 g/t gold, Sheep Trail mine area.

To view an enhanced version of Figure 4, please visit:
https://orders.newsfilecorp.com/files/5717/109927_c4234240d460db5d_004full.jpg

Qualified Person / Quality Control and Quality Assurance

Robert Johansing, M.Sc. Econ. Geol., P. Geo., the Company's Vice President, Exploration is a qualified person ("QP") as defined by NI 43-101 and has reviewed and approved the technical content of this press release. Mr. Johansing has also been responsible for all phases of sample collection, labelling, bagging and transport from the project to American Assay labs of Sparks, Nevada. Samples were then dried, crushed and split, and pulp samples were prepared for analysis. Gold was determined by fire assay with an ICP finish, over limit samples were determined by fire assay and gravimetric finish. Silver plus 34 other elements were determined by Aqua Regia ICP-AES, over limit samples were determined by fire assay and gravimetric finish. Standard sample chain of custody procedures were employed during field work until delivery to the analytical facility.

About Gold79 Mines Ltd.

Gold79 Mines Ltd. is a TSX Venture listed company focused on building ounces in the Southwest USA. Gold79 holds 100% earn-in option to purchase agreements on three gold projects: the Jefferson Canyon Gold Project and the Tip Top Gold Project both located in Nevada, USA, and, the Gold Chain Project located in Arizona, USA. In addition, Gold79 holds two projects with minority interest being a 36.6% interest in the Greyhound Project, Nunavut, Canada under JV by Agnico Eagle Mines Limited and a 20% carried interest in the Taviche Project in Oaxaca, Mexico now under option to Fortuna Silver Mines Inc.

For further information regarding this press release contact: Derek Macpherson, President and Chief Executive Officer by email at dm@gold79mines.com or by phone at 416-294-6713. Gold79's website is located at www.gold79mines.com.

FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including any private placement financings, the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, plans and references to the Company's future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com. Gold79 does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/109927

News Provided by Newsfile via QuoteMedia

auu:ca
The Conversation (0)
Gold79 Is Set to Drill Its Gold Chain Project in Early 2023

Gold79 Is Set to Drill Its Gold Chain Project in Early 2023

Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) ("Gold79" or the "Company") is pleased to announce that it is ready to execute a 1,100 meter drill program at its Gold Chain Project, in Arizona in early 2023. The Company has secured a drill contractor and completed site preparation to commence drilling in early 2023. The drill program will focus on following up the high-grade sampling results from Sheep Trail and demonstrating the strike extent of the Tyro vein system to the southwest.

Derek Macpherson, President, CEO & Director stated, "Our recent financing, the option agreement with Kinross at Jefferson Canyon and sale of non-core assets have strengthened the Company's balance sheet and allows Gold79 to undertake this 1,100-meter drill program at the Company's Gold Chain Project in Arizona. While we view demonstrating the strike extent of the Tyro vein as a logical step towards developing a resource, I believe that following up on high-grade sampling results at Sheep Trail, approximately 2 kilometers away from our 2021 high-grade drill results in the Banner area, could go a long way toward demonstrating the higher-grade nature and overall scale of the Gold Chain project."

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Gold79 Announces Private Placement Financing of up to $1,000,000

Gold79 Announces Private Placement Financing of up to $1,000,000

Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) ("Gold79" or the "Company") is pleased to announce the initiation of a non-brokered private placement to raise gross proceeds of up to $1,000,000, comprising 28,571,428 units (each a "Unit"), at $0.035 per Unit (the "Offering"). Each Unit consists of one common share of the Company and one whole common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.05 per share for a period of 36 months following the date of issuance. Additionally, the Warrants will be callable during the 36 month period, at the option of the Company, in the event that the 20-day volume-weighted average price of the Company's common shares meets or exceeds $0.08 for ten consecutive trading days based on trades on the TSX Venture Exchange and Alternative Trading Systems. Subscribers will be notified of the call provision being triggered and will have a 30-day period to exercise the warrants.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Gold79 Signs Exploration and Option Agreement with Kinross on its Jefferson Canyon Project, Nevada

Gold79 Signs Exploration and Option Agreement with Kinross on its Jefferson Canyon Project, Nevada

Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) (the "Company" or "Gold79"), through its wholly-owned US subsidiary, is pleased to announce an Exploration and Option Agreement (the "Agreement") with Kinross Gold USA Inc. ("Kinross"), a wholly-owned subsidiary of Kinross Gold Corporation (TSX: K) (NYSE: KGC) on its Jefferson Canyon Gold-Silver Project located in Nye County, Nevada, approximately 7 kilometers from Kinross's Round Mountain operations.

Mr. Derek Macpherson, President & CEO, stated, "We are pleased to welcome Kinross, a senior gold mining company, as a partner at Jefferson Canyon and as a strategic investor. The agreement with Kinross is a strong endorsement of Jefferson Canyon's potential and will accelerate exploration while allowing Gold79 shareholders to retain a significant interest in what we view as a very prospective project. With Jefferson Canyon only 7 kilometers from Kinross's operating Round Mountain Mine, we believe Kinross is better positioned to quickly and cost effectively advance Jefferson Canyon."

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Gold79 Monetizes Minority Interest in Taviche Project

Gold79 Monetizes Minority Interest in Taviche Project

Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) (the "Company") is pleased to announce that it has monetized its remaining 20% interest in the Taviche Project in Mexico. Additionally, despite strong support from insiders and existing shareholders for the financing announced July 28, 2022, the Company has determined that it will not proceed with the private placement. As well certain members of management have agreed to loan the Company up to CDN$230,000.

Mr. Derek Macpherson, President & CEO stated, "I am pleased to be able to monetize our minority interest in the Taviche property providing the Company with a cash infusion. The completion of this transaction will also allow Gold79 to simplify its corporate structure by dissolving its Mexican subsidiary resulting in reduced corporate overhead costs in the future." Mr. Macpherson continued, "I would also like to thank insiders and existing shareholders for strong support shown for the withdrawn financing and to my fellow insiders for stepping up and providing interim funding for the Company."

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Gold79 Announces Private Placement Financing of up to $500,000 and Issues Shares for Gold Chain Anniversary Payment

Gold79 Announces Private Placement Financing of up to $500,000 and Issues Shares for Gold Chain Anniversary Payment

Gold79 Mines Ltd. (TSXV: AUU) (OTCQB: AUSVF) ("Gold79" or the "Company") is pleased to announce the initiation of a non-brokered private placement to raise gross proceeds of up to $500,000, comprising 16,666,667 units (each a "Unit"), at $0.03 per Unit (the "Offering"). Each Unit consists of one common share of the Company and one whole common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.05 per share for a period of 36 months following the date of issuance. Additionally, the Warrants will be callable during the 36 month period, at the option of the Company, in the event that the 20-day volume-weighted average price of the Company's common shares meets or exceeds $0.08 for ten consecutive trading days based on trades on the TSX Venture Exchange and Alternative Trading Systems. Subscribers will be notified of the call provision being triggered and will have a 30-day period to exercise the warrants.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Omar ayales, gold bars.

Omar Ayales: Gold, Silver, Juniors Have Explosive Upside — Not Being in Trade is Top Risk

Speaking to the Investing News Network, Omar Ayales of Gold Charts R Us discussed the outlook for gold from a technical perspective, saying that he sees the metal's price potentially peaking in 2026.

Gold's past performance indicates that it could reach US$4,000 per ounce during this cycle. He sees US$2,600 as a bullish support level for gold, with deeper support existing in the US$2,200 to US$2,300 range.

However, Ayales said there's no guarantee that the yellow metal will fall that low at this point.

Keep reading...Show less
Business handshake.

Newmont to Sell Cripple Creek & Victor Mine Amid Firm-wide Restructuring

Newmont (TSX:NGT,NYSE:NEM) announced the sale of its Cripple Creek & Victor mine in Colorado, US, to SSR Mining (TSX:SSRM,NASDAQ:SSRM) for up to US$275 million, continuing its ongoing restructuring efforts.

Under the terms of the deal, Newmont will receive US$100 million in cash upon closing, with an additional US$175 million contingent on regulatory approvals and conditions related to the Carlton Tunnel.

Newmont has agreed to bear 90 percent of potential closure costs exceeding US$500 million under a future regulator-approved closure plan. The transaction is expected to close in the first quarter of 2025.

Keep reading...Show less
Black swan and many white swans on piles of gold coins.

Black Swans, White Swans and Trump’s Clash with the Fed

The Trump administration’s ability to reign in government spending, quash inflation and bolster the economy were the most prevalent topics during the popular economy panel at the New Orleans Investment Conference.

Moderated by Adrian Day, president Adrian Day Asset Management, this year’s discussion featured James Lavish, Jim Bianco, Dr. Mark Skousen, Brent Johnson and James Grant. The expert group began the discussion by debating the potential economic impact Donald Trump could have, highlighting contradictions in his policies.

Johnson, who is CEO of Santiago Capital, pointed out that Trump's anti-inflation stance conflicts with his push for a weak US dollar and tariffs, which Johnson likened to global rate hikes.

Keep reading...Show less
Gold bear and bull fighting over bars of gold.

Gold Price 2024 Year-End Review

Gold saw incredible price gains in 2024, rising from US$2,000 per ounce to close to US$2,800.

Various factors have lent support, including 75 basis points worth of interest rate cuts from the US Federal Reserve, geopolitical instability in Eastern Europe and the Middle East and uncertainty in global financial markets.

Of course, it wasn't all an upward climb for gold — following the US presidential election, Donald Trump emerged victorious, and the gold price experienced volatility as investors flocked to Bitcoin.

Keep reading...Show less

Latest Press Releases

Related News

×