Vancouver, British Columbia--(Newsfile Corp. - November 29, 2019) - Sego Resources (TSXV: SGZ) has identified another drill target at its 100% owned Miner Mountain alkalic copper-gold porphyry exploration project in British Columbia. The 2,056 hectare Miner Mountain project is located near mining friendly Princeton, British Columbia, just 15 kilometres north of the Copper Mountain Mine, operated by the Copper Mountain Mining Corporation and Mitsubishi Copper. The claims cover an extensive, well-altered porphyry system containing excellent copper-gold grades, located along the same regional fault as the Copper Mountain mine.
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A re-evaluation of drill core from the Cuba Zone identified a high-grade porphyry with local zones of 1 - 2 % copper and 0.5 grams per tonne gold that has been pervasively overprinted by later grade- destructive alteration. This target was generated during a review of the property and its potential, undertaken by the company in conjunction with consultant Dr Alan Wilson, an expert in alkalic porphyry deposits who completed his PhD on the Cadia deposit in Australia and was recently the International Exploration Manager for Antofagasta Minerals. The porphyry is open beneath the level of current drilling and the destructive alteration is expected to be restricted to shallower levels based on similar alteration at alkalic porphyry deposits including New Afton (Tolman and Lipske, 2016) and Cadia East (Wilson, 2003).
Previously reported grades that show the tenor of the mineralization include DDH 12-21 with 100 meters grading 0.95% copper and 0.55 gpt gold, DDH 12-26 with 12.2 meters grading 1.16% copper and 0.76 gpt gold, and PDH 11-94 with 82 meters grading 1.01% copper and 0.58 gpt gold. Intervals that retain some mineralization as windows within partially to pervasively overprinted include DDH 17-30 with 105 meters grading 0.31% copper and 0.08 gpt gold, and DDH 18-34 with 18 meters grading 0.56% copper and 0.06 gpt gold.
Drillholes at the Cuba Zone shown at a 100 meter depth slice of chargeability with copper plotted downhole.
A sample from 254.4 meters in hole DDH 18-34 showing the later alteration pervasively replacing the earlier copper and magnetite alteration which strips the grade.
J. Paul Stevenson, CEO, stated: "Recognising the high-grade porphyry at the Cuba Zone and understanding the reason for the loss of copper and gold mineralisation is a significant breakthrough. Testing deeper beneath this overprint is a compelling target and proceeding to a drill program in the first months of 2020 is a priority for the company. Adding a high-grade target at the Cuba Zone to the Empress, South Zone Gold-Copper and Sovereign geochemical and geophysical targets announced in mid-October only adds to the discovery potential at Miner Mountain."
Sego has a 5 year area-based permit to drill and explore the Miner Mountain Project, where the ease of access and limited snowfall has made year-round drilling viable. The company has an excellent working relationship with the local community and First Nations and has a Memorandum of Understanding with the Upper Similkameen Indian Band, on whose Traditional Territory the Miner Mountain Project is situated. Sego has received an Award of Excellence for its reclamation work at Miner Mountain.
Sega announced a non-brokered private placement to raise gross proceeds of up to $805,000 from the issuance of up to 11.5 million flow-through units priced at $0.07 with each unit consisting of one share and one warrant exercisable at $0.15 to 24 months. The company is also looking to raise gross proceeds of up to $195,000 from the issuance of up to 3.9 million non-flow-through units priced at $0.05 per unit, with the units consisting of one share and one warrant with the warrant exercisable at $0.10 for 24 months.
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