Algold Continues to Sample High Grade Mineralization at Salma

 

MONTREAL, June 07, 2018 (GLOBE NEWSWIRE) -- ALGOLD RESOURCES LTD. (TSXV:ALG) (“Algold” or the “Corporation”) today announced assay results from a trenching and pitting program carried out during the first and second quarters of 2018 at the high-grade Salma Vein System and Eleonore zone located at the Corporation’s Tijirit project in Mauritania.

Photo 1: Channel sampling at Salma. Photo 2: Channel sampling at Eleonore South.

The Salma Vein, discovered in mid-2017 (reference Algold’s press release dated June 7, 2017), is located approximately five kilometers northeast of the Eleonore zone. The Salma Vein System has been traced over a ten-kilometer-long mineralized structure situated at the prospective granite-greenstone contact zone.

“The ongoing trenching and sampling program at Salma and Eleonore continues to intersect noteworthy results and highlight the significant potential of the Salma area to rapidly add substantial high-grade gold mineralization at the Tijirit Project,” said Algold’s Executive Vice-President, Exploration, Francois Auclair.

Highlights       

Salma

• 85.0 g/t Au over 0.40 meters true width from channel T18TRS103, a new area 750 meters north of drill hole T18RC028
   
• 13.21 g/t Au over 1.40 meters true width from channel T18TRS96, next to grab sample A10417, which returned 127.0 g/t Au and reverse-circulation (“RC”) drill hole T18RC028, which returned 1.26 g/t Au over 3 meters. (Figure 1)

Eleonore

• 14.56 g/t Au over 1.65 meters true width from channel T18TR001, a steep dipping vein located between the Eleonore South and the Eleonore Central zones, not previously tested by drilling.
  
  
• 4.67 g/t Au over 4.06 meters true width from channel T18TRM03, a quartz-rich shear zone in the eastern part of Eleonore South, between two drill fences and to the northwest of current drilling. (Figure 2)

The channel sampling and trenching carried out in 2018 successfully identified new gold-bearing structures within the mining licence area. At Salma, 93 samples were collected from 26 channels covering 56.3 meters, in addition to the samples collected in 2017. At Eleonore, 1,506 samples were collected from 14 new trenches excavated for a total length of 2,964 meters. The Company is in receipt of the results for 776 samples to date. 

Salma

Channels at Salma were excavated over a one-kilometer strike-length, where several gently dipping veins were observed.  While the vein dips are shallower than elsewhere at Salma, the structural setting is similar, the mineralization is associated with localized shearing.  Exploration work is ongoing along the Salma granite contact and 1.6 kilometers further to the south where another granite-greenstone contact has been identified.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/7eb27a7a-3e82-46ef-9afa-65564b2ad85e

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/1d8e009a-0bf9-4963-9877-8834caff62ae

Sampling at Salma was carried out predominantly in pits excavated by artisanal miners. The samples were generally taken at depths varying from 3 to 5 meters in trenches (or pits). (Reference Algold’s press release dated December 6, 2017). (Reference Photo 1)

Throughout Salma the mineralization trends in a north to northeast direction and is associated with local shearing. Gold was found within quartz veins ranging in width from 0.2 to 3.25 meters, located close to the contact of an intrusive granite pluton and the mafic volcanics.  Locally, veins pinch and swell along the structure. Individual veins have been mapped for over 500 meters, with parallel veins often recorded. The southern end of Salma has been termed Eleonore East. Various orientations were observed with flat-lying, shallow dipping, discordant and shear-associated veins recorded.  Gold has been found in all of these structures. 

Eleonore Trenching

The mechanical trenching at Eleonore was initiated in mid-April to assist in the geological and structural mapping of the Eleonore zone.  The trenching program, along with the current drilling program, will be used to prepare an updated Mineral Resource Estimate, which the Company expects to complete in Q4 2018. A hydraulics excavator was used to dig the trenches, which are generally 1.3 meters wide and 2 to 3.5 meters deep. Lengths vary from 48 meters to 334 meters. (Reference Photo 2.)

Table 1: Salma Channel Sampling Program Assay Results

Hole ID	Prospect	East UTM	North UTM	From (m)	To (m)	Vertical Depth* (m)	Average Grade** (g/t Au)	Width*** (m)
T18TRS93	Salma	486355	2255590	0.0	0.4	2	2.74	0.40
T18TRS94	Salma	486386	2255539	0.0	1.15	2	6.41	1.15
T18TRS95	Salma	486321	2255465	0.0	0.5	2	8.35	0.50
T18TRS96	Salma	486401	2255511	0.0	1.4	2	13.21	1.40
T18TRS99	Salma	486512	2255770	0.0	3.07	2	0.70	3.07
T18TRS101	Salma	486411	2255851	0.2	0.7	2	12.50	0.50
T18TRS103	Salma	486334	2256257	0.0	0.4	2	85.00	0.40

Table 2: Eleonore Channel Sampling Program Assay Results

Hole ID	Prospect	East UTM	North UTM	From (m)	To (m)	Vertical Depth* (m)	Average Grade** (g/t Au)	Width*** (m)
T18TRM03	Eleonore S	481978	2249001	0.0	4.06	2	4.67	4.06
T18TRM05	Eleonore S	481974	2249482	0.5	2.10	2	1.19	1.60
T18TRM01	Eleonore S	481935	2248347	0.0	1.96	2	1.14	1.96
T18TR001	Eleonore S	481891	2249284	262.0	263.65	2	14.56	1.65
T18TR005	Eleonore S	482024	2248948	166.0	168.0	2	1.13	2.00

*Vertical depth of intersection below surface.
**Weighted average grade, composite based on a minimum grade of 0.3 g/t Au with an internal dilution of 0.005 g/t Au over two meters and an edge grade of 0.25 g/t Au permitted.
***True width
No capping of higher values has been applied.
Complete assay results are available on Algold’s website (www.algold.com).

Salma Vein System and Eleonore Sampling Procedure

Channels were sampled in the weathered rock honouring geological contacts. Material was collected using hammer and chisel with care taken to avoid sampling bias. For trenches T18TR001 to T18TR014 at Eleonore, a composite sample was collected from continuous channels taken horizontally along the north-facing wall at the bottom of the trench (Reference Photo 2).  Once collected, samples were dried, crushed, homogenized and split with 250-gram samples sent to SGS Bamako for 50-gram fire-assay analysis.  Prior to sample preparation, quality control (“QC”) samples were inserted, as per Algold’s sampling procedure, to monitor the preparation and assay laboratory’s procedures.

New Prospect Jemelein Rock Chip Sampling

Promising initial results have also been received from the Jemelein Prospect, located on the Company’s exploration licence 1117B2, located east of Algold’s mining licence. The area occurs along the southern contact of the Salma Granite and represents a large shear zone trending to the north east. Auriferous mineralization occurs in quartz veins/stockworks with associated pyrite within a felsic schistose unit with results returning up to 3.34 g/t Au. A mineralized banded iron formation grading 3.7 g/t Au has also been identified within the main shear corridor.  Aeolian sand covers much of the prospective area, restricting the use of surface geochemical methods for exploration.

Drilling

Drilling commenced in early May 2018 with two diamond core and two RC drill rigs currently in operation at Eleonore. The primary objective is to upgrade current inferred resources to the indicated category.  The Company is expecting to receive the first round of results at the end of June.

Quality Assurance / Quality Control (QA/QC)

Analytical work for drill core and chips, geochemical samples and rock chip samples is carried out at the independent SGS Laboratories Ltd. in Bamako, Mali.  The 50-gram fire assay with ASS finish analytical services are accredited by SANAS and are carried out with a quality assurance protocol in line with ISO 17025:2005. Samples are stored at the Corporation’s field camps and put into sealed bags until delivered by a geologist on behalf of Algold to the laboratory in Bamako, Mali, where samples are prepared and analyzed. Until the end of 2016, samples were analyzed at ALS’s facility in Loughrea, Ireland. Beginning in 2017, samples are analyzed at SGS Laboratory, Bamako. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70%, passing a 2 mm (Tyler 9 mesh, US Std. No.10) screen. A split of up to 1,000 grams is taken and pulverized to better than 85%, passing a 75-micron (Tyler 200 mesh) screen, and a 50-gram split is analyzed by fire assay with an AA finish.  Anomalous samples greater than 5 g/t Au are re-analyzed by 50-gram fire assay with gravimetric finish.  Selected samples may be re-analyzed using a 1-kilogram cyanide leach (Bottle Roll) using “LeachWELL” or the 1-kilogram screen fire assay method.  Blanks, duplicates and certified reference material (standards) are inserted to monitor laboratory performance during the analysis.

This press release has been reviewed for accuracy and compliance under National Instrument 43-101 by André Ciesielski, DSc., PGeo., Algold Resources Ltd Lead Consulting Geologist and Qualified Person, and Alastair Gallaugher, C.Geo. (Chartered Geologist and Fellow of the Geological Society of London), BSc. Geology, Algold’s Exploration Manager in Mauritania, Qualified Persons as defined by NI 43−101 Standards of Disclosure for Mineral Projects. André Ciesielski has further approved the scientific and technical disclosure in the news release.

ABOUT ALGOLD
Algold Resources Ltd is focused on the exploration and development of gold deposits in West Africa. The board of directors and management team are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.

FORWARD-LOOKING INFORMATION
This press release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Corporation's plans involve various estimates and assumptions and its business is subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Corporation's most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate. Forward-looking statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.

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.

For further information, please contact:

Algold Resources Ltd.
1320, boul. Graham, bureau 132, Mont-Royal, Québec, H3P 3C8, www.algold.com

Benoit LaSalle, FCPA, CPA, FCA                                                     
President & Chief Executive Officer                   
b.lasalle@algold.com                                       
+1 (514) 951 4411         

Alex Ball  
Executive VP, Finance & Corporate Development
a.ball@algold.com 
+1 (647) 919 2227