Damara Announces Completion of Phase I Work Program on its Princeton Gold Property; Target Quartz Vein Intersected in Eight of Nine Holes Drilled

2021-02-02 / @thenewswire

(TheNewswire)

February 2, 2021 – TheNewswire - DAMARA GOLD CORP. (TSXV:DMR) (“Damara” or the “Company”) is pleased to announce that the Company has completed the first phase of exploration on its Princeton Gold Property located near Princeton, British Columbia. The Property is under option from Universal Copper Ltd., via an assignment agreement with Canagold Resources Ltd. The Phase I exploration program consisted of a high-resolution, near-surface DIAS32 3D IP and Resistivity survey and 533m of diamond drilling. Drilling was completed by Full Force Diamond Drilling Ltd. of Peachland, British Columbia, and the 3D IP survey was completed by Dias Geophysical of Saskatoon, Saskatchewan.

The Phase I program was designed to test the Alpha Vein, a gold mineralized quartz vein discovered during the construction of logging roads approximately 20 km south of the Copper Mountain Mine near Princeton, BC.1 Damara’s Phase I drill program consisted of 9 holes drilled as a series of fans from 3 separate pad locations, testing for the presence of high-grade shoots along the vein and at depth. The Phase I drill program represents the first ever drill testing of the recently discovered vein. In order to assist with planning the next phase of drilling, a 3D IP-Resistivity survey was conducted on tightly spaced (10m) dipoles, providing a high-resolution 3D model of the chargeability and resistivity in the near surface.

Program Highlights

- Eight of the nine holes drilled into the Alpha Vein target intersected varying thicknesses of quartz vein ranging up to 7m (Hole PG-20-003).2

- Drill hole PG-20-005, drilled to the west of the discovery outcrop, encountered two vein intersections, indicating that it bifurcates at depth and may be swelling towards the west (3.1m followed by a second 2.6m intercept further downhole).2

- Outward from all the veins, a strong sericite-pyrite alteration halo extends several meters into both the hanging wall and the footwall of the volcanic wall rock.

- The 3D-IP survey reveals a strong (>30 mV/V) chargeability anomaly that parallels the vein and extends laterally in both directions and to depth where it remains open, potentially representing a deeper feeder zone or extension of the Alpha Vein Zone.

Cross-sections, a plan map and photographs of core boxes containing quartz vein samples sent for rush assay have been posted to the Company’s website and can be viewed at the following link: 2020 Princeton Drill Media - Damara Gold Corp.

Core Recovery

Overall core recovery was quite good in the quartz vein, with the exception of the first shallow hole drilled, PG-20-001, which had a very poor recovery of 25%. Following the completion of hole 1, a strategy was implemented which successfully increased core recoveries on the remaining holes. A table of quartz vein intercepts and the respective core recoveries within those sections are presented in Table 1 below.

Table 1 – Quartz Vein Recoveries

Hole ID	Quartz Vein From (m)	Quartz Vein To (m)	Interval (m)	Core Recovery (%)	Note
PG-20-001	15.0	17.0	2.0	25.0
PG-20-002	21.5	25.5	4.0	75.0
PG-20-003	54.5	61.5	7.0	94.0
PG-20-004	17.4	18.0	0.6	83.0
PG-20-005	29.0	32.5	3.5	97.0
PG-20-005	34.5	37.1	2.6	97.0
PG-20-006	74.1	75.1	1.0	97.0
PG-20-007	17.5	18.6	1.1	85.5
PG-20-008	30.5	36.2	5.7	98.0	*Strongly silicified zone. No discrete vein.
PG-20-009	52.4	58.1	5.7	100.0

Qualified Person

Dr. Gerald G. Carlson, PhD, PEng, technical advisor to the Company, is the Qualified Person as defined by National Instrument 43-101 who has reviewed and approved the technical data in this release.

About Damara

Damara Gold Corp. is a TSX Venture listed mineral exploration company actively focused on the exploration of its Princeton Gold Property, located in Princeton, BC, currently under option from Universal Copper Ltd. Damara’s Board of Directors is seasoned in the mineral exploration industry with extensive and successful international experience. For more information please visit: http://www.damaragoldcorp.com/

ON BEHALF OF THE BOARD OF DIRECTORS OF DAMARA

“Larry Nagy”

Larry Nagy, Chief Executive Officer

For additional information visit Damara’s website at www.damaragoldcorp.com or contact:

Damara Gold Corp.

Larry Nagy

Chief Executive Officer or

Terese Gieselman

Chief Financial Officer

Ph: (250-717-1840)

Disclaimer for Forward-Looking Information

This news release contains statements that constitute "forward-looking Information", as such term is used in applicable Canadian securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF DAMARA AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE DAMARA MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

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 press release.

1 Adjacent Properties – This news release contains information about adjacent properties on which Damara does not have the right to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.

2 True thickness unknown.