Damara Gold Expands Soil Anomaly with up to 18.1 g/t Au and 52.1 g/t Ag in soil and Sees Potential Bulk Tonnage Style Mineralization at Kodiak Zone

2021-12-02 / @thenewswire

(TheNewswire)

December 2, 2021 – TheNewswire - DAMARA GOLD CORP. (TSXV:DMR) (OTC:SLMZF) (“Damara” or the “Company”) is pleased to announce the Phase II soil sampling at the Kodiak Zone has expanded the size of the anomaly to 400 meters in width and 1.2 kilometers in length, with individual soil samples grading up to 18,067 ppb (18.067 g/t) gold and 52.1 g/t silver on its Placer Mountain Project south of Princeton, BC (“Placer Mountain” or the “Property”). Preliminary trenches excavated within part of the zone have intersected a swarm of parallel quartz-sulfide veining within mineralized and altered granite, suggesting the potential for a bulk-tonnage style system at the Kodiak Zone. Trench TR-03 returned 0.70 g/t gold across 44.5 meters at its southeastern half, and higher-grade sub-intervals included a 20 cm quartz-sulfide vein grading 29.30 g/t gold and 78.40 g/t silver. The maiden trenches have tested 130 meters of the 400 meters width and 180 meters of the 1.2-kilometer length of the soil anomaly.

Kodiak Zone Soil Anomaly Greatly Expanded

The Phase II soil sampling consisted of 660 samples collected in October of this year, with values ranging from below detection up to 18,067 ppb gold and 52.1 ppm silver. The east-northeast trending anomaly is 400 meters in width across the slope, which has only been partially tested by trenching. The length of the anomaly spans 1.2 kilometers with the western end continuing up the opposing side of the valley. On its eastern end, the anomaly trends underneath post-mineral volcanic cover rocks. The logging road across the center of the anomaly will be used to collar drill holes planned for the current program.

Orange iron oxide staining in logging road cuts within the Kodiak correlates well with anomalous gold-in-soil values. The Company is investigating the use of high-resolution satellite imagery to identify further areas of elevated iron oxides within logging road cuts across the Property, to aid in the planning of a 2022 soil sampling grid.

Trenching Results Indicate Potential for Both High-Grade and Bulk Tonnage Style Mineralization within the Kodiak Zone

The maiden trenching program at the Kodiak Zone, consisting of 110 continuous chip samples along a combined total of 322 meters in 4 separate trenches, was carried out across a flat and easily accessible logging road located at the north end of the soil anomaly. The southeastern half of Trench TR-03 ended in mineralization and returned 44.5 meters of 0.70 g/t gold and 1.53 g/t silver associated with a series of quartz-sulfide veins crosscutting iron oxidized and altered granite, suggesting the potential for bulk tonnage style mineralization. The zones of mineralization, alteration and veining within the granite are spatially associated

Click Image To View Full Size

with small felsic intrusive dykes ranging in width from 3-30 cm. Higher grade subintervals within TR-03 include a 20 cm quartz sulfide vein grading 29.3 g/t gold and 78.4 g/t silver.

Trench TR-01 to the southwest intersected 8 meters of 2.56 g/t gold and 8.34 g/t silver including 0.5 meters of 31.2 g/t gold and 99.4 g/t silver.

Trench TR-02, the furthest southwest, intersected 4 meters of 3.0 g/t gold and 9.7 g/t silver.

Table 1 – Select Results from Preliminary Trenching Program at the Kodiak Zone

Trench	From (m)	To (m)	Length (m)	Au (g/t)	Ag (g/t)
TR-01	20	28	8	2.56	8.34
including	27.5	28	0.5	31.20	99.40
and	65.5	68.5	3	3.56	6.70
and	126	126.5	0.5	2.32	7.40
TR-02	12	28	16	0.42	1.53
including	12	13	1	3.80	12.20
and	58	62	4	3.00	9.70
TR-03	9	12	3	1.03	1.70
and	40.5	85	44.5	0.70	1.53
including	40.5	49	8.5	2.36	4.17
including	47.5	49	1.5	9.40	18.70
including	78.8	79	0.2	29.30	78.40
The intervals reported in these tables represent trench intercepts and insufficient data are available at this time to state the true thickness of the mineralized intervals.

Click Image To View Full Size

Drill Program Update

Drilling on Placer Mountain is progressing at a rapid pace, despite setbacks due to the recent extreme weather conditions in Southern British Columbia. Some 1,169 meters of drilling have been completed in 10 holes, covering approximately 400 meters of strike along the Main Zone, a substantial increase to the strike length tested in 2020. The 2021 program has also led to a greater understanding of the geology and controls to mineralization at the Main Zone. Longer drill holes resulted in the intersection of additional veins within the zone as well. The drill rig has now moved to the Kodiak Zone, having successfully completed all the planned holes at the Main Zone.

There remains a backlog on cutting and sampling of the core due to the rapid pace of the drilling as well as disruptions from flooding in the local town of Princeton, however the Company remains on track to have all the core cut, sampled and in the lab by the holiday break.

Larry Nagy, CEO, commented “We are very pleased with the progress we’ve made so far with the program and the quality of the Full Force Drilling crew. Production has been good, and a significant amount of strike has been covered along the veining system at the Main Zone. We are excited to have the drill now mobilized at the Kodiak Zone, which has shaped up as a prime target area. The trenching and the phase II soil results are very encouraging and demonstrate a more robust gold anomaly than that at the Main Zone. We are very optimistic for the holes we have planned to test the zone’s 400-meter width.”

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 report.

About Damara

Damara Gold Corp. is a TSX Venture listed Canadian public company with a Board of Directors seasoned in the mineral exploration industry with extensive and successful international experience with a focus on identifying and acquiring prospective and under-explored gold properties worldwide.

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.