Damara Intersects High-Grade Gold at Kodiak Zone with 3.0 meters of 39.2 g/t Gold and 80.4 g/t Silver

2022-03-24 / @thenewswire

(TheNewswire)

KZ-21-05 intersects 3.0 meters of 39.2 g/t Gold and 80.4 g/t Silver in Southern BC, ~15 km from Copper Mountain Mine

Kodiak Zone is open in all directions, with a 1.5 km high-grade soil anomaly still open to the east

Strong potential for additional discoveries under post-mineral volcanics spanning a 2.5-km distance between the Kodiak and Main Zones

Quartz-sulphide veining intersected in all drill holes at Kodiak Zone

Only 1/3 of the 600-meter-wide Kodiak Zone has been tested

The mineralization at Placer Mountain has strong geological similarities to Gold Mountain Mining’s Elk Deposit 80 km to the north

Multiple gold occurrences found in just a single field season at Placer Mountain; additional ground staked to the north along prospective geological structure with expanded drilling planned for 2022

March 24, 2022 – TheNewswire - DAMARA GOLD CORP. (TSXV:DMR) (OTC:SLMZF) (“Damara” or the “Company”) is very pleased to announce it has confirmed a new high-grade gold zone at its Kodiak Zone prospect, located on the Company’s Placer Mountain project in Southern BC (“Placer Mountain” or the “Property”). The Company rushed the processing and assays for hole KZ-21-05 which intersected 3.0 meters of 39.2 g/t Gold and 80.4 g/t Silver within a new orogenic-style vein system discovered through reconnaissance soil sampling and trenching in 2021 (Figures 1, 2). The true width of the vein is unknown at this time, due to the broken and weathered nature of the recovered core, but high angle fractures suggest that the reported interval may be near to true width. The new gold system is characterized by quartz-sulphide veins hosted within a clay-sericite altered intrusive unit, near the contact with Nicola Group volcanic and sedimentary rocks. Quartz-sulphide veining was intersected in all eight holes, revealing several parallel near surface veins for which assays are pending.

Table 1 - Highlight Intercept from Rushed Drill Hole KZ-21-05

Hole ID	From (m)	To (m)	Interval (m)*	Au (g/t)	Ag (g/t)
KZ-21-05	27.00	30.00	3.0	39.2	80.4
incl.	27.00	28.00	1.0	27.4	62
incl.	28.00	29.00	1.0	87.5	169
incl.	29.00	30.00	1.0	2.8	10.1

*The intervals reported in these tables represent drill intercepts and insufficient data are available at this time to state the true thickness of the mineralized intervals. All gold values are uncut.

CEO Comment

Larry Nagy, CEO, commented “Our maiden drill program has now confirmed the presence of a second potentially large orogenic gold system at Placer Mountain. The Kodiak Zone appears even more robust than the Main Zone, delivering the highest-grade gold ever intersected in drilling on the project. The new system was discovered by systematic soil sampling and trenching along strike of the Main Zone, and our maiden drill program has now verified the high-grade nature of the veins trenched on surface. Our drilling has intersected significant quartz-sulphide veining in all holes, revealing a robust mineralized system, of which we have only just scratched the surface. We look forward to releasing assay results for the remaining drill holes, for which we expect assays very soon.

We are very pleased with the progress made on the project since the first ever hole drilled in December of 2020. In just a single year, our drilling has now expanded the Main Zone and unveiled a major new gold occurrence at the Kodiak Zone. We expect 2022 to be an even more momentous year for the Company as we continue building on Southern BC’s newest orogenic gold discovery.”

Deposit Model

The Company has noted strong similarities to the drilling at Gold Mountain Mining Corp’s. Elk Deposit1, which recently began commercial production on an orogenic gold system just 76 km to the north of Placer Mountain. The Elk Gold Deposit, which is defined by approximately 50,000 meters of drilling in 973 drill holes, is centered along the contact of Nicola Group volcanic and sedimentary rocks with a Jurassic aged intrusion. Both the Main Zone and the newly discovered Kodiak Zone are both situated along a similar geological contact at Placer Mountain, which represents an important structural control and guide to the Company’s future exploration.

Figure 1 – Cross-Section of KZ-21-05 at Kodiak Zone

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Figure 2 – Plan View Showing Location of KZ-21-05 at Kodiak Zone

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The Company has staked additional ground along this important geological structure, adding several km of untested strike length to the north of the Kodiak Zone. The Company also plans to carry out a large geochemical program to the south of the Main Zone as well, along the newly realized important structural control, which has never before seen exploration.

2022 Exploration Program

The Company is currently planning it’s 2022 exploration program for Placer Mountain, which will be focused on extending the orogenic gold system at depth and along strike at both the

Main Zone and the Kodiak Zone. The program will also involve further soil sampling along the important Nicola Group-Jurassic Intrusive contact; a newly recognized structural control on emplacement of vein systems. Up to 20 km of untested strike will be sampled to the north of the Kodiak Zone, south of the Main Zone and between the two zones, to explore for additional high-grade orogenic gold veins.

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.

QA/QC Procedures

Drill core samples were prepared and analyzed at MSA Labs laboratory in Langley, B.C. by analytical code AuAg12, which assays gold by fire assay and silver by aqua regia digest. Prior to shipment, blind quality control samples were inserted at a frequency of in every 10 samples, including blank material, 3 different certified reference standards (high, medium and low grade gold and silver), ¼ core duplicates and empty bags for pulp duplicates. Sample preparation at the laboratory was completed by crushing the entire sample to 70% passing -2mm, riffle splitting off 1 kilogram and pulverizing the split to greater than 85% passing 75 microns. Using a 30 gram sub-sample, the gold values are determined by fire assay method, with atomic absorption finish, which reports results in parts per million (ppm) (equivalent to grams per tonne (g/t)). Silver results were determined by aqua regia digestion with ICP-ES finish. Analytical results for the quality control samples were independently verified to pass.

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

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.

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1This news release contains information about adjacent properties on which Damara has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties