Damara Reports Drill Assays from New Gold Discovery at Placer Mountain

2021-04-05 / @thenewswire

(TheNewswire)

April 5 2021 – TheNewswire - DAMARA GOLD CORP. (TSX-V:DMR) (“Damara” or the “Company”) is pleased to announce a new drilling discovery made during the Company’s maiden exploration program on its Placer Mountain Gold Property (formerly referred to as the Princeton Property) located near Princeton, British Columbia (“Placer Mountain” or the “Property”). The Property is under option from Universal Copper Ltd., via an assignment agreement with Canagold Resources Ltd. The winter program was carried out to satisfy an exploration commitment due December 31, 2020. The program consisted of a high-resolution DIAS32 3DIP and resistivity survey plus 533m of diamond drilling that tested the Alpha Vein showing and is the first ever drill program completed on the Property. Diamond drill hole PG-20-001 intersected 1.00m of 48.60g/t Au and 30.8g/t Ag from 15m downhole, and PG-20-005 intersected 4.0m of 7.07g/t Au and 101g/t Ag from 29m downhole.

The winter program, which commenced immediately following the closing of the Property acquisition agreement, focused on testing the Alpha Vein showing, a gold-silver mineralized quartz vein structure discovered during recent logging road construction on the Property. Eight of the nine holes drilled intersected the mineralized structure and IP chargeability and resistivity results suggest the vein system extends off the surveyed area to the northeast (Figure 6, 7). As a result, Damara has outlined plans for a systematic 2021 exploration program consisting of an airborne VTEM electromagnetic survey, soil geochemical sampling, detailed geological mapping, prospecting, trenching and channel sampling, with the aim of carrying out a second phase of drilling by mid to late Summer (Figure 8, 9).

The 14,650-hectare Placer Mountain Property is centered on Placer Creek, which flows north from Placer Mountain into the Similkameen River just west of the Property (Figure 10). Highway 3 and a network of well-maintained forest service roads provide access to all parts of the Property from the nearby town of Princeton, British Columbia. Copper Mountain Mining Corporation’s producing Copper Mountain Mine is situated 11 kilometers north of the Property.1

Property Highlights

-The maiden drill program on the Property returned multiple near-surface gold-silver rich intersections including 1.00m of 48.60g/t Au and 30.8g/t Ag in drillhole PG-20-001 starting at 15m downhole, and 4.0m of 7.07g/t Au and 101g/t Ag in drillhole PG-20-005 starting at 29m downhole.

-Metallic sieve analyses indicate a significant coarse gold component to the mineralized intervals, indicating larger sample sizes collected in the next phase of work may help reduce potential nugget effects in the vein type mineralization.

-The DIAS32 3DIP survey shows a distinct chargeability and resistivity response associated with the mineralization which extends off the survey area to the northeast along strike and under post-mineral cover (Figure 6, 7). As a result, a larger airborne VTEM electromagnetic survey is being planned to expand on the ground-based survey results and target extensions of mineralization underneath the post-mineral cover rocks.

-Significant gold and silver anomalies from historic rock and soil geochemical surveys surround the post-mineral cover rocks on the Property and have never been followed up on (Figure 8, 9). A large grid-based soil survey is planned in conjunction with the airborne VTEM survey, to expand on the historic soil grid and to provide additional coverage over areas of strongly anomalous gold and silver identified by previous operators along logging roads.

-Further drilling is planned along strike of the Alpha Vein showing, with a specific focus on the strongly anomalous and untested chargeability and conductivity anomalies, as well as other untested targets on the Property.

Cross-sections (Figure 2-5), plan maps (Figure 1) and additional figures (6-10) have been posted to the Company’s website and can be viewed at the following link: 2020 Princeton Drill Results - Damara Gold Corp.

Table 1 – Phase I Drilling Results

Hole ID	Dip, Az (°)	From (m)	To (m)	Interval (m)2	Au (g/t)	Ag (g/t)	AuEq (g/t)3
PG-20-001	-45, 340	15.0	16.0	1.0	48.60	30.8	49.1
PG-20-002	-60, 335	No significant results
PG-20-003	-75, 340	57.0	61.5	4.5	2.60	25.9	3.0
PG-20-004	-45, 330	15.5	17.8	2.3	1.72	13.2	1.9
PG-20-005	-65, 335	29.0	33.0	4.0	7.07	101.0	8.6
PG-20-006	-70, 340	73.6	75.5	1.9	3.92	16.1	4.2
PG-20-007	-45, 340	17.0	18.0	1.0	2.12	14.6	2.3
PG-20-008	-65,340	No significant results
PG-20-009	-60, 300	52.7	58.4	5.7	1.32	26.7	1.7

QA/QC

All drill core was logged, photographed, cut and sampled by Ridgeline Exploration Services personnel. Prior to shipment to MS Analytical’ s laboratory in Langley, BC, certified reference material standards, blanks, and duplicates (1/4 core, prep and pulp) were inserted at a ratio of approximately one in every 6 drill core samples. Samples were prepared by crushing the entire sample to 70% passing -2mm, riffle splitting off 1 kilogram and pulverizing the split to better than 85% passing 75 microns. Using a 30 gram sub-sample, the gold and silver values are determined by the fire assay method, with atomic absorption finish (code FAS-111), which reports in parts per million (ppm) (equivalent to grams per tonne (g/t)). Any samples with a fire assay that report gold concentrations equal to or higher than 15.0 g/t Au are analyzed by metallic screen method (Au-SCR24). All analytical results are verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures.

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 Placer Mountain 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.

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

3Gold equivalent (AuEq) grades are calculated using metal prices of: gold US$1730/oz., silver US$26.50/oz. Gold equivalent grade is calculated as AuEq (g/t) = Au (g/t) + Ag (g/t)/65. The factor for silver (65) will change depending on the metal price. Metal recoveries have not been applied in the gold equivalent calculation.