Desert Gold's SMSZ Project Defines Several New Areas of Gold Mineralization with Intercepts of 3.03 G/t Gold over 10 Metres and 2.04 G/t Gold over 30 Metres

Delta, British Columbia--(Newsfile Corp. - February 24, 2020) - Desert Gold Ventures Inc. (TSXV: DAU) (FSE: QXR2) (OTC PINK: DAUGF) ("Desert Gold" or "the Company") is pleased to present the results of a recently completed, 3,507 metre 74-hole, air core (AC) and reverse circulation (RC) drill program on its SMSZ Project in Western Mali, near the border with Senegal.

The ~400 km² SMSZ Project is both named after, and, overlies a 38 km section of the Senegal Mali Shear Zone (see Figure 1), which is related to 5 large mines located both to the north and south, along strike, including B2 Gold's Fekola Mine, Barrick's Gounkoto and Loulo Mines and AngloGold Ashanti/Iamgold's (now Allied Gold's) Sadiola and Yatela Mines^[1]. To the Company's knowledge, the SMSZ Project is the largest, contiguous, non-producer land package over this very prospective structural feature. Management considers exploration targets within 5 km of the Senegal Mali Shear Zone to be high priority.

The Company carried out a 74-hole drill program during the period from late December to early January. The program consisted of 72 AC holes totalling 3,307 meters and 2 RC holes totalling 200 metres. These holes were designed to test five previously untested target areas, with three of the five areas returning new drill intercepts and two of the areas returning significant drill intercepts that will be followed up with additional holes. Intercept details are provided in a table at the end of the news release.

A summary of the drill highlights* are as follows (see Figure 2):

• 3.03 g/t gold over 10 metres - Barani Gap
• 3.50 g/t gold over 8 metres - Barani Gap (incl. 10.28 g/t gold over 2 metres)
• 6.35 g/t gold over 2 metres - Barani Gap
• 3.07 g/t gold over 2 metres - Barani Gap
• 1.35 g/t gold over 6 metres - Barani Gap
• 0.57 g/t gold over 7 metres - Barani Gap
• 0.59 g/t gold over 7 metres - Barani Gap
• 2.04 g/t gold over 30 metres - Soa (hole ended in mineralization)
• 2.52 g/t gold over 5 metres - Soa
• 2.34 g/t gold over 5 metres - Soa (hole ended in mineralization)
• 2.03 g/t gold over 5 meters - Soa

* Estimated true widths for the Barani Gap holes is from 75 to 85% of the intercept width, estimated true widths for Soa,drill holes are uncertain.

Jared Scharf, Desert Gold's CEO comments "I am quite pleased with these new results. Our auger and follow-up drill programs are proving to be highly effective at making new, quality gold discoveries where no one else has looked or tested before. This cannot be over emphasized as approximately 30% of the SMSZ property, and especially proximal to the Senegal Mali Shear Zone, lies under relatively shallow laterite and overburden cover. These results again support our exploration concept that property, and in particular Desert Gold's, aligned along this regional scale structure, is one of the world's best places to explore for new, potentially economic gold discoveries."

Figure 1 - Property Scale Compilation Map*

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/4954/52701_b99db2d884bd29d7_001full.jpg

*All gold grades over width, with the exception of the Soa prospect, represent drill holes with the true widths, for most holes, ranging from 70 to 95%. **The Soa Prospect result is from a trench with true widths unknown. Estimated true widths for the Berola Prospect are unknown. True widths at the Gourbassi Zones range are estimated to range from 60% to 90%.

Figure 2 - Phase 1 Drill Program Highlights

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/4954/52701_b99db2d884bd29d7_002full.jpg

Technical Details

The phase 1 drill program is was carried out to test drill targets that were developed in exploration target areas 3, 16, 41, 46 and 56 (see locations in Desert Gold News Release dated Jan 29, 2020). Of these five target areas, three, target areas 16, 41 and 56, returned new, significant intercepts. A summary of the target areas follows, and detailed assay composites are presented in Table 1, at the end of the release. Most holes intersected enough gold mineralization to validate the drill target. However, only gold intercepts using a 0.5 g/t gold cut-off are presented here-in. Gold values > 0.1 g/t, which is a much lower cut-off, are used as an exploration tool, as an indication of gold 'alteration' for tracking mineralized trends and weaker parts of mineralized gold systems.

• Target Area 3 - 600-metre long gold-in-soil anomaly along the eastern side of granodiorite intrusion with evidence of sheared albite granite dykes. A previous hole in the area returned 1.34 g/t gold over 4 metres at the end of a short hole
• Target area 16 - previously untested 2,000 metre by 500 metre area of artisanal open pits to 150 metres long, numerous mine shafts and shallow workings that returned grab samples to 10.5 g/t gold
• Target area 41 - 1,200 by 500 metre, laterite covered, gold-in auger targets in an area where three gold zones are interpreted to intersect.
• Target area 45 - new, 400 metre by 250 metre artisanal shaft mining area that may represent a bulk mining-type exploration target.
• Target area 56 - new, 3,200-metre long IP chargeability anomaly with both coincident and flanking resistivity highs. Surface mapping noted abundant quartz veining and hematite-altered rocks.

Target Area 3

A total of eight AC holes comprising 356 metres, were drilled to test a northerly striking Au-in-soil anomaly that, at its southern end, is associated with a tourmaline- and sphene-bearing albite granite dyke. Previous work along this trend returned 1.34 g/t gold over 4 metres at the end of a hole (see Figure 3). Six holes drilled north of the historic intercepts did not return any significant gold values. However, two holes, drilled 200 metres to the south, returned 2.37 g/t gold over 1 metre and 0.71 g/t gold over 1 metre. While narrow, this trend and intercepts, line up with target area 59, which is an induced polarization chargeability anomaly.

Target Area 16

Target area 16 or Soa area (see Figure 2), lies northeast, along strike of the same structure or structural trend that hosts the Barani East deposit (skarn-like, sulphide replacement, carbonate-hosted gold deposit with intercepts to 7.82 g/t gold over 13 metres). Historic work over the Soa area had returned a trench value of 0.89 g/t gold over 28 metres. Recent mapping located 17 small to medium-sized artisanal open pits to 100 metres long by 15-15 metres wide by 5 to 10 metres deep in an area approximately 2,000 metres by 500 metres in size. These pits are oriented in at least three directions, northerly-, northeast- and west-northwest-trending. Deeper pits appear to be located close to the structural intersections. The area is underlain by metasedimentary rocks.

A total of 18 AC holes comprising 896 metres were drilled as a first pass to test some of the potential targets in this area. Of these holes, 4 returned significant gold values with a best intercept of 2.04 g/t gold over 30 metres, with the hole ending in mineralization. This hole was drilled perpendicular to and under a trench that had returned 0.89 g/t gold over 28 metres, which appears to have been excavated semi-parallel to the structures noted in the artisanal pit. However, with multiple structural directions observed in the artisanal pit, estimated true widths of the intercepts in this area, are not clear. Another hole, drilled en-echelon to the west and 21 metres to the north, intersected 2.34 g/t gold over 5 metres, at the end of the hole.

The other two holes anomalous holes, which returned 2.03 g/t gold and 2.52 g/t gold, both over 5 metres, tested proximal to another artisanal open pit, area located 275 metres to the west. It is not clear if these two mineralized areas are connected.

Additional geological mapping and/or geophysical surveys are required to determine the trend of the mineralization that was intersected by the drilling and how best to follow up on these promising early results.

Target Area 41

Target area 41 (see Figure 3), is a series of five, interpreted, gold-in auger anomalous trends, with values to 1,840 ppb gold, that lie over the intersection zone between the northeast-trending Barani East Zone and the north-northwest trending Barani and Keniegoulou gold Zones. One of the gold-in-auger anomalies is approximately 150 metres wide. This area was never adequately tested as it lies under laterite cover. There is good correlation with drilled mineralization and auger anomalies in this area with an intercept of 1.97 g/t gold over 7 metres (~90% true width) associated with an auger-in-soil anomaly of 1,020 ppb gold. A total of 50 AC holes, totalling 2,211 metres, were drilled to test the gold-in-auger anomalies.

This new drilling has resulted in the delineation of one new mineralized trend and extensions to 3 others (see Figure 3). Trend #1, the most westerly, returned one intercept from three drill fences. This trend appears to be the southward continuation of the Barani zone structures. The next inferred trend to the east, #2, returned drill intercepts along 850 metres, from north to south of 0.65 g/t gold over 6 metres and 0.63 g/t gold over 6 meters, then 835 metres further south, 6.35 g/t gold over 2 metres and another 210 metres south, 3.50 g/t gold over 8 metres. The next mineralized trend, #3, which appears to be the southern strike extent of the Barani East zone, returned two intercepts of 1.35 g/t gold over 6 metres and, 400 metres to the south, 3.03 g/t gold over 10 metres. The next mineralized trend to the east, #4, aligns with the Keniegoulou Zone, extending this zone 700 metres to the north. Intercepts along this trend, include 0.72 g/t gold over 10 metres and 1.35 g/t gold over 6 metres and 200 metres to the north, 0.83 g/t gold over 3 metres. Trend #5, with one set of holes drilled returned 2.82 g/t gold over 1 metre.

The next steps will be to trace these intercepts along strike. From work over the Barani Zone, the mineralization appears to have a horizontal plunge and a moderate to steep east dip. What this means, is that the zone is best traced along strike, drilling at or near the same vertical level from east to west. However, plunge at the Barani East Zone is shallow to moderate to the south, with a moderate-east-dip and thus would require a different positioning of the drill to trace this style mineralization. Mineralized trends #2 and #3, appear to be related more to the addition of sulphides compared to quartz veins controlling the gold mineralization, which is more typical of the Barani East Zone.

Target Area 46

Four AC holes, totalling 200 metres, where drilled to test this 400-metre by 250-metre artisanal mining area. Since there was no clearly defined trends in the artisanal mining areas, it was hoped that this area represented a bulk mining type of target. Unfortunately, no significant results were returned from the area and as such, it is not clear what the local miners are mining. A post drill review of the area will be carried out to determine next steps.

Target Area 56

Two RC holes totalling 200 metres were drilled to test the near-surface expression of a 3,200-metre long IP chargeability anomaly. This area was chosen as the first place to start to evaluate this target as it was in the pressure-shadow of a large granodiorite intrusion and halfway between the Barani and Barani East Zones. Soil sampling in this dominantly, laterite-covered area, returned modest gold-in-soil anomalies with mapping noting areas of quartz veining and hematite alteration. The best results were returned from the westernmost of the two holes, which returned 1.03 g/t gold over 2 metres. Additional work will need to be completed along this trend, as the strongest part of the geophysical anomaly is deeper than tested. As well, it appears that the Target Area 41's, #2 trend, is semi-parallel to this geophysical anomaly. Recent drilling returned good results along Target Area 41, trend #2.

Figure 3 - Target areas 3, 41 and 56 Drill Results Summary and Compilation

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/4954/52701_b99db2d884bd29d7_003full.jpg

Next Steps

At Barani East and Gourbassi East and West, additional drilling using AC, RC and Core is planned both to depth and along strike of known zones with a goal to delineate mineral resources. The Barani East Zone, which is controlled by a northeast-trending structure, appears to plunge moderately to shallowly to the southwest; new drilling will target down plunge and along strike of the known lenses, with a goal to extend known lenses and to discover additional lenses. Recent work at the Barani, Keniegoulou and Manakoto Zones (see Figure 1 for locations), suggests that mineralization has a flat plunge, which would support the planned testing of high-grade intercepts, along strike, at or about the same vertical level.

Desert Gold has identified 59 target areas where a variety of work programs ranging from first pass soil geochemistry, auger and IP geophysical surveys and first pass AC drilling to test soil targets and zone follow-up drilling, are planned. In the last program, five target areas were tested. As a result of this work, three of the five target areas will require drilling to follow-up on strong results. Including the three target areas that require follow-up, a total of 57 targets areas will be evaluated as part of Desert Gold's ongoing exploration program.

Wide-spaced auger lines will initially test for gold enriched target areas that are covered by laterite. If anomalous gold values are delineated, then more systematic auger drilling will be carried out to better define the gold anomalies prior to first pass testing by AC drilling. Target areas that have been validated by existing soil surveys and/or geological mapping, will be tested by AC drilling if the rocks are weathered (saprolitic) and RC drilling if the rocks are fresh.

Geological mapping has been on-going since late November 2019 and is expected to continue through to July 2020.

QAQC

All AC, and RC samples were geologically logged following Desert Gold's established standard operating procedures.

For AC and RC drilling, all individual samples represent approximately one-meter in length of rock chips homogenized and riffle-split to an approximately 2kg sub-samples which were sent by truck from the project site, for preparation and gold assaying at the SGS laboratories in Bamako, Mali.

Each sample (AC, and RC) is fire-assayed for gold by SGS laboratories in Bamako using Au-FAA505 method, which is a 50g fire assay fusion with AAS instrument finish. In addition to SGS's own QA/QC (Quality Assurance/Quality Control) program, Desert Gold's internal quality control and quality assurance procedures included the use of certified standards (1 :20), sample duplicates (1 :20) and blanks (1 :20). Sample batches that fail QAQC review, especially those with significant gold intercepts, are re-assayed with the insertion of new standards.

This press release contains certain scientific and technical information. The Company is solely responsible for the contents and accuracy of any scientific and technical information related to it. Don Dudek, P.Geo a director of Desert Gold and a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this press release.

Segala West Project

The non-core Segala West exploration concession 7-year term has expired. Desert Gold's application for a new license was not granted.

Director Resignation

Greg Isenor, a Director of Desert Gold, has chosen to resign so that he can focus on Roscan Gold Corporation, another TSX-V junior explorer that is also active in Western Mali. Desert Gold wishes Mr. Isenor the best of luck with Roscan's exploration efforts and thanks him for this support and contributions to Desert Gold.

About Desert Gold

Desert Gold Ventures Inc. is a gold exploration and development company that holds 2 gold exploration projects in Western Mali (SMSZ and Djimbala) and its Rutare gold project in central Rwanda. The Company's current focus is its 391 km² SMSZ Project that spans approximately 38 km of the prolific Senegal Mali Shear Zone.

On Behalf of the Board of Directors

"Sonny Janda"
____________________

Sonny Janda, Chairman

Contact:
Jared Scharf, President & CEO
Email: jared.scharf@desertgold.ca
Tel. No.: +1 (858) 247-8195

For further information please visit our website www.desertgold.ca or information available on www.SEDAR.com under the company's profile.

Certain statements contained in this release may constitute "forward-looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

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 release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the united states. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.

Table 1 - Detailed Drill Hole Assay Summary

^[1] Mineralization hosted on adjacent and/or nearby properties is not necessarily representative of mineralization hosted on the Company's SMSZ Property.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52701