Sego Extends 150m x 200m Southern Gold Zone and Confirms Gold in Surrounding Outcrops at the Miner Mountain Project, British Columbia

Vancouver, British Columbia--(Newsfile Corp. - December 9, 2020) -  Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is pleased to announce the completion of outcrop chip sampling and mapping in the Southwest area of the Miner Mountain Porphyry Copper-Gold project near Princeton, BC. The Southern Gold Zone was discovered as a large area of what appears to be an intrusive hosted gold zone delineated during the Company's summer program (See NR July 7, 2020).

Sampling Highlights

 
Rock channel samples on leached or oxidized of normally hard outcrop within and near the Southern Gold Zone were taken during the late season program. Channel samples were taken along southeast (RL10) or northwest (RL11) trends and returned 0.20 to 0.36 g/t Au over 13 to 47 m (table above) and located in the map below. Samples were taken over 1 m continuous channels using a hand sledge hammer and chisel with chips bagged for analysis.

Other samples taken from outcrop in the surrounding area of the Southern Gold Zone are largely negative results but indicate ~120 m to the southwest extension of the zone is still open with no available samples whereas the potential of a northeast extension of the trend is masked by deep cover. Both would require drilling to the test these extensions following positive drill program in the Southern Gold Zone.

Sampling Highlights Of Previous Trenching in the Southern Gold Zone

• 62 meters (m) grading 0.65 grams per tonne (g/t) gold from 60.5 m in trench MM20TR105. Including:

• 30 m grading 1.02 g/t gold from 84.5 m, and
• 2 m grading 8.76 g/t gold from 112.5 m

• 40 m grading 0.31 g/t gold from 31.6 m in trench MM20TR109. The interval includes 8.7 m of unsampled overburden that was assigned a grade of 0 g/t for compositing. The interval is open to the south. If maps do not show on your copy of the news release they can be found on the news release at www.segoresources.com

Figure 1: Geology, Southern Gold Zone

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CEO J. Paul Stevenson comments, "The Southern Gold Zone expansion is an exciting development at Miner Mountain where mechanical trenching has defined at least 150 x 200 m zone of mineralization that extends to the Northwest and is confirmed in chip sampling of surrounding outcrops. A diamond drill program is being planned to explore this new promising zone on the Miner Mountain Project."

Southern Gold Zone Details

Southern Gold Zone is a significant geochemical anomaly identified in soil sampling and historical trench results that indicated potential for a broader zone of gold and copper mineralization. The zone is almost entirely covered by a thin veneer of till.

Gold mineralization is associated with a broad band of pervasive chlorite-calcite-sericite assemblage, lesser potassium feldspar, epidote and albite alteration with finely disseminated pyrite, and traces of chalcopyrite with rare oxidized intervals. The mineralization is mainly hosted in fine-grained diorite and andesitic volcaniclastic rocks in fault contact with sediments to the south. The fault truncates mineralization to the southeast. There are indications that the intrusive continues beneath the sediments.

Figure 2: Geophysics, Southern Gold Zone

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Quality Assurance / Quality Control

Rock samples were shipped to MSALABS in Langley, BC for sample preparation and analysis. MSALABS is ISO/IEC 17025 and ISO 9001 certified. Samples were analyzed using an aqua regia digestion with an ICP finish.

Control samples comprising certified reference samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.

The Miner Mountain Project combines alkalic porphyry copper-gold mineralization in the Cuba and other zones and the unusual gold mineralization in the Southern Gold Zone. The Cuba Zone mineralization and alteration suggests a shallow expression of an alkalic porphyry copper-gold deposit and requires additional deep drilling. The Southern Gold Zone contains elevated Au but low Cu values. The nearest porphyry copper-gold mineralization that may be related to the gold zone is unknown but could occur to the north or below the Southern Gold Zone.

Qualified Person

This news release was reviewed and approved by Selina Tribe, Ph.D., P.Geo., a Qualified Person under NI 43-101.

About the Project

Sego is 100% owner of the Miner Mountain project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056 hectares in size and is located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation and Mitsubishi Copper. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band on whose Traditional Territory the Miner Mountain project is situated. Sego has received an Award of Excellence for its reclamation work at Miner Mountain.

For further information please contact:

J. Paul Stevenson, CEO (604) 682-2933

For investor & shareholder information, please contact:

MarketSmart Communications Inc.
Ph: +1 +1 877 261-4466
Email: info@marketsmart.ca

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. No regulatory authority has approved or disapproved the information contained in this news release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.

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