Sego Resources Intersects 0.95 g/t Gold over 80 m from the First Drill Hole (DDH 59) of their 2022 Drill Program in the Southern Gold Zone

Vancouver, British Columbia--(Newsfile Corp. - June 13, 2022) - Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is delighted to announce assays of 0.95 g/t Au over 80 m from the first 150 m of DDH 59 (diamond drill hole) that intersected a deep extension of the Southern Gold Zone on the Miner Mountain Project. The property is located 15 km north of the porphyry Cu-Au mineralization at the Copper Mountain deposit and immediately northeast of Princeton, BC. The Southern Gold Zone is an intrusion hosted disseminated gold zone discovered during the Company's 2020 field program (News Release July 7, 2020) that was subsequently drilled during April 2021 (News Release May 27, 2021) and November 2021 (News Release January 31, 2022).

The current seven drill-hole program (1582 m) was completed between April 20 and June 1, 2022 and analytical results from only the 150 m of DDH 59 are currently available. Analytical data from the deeper portion of DDH 59 and six drill holes (DDH's 60-65) are pending.

DDH-59 was collared 50 m north of DDH 50 (Figure 1) inclined at 50° at an azimuth of 160° and drilled to 457 m. The Southern Gold Zone was intersected between 63.12 m and 143.12 m (Table 1) as anticipated (News Release April 13, 2022), and included an interval of >24 g/t Au related with chalcopyrite that averaged 0.92% Cu. This deeper intersection at 0.95 g/t Au over 80 m is comparable to the results from DDH 50 (0.86 g/t Au over 94 m) and the shallower DDH 52 (0.79 g/t Au over 75 m) as illustrated in Figure 2. A >0.1 g/t Au cutoff was utilized for weight length averaging and no cutting of higher grades. The southern mineralized boundary appears to steepen at depth whereas the northern boundary is likely sub-vertical .

Table 1. Gold results from DDH 59 (2022) and DDH's 50 and 52 (2021).

 

The deeper portion of DDH 59 is also anticipated to intersect features causing the overlapping strongly induced polarized chargeability and magnetic anomalies between 250 m and 500 m. Fine-grained disseminated pyrite occurs between 215 m and 265 m and trace amounts extend to the end of the hole. Starting at 220 m, several percent disseminated magnetite hosted in a complex biotite diorite intrusion breccia extends to the end of the hole. The disseminated pyrite and magnetite undoubtedly generated the geophysical anomalies. Only trace sporadic disseminated chalcopyrite is noted in the drill hole. Analytical results from this deeper portion of DDH 59 are pending, as mentioned above.

Five holes (DDH 60-64) have tested the western extension of the Southern Gold Zone over 150 m (Figure 1). The seventh final deep hole, DDH 65, collared 100 m east and subparallel to DDH 59 and ~50 m north of DDH 49 was drilled to test the potential of deep extension of the Southern Gold Zone and geophysical anomalies. The results of these drill holes will be released as analytical data becomes available.

CEO J. Paul Stevenson comments, "DDH 59 drill results indicate the Southern Gold Zone is deeper than previously known and is open at depth. Future drilling north of the Zone will explore for a deeper extension of the Southern Gold Zone and the potential for distal blind porphyry copper-gold mineralization located north of the South Gold Zone."

*Figures 1 and 2 are available in the News Release June 13, 2022 at www.segoresources.com

Figure 1. The Southern Gold Zone results from the 2021 drill holes (DDH 46-58) and upper portion of the DDH 59 and the collars and traces of unanalyzed 2022 DDH 60 to 65 located on a simplified geology base map.

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Figure 2. The Southern Gold Zone in cross section of DDH 59-50-52 viewing 0.70° or roughly east.

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Quality Assurance / Quality Control

Drill core was 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 and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance/quality control protocol.

This news release was reviewed and approved by Ron Britten, Ph.D., P.Eng., a Qualified Person under NI 43-101.

Join CEO J. Paul Stevenson on Thursday June 16th at 11amPT/2pmET for a live event where he'll provide additional context for this news release and answer questions from the audience: https://my.6ix.com/N8QBTAF2

About the Project:

Sego is 100% owner of the Miner Mountain project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. 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 which may be distal to an alkalic copper-gold porphyry. 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
ceo@segoresources.com

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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