Zacapa Resources Announces Completion of Geochemical and Geophysical Surveys at South Bullfrog

March 23, 2022Zacapa Resources Ltd. (TSXV: ZACA, DE: BH0) announces significant exploration program advancement at its 100% owned South Bullfrog gold project in the Beatty District, in the heart of the Walker Lane Trend, Nevada.

HIGHLIGHTS

  •        Phase one, 1266 sample, surface geochemical sampling campaign complete with approximately 70% of results received and interpretation in progress
  • 21.9 line-km induced polarization geophysical survey complete and interpretation underway
  •            Several targets identified from overlapping geophysical and geochemical anomalies
  •           Magnetic geophysical contractor engaged to survey newly staked eastern claim block

Zacapa is pleased to announce that it has completed phase one of its initial exploration program at the South Bullfrog gold project in the Beatty District, Nevada involving surface geochemical sampling, remote sensing and geophysical surveys. In the Beatty District, large scale fault structures are known to control gold mineralization. Zacapa’s exploration efforts have focused on identifying structures utilizing LiDAR and geophysics, including airborne magnetics and ground-based pole-dipole induced polarization (IP) surveys. To classify the prospectivity of the structures ASTER (Advanced Spaceborne Thermal Emission and Reflection Radiometer), remote sensing data is being utilized to document zones of alteration, and surface geochemistry is being utilized to identify fertile structures by looking at gold and other pathfinder elements indicative of mineralization in surface sediments.

“Initial results suggest that our combined geochemical and geophysical exploration approach has been successful in delineating structures of interest beneath cover at South Bullfrog,” comments CEO & Director Adam Melnik. “We are excited to refine these targets in the coming weeks in preparation for drill testing. Work is also underway to explore the recently staked eastern claim block starting with an airborne magnetic geophysical survey scheduled this month.”

Beatty District Activity

On February 22, 2022, along with its year end 2021 results, AngloGold Ashanti announced a maiden inferred resource for its Silicon deposit of 3.4 million ounces of gold (120.4 Mt at 0.87 g/t Au)7. Silicon is approximately 12 kilometres from the North Bullfrog central processing facility being constructed by AngloGold Ashanti, which is expected to achieve initial production in 3 years, ramping up to produce >300,000 oz of gold per annum at Tier 1 operating costs.

On March 10, 2022, Augusta Gold announced an updated mineral resource estimate for its Bullfrog gold project, increasing the global resource ~50% to 1.5 million ounces of gold (87.7 Mt at 0.52 g/t Au and 1.2 g/t Ag), composed of over 91% oxide material that is amenable to heap leaching.4

Geophysics Program

Zacapa completed an airborne magnetic survey in April 2021 and supplemented this with a pole-dipole induced polarization (IP) geophysical survey. The initial four-line, 18 line-kilometre, pole-dipole IP geophysical survey (see February 15, 2022 press release) was expanded to 21.9 line-km by adding an infill line following up on features of interest in northwestern portions of the original survey (Figure 1). The full 21.9 line-km survey has now been completed and interpretation has begun.

Remote Sensing Program

Satellite based ASTER data and airborne LiDAR data were acquired in 2021. Spectral analysis of the ASTER data and lineament analysis of the LiDAR data have been completed and are being utilized in ongoing exploration efforts. LiDAR has also been helpful in identifying additional historical workings on the property. 

Geochemical Program

Zacapa has now completed the combined stream sediment and soil sampling program described in the press release dated February 15, 2022. A total of 230 samples were collected in the modified stream sediment sampling program and 955 samples in the soil sampling program designed to parallel IP geophysical survey lines (Figure 1). The results from this sampling will help Zacapa recognize if any of the shallowly buried outcrops identified during fieldwork contain indications of mineralization and highlight areas of elevated gold and other pathfinder elements to map out prospective structures that could host epithermal gold mineralization.

Figure 1 – Location map of the South Bullfrog project displaying Zacapa’s newly completed geochemical and geophysical surveys

About the South Bullfrog Gold Project

The South Bullfrog gold project is centrally located in the Beatty District in the heart of the Walker Lane Trend. The Beatty District has seen rapid increases in gold resources, currently over 8.6 million ounces of gold. Zacapa’s project area is five kilometres south of AngloGold Ashanti’s North Bullfrog development project which is anticipated to be operational in the next 3 years, and the central hub in a hub-and-spoke development scenario outlined by AngloGold Ashanti following its US$370M1 acquisition of Corvus Gold. AngloGold has stated that the combined assets will help the Beatty District become a large, long life, low-cost operation with the potential to develop Tier-1 “company making” mines (Figure 2)2. South Bullfrog is comprised of 488 unpatented mining claims covering approximately 9,900 acres with a clear path to value creation by executing rigorous exploration in the middle of an increasingly active district where major gold mining companies are actively acquiring property and developing new mines. South Bullfrog is slated for drilling in 2022.

Figure 2 – Location map of the South Bullfrog project displaying Zacapa’s land position relative to regional gold mines and development projects in the rapidly developing Beatty District3,4,5,6,7

About Zacapa Resources

Zacapa is a copper and gold focused mineral exploration company engaged in responsible exploration for the new energy economy. Its projects are concentrated in world class jurisdictions in the southwest U.S., including Arizona, Nevada, and Idaho. The portfolio includes porphyry copper projects at Red Top, Pearl, and Dewdrop Moon, and epithermal gold projects at South Bullfrog and Miller Mountain. These assets are being advanced by a highly disciplined and seasoned professional team with successful track records of discovery, resource development and mine permitting.

References

1 AngloGold Ashanti Signs Definitive Agreement to Acquire Corvus and Consolidate the Beatty District of Nevada, September 13, 2021

2 Corvus Gold and AngloGold Ashanti Announce Completion of Acquisition of Corvus by AngloGold Ashanti, January 18, 2022

3 References to other mines and deposits made in this news release provide context for the South Bullfrog Project, which occurs in a similar geologic setting, but this is not necessarily indicative that South Bullfrog hosts similar grades and tonnages of mineralization.

4 Augusta Gold Announces Significant Resource Update at Bullfrog of 1.2 M Oz Measured and Indicated and 0.26 M Oz Inferred Resource, March 10, 2022

5 North Bullfrog Project’s, Preliminary Economic Assessment – Corvus Gold’s Detailed Phase-1, Standalone, Near-Term Mine Development Plan in the Bullfrog Mining District, Nevada, October 7, 2020

6 Corvus Gold Announces Mother Lode Preliminary Economic Assessment Results for a Standalone Future Mining Expansion Project, in the Bullfrog Mining District, Nevada, October 7 2020

7 AngloGold Year End 2021 Results Report, February 22, 2022

Qualified Person

All scientific and technical information contained in this press release was prepared under the supervision of Daniel MacNeil, MSc., P. Geo., and a “Qualified Person” as defined by National Instrument 43-101.

For more information, please visit www.zacaparesources.com. All documents are available on Zacapa’s profile page on SEDAR at www.sedar.com.

On behalf of the Board of Directors,

Adam Melnik

Adam Melnik

Chief Executive Officer & Director

Zacapa Resources

+1 604 227 5987

melnik@zacaparesources.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.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although Zacapa believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Zacapa cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond Zacapa’s control. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Readers are advised to rely on their own evaluation of such uncertainties. Except as required under applicable securities legislation, Zacapa undertakes no obligation to publicly update or revise forward-looking information.