June 6, 2022 – Zacapa Resources (TSXV: ZACA, OTCQB: ZACAF, DE: BH0) is pleased to provide an update of exploration activities completed and ongoing at its 100% owned South Bullfrog gold project in the Beatty District of Nevada.
- Results from surface geochemistry program identified several new areas of interest and support mapping observations of alteration in four key target areas
- A drone magnetic geophysical survey completed on eastern claim block has identified an additional target area with strongly altered fault zone
- Hyperspectral remote sensing data has identified previously unrecognized zones of alteration
- Follow-up mapping and surface sampling of highest priority targets is underway
- Drill hole planning and permitting is underway with anticipated commencement of drilling next month
Zacapa’s ongoing mapping and sampling continues to refine and prioritize exploration targets on the South Bullfrog property (Figure 1). Most ore deposits in the Beatty District are structurally controlled and have a limited geochemical expression at surface, composed principally of As, Sb, and/or Hg with varying degrees of clay alteration and silicification11,12. Zacapa’s exploration utilizes magnetic and induced polarization geophysical surveys in coordination with geologic mapping and surface geochemical surveys to identify prospective structures for drill testing. Numerous high-quality target areas have been established at Shingleback, Bottom’s Up, Sledge, Sourdough, and now the SE Block.
At Zacapa’s Shingleback target, IP chargeability and resistivity highs (chargeability >10 msec where background values are 4-8 msec, resistivity >100 ohm-m where background values are 35-75 ohm-m) occur in an area where historically mined veins trend under cover and into the path of the IP line (Figure 2). Mapping has demonstrated zones of clay alteration and silicification along these structures with coincident soil and stream sediment geochemical anomalies displaying elevated Au, Bi, Hg, Sb, and Pb in the area. The highest values of gold in stream sediment sampling also occur at Shingleback. The IP resistivity anomaly is interpreted as a likely zone of silicification at depth with an outboard chargeability anomaly interpreted as a possible zone of disseminated pyrite, which is associated with some deposits in the district11. Based on the geometry of the IP geophysical results it appears that the veins and alteration observed at surface may expand at depth, possibly within a favorable stratigraphic horizon. The upcoming drill program will commence with testing Shingleback.
Figure 1 – Map showing Zacapa’s priority target areas and known deposits in the Beatty District. Note the highly favorable position of the SE Block and Sourdough target areas immediately north of the Fluorspar Canyon detachment fault which hosts a large number of deposits along strike.
Figure 2- Shingleback target in 3D view. Upper surface displays topography with geologic mapping and soil sampling results. Subsurface view shows the result of the IP Resistivity survey. The large resistivity anomaly at depth in the IP survey corresponds with mapped veins at surface and is interpreted as a zone of alteration related to the veins. The highest gold values from the stream sediment sampling program occur in this area and are nearby several mine workings. Scale bar is in metres.
At the Sledge target, the projected continuation of the NE-SW trending structures that host the Montgomery-Shoshone deposit appear to trend into Zacapa’s tenements before deflecting northward. Along this structural corridor several faults have been identified within a zone of pervasive clay alteration topographically above anomalous stream sediment and soil samples (Figure 3).
A drone based magnetic survey was recently completed on the newly staked eastern claim block (see February 15, 2022, March 23, 2022) and preliminary results show large linear zones of low magnetic signature that coincide with mapped faults and alteration at surface. This style of magnetite destructive alteration is commonly associated with clay alteration and silicification present at other deposits in the district11,12 (Figure 4). The structures in the SE Block also occur in a highly favorable structural position immediately north of the Fluorspar Canyon detachment fault where numerous other deposits occur (Figure 1). These altered fault zones immediately north of the Fluorspar Canyon fault are part of the SE Block target and are being rapidly advanced toward drill testing.
Recently acquired hyperspectral remote sensing data has highlighted several additional areas of interest, including a zone of strong alteration in an area that is predominantly under cover. Field inspection of poorly exposed outcrops in that area revealed strong silicification with clay and alunite alteration (Figure 5).
Alunite is a significant component of the advanced argillic alteration zone at AngloGold Ashanti’s Silicon discovery (3.4 Moz)12.
“Leading exploration techniques applied by our team continue to generate compelling targets at South Bullfrog and we are confident that the project’s position within the Beatty District demonstrates a clear path to value,” commented Adam Melnik, Chief Executive Officer. “We are excited to start drilling our highest priority targets imminently.”
Figure 3 – Plan view of the Sledge target area overlain with a map of magnetic intensity. Two well defined N-S trending faults occur in the area with local zones of mapped alteration around historic workings. These faults appear to link up with the structure hosting mineralization at Augusta Gold’s Montgomery-Shoshone pit. Field images on the right top to bottom, Sledge fault zone with argillic altered tuff and silicified fault breccia, banded chalcedonic quartz vein and breccia, silicified ferruginous fault breccia.
Figure 4 – Plan map of SE Block target area displaying newly acquired magnetic geophysical survey results. Note the two NNE trending zones of low magnetic signature interpreted as magnetite destructive alteration around fault zones. The faults have been mapped at surface and include zones of alteration and veining as shown in the accompanying photographs.
Figure 5 – Strongly altered grab sample from outcrop revealed in hyperspectral remote sensing. TerraspecTM short-wave infrared analysis confirmed the presence of alunite, a potassium aluminum sulfate mineral commonly associated with some large epithermal systems of the Beatty District (e.g. Silicon and Bullfrog)11,12.
Geochemical Data Analysis Methods
Soil and stream sediment results were analyzed using Principal Component Analysis (PCA). PCA is a statistical technique used for data reduction without losing the inherent properties of the data. It looks at the variances and covariances of the elements to determine a unique set of axes where the data has the largest variance. This approach helps analyze scatter in the data and recognize the elements responsible for the distribution which can explain some associations among the variables that are not visible otherwise. For example, certain combinations of elements were recognized that correspond to the signature of certain stratigraphic or lithologic elements such as Rainbow Mountain Rhyolite Tuff (Principal Component 1 in our analysis). Principal component 5 (VSC5) composed of elements Au, Ag, As, Bi, Hg, Sb, Tl, and U is a classic geochemical association for epithermal gold systems. Thirty (30) samples in 14 clusters were anomalous for the VSC5 variable at the signal strength of greater than two standard divisions, which is how the strength of the associations are calculated. Gold, silver, and mercury show significant contrast (>2) between background and anomalous thresholds where contrast is defined by the 95th percentile divided by background. A table of statistics for the elements in principal component five are shown in Table 1.
Table 1 – Summary statistics for elements in principal component 5 (epithermal gold signature)
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$370M1acquisition 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.
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 – South Bullfrog
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
8 Augusta Gold Acquires Fully Permitted Low-cost Heap Leach Gold Project Seven Miles From Its Bullfrog Project in Nevada, April 21, 2022
9 Bryan, R., 2017, Bullfrog Gold Corp. NI 43-101 Technical Report Mineral Resource Estimate Bullfrog Gold Project Nye County, Nevada:Tetra Tech, Golden, Colorado, 93 p.
10 Cornwall, H.R. and Kleinhampl, F.J., 1964, Geology of Bullfrog Quadrangle and ore deposits related to Bullfrog Hills Caldera, Nye County, Nevada and Inyo County, California: US Geological Survey Professional Paper 454-J, 25 p.
11 Jorgensen, D.K., Rankin, J.W., and Wilkins, J. Jr., 1989, The geology, alteration and mineralogy of the Bullfrog gold deposit, Nye County, Nevada: AIME Preprint 89-135, 13 p.
12Nicholson, D., 2021, Technical Report Summary Silicon Project, an initial assessment report: AngloGoldAshanti, 62 p.
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.
On behalf of the Board of Directors,
Zacapa Resources Michelle Borromeo
Chief Executive Officer & Director Vice President Investor Relations
+1 604 227 5987 +1 778 330 3835
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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 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.