Provenance Gold Provides Further Update on Work Conducted on its Yukon Property over the 2017 and 2018 Field Seasons
Vancouver, British Columbia--(Newsfile Corp. - December 20, 2018) - Provenance Gold Corp. (CSE: PAU) (3PG: FSE) ("Provenance", or the "Company"). During the summer of 2017 the Company conducted exploratory drilling in two parts of the 2K property located in the Yukon. The drilling was sited to explore the gold system on the property that is the source for three rich placer deposits that have been successfully mined continuously for more than thirty years. Nine holes were focused on a portion of the headwaters of Kenyon Creek within the uppermost area of historic placering. Three holes were sited in the historic placer workings in Great Bear Creek midway up the historic placer mining. Both areas have strong alteration, local silicification, altered dike swarms and structural deformation. Additionally, sampling of bedrock exposed by placering at Kenyon Creek produced exceptional gold values. Grab samples by an independent geologist returned values ranging from 9.45 g/t gold with 89.5 g/t silver to 420 g/t gold with 65.8 g/t silver. His most significant sample was a 1.8-metre chip sample of a flat-lying vein that returned a value of 122.5 g/t gold across the 1.8 metre exposure. The samples were spread across a ground distance of 1.5km.
As subsequently recognized, these gold samples are believed to be associated with the bottom of a sub-horizontal complex gold zone that is projected to occur above the placer workings. The drilling did not intersect the main gold source structures, and the drill holes were only modestly mineralized because they spudded below the gold zone. One hole had a shallow 2.5 meter interval of 0.3 grams. The drilling in that area did not intersect the main gold source structures, and the drill holes were only modestly mineralized. One hole had a shallow 2.5 meter interval of 0.3 grams gold and a deeper interval of 0.13 grams. The placer gold did not come from the drilled structures, but from the gold mineralization zone that is projected to occur slightly higher in the geological units a short distance above the placer areas. Subsequent reinterpretation of the gold geology largely based on the information gained from the drilling program modified the gold mineralization model. The drilling was in strongly altered and structurally deformed surface bedrock, but below the main zones of gently dipping gold veining that were the placer source. The Company's new understanding of the gold system geology is expected to allow the company to focus on the overlying zones that are the likely sources of the placer gold and may host a large lode gold deposit.
This autumn a trench was placed uphill of the placer area based on the modified interpretation of the gold controls subsequent to the exploratory drilling. The trench intersected a new gold vein up to a meter thick that assayed 54 grams of gold, supporting the modified interpretation. The company believes this may be one of multiple new ore structures and plans to focus on four new target areas it has identified based on its new understanding of the project geology. The company plans to trench these new targets in the 2019 field season, to be followed by drilling of the targets identified by the trenching.
Rauno Perttu, P. Geo., a Qualified Person (as defined by National Instrument 43-101) has reviewed and approved the contents of this News Release.
On behalf of the Board,
Provenance Gold Corp.
Neither the CSE, nor its regulation services provider, accepts responsibility for the adequacy or accuracy of this press release.
Rauno Perttu, Chief Executive Officer
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.