Drill Highlights:

• RC Hole (20-CARC-06): intersected 45.7 m of 0.63 g/t gold within a larger interval of 111.3 m of 0.34 g/t gold;
• RC Hole (20-CARC-05): intersected 76.2 m of 0.41 g/t gold and 21 g/t silver including 16.8 m of 0.68 g/t gold and 28.5 g/t silver; 
• RC Hole (20-CARC-03): intersected 68.6 m of 0.4 g/t gold and 11 g/t silver including 16.8 m of 0.74 g/t gold and 15.9 g/t silver;
• RC Hole (20-CARC-02): intersected 56 m of 0.4 g/t gold including 25.9 m of 0.53 g/t gold;
• New gold zones discovered in the hanging wall of Capitan Main zone, that provide an additional, near surface opportunity to expand the March 2015 resource within the conceptual, open-pit shell;
• Drill results support management's view that there is significant room to expand the existing oxide resource; 
• Drilling is ongoing and the company anticipates completion of the 6,000 meter RC drill program in March/April 2021.

 Overview of the Fall/Winter 2021 Drill Program

RC holes 20-CARC-01, 03, and 05 located on sections 100, 400, and 250 respectively, tested the continuity of the gold-silver mineralization down dip of the 2015 Inferred Resource.

All of the RC drill holes above successfully intersected the Capitan Hill Main Zone, with results being consistent with the grade and width of the previous drilling. These new holes extended the Capitan Hill Main gold-silver mineralization down-dip between 50 to 120 m. Drill results include 76.2 m of 0.41 g/t gold in hole 20-CARC-05, 68.58 m of 0.4 g/t gold in hole 20-CARC-03 and 51 m of 0.439 g/t gold in hole 20-CARC-01. Click here for link to cross-sections.

RC Hole 20-CARC-01, located on section 100, collared near the eastern edge of the Capitan Hill Main Zone. The hole was mineralized through its entire length starting from surface and was ended in mineralization. This hole extended the Capitan Hill Main Zone by 120 m down dip from previous drilling. 

In addition to intersecting the Capitan Hill Main Zone, RC holes 20-CARC-05 and 20-CARC-03, also cut significant values of silver mineralization, expanding the continuity of silver mineralization at depth. Silver values in RC hole 20-CARC-05 include 60.96 m of 25.15 g/t silver that includes a higher-grade zone of 33.5 m of 33.67 g/t silver. 

All of the expansion holes were oxidized through their entire length, with RC holes 20-CARC-01 and 03 getting into sulphide mineralization at drill hole depths of 173.7 m and 184.4 m respectively. 

Infill Drilling, Capitan Main Zone

Infill drilling in the current program was designed to confirm the presence of the Capitan Hill Main zone in areas where significant gaps (75-100 m ) existed in the 2015 Inferred Resource model. All holes presented below successfully confirmed the presence of the Capitan Hill Main Zone. 

RC hole 20-CARC-06 was drilled on section 250 and was designed to test a roughly 100-metre wide gap between previously drilled diamond drill holes CDDH-12-10 and CDDH-08-02. Hole 20-CARC-06 intersected the main Capitan Hill Zone from 35.1 m to 146 m, with a total drilled width of 111.25 m grading 0.342 g/t gold, including 45.7 m of 0.626 g/t gold. (See Drill Table below) 

RC Hole 20-CARC-07 was drilled on section 300, between previously drilled diamond drill holes CDDH-08-05 and CDDH-12-12 to infill a large >100 m wide gap. The hole cut the main mineralized zone in three, narrowly separated, intercepts that are bound by anomalous gold mineralization. These include 22.9 m of 0.2 g/t gold, 35.1 m of 0.27 g/t gold and 50.3 m of 0.22 g/t gold. The hole bottomed in anomalous mineralization and could not be drilled to its completed depth due to technical issues. 

RC Hole 20-CARC-02 was drilled on section 000 and designed to test a >100 m wide gap between CDDH-12-17 and surface. The hole successfully intersected the Capitan Hill Main Zone and confirmed its presence up-dip, to surface, and was mineralized almost over its entire length. Significant values include 0.284 g/t gold over 29 m and 56.4 m of 0.398 g/t gold.

New, Near Surface Hanging Wall Gold Zones

Drilling prior to the March 2015 resource statement at Capitan Hill indicated the possibility of additional zones of oxidized, gold-silver mineralization located in the hanging wall to the Capitan Hill Main Zone. However, due to a lack of drilling, the significance of these zones was poorly understood and precluded from being captured in the March 2015 resource estimate. 

In the current program, RC holes 20-CARC-03, 05 and 07 confirmed the presence and continuity of these "Hanging Wall Zones", highlighting the potential to enhance the existing resource. The most significant results include 30.5 m of 0.22 g/t gold starting from surface in RC hole 20-CARC-03; 22.9 m of 0.199 g/t gold in RC hole 20-CARC-07, and 35.05 m of 0.15 g/t gold in RC hole 20-CARC-05.

Drill Results Discussion

Drill hole 20-CARC-12 was a step-out hole designed to test the down-dip extension of the main Capitan Hill Zone, as well as test for Hanging Wall mineralization, which was absent in hole CDDH-11-06 located immediately up-dip. The hole was successful in confirming the presence of up to five, > 10 m wide, mineralized zones in the Hanging Wall, starting from surface, with the best interval returning 22.9 m of 0.20 g/t gold, which has extended the zone down-plunge 100 m to the south-east from section 200 (see Figure 2).

Additionally, hole 20-CARC-12 successfully intersected the main Capitan Hill zone as expected, reporting an interval of 73.2 m grading 0.63g/t Aueq including a higher grade interval of 36.6 m of 0.91 g/t Aueq in oxides, which indicates a new higher grade block which may be developing in this area. This new interval extended the main Capitan Hill Zone down-dip approximately 65 m from hole CDDH-11-06. 

Hole 20-CARC-09 was an infill hole that was designed to test a gap between two historic drillholes, both of which were terminated in the Capitan Main zone. The hole successfully confirmed the presence of the Capitan Hill Zone, as well as extending the zone approximately 12.5 m to depth, compared to where the historic holes had ended, reporting an interval of 64 m grading 0.69 g/t Aueq, with a higher grade interval of 13.5 m grading 1.26 g/t Aueq. The hole also intersected the Hanging Wall zone between 25 to 65 m, but only sporadic, low grade values were returned.

Hole 20-CARC-08 was designed to test an approximate 100 m wide gap in the Capitan Main zone between surface and historic hole CDDH-12-15. The hole was successful in intersecting the up-dip projection of the Capitan main zone, returning an interval of 48.8 m grading 0.58 g/t Aueq.

Note: All intervals reported above are oxidized with the exception of a 12.2 m wide sulfide intercept in the Capitan Hill zone starting from 179.8 m depth.