Vancouver, British Columbia–(Newsfile Corp. – February 28, 2018) – ML Gold Corp. (TSXV: MLG) (“ML Gold” or the “Company”) is pleased to announce a new discovery on its Stars project where hole 4 (DD18SS004) has intersected 0.45% Copper (0.50% CuEq) over 204 metres (m) including 1.02% CuEq (0.93% Cu) over 40.2m from surface. New drill sites are currently being planned to expand from hole 4 and test the newly identified “central” target area (as indicated on the attached survey map, Figure 1). The Stars project is ideally located in central British Columbia in the heart of the province’s prolific porphyry belt.
High-Grade Results from Surface: Hole 4 intersected 40.2 metres of 1.02% copper equivalent (0.93% Cu) from 26.52m to 66.72m (bedrock begins at 21.58m) within a larger interval grading 0.50% CuEq (0.45% Cu) over 204m from 23.47m to 227.69m.
New Geophysics Identifies Possible Porphyry Centre: The recent detailed airborne magnetic survey identified a cluster of covered and untested circular magnetic anomalies between the two zones drilled in the current program and centered within a larger ovoid magnetic “ring” feature (or “magnetic halo”) approximately 5 kilometres in diameter (long axis) (see Figure 1).
Porphyry System Confirmed: Dr. Paul Johnston, an independent porphyry expert who recently reviewed the project drill core comments: “Mineralization [observed in the Stars drill core] is consistent with mineralized features associated with a porphyry system” and suggests that “the [current] drilling is in a marginal position relative to the porphyry centre” where it is reasonable to expect higher copper grades.
Drill Hole Chemistry Indicates A Significant Upside Target: Drilling to date has identified a clear systematic zonation of sulphide minerals where pyrite-only mineralization transitions to pyrite-chalcopyrite to chalcopyrite-only to chalcopyrite-bornite moving towards the newly identified “central” target area. This pattern has been identified in both areas drilled in the current program and in both cases displays an increasing temperature gradient towards the “centre” target area possible indicating a better-mineralized copper porphyry centre.
Potential for Multiple High Grade Zones: The near-surface high-grade zone discovered in hole 4 could play a significant role in the economics required to build a mine. The location of the zone on the edge of the ovoid magnetic “ring” feature indicates that there could be additional high-grade zones elsewhere within the magnetic ring feature which extends approximately 5 kilometres in diameter (long axis) (see Figure 1).
Close to Infrastructure: Year round road access, proximal rail, access to cheap power and water, access to a major port (Kitimat), low relief topography, and a near-by population centre put the Stars project in an ideal location for low-cost mine development.
ML Gold recently engaged Dr. Paul Johnson, an independent consultant and expert on porphyry deposits worldwide, to conduct a review of the drill core at ML Golds Stars project. Dr. Johnston was able to identify several key factors including the sulfide mineral assemblages which are used to infer the sulfidation state of the mineralizing fluids responsible for depositing the copper observed in the drill holes. He comments “the sulfide minerals show a systematic variation between drill holes and define a trend from higher to lower sulfidation state, which can be equated to increasing temperature with declining sulfidation state”. Thus a better-mineralized target is proposed where mineral assemblages point to higher temperature parts of the system (a common relationship exhibited by porphyry deposits worldwide) and suggests that the highest temperature and better-mineralized copper zone has yet to be drilled.
Following Dr. Johnston’s site visit, and the completion of the airborne magnetic survey, Dr. Johnston was able to incorporate his field observations with the newly acquired magnetic data. He comments “Vein relationships and styles observed in Stars drilling are consistent with copper mineralization associated with magmatic-hydrothermal alteration and mineralization associated with porphyry systems”. Furthermore, “a porphyry centre is proposed between the two areas drilled based on magnetic patterns combined with vectors to a mineralization center derived from sulfide mineral patterns”.
PRELIMINARY DRILLHOLE RESULTS
|HoleID||From (m)||To (m)||Interval (m)||Cu (%)||Au (g/t)||Ag (g/t)||Mo (%)||CuEq (%)|
** CuEq calculated using following metal prices: Cu @ $3.19/lb, Au @ $1330/oz, Ag @ $16.60/oz, Mo @ $7.26/lb (all price in $US)
***True widths are unknown at this time.
Hole 4 (DD18SS004) was drilled on the eastern flank of the newly identified magnetic ring structure (see Figure 1). The mineralization in hole 4 consists predominantly of chalcopyrite mineralization and likely does not represent the potassic core of a system, but does indicate the potential for significant copper endowment in the core of the system (yet to be drilled). The style of mineralization observed (massive chalcopyrite veins with secondary biotite halos overprinted by chlorite) suggests the high-grade copper mineralization is being ejected further out from the potassic core indicating that there could be multiple zones similar to that encountered in hole 4 elsewhere on the property.
Holes 1 through 3 (DD17SS001, DD17SS002, DD18SS003) show copper grades that are consistent with what can be expected adjacent to a copper rich potassic zone, and display a clear zonation of decreasing sulfidation state and increasing temperature indicating that the highest potential area for the potassic core of the porphyry system is just to the west of this area. This is further supported by the recent magnetic survey and preliminary observations from holes 5 and 6.
Adrian Smith, President of ML Gold comments “Dr. Johnston has proven instrumental in bringing the current drilling into the context of a larger porphyry system that may be present on the property. We will continue to consult with industry leaders as we begin a more aggressive second phase of drilling stepping out around hole 4 and testing the new targets generated from rock chemistry vectors and airborne geophysics.”
Overall, alteration patterns and mineralogy hold-up on a kilometre scale and suggest that the best zones have yet to be found on the Stars project.
Quality Assurance and Quality Control
All core was transported daily to ML Gold’s logging/cutting facility in Houston BC, where it was logged and sampled by a registered professional geologist. Core was then cut in half with one half retained in the core box and the other securely sent to MS Analytical Laboratories in Langley (ISO/IEC 17025:2005 certified), B.C. to undergo analysis. The core lengths sampled were generally 10ft intervals and the internal QA/QC sampling procedure included inserting blanks and standards with one in every 10 samples into the sample sequence. The samples are checked to ensure results fall within acceptable target ranges and all results from the controls were acceptable.
The analysis included; 20 gram Multi Element, 3:1 Aqua Regia (Code: IMS-131), Ultra Trace ICP-AES/MS finish. Over-limit samples underwent Ore Grade Copper, 3:1 Aqua Regia (Code: ICA-6Cu), 0.4 grams with ICP-AES finish, and Ore Grade Copper, 4-Acid (Code: ICF-6Cu), 0.2 gram with ICP-AES finish. MS analytical also conducted independent QA/QC procedures which included inserting duplicate, standard, and blank samples within each batch analyzed.
Adrian Smith, P.Geo., is the qualified person for the Company as that term is defined in National Instrument 43-101, and has supervised the technical information presented within this news release.
ABOUT ML GOLD CORP.
ML Gold Corp. is a Canadian company listed on the TSX Venture Exchange, focused on creating shareholder value through discoveries and strategic development of mineral properties in Canada and the United States.
ML GOLD CORP.
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This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of US$ for CDN$, changes in exploration costs and government royalties or taxes in Canada, the United States or other jurisdictions and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
Figure 1: 2018 Detailed Airborne Magnetic Survey with Interpretations
To view an enhanced version of Figure 1, please visit: