Cassiar Gold Expands Mineralization at the Taurus East Area, with Initial Assays of the 2022 Program Intersecting 1.50 g/t Au over 22.2 m and 4.47 g/t Au over 10.5 m

13.09.2022  |  Newsfile

Calgary, September 13, 2022 - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: CGLCF) (the "Company") is pleased to announce assay results from seven initial diamond drill holes of the 2022 exploration program. The results reported are from the ongoing drill program at the Taurus Deposit located in the Cassiar North area of the Company's flagship Cassiar Gold Property in northern British Columbia, Canada. The Taurus Deposit hosts a substantial near-surface, bulk-tonnage Inferred gold resource of 1.4 million ounces grading 1.14 g/t Au^[1] which remains open and is a priority target for further expansion and definition by the current exploration campaign. These first results from the eastern portion of the Taurus Deposit (Figure 1) confirm the potential for the resource to extend significantly eastward, well outside of the current resource footprint.

Highlights:

• Drillhole 22TA-142 intersected 22.2 m of 1.50 g/t Au from 129.8 m downhole, including 0.75 m of 9.61 g/t Au, extending known mineralization northward in the hangingwall of the Decline Fault.
  
  
• Drillhole 22TA-146 intersected 10.5 m of 4.47 g/t Au from 12.9 m downhole, including 3.3 m of 11.1 g/t Au with 0.5 m of 45.30 g/t Au.
  
  
• All drillholes reported in this release intersected multi-meter intercepts of gold mineralization above the 0.5 g/t Au cutoff grade of the 2022 Inferred Mineral Resource at Taurus, including up to 700 m east and 450 m south of modeled grade shells.

"Initial reports from our 2022 drill program at the Taurus Deposit have delivered strong first results and highlight an important potential for expanding the deposit well beyond the extents of the current resource," stated Marco Roque, CEO of Cassiar Gold Corp. "Our programs to date coupled with these results provide new insight for our targeting and open up sizeable areas for additional exploration. Our 2022 drill program is our largest drilling campaign to date, and we look forward to reporting additional results in the coming weeks."

2022 Cassiar North Drill Program at Taurus Deposit

The ongoing 2022 Cassiar North Drill Program has been largely focused on the Taurus Deposit area where 32 drillholes totaling 10,180 m have been completed so far this season. The Taurus East, Sable, Gap, Highway, Taurus West, Taurus NW, and Taurus SW areas of the deposit (Figure 1) have been targeted in 2022. Seven of the initial drillholes totaling 1,719 m from Taurus East are reported here. The Taurus drilling, which commenced in early June and remains in progress, was designed to test for extensions of key mineralized trends with the goal of expanding the mineralization footprint laterally and at depth. The program continues to improve resource confidence in areas of historical drilling and collect additional structural data for use in modeling. The deposit remains open on most sides as well as at depth. Mineralization is open and completely untested toward placer deposits and mineral prospects around the Snow Creek regional target, 1 km to the east of Taurus. Snow Creek exhibits outcropping mineralization similar in style to the Taurus Deposit and remains under explored.

Figure 1. Cassiar North 2022 drill campaign drillhole locations plan map with Taurus East (blue square). Historical production figures from Taurus MINFILE Production Detail Report, file number 104P 012, BC Geological Survey. The Taurus East mineralization model (orange) represents upside for expansion of the deposit and was not included in the 2022 Taurus resource model (pink).

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/2958/136898_da693442d4da5a46_002full.jpg

The 2022 drill campaign at the Taurus East zone (Figure 1, 2) is designed to expand known mineralization in areas outside of the resource and current mineralization model (0.3 g/t Au) including both west and east of the Decline Fault near the past-producing Taurus Mine. Results received to-date are discussed below:

• Six of seven drillholes reported in this release aimed to expand the mineralization both northward and southward in the area of the past-producing Taurus Mine at the far east area of the Taurus deposit, while evaluating the interpreted Decline Fault model. Drillholes were targeting potential north-northwest mineralized trends along the Decline Fault, as well as potential east-west sheeted vein sets and associated bulk-tonnage style disseminated pyrite mineralization, which may extend off and continue beyond the Decline Fault. Both the hangingwall and footwall blocks of the Decline Fault are being evaluated for the presence of mineralization.

• 22TA-140, 22TA-144 (northwest directed), and 22TA-143, 22TA-146 (southwest directed) aimed to identify the extension of mineralization southward along the Decline Fault beyond the extent of current mineralization model.
  • All four drillholes identified multi-meter mineralized intercepts within the hangingwall block at grades higher than the 0.5 g/t Au cutoff grade of the 2022 Taurus resource and occur approximately 40m to 450m outside of the current Taurus East mineralization model (0.3g/t Au; Figure 2).
    • 22TA-146: encountered 10.5 m of 4.47 g/t Au at 12.9 m downhole; including 3.3 m at 11.12 g/t Au with 0.5 m of 45.3 g/t Au; including 0.8 m at 12.65 g/t Au
    • See Table 1 for additional assay highlights.
  • These drill holes are located well outside of the area of the Taurus Resource and demonstrate the potential for significant expansion of the Taurus deposit. Mineralization is completely open to the east and surrounding these drill holes.

• 22TA-142 (southwest directed) and 22TA-145 (northwest directed) were designed to evaluate the potential northward extension of mineralization along the Decline Fault beyond the extent of known mineralization.
  • Both drillholes encountered multi-meter hangingwall intercepts above the cutoff grade of the 2022 inferred resource, up to 130 m north of the current mineralization model. Results include:
    • 22TA-142 (Figure 3): encountered 22.2 m of 1.50 g/t Au at 129.8 m downhole, including 0.8 m of 9.61 g/t Au, 100m northeast of historical drillhole T95-19 which returned 56.0 m of 1.18 g/t Au.
    • See Table 1 for additional assay highlights,
    • See Table 2 for select historical assay highlights from Taurus East.

• The six drillholes (22TA-140, 22TA-144, 22TA-143, 22TA-146, 22TA-142 and 22TA-145) along the Decline Fault demonstrate the potential for lateral expansion of mineralization proximal to this structure. The Decline Fault occurs sub-parallel to the Taurus West Fault which is interpreted to be of similar age and importance in local mineralization paragenesis and a potential feeder to broader zones. The Taurus West Fault is located at the western extent of the 2022 inferred resource which is coincident with a broad, gently southerly plunging mineralized zone within the resource block model. In the Taurus East area, broader potential for expansion of mineralization remains along east-west trends typically associated with sheeted vein sets internal to the Taurus Resource and at the past-producing Taurus Mine.

• A seventh drillhole, 22TA-141, was designed to test for the potential eastward continuation of mineralization between the 2022 Taurus resource and known mineralization proximal to the past-producing Taurus Mine in an area with limited historical drilling west of the Decline Fault.
  • 22TA-141 encountered 6.8 m of 3.14 g/t Au at 111.7 m downhole over 280 m east of the 2022 resource model and 200 m west of the current Taurus East mineralization model, and
  • The drillhole confirmed the potential for above-resource grade mineralization to occur between the inferred resource and the Taurus East mineralization model (Figure 1).

• Results from an additional three drillholes at Taurus East remain pending for reporting. Drillholes 22TA-166 and 22TA-169 are designed to test for the potential eastward and downdip extensions of known mineralization east of the past-producing Taurus Mine, while 22TA-167 was designed to follow up on the broad mineralized intercept encountered in 22TA-142.

Figure 2. Plan map of 2022 drillholes reported in this release from the Taurus East Zone. Vertical projection of mineralized intercepts are included for reference. The Taurus East mineralization model (orange) was generated from an internal mineralization model and is independent of the 2022 inferred resource model (pink).

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/2958/136898_da693442d4da5a46_003full.jpg

Figure 3. Vertical section showing 22TA-142 at Taurus East, looking northwest with the Taurus East mineralization model (orange) for reference. The Taurus East mineralization model was generated from an internal mineralization model and is independent of the 2022 inferred resource model.

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/2958/136898_da693442d4da5a46_004full.jpg

Table 1. Significant 2022 drilling results from Taurus East based on a >0.5 g/t cutoff.

Table 2. Significant unmined historical drill results within the 0.3 g/t Au mineralization model at Taurus East.

2022 Full Drill Campaign Status Update

The Company's 2022 drill campaign, which commenced on June 1^st, remains ongoing with two active drill rigs at Cassiar North and one active rig at Cassiar South. Over 18,000 m of drilling and 46 drillholes have been completed across the property in 2022 and surrounding the Taurus Deposit, as well as priority vein prospects at Cassiar South and regional targets on the property. Further drill results remain pending and will be released for all drillholes as they become available. The current program is projected to be completed during the month of October where projections for drill production may allow for the program to exceed 20,000 m of drilling.

Option, RSU and DSU Grants

The Company also announces that it has granted options, restricted share units ("RSUs") and deferred share units ("DSUs") pursuant to the Company's stock option plan and share unit plan, respectively, to certain officers, directors, employees and consultants as set out below. The Company has granted options to acquire a total of 1,930,000 common shares in the capital of the Company ("Common Shares"), at an exercise price of $0.66 per Common Share, for a period of 5 years, subject to vesting requirements.

Additionally, the Company has granted 924,000 RSUs and 350,000 DSUs pursuant to the Company's share unit plan. The RSUs have a 2-year vesting period, with each vested RSU entitling the holder to receive, at the discretion of the Company's board of directors, either: (i) one Common Share; or (ii) a cash amount equal to the closing price of the Common Shares on the last trading date prior to the vesting date, settled as soon as reasonably practicable following the vesting thereof.

The granted options, RSUs and DSUs are subject to the Company's stock option plan and share unit plan, which were approved by shareholders of the Company at the 2022 annual and special meeting of shareholders held on March 16, 2022.

Qualified Person

The technical information in this news release has been reviewed and approved by Jill Maxwell, P.Geo., Cassiar Gold Corp.'s Exploration Manager, who is a Qualified Person as defined by National Instrument 43-101.

Quality Assurance (QA) and Quality Control (QC)

The 2022 Cassiar drilling program comprises HQ drill core oriented using the REFLEX ACTIII system. Drill core samples are selected and logged by geologists prior to being cut in half using a diamond cutting saw at a secure facility located in Jade City, British Columbia. Certified gold reference standards and blanks are routinely inserted into the sample stream as part of the Company's QA/QC program. All samples are delivered to the ALS Global preparation facility in Whitehorse, Yukon, where they are processed, and then shipped to the ALS Global analytical facility in North Vancouver, British Columbia. Samples are analyzed for gold by 50-gram fire assay with finish by atomic absorption or gravimetric methods. Screen metallic analysis is performed on selected samples. ALS Global quality systems and technical aspects conform to requirements of ISO/IEC Standard 17025 guidelines.

About Cassiar Gold Corp.

Cassiar Gold Corp. is a Canadian gold exploration company holding a 100% interest in its flagship Cassiar Gold Property located in British Columbia, Canada. The Cassiar Gold property spans 590 km² and consists of two main project areas: Cassiar North, which hosts a NI 43-101-compliant inferred resource estimate of 1.4Moz at 1.14 g/t Au (cutoff grade of 0.5 g/t Au) known as the as the Taurus Deposit (see National Instrument 43-101 Technical report on the Cassiar Gold property, April 28, 2022, by S. Zelligan, J. Moors, C. Jolette, posted to SEDAR); and Cassiar South which hosts numerous gold showings, historical workings, and exploration prospects. Historical underground mines in the Cassiar South area have yielded over 315,000 oz of Au at average head grades of between 10 and 20 g/t Au (2017, Cowley¹), underscoring the high potential for further discovery and expansion of high-grade orogenic gold veins.

The Company also holds a 100% interest in the Sheep Creek gold camp located near Salmo, BC. The Sheep Creek gold district ranks as the third largest past-producing orogenic gold district in BC with historical gold production of 742,000 ounces gold at an average grade of 14.7 g/t gold from 1900 to 1951. Minimal exploration work has been conducted since the 1950s.

Cassiar Gold Corp. acknowledges, respects, and supports the rights of Traditional First Nations in the lands and communities where we operate.

CONTACT INFORMATION

Cassiar Gold Corp.
E-mail: ir@cassiargold.com
Phone: 236-878-6160

¹Cowley, 2017, NI43101 Technical Report on the Cassiar Gold Property, British Columbia, for China Minerals Mining Corp, June 26, 2017, revised Oct 2, 2017

Forward-Looking Statements

This press release may contain forward-looking statements including those describing the Company's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of the Company and its management. In particular, this news release contains forward-looking statements pertaining, directly or indirectly, to the Company's exploration plans and work commitments, mineral resource estimates and the assumptions underlying such estimates, and economic factors, business and operations strategies.

Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, general economic, market or business conditions, risks associated with the exploration and development industry in general (e.g., operational risks in development, exploration and production; the uncertainty of mineral resource estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in legislation impacting the mining industry, adverse weather conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.

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.

^[1] See April 28, 2022, NI43-101 Report titled "National Instrument 43-101 Technical Report on the Cassiar Gold Property" by Zelligan, P.Geo, Moors, P.Geo, Jolette, P.Geo.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/136898