Drilling Begins at the Cerro Cascaron Gold and Silver Project in Mexico
(TheNewswire)
Vancouver British Columbia / TheNewswire / October 3, 2018 – Harvest Gold Corporation (TSX.V: HVG) (“Harvest Gold”) is pleased to announce that its initial drilling program at the Cerro Cascaron gold and silver project in southwestern Chihuahua, Mexico, has commenced. Harvest Gold and its Joint Venture partner and operator, Evrim Resources Corp. (TSX.V: EVM) (“Evrim”), have planned up to 3,000 metres of diamond drilling.
Harvest Gold President and CEO Rick Mark states: “I am very pleased to tell you that drilling has commenced. Operator and JV partner Evrim Resources’ experience and drilling successes on this style of mineralisation in Mexico are a tremendous asset for us. This release provides specific information and detailed maps for the Cascarita Silver Target and the Cascaron Vein Field Gold Targets. Our priority now shifts to enhancing the value of this undrilled, high grade, district sized property in the coming months.”
Vice President of Technical Services for Evrim Stewart Harris, states “Cerro Cascaron is a large underexplored and undrilled project with two known areas of veining with outcropping gold and silver mineralization, including bonanza grab samples of up to 1,670 g/t gold and 1,490 g/t silver. This maiden drill program will initially test a zone of sub-parallel veins at the Cascarita silver target followed by the drilling of four veins in the Cascaron vein field gold target.”
In addition to the drill program, Harvest Gold and Evrim will contribute to various community initiatives including the improvement of road access to local farms following the recent wet season, clearing a local airstrip to allow for scheduled flight services, and continuing to support the legal organization of nearby Ejido groups.
Cascarita Silver Target
The drill program will commence at the Cascarita silver target where three drill holes are planned to test over 350 metres of strike length, along a 900 metre polymetallic silver-lead-zinc sheeted vein/breccia system. The initial drill targets are defined by underground channel and surface grab samples undertaken by Evrim in 2017 that returned five channel sample cuts with widths between 1.4 metres to 3.3 metres grading between 231 g/t silver equivalent* and 542 g/t silver equivalent*.
*Previously announced November 27, 2017. Silver-Equivalent is calculated as Ag-Eq = Ag + (Pb%*22.046*Pb price*31.103/Ag price) + (Zn%*22.046*Zn price*31.103/Ag price). Metal prices used for this formula: Ag = $US 16.25/oz, Pb = $US 1.00/lb, Zn = $US 1.25/lb. Recoveries of 100% are assumed for the silver-equivalent values.
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Figure 1 – Map of Cascarita silver target
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Figure 2 – Schematic drill section for Cascarita with photos of Cascarita hill (top right) and mineralization sample from Oeste Vein (bottom right)
Cascaron Vein Field Gold Targets
Four drill holes from one site are planned to test the San Pedro vein, where high grade gold and silver veins are defined by channel sampling, and by gold, silver, and pathfinder soil geochemistry approximately 800 metres to the north. Channel sample results collected from the San Pedro vein returned sample grades of 19 g/t gold and 72.6 g/t silver over 0.8 metres within 2.6 metres grading 6.05 g/t gold and 28.3 g/t silver. Approximately 45 metres further north, channel sampling returned grades of 10.5 g/t gold and 46.4 g/t silver over 0.9 metres within 4.3 metres grading 2.22 g/t gold and 10.9 g/t silver.
Three drill holes are planned to test 900 metres of strike along the Serpiente Dorada and Julieta structures, an area within a 1.8 kilometre long gold-silver soil anomaly that averages above 50 ppb gold with the peak being 1.38 g/t gold. The drill holes will test an area of high-grade gold-silver mineralization defined by channel and grab samples at Serpiente Dorada, and strong geochemical anomalies defined by the Julieta structure and the Julieta-Serpiente structural intersection.
Previous selected hand grab sampling of Serpiente Dorada returned gold grades from trace to 1,670 g/t gold and 1,490 g/t silver, while channel samples collected with a rock saw on the Julieta vein returned sample grades of 5.04 g/t gold and 14.4 g/t silver over 2.0 metres within 6.3 metres grading 2.16 g/t gold and 28.8 g/t silver. Epithermal veins commonly transition from multiple narrow veinlets in the brittle rhyolite and rhyolite tuffs into a single broader vein in more component andesite units beneath. The drilling at Serpiente Dorada will test this concept at Cerro Cascaron.
The Carabina vein area will see diamond drill testing with one drill hole planned beneath an area of high grade gold-silver surface samples. In 2016, channel sampling across the Carabina vein returned sample grades of 5.73 g/t gold and 29.3 g/t silver over 1.4 metres within 5.4 metres that graded 2.12 g/t gold and 14.5 g/t silver.
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Figure 3 – Map of Cascaron vein field gold target
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Figure 4 – Schematic drill section for San Pedro with photos of the San Pedro vein (top right), Chalcedonic Quartz texture indicating a shallow level of erosion (middle right) and the adit entrance at San Pedro (bottom right)
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Figure 5 – Schematic drill section for Serpiente Dorada with photos of the green colloform banded quartz texture (top right) and the Serpiente Dorada vein (bottom right)
About the Cerro Cascaron Project
The Cerro Cascaron property hosts a low to intermediate sulphidation epithermal gold bearing system and includes a high-grade gold vein field measuring 18 square kilometers in area on the eastern third of the property. Veining has been mapped over 900 vertical metres, with classic textural evidence of hydrothermal boiling accompanying the highest gold grades. This boiling zone has been established in the upper 380 metres of the vein field. Beneath the boiling zones, silver and base metal rich veins and breccias provide additional exploration targets.
Cerro Cascaron's setting and mineralization are similar to many epithermal deposits in the Sierra Madre Occidental, including Minera Frisco SAB's Ocampo Mine to the northwest, Coeur Mining Inc.’s Palmarejo mine 115 kilometres northwest, and First Majestic Silver's San Martin de Bolanos silver mine in Jalisco State. The property is one of the few unexplored and undrilled opportunities in the region.
Harvest Gold has the right to earn a 70% interest in Cerro Cascaron by incurring $6 million in exploration expenditures, making $900,000 in cash payments and issuing 2,000,000 shares over 4 years. It can earn an another 10%, to total 80%, by spending up to $10 million in exploration expenditures, paying another $200,000 and delivering a 43-101 compliant feasibility study within a nine-year period. If Evrim's interest in Cerro Cascaron is diluted to 10% or less, its interest will convert into a 2% net smelter royalty ("NSR").
Qualified Person Statement
Evrim's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo. Vice President, Technical Services for the Company. Mr. Harris serves as a Qualified Person under the definition of National Instrument 43-101.
Readers are cautioned that rock chip, grab and channel samples are selected samples and are not necessarily representative of the mineralization hosted on the property.
About Harvest Gold Corporation
Harvest Gold is a mineral exploration company presently advancing its Cerro Cascaron high grade gold/silver project in Chihuahua State, Mexico, where an initial 3,000 metre drill program is planned for 2018. Harvest Gold’s Board of Directors and management team are experienced in successful exploration and have collective geological and financing experience exceeding 200 years.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark,
President and CEO
For more information please contact:
Rick Mark or Jan Urata
@ 604.682.2928 or [email protected]
Neither 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.
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