High Cobalt Values in Stream Sediments on Pacifico Property; Fiji Property Gold Samples; Clone Property Returned

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(TheNewswire)

January 6, 2020 – TheNewswire - Vancouver, BC - Silver Grail Resources Ltd. (“Silver Grail”) (TSXV:SVG) (OTC:SVGAF) is pleased to announce results from surface programs carried out over its properties in 2019.

 

Pacifico Property

 

Detailed stream sediment sampling from four creeks located on the Company’s wholly-owned Pacifico property on northern Vancouver Island have returned very anomalous values in cobalt and manganese. Highest cobalt value obtained was 1,152 ppm which is almost twice as high as the most anomalous stream/moss mat sample recorded in the BC Government Regional Geochemistry database compiled from surveys conducted throughout the province over the past 40 years (>64,000 samples—one of the highest samples in that database, 584 ppm, came from the Pacifico property).  [Please refer to the end of the news release for a URL for the figure disclosing sample locations and values.]

 

Manganese values were equally anomalous.  Five of the samples registered overlimits in excess of 50,000 ppm manganese and these had to be assayed resulting in values between 7.14 and 9.45%.  To put these numbers in perspective, the peak manganese value in the >64,000 sample BC government database is 8.0%.  

 

A second area on the Pacifico property, 1.5km to the south of the area described above, was also surveyed by taking stream sediment samples.  Seven samples from one creek averaged 352 ppm cobalt, a value which is also quite anomalous, falling within the 99.99 percentile in the BC database mentioned above.

 

Dino Cremonese, P.Eng., President of Silver Grail, commented as follows: “These are outstanding  numbers which suggest either a large, continuous,  roughly north-south trending source is shedding  these anomalies, or, alternatively, that there are multiple, discrete sources of undetermined size.   More work needs to be done to hone in on the source areas.  Such work will involve expanded geochemical surveys, prospecting and close-spaced, airborne geophysical surveys.   Exploration on the Pacifico property can take place as early as March or April given the low-elevation and the relative light snowfall and it should also be noted that the property is readily accessible by a network of logging roads.”

 

Some analysts believe that the transition to Electric Vehicles (EV) will create a significant supply/demand shortfall for cobalt within the next two to three years. The battery energy that powers laptops, cellphones and EV’s are designed to be rechargeable and are composed of lithium, nickel, manganese and cobalt, commonly referred to as the Li-NMC battery.  In addition, pressure is building on end users to refrain from purchasing “conflict” cobalt from Africa, where child labor is often used.  This could also exert upward pressure on cobalt prices.  

 

Fiji property

 

During the 2019 field season a helicopter reconnaissance over the northwestern portion of the Fiji property disclosed a freshly exposed vein about 2m wide which was traced uphill for at least 300m before disappearing under a blanket of snow and ice.    A single grab sample taken from the middle of the exposure ran 12.57 oz/ton silver, 3.92% lead and 2.15% zinc. Wall rock on either side of the vein showed a large number of subsidiary structures sub-parallel to the main vein and of lesser strike extent.  This area is to be further investigated in 2020 by sampling and trenching.

 

A second crew investigated the southern portions of the Fiji in an area which had been previously explored.  Three grab samples taken of pyrite-sphalerite clusters occurring within discontinuous veins and veinlets returned gold values between 4.17 and 28.67 g/t.  These clusters are associated with an augite-phyric volcanic unit.  More work is slated for this locale in 2020.

 

Exploration in 2019 by Auryn Resources on the Kombi Target within its Homestake Ridge property established a number of gold and silver anomalous areas.  The Kombi lies just east of the boundary with the southeastern portion of the Fiji property.  Some of the Auryn soil geochemical anomalies extend right to the claim line dividing the two properties.  This area is also to be investigated in 2020.

 

Clone property

 

Silver  Grail now owns an unencumbered 25% of the Clone property after Sky Gold Corp., optionee of Teuton’s 25% interest and Silver Grail Resource’s 25% interest, decided not to continue with the option.  The remainder of the Clone, 75%, is now owned by Teuton Resources (Teuton acquired an additional 50% interest by cash purchase from the previous owners).  

 

High-grade gold and gold-cobalt mineralization occurs on the Clone property within a series of sub-parallel shears exposed over a strike length of 500m and a vertical range of 130m. Trenching of the shears returned values ranging up to 3.59 oz/ton gold over 5.5m (18 feet). Significant cobalt values were found to accompany gold in the southeast portion of the zone.

 

Drilling in 1995-96 was confined to the 500m long Main Zone at the south end of the mineralized system, overlapping the original discovery area. The most promising structure outlined by the drilling was the “H-1” which yielded many holes carrying high-grade gold mineralization. Among the best of these was Hole #110 which contained a 10.0m intercept grading 1.28 oz/ton gold. Some strong intersections were also reported from the parallel S-2A structure, known from trenching to host both gold and cobalt mineralization. Hole #18 into the S-2A contained a 6.0m intercept grading 1.53 oz/ton gold and 0.33% cobalt.

 

In 2010 a bulk sampling program was commenced on the Clone property in the high-grade portion of the H-1 zone. A total of 34 samples taken from the one-ton lots comprising the 2010 Clone bulk sample returned an average grade of 68.65 g/t gold.   A larger bulk sample of 102 tons was taken in 2011 which averaged 137.1 g/t gold (4.0 oz/ton gold).

 

Silver Grail and Teuton will, over the winter months, examine results of SkyGold’s 2018 and 2019 exploration programs on the Clone estimated to have cost just under $1 million before deciding on a next step for the property.

 

QA/QC

 

Samples taken during the 2019 programs were analyzed by MSALabs of Langley, BC and by SGS Canada Inc. of  Burnaby, BC.  Both are accredited laboratories.

 

The Qualified Person for the purposes of this news release is Dino Cremonese, P.Eng., President of Silver Grail Resources Ltd.; Mr. Cremonese, as president and director of the Company, is not independent of the Company.

 

URL for Cobalt Stream Sediment Sampling:  

http://silvergrail.com/wp-content/uploads/2020/01/PacificoAnomalies.pdf

  

Respectfully:

 

“Dino Cremonese, P.Eng.”

 

President, Silver Grail Resources Ltd.       

 

For more information contact Investor Relations at 778-430-5680 or [email protected]. If you would like to be added to Silver Grail’s news distribution list, please send your email address to [email protected].  

 

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Silver Grail Resources Ltd. does have an ongoing obligation to disclose material information, as it becomes available.

 

The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.    

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