Aton Resources Inc.
TSX VENTURE : AAN

Aton Resources Inc.

November 29, 2016 08:30 ET

Aton Continues to Define the Gold Oxide Cap at Hamama West; Intersects 38 Metres of 2.30 g/t Gold Equivalent from Surface

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 29, 2016) - Aton Resources Inc. (TSX VENTURE:AAN) ("Aton" or the "Company") is pleased to report the results for the remaining nine drill holes from the recently completed 38-hole diamond drill campaign, totaling 3,428 metres, at Hamama West. Hamama West is one of three zones that comprise the Hamama project, situated within Aton's 100% owned Abu Marawat concession, located in Egypt.

Highlights:

  • Drill hole AHA-092 encountered 38.00 metres @ 1.58 g/t gold (Au) and 52.1 g/t silver (Ag) from 0.00 to 38.00m or 38.00m of 2.30 g/t gold equivalent (AuEq). This drill hole confirms the continuity of oxide mineralization previously intersected in drill holes AHA-015 (39.00m @ 2.22g/t Au and 102.0 g/t Ag), AHA-016 (27.50m @ 0.69 g/t Au and 26.0 g/t Ag), and AHA-079 (29.70m @ 1.61g/t Au and 121.0 g/t Ag).
  • Drill hole AHA-091 encountered 21.40m @ 1.54 g/t Au and 62.0 g/t Ag from 1.00 to 22.40 metres or 21.40m of 2.39 g/t AuEq. This drill hole confirms the continuity of oxide mineralization previously intersected in drill hole AHA-078 (22.57m @ 0.44 g/t Au and 15.7 g/t Ag).
  • Drill hole AHA-089 encountered 14.50m @ 1.54 g/t Au and 38.2 g/t Ag from 0.00 to 14.50m, or 14.50m of 2.07 g/t AuEq. Drill hole AHA-090 encountered 11.60m @ 1.87 g/t gold Au and 65.4 g/t Ag from 0.00 to 11.60 metres, or 11.60m of 2.77 g/t AuEq. Drill hole AHA-088 encountered 12.50m @ 1.75 g/t Au and 28.6 g/t silver Ag from 0.00 to 12.5 metres, or 12.50m of 2.14 g/t AuEq. These holes continue to demonstrate the presence of gold mineralization at surface in the gold oxide cap.
  • In the central area of Hamama West, between sections 534200E and 534400E, drilling to date has only tested the shallow portion of the gold oxide cap, mineralization remains open to depth.

"Like the last set of drill results, these drill holes were planned to test the gold oxide cap at Hamama West," stated Mark Campbell, Chief Executive Officer of Aton. "With these last drill results in hand, we can now move to finalize the NI 43-101 report on Hamama West, which I expect to see by year end. The NI 43-101 report on Hamama West will help us to better understand the potential for an open-pit, heap-leach scenario at Hamama West. Further, it will help us, and investors, better understand Hamama's overall potential as the report is focused only on Hamama West, which is just one of the three zones at Hamama."

Drill holes AHA-088 to AHA-092 were focused on the near-surface oxide gold mineralization in the central area of Hamama West. Drill holes AHA-093 to AHA-095 were focused on the southwest extension of Hamama West. While gold mineralization is present at the southwest extension, the structural controls and the distribution of the mineralization are not fully understood. Aton will conduct further exploration at the southwest extension to better understand how the mineralization connects to Hamama West. Drill hole AHA-096 tested both the oxide and sulphide mineralization further to the west of holes AHA-088 to AHA-092.

Table 1: Intersections using a 0.25 g/t Au cut off.

Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t) AuEq (g/t)*
AHA-088 0.00 12.50 12.50 1.75 28.6 2.14
and 27.00 29.00 2.00 0.56 8.4 0.68
and 32.00 35.00 3.00 0.40 12.2 0.57
and 60.00 62.60 2.60 0.61 9.0 0.73
AHA-089 0.00 14.50 14.50 1.54 38.2 2.07
AHA-090 0.00 11.60 11.60 1.87 65.4 2.77
AHA-091 1.00 22.40 21.40 1.54 62.0 2.39
AHA-092 0.00 38.00 38.00 1.58 52.1 2.30
AHA-093 11.00 14.00 3.00 0.28 10.4 0.42
AHA-094 NSV
AHA-095 0.00 3.00 3.00 2.08 35.0 2.56
AHA-096 0.00 13.00 13.00 0.66 47.9 1.32
and 23.00 25.00 2.00 0.35 11.4 0.51
and 29.00 34.00 5.00 0.61 23.0 0.93
and 37.00 68.35 31.35 0.64 11.6 0.80

*Gold equivalent was calculated using a 72.59 gold-to-silver ratio (source Kitco.com -- November 24, 2016) and assumes 100% metallurgical recoveries. Cautionary note: this ratio changes over time.

Table 2: Intersections using a 0.50 g/t Au cut off.

Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t) AuEq (g/t)*
AHA-088 0.00 12.50 12.50 1.75 28.6 2.14
AHA-089 0.00 14.50 14.50 1.54 38.2 2.07
AHA-090 0.00 11.60 11.60 1.87 65.4 2.77
AHA-091 1.00 22.40 21.40 1.54 62.0 2.39
AHA-092 0.00 37.00 37.00 1.61 52.7 2.34
AHA-095 0.00 3.00 3.00 2.08 35.0 2.56
AHA-096 1.00 5.00 4.00 0.99 31.0 1.42
and 8.00 12.00 4.00 0.62 20.5 0.90
and 30.00 34.00 4.00 0.64 24.4 0.98
and 44.00 55.00 11.00 0.86 13.5 1.05
and 59.00 68.35 9.35 0.76 11.2 0.91

*Gold equivalent was calculated using a 72.59 gold-to-silver ratio (source Kitco.com -- November 24, 2016) and assumes 100% metallurgical recoveries. Cautionary note: this ratio changes over time.

The location of the drill holes AHA-088 to AHA-092 are shown in Figure 1, with selected drill holes also shown in cross-section in Figures 2 - 4. Drill holes were designed with the forthcoming mineral resource estimation in mind.

To view Figure 1. Drill hole plan, please visit: http://media3.marketwire.com/docs/1078172f1.pdf

To view Figure 2: Cross section 534320E, please visit: http://media3.marketwire.com/docs/1078172f2.pdf

Cross-section 534320E shows the continuous nature of the near-surface oxide gold mineralization in the target horizon. Mineralization remains open at depth on this section.

To view Figure 3: Cross section 534280E, please visit: http://media3.marketwire.com/docs/1078172f3.pdf

Cross-section 534280E shows the continuous nature of the near-surface oxide gold mineralization in the target horizon, consisting of oxidized, brecciated and carbonate-silica altered sulphide-bearing felsic volcanic rock types. Mineralization remains open at depth on this section.

To view Figure 4: Cross section 534360E, please visit: http://media3.marketwire.com/docs/1078172f4.pdf

Cross-section 534360E shows the continuous nature of the near-surface oxide gold mineralization in the target horizon. Mineralization remains open at depth on this section.

Upcoming milestones:

  • Closing the $4.0 million private placement (see news release dated November 18, 2016), anticipated close date is December 6, 2016;
  • Initial NI 43-101 resource estimate at Hamama West;
  • Ground magnetic, ground EM and downhole EM geophysical surveys, with the primary goal of identifying potential massive sulphide targets at Hamama;
  • Drill testing new targets generated by the geophysical survey at Hamama;
  • Resource expansion at both the Abu Marawat gold deposit, which hosts an inferred resource of 397,000 ounces AuEq (2.9 Mt grading 1.75 g/t Au, 29.3 g/t Ag, 0.77% Cu and 1.15% Zn)*, and Hamama.

About the Hamama project

The Hamama project ("Hamama") is located at the western end of the 40km long gold trend at the Abu Marawat concession and is comprised of three zones, Hamama West, Hamama Central and Hamama East. The mineralized horizon at Hamama has a strike length of approximately 3km and remains open to the west and the east. Mapping indicates that the horizon may extend another 3.2kms to the east, which would more than double Hamama's current strike length. Further exploration work will be conducted to confirm this. Aton's most recent exploration activities have been focused at Hamama West, where it recently completed 38 diamond drill holes in 3,428 metres. Hamama West has been deeply weathered into a soft, friable oxidized gossan blanket, referred to as a gold-oxide cap, which is over 900 metres long, up to 110 metres wide and has an average vertical depth of 35 metres. Importantly, sulphide mineralization has been traced up to 180 metres in depth at Hamama West and remains open. Aton plans to announce a NI 43-101 compliant resource for Hamama West by year end.

About Aton Resources Inc.

Aton Resources Inc. (AAN: TSX-V) is focused on its 100% owned Abu Marawat concession, located in Egypt's Arabian-Nubian Shield, approximately 400km north of Centamin's Sukari gold mine. Aton has identified a 40km long gold trend at Abu Marawat, anchored by the Hamama project in the west and the Abu Marawat gold deposit in the east. In addition to the Hamama project and the Abu Marawat gold deposit, the trend contains numerous gold exploration targets, including two historic gold mines. Abu Marawat is over 738 sq. km in size and is located in an area of excellent infrastructure, a four-lane highway, railway line, a 220kV power line and a water pipeline are in close proximity.

Qualified Person

The technical information contained in this News Release was prepared by Roderick Cavaney BSc, MSc (hons), MSc (Mining & Exploration Geology), AusIMM (f), SEG, GSA, SME, Exploration Manager for Aton Resources Inc. Mr. Cavaney is a qualified person (QP) under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

For further information regarding Aton Resources Inc., please visit us at www.atonresources.com.

Note Regarding Forward-Looking Statements

Some of the statements contained in this release are forward-looking statements. Since forward- looking statements address future events and conditions; by their very nature they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

*See the independent technical report titled "Technical Report on the Abu Marawat Concession (Concession or Project), Egypt" dated April, 2012 by Wayne W. Valliant, P.Geo., and Bernard Salmon, ing. of Roscoe Postle Associates Inc., available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.atonresources.com.

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