Aton Resources Inc.
TSX VENTURE : AAN

Aton Resources Inc.

July 15, 2016 11:52 ET

Aton Resources First Drill Results from the Current Drill Campaign at Hamama Encountered Excellent Gold

Silver Values Including 17 Metres of 2.91 g/t Au and 51.37 g/t Ag Enclosed Within A Halo of 37.1 Metres of 1.81 g/t Au and 35.87 g/t Ag

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 15, 2016) - Aton Resources Inc. (TSX VENTURE:AAN) ("the "Company") is very pleased to report that assay results for the early holes in the current drill campaign encountered excellent gold-silver mineralization. Drilling commenced on the 31st March with diamond drill hole AH-59 which targeted the Gold Oxide Cap north of and down dip from AHA-34 at Hamama West. AHA-34 had intersected 9 meters at 1.3 g/t Au and 70.6 g/t Ag in a previous drill campaign. Drill hole ANA-60 was sited behind AHA-59 to test the down dip extension to the mineralization. A drill hole further north again, AHA-61 was sited to test the mineralization down dip from both holes as shown in the cross section figure 1. Very interesting lithologies were encountered in each hole confirming the mineralization as being in a volcanic associated massive sulphide (VMS) environment. AHA-59 in the oxidized zone returned 5.1 meters at 0.89 g/t Au and 16.44 g/t Ag. Up-hole from the gold-silver mineralization, 3.8 meters of 0.79% Zn was intersected. Drill hole AHA-60 tested the deeper extension to this mineralization and returned 28 meters of 2.23 g/t Au and 42.2 g/t Ag in the sulphide zone. Up-hole from this are two narrower zones. These were 4.45 meters at 0.66 g/t Au with 19.94 g/t Ag; plus 6 meters at 0.65 g/t Au and 15.8 g/t Ag. Once again, zinc mineralization was encountered up-hole from the gold-silver intersections; in AHA-60 it was 23.5 meters of 2.5% Zn. Although there has been secondary migration and enrichment in the oxide environment, stratigraphically these zinc-rich zones are sitting under the mineralized exhalite unit that is carrying the precious metals. This is normal in a VMS situation.

Highlights:

  • Drill holes AHA-59, AHA-60 and AHA-61 were drilled on the same section as previously drilled hole AHA-34 (9 meters at 1.3 g/t Au and 70.6 g/t Ag) but down dip from it. AHA-59 in the oxide zone adjacent AHA-34 returned 5.1 meters at 0.89 g/t Au and 16.44 g/t Ag. AHA-60 down dip again but in the sulphide zone returned 28 meters of 2.23 g/t Au and 42.2 g/t Ag showing a marked increase in thickness and grade. Results from hole AHA-61, down dip again, have not been received. See figure 1.
  • The higher grade precious metal intersections are enveloped by a lower grade halo of mineralization. Thus, in AHA-60 the 17 meters at 2.9 g/t Au & 51.4 g/t Ag (1 g/t Au cut-off) sits within an intersection of 28 meters at 2.23 g/t Au & 42.2 g/t Ag (0.5 g/t Au cut-off). This in turn is enclosed in 37 meters at 1.8 g/t Au & 35.9 g/t Ag. (0.25 g/t cut-off). The mining cut-off will be calculated later during modeling.
  • In both AHA-59 and AHA-60, elevated zinc values were encountered; 3.8 meters of 0.79% Zn in AHA-59 and 23.5 meters of 2.5% Zn in AHA-60. These zones stratigraphically underlie the gold-silver mineralized exhalite.

Mark Campbell, Chief Executive Officer of Aton Resources stated, "These exciting results from Hamama West are confirming the potential of both the near surface Gold-Oxide Cap, and the deeper sulphide mineralization to host a significant resource. Further assay results are expected in the very near future and these should contribute towards the goal of achieving this. We have close to 3,000 square kilometers in two promising concessions that includes a number of old mines that we are re-assessing. Currently the exploration team is preparing to process the last of the samples from stage one of the 3,500-meter drilling program at Hamama West. We are excited to start stage two of the drilling program to carry on filling gaps in the drill pattern over the Gold-Oxide Cap and the deeper primary sulphide targets. We are on track to complete our initial NI 43-101 compliant resource estimate for Hamama West in Q3."

To view "Figure 1: Cross section showing selected intervals for AHA-059 and AHA-060" please visit the following link: http://media3.marketwire.com/docs/1062858Figure1.jpg

Table 1: Au-Ag mineralized intervals for AHA-059 and AHA-060

Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
AHA-059 34 39.1 5.1 0.89 16.44
AHA-060 40.5 46.5 6 0.65 15.8
AHA-060 63 67.43 4.43 0.66 19.94
AHA-060 71 99 28 2.23 42.2

Table 2: Zn mineralized intervals for AHA-059 and AHA-060

Hole ID From (m) To (m) Interval Zn (%)
AHA-059 19 22.8 3.8 0.79
AHA-060 6.5 30 23.5 2.5

See the appendix for a full list of assays.

To view "Figure 2. Geological map of western Hamama West showing drill holes AHA-59 & AHA-60" please visit the following link: http://media3.marketwire.com/docs/1062858Figure2.jpg

INFORMATION CONCERNING HAMAMA VMS PROJECT

The Hamama project lies within a belt of mineralization and old mines that extends east north-easterly for 40 km across Aton Resources' Abu Marawat Concession. The Main Horizon at Hamama has a strike length of some 3 km but extensions along the same stratigraphic horizon extend this to about 4 1/2 km. This stratigraphic horizon needs exploration to search for more occurrences. The Hamama mineralized horizon is divided into three main zones; Hamama West, Hamama Central and Hamama East. Mineralization at Hamama outcrops at surface, and at Hamama West is deeply weathered into a soft and friable oxidized blanket called the Gold-Oxide Cap, which extends over 900 m in strike length and has an average vertical depth of 35 m. Apart from the intersections announced herein, drill results in oxide at Hamama West include 37 m at 2.32 g/t Au and 107.1 g/t Ag in AHA-15, 32.6 m at 1.37 g/t Au and 56.4 g/t Ag in AHA-37 and 19 m at 2.46 g/t Au and 157.3 g/t Ag in AHA-46. Preliminary metallurgical (bottle-roll) test results on the Gold-Oxide Cap returned up to 92.2% Au and 65% Ag recovery by cyanide leach from oxide (see January 13, 2015 News Release).

Primary sulphide mineralization at Hamama West returned such intercepts as 48 m at 1.45 g/t Au and 31.8 g/t Ag in AHA-23 and 88 m at 1.11 g/t Au and 118 g/t Ag in AHA-31 (see News Release dates May 12, 2015). The last drill hole from the 2015 drilling program, AHA-58, was entirely mineralized, from surface to 210 m depth, and includes 39 m at 1.64% Zn, 0.25 g/t Au and 25.7 g/t Ag (53 m to 92 m), 12.3 m at 2.49% Zn, 0.29% Cu, 0.26 g/t Au and41.4 g/t Ag (92 m to 104.3 m), 43.5 m at 3.70% Zn, 0.23% Cu, 2.61 g/t Au and 150 g/t Ag(112.5 m to 156 m) and 50.7 m at 0.69 g/t Au and 29.7 g/t Ag (160 m to 210.7 m).

About Aton Resources Inc.:

Aton Resources Inc. (TSX VENTURE:AAN) is exploring potentially economic gold, silver and base metal deposits in the Central Eastern Desert of Egypt with the aim of developing mines. The Company's 100% owned concessions, Abu Marawat and Fatiri, between them cover 2,772 km2 of under explored ground. Evidence of gold and copper mining in the concessions dates the many surface workings to pre-historic possibly Old Kingdom through Ptolemaic, Roman and Early Arab times. Three historic gold mines occur within the two concessions: British miners produced gold at Sir Bakis, Semna and Abu Zawal into the 1920s.

Much of the gold vein mineralization in the district is orogenic related, quartz-carbonate type and is associated with major shear-zones. Centamin's Sukari gold mine is located 400 km to the south of Abu Marawat, in the same belt. The Abu Marawat and Fatiri Concessions cover a Proterozoic Pan-African greenstone belt. This is part of the Arabian Nubian Shield that also occurs in Saudi Arabia, Sudan, Eritrea and Ethiopia. Significant VMS deposits in this belt includes Jabel Sayid (Saudi Arabia); Bisha Main and Harena (Eritrea); Hassai, plus Hadal Awatib (Sudan) and Emba Derho, Debarwa plus Adi Nefas (Eritrea). Alexander Nubia's Hamama gold-silver VMS is geologically similar to these VMS deposits. Similar geological settings to the Arabian Nubian Shield include the greenstone belts of the Yilgarn (Western Australia), Abitibi (Quebec) and Birimian (West Africa). The Arabian Nubian Shield is most similar in age to the latter.

The Company's land package, located 350-400 km southeast of Cairo, includes excellent infrastructure. Hamama has direct access to two four-lane highways, a zero-gradient railway bed that runs through Abu Marawat concession to a Red Sea port, multiple high-voltage (capacity 220kV) power lines that cross between the two concessions, a water pipeline and nearby major cities. The latter include Qena, on the Nile 70 km to the west and the Port of Safaga, on the Red Sea, 50 km to the east. The city of Luxor, a two-hour drive from Hamama, has an international airport.

Qualifying 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 more information on Aton Resources Inc., visit us at www.atonresources.com.

Cautionary Note Regarding Forward-Looking Statements

The securities of Aton Resources Inc. described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. 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.

APPENDICES
Appendix 1: Raw Assay Results for AHA-059
From To Interval Au (g/t) Ag (g/t) Cu (ppm) Pb (ppm) Zn (ppm)
0 1 1 0.009 2.1 764 21 1840
1 2.5 1.5 0.008 4.6 999 25 3930
2.5 3.3 0.8 0.01 2.1 601 53 1375
3.3 4.3 1 0.029 1.9 983 138 2610
4.3 5.3 1 0.033 2.9 1220 66 3340
5.3 6.3 1 0.022 3.8 1110 56 2870
6.3 7.2 0.9 0.017 4 806 32 3590
7.2 8.1 0.9 0.035 5.4 848 1890 3260
8.1 9 0.9 0.017 2.1 683 317 2670
9 10.3 1.3 0.023 1.6 609 77 3990
10.3 11.5 1.2 0.037 1.4 295 23 1085
11.5 12.55 1.05 0.019 1.8 246 134 609
12.55 13.7 1.15 0.012 3.5 440 448 3050
13.7 14.9 1.2 0.008 1 296 150 3020
14.9 16 1.1 0.005 2 574 565 3760
16 17 1 0.019 2.8 459 880 2250
17 18 1 0.041 3.8 317 261 2800
18 19 1 0.149 5.1 387 615 3680
19 20 1 0.059 4.8 273 170 5320
20 21 1 0.008 4.1 271 35 8160
21 22 1 0.054 4.7 78 207 9120
22 22.8 0.8 0.199 3 286 453 6330
22.8 23.9 1.1 0.253 6.6 58 119 2590
23.9 25 1.1 0.464 11.2 87 158 1810
25 26 1 0.467 11.9 93 149 1610
26 27 1 0.254 13.5 123 151 1880
27 28 1 0.089 12.6 185 216 1990
28 29 1 0.282 16 152 427 3790
29 30 1 0.06 4.5 31 74 607
30 31 1 0.243 8.5 67 222 1690
31 32 1 0.293 11.2 75 301 834
32 33 1 0.36 18 140 433 1260
33 34 1 0.333 16.1 95 351 1860
34 35 1 0.975 16.1 235 689 3260
35 36 1 0.561 18.8 122 301 975
36 37 1 0.726 8.2 113 526 962
37 38 1 0.378 16.2 143 233 629
38 39.1 1.1 1.71 22.3 237 526 1295
Appendix 2: Raw Assay Results for AHA-060
From To Interval Au (g/t) Ag (g/t) Cu (ppm) Pb (ppm) Zn (ppm)
6.5 7.5 1 0.022 1.3 503 120 7710
7.5 8.8 1.3 0.02 3 915 143 8740
8.8 9.8 1 0.037 3.2 1205 253 13050
9.8 10.8 1 0.027 2.1 823 187 10050
10.8 12.1 1.3 0.016 2.8 717 95 8120
12.1 12.4 0.3 0.034 3 2230 666 139500
12.4 13.4 1 0.016 0.7 537 23 28900
13.4 14.4 1 0.0025 0.3 418 10 31300
14.4 15.9 1.5 0.0025 0.5 621 15 33400
15.9 16.6 0.7 0.008 1.1 762 61 62200
16.6 17.4 0.8 0.01 1.5 420 96 93000
17.4 18.55 1.15 0.009 1.9 1420 148 15350
18.55 19.55 1 0.009 2.5 1470 108 10100
19.55 20.55 1 0.016 3.1 3200 1080 21300
20.55 21.55 1 0.009 1.7 1000 1000 14850
21.55 22.6 1.05 0.007 1.2 575 270 13600
22.6 23.6 1 0.052 1 197 134 32000
23.6 24.6 1 0.055 5.7 1440 3620 46700
24.6 25.6 1 0.033 2.3 721 2090 40200
25.6 27 1.4 0.041 1.6 406 142 21200
27 28.1 1.1 0.122 2.1 135 221 1420
28.1 29 0.9 0.06 2.4 574 918 18300
29 30 1 0.067 1.7 141 195 19800
30 30.65 0.65 0.038 1.6 74 130 1670
30.65 32 1.35 0.049 1.9 104 109 369
32 33 1 0.043 3.1 130 126 405
33 34.4 1.4 0.11 4.7 106 96 323
34.4 36 1.6 0.115 4.8 138 168 393
36 37 1 0.055 3.3 62 106 138
37 37.5 0.5 0.047 2.5 35 65 32
37.5 38.6 1.1 0.069 1.3 21 50 61
38.6 39.6 1 0.21 2.9 14 52 37
39.6 40.5 0.9 0.339 7.7 44 67 64
40.5 41.5 1 0.611 12.1 124 126 122
41.5 42.5 1 0.596 12 112 125 104
42.5 43.5 1 0.6 12.5 73 134 1145
43.5 44.5 1 0.515 16.1 79 147 3610
44.5 45.5 1 0.828 20.7 128 181 713
45.5 46.5 1 0.767 21.4 120 178 1165
46.5 47.5 1 0.406 8.8 51 86 307
47.5 48.5 1 0.19 3.6 23 52 207
48.5 49.5 1 0.214 4.9 28 60 256
49.5 50.22 0.72 0.14 3.2 18 32 117
50.22 51.22 1 0.651 18.7 50 73 132
51.22 52 0.78 0.141 7.4 12 59 57
52 53 1 0.245 3.3 17 38 42
53 54 1 0.133 3.1 18 36 194
54 55 1 0.154 10.2 25 43 85
55 56 1 0.125 7.4 20 49 239
56 57 1 0.181 6 17 42 155
57 58 1 0.115 4.6 16 33 67
58 59.02 1.02 0.097 2.3 16 27 41
59.02 60 0.98 0.152 4.9 27 34 34
60 61 1 0.121 2.6 24 33 41
61 61.9 0.9 0.164 2.5 25 34 42
61.9 63 1.1 0.439 12.2 44 72 44
63 63.6 0.6 0.831 23 89 150 95
63.6 64.6 1 0.736 18.8 88 127 116
64.6 65.6 1 0.706 25 130 207 354
65.6 66.43 0.83 0.568 22.2 138 196 156
66.43 67.43 1 0.533 12.3 48 85 48
67.43 68 0.57 0.405 9.9 48 153 67
68 69 1 0.388 12.2 88 245 176
69 70 1 0.406 13.7 94 191 579
70 71 1 0.461 15.8 100 134 341
71 72 1 0.672 19.3 110 208 428
72 73 1 0.588 17.7 103 189 336
73 74 1 0.608 19.9 119 200 293
74 75 1 1.155 28.7 92 149 223
75 76 1 1.24 38.1 138 138 196
76 77 1 1.025 26.9 103 171 321
77 78 1 0.848 47.9 162 340 539
78 79 1 19.8 164 2590 13600 116000
79 80 1 6.65 83.8 1735 6240 37300
80 81.08 1.08 2.35 56.1 496 1950 9370
81.08 82 0.92 3.06 72.9 903 3130 27100
82 83 1 1.505 49.8 223 1175 4110
83 84 1 1.475 55.1 318 1585 4100
84 85 1 1.565 53.5 385 2190 7110
85 86 1 1.355 48.2 269 1545 4200
86 87 1 0.789 38.1 154 501 901
87 88 1 1.475 30 172 628 1165
88 89 1 1.1 21.9 144 552 1130
89 89.5 0.5 0.26 5.9 53 241 589
89.5 90 0.5 1.28 29.5 276 1235 2690
90 91 1 1.305 26.1 383 1740 5200
91 92 1 1.2 23.1 319 1300 4990
92 93 1 1.105 34.1 320 1115 3420
93 94 1 1.71 44 529 1835 3980
94 95 1 2.35 56.2 714 2320 4030
95 96 1 0.671 17.5 185 1455 2670
96 97 1 0.713 14 196 783 1560
97 98 1 2.45 37.3 421 1460 2040
98 99 1 2.93 41.1 452 1020 1455
99 100 1 0.015 2.4 65 78 328

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