Precipitate Gold Corp.
TSX VENTURE : PRG

Precipitate Gold Corp.

May 02, 2017 07:30 ET

Precipitate Strengthens New Target at Ginger Ridge East Soil Anomaly with Heightened Gold-Zinc-Lead Correlation

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 2, 2017) - Precipitate Gold Corp. (the "Company" or "Precipitate") (TSX VENTURE:PRG) is pleased to announce additional soil sampling results increasing the concentration of elevated samples within the recently identified gold-in-soil geochemical anomaly at the Ginger Ridge East zone, within the Company's 100% owned Juan de Herrera Project in the Dominican Republic.

Laboratory results from additional samples collected to increase sample density over the full extent of the Company's Ginger Ridge East soil anomaly have refined the scale and strengthened the quality of the anomaly. Following a comprehensive and concentrated recent soil sampling effort (density of 25m by 25m), the most robust portion of the soil anomaly measures 1,000 metres ("m") long by an estimated average width of 100 metres (up to 200m wide locally). The northwest-southeast trending soil anomaly is both consistent and strong, with notably elevated gold, lead and zinc values throughout the surface anomaly; along with intermittent copper values.

This recently identified multi-element soil anomaly is located approximately one kilometre east of the main drill test area at Ginger Ridge and has developed into a high priority drill target for the next phase of drilling. See the accompanying maps or the Company's website for the Ginger Ridge East soil gold + zinc + lead + copper anomaly illustration map.

Current highlight results on the priority "East anomaly" within the Ginger Ridge Zone are as follows:

  • A pronounced multi-element soil anomaly measuring 1,000m by 100m (up to 200m locally) with gold values up to 842 ppb, zinc up to 2,461 ppm, and lead up to 305 ppm;

  • The soil anomaly is coincident with important geophysical anomalies frequently associated with gold mineralization in the Tireo Gold Camp region; including a strong magnetic low signature and combined induced polarization ("IP") gradient signatures of resistivity high and moderate chargeability;

  • The zone includes a large barite subcrop exposure hosted in Tireo volcanics. Barite is commonly associated with many notable Tireo Gold Camp mineral systems, particularly with volcanogenic massive sulphide ("VMS") systems.

  • Early stage geological mapping shows the soil anomaly to be underlain by northwest trending intermediate volcanic rocks with an estimated dip of -45 degrees northeast, which are overlain by andesite-basalt volcanics to the east.

Jeffrey Wilson, Precipitate's President & CEO stated, "Results of the recent and ongoing work at the Ginger Ridge East soil anomaly have elevated the zone to a priority target for the upcoming drill program. The zone's coincidental geochemical and geophysical signatures are in-line with the type of target our exploration efforts seek to delineate. These additional soil sample results confirm the East anomaly as the most significant surface soil geochemical anomaly identified to date at the Project, even stronger than the original Ginger Ridge zone, based on the anomaly's length and consistently high sample values and geophysical signatures. The area is currently undergoing additional detailed sampling, hand trenching, geological mapping and drill access construction, to complete target delineation in advance of drilling."

Soil samples were collected on 25m by 25m grid intervals along northeast oriented grid lines. The multi-element soil anomaly is characterized by a correlation of gold with various pathfinder elements which include arsenic, antimony, silver, lead, and zinc. The gold-zinc-lead-copper in-soil anomalies are defined by values exceeding the 70th percentile (5.1 ppb in the case of gold). To date, gold-in-soil values within the new anomaly area range from nil to 870 ppb. Early geological mapping at the anomalous zone indicates the zone is underlain by intermediate volcanic rocks with a northwest strike and an estimated dip of -45 degrees northeast which are overlain by andesite-basalt volcanics to the east.

The new soil anomaly is on general trend with the recent "Cachimbo" discovery by neighbouring GoldQuest Mining Corp. The Ginger Ridge zone is part of a series of hydrothermal centers that stretch some seven kilometres through to Precipitate's "Southeast" and "Jengibre South" targets, among others along trend. Precipitate crews are working on targets in the southern portion of PRG's Juan de Herrera project and work from these areas will be reported separately as results are received and interpreted.

This news release has been reviewed by Michael Moore P. Geo., Vice President, Exploration of Precipitate Gold Corporation, the Qualified Person for the technical information in this news release under NI 43-101 standards.

Rock and soil samples were bagged, sealed and delivered directly to Bureau Veritas ("BV") preparation facility in Maimon Dominican Republic where they were dried, crushed (or sieved in the case of soils) and pulped. Sample pulps were then delivered to BV facilities in Vancouver BC (an ISO 9001 accredited facility) for analyses. Samples were crushed (or sieved) to with up to 80% passing 2mm and split using a riffle splitter (code PRP70-250). An approximate 250 gram sub-sample split was pulverized to minus 200 mesh (74μ). A 15 gram sub-split from the resulting pulp was then subjected to aqua regia digestion and multi-element ICP-MS analysis (code AQ201). Rock sample results with gold greater than 1,000 ppb were subjected to fire assay (ICP-ES finish) analysis (30 g pulp; code FA330-Au).

About Precipitate Gold:

Precipitate Gold Corp. is a mineral exploration company focused on exploring and advancing its mineral property interests in the Tireo Gold Trend of the Dominican Republic. The Company also maintains assets in northern British Columbia and southeast Yukon Territory and is actively evaluating additional high-impact property acquisitions with the potential to expand the Company's portfolio and increase shareholder value.

Additional information can be viewed at the Company's website www.precipitategold.com.

On Behalf of the Board of Directors of Precipitate Gold Corp.,

Jeffrey Wilson, President & CEO

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

This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Precipitate Gold Corp.'s ("Precipitate" or the "Company") current beliefs and is based on information currently available to Company and on assumptions it believes are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Precipitate to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the exploration concessions may not be granted on terms acceptable to the Company, or at all; general business, economic, competitive, political and social uncertainties; the concessions acquired by the Company may not have attributes similar to those of surrounding properties; delay or failure to receive governmental or regulatory approvals; changes in legislation, including environmental legislation affecting mining; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although Precipitate has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Precipitate does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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