E79 Resources Corp. (CSE: ESNR, OTCQB: ESVNF) (“E79” or the “Company”) is pleased to report initial assay results received from the first two drill holes (April 27, 2021) at its Happy Valley Gold Prospect on its Myrtleford property in Victoria, Australia.
Drill hole HVD002:
- 0.70m @ 99.00 g/t Au from 94.90m downhole
Drill hole HVD003:
- 0.60m @ 147 g/t Au from 165.20m downhole
- 11.10m @ 160.45 g/t Au from 190.40m downhole including:
- 0.60m @ 2,430 g/t Au from 190.40m
- 3.00m @ 126 g/t Au from 198.50m
Rory Quinn, E79’s President and Chief Executive Officer stated, “Our drill program at Happy Valley was designed to test for down-dip extensions of previously mined high-grade (~31g/t Au) quartz vein structures. The first two drill holes at Happy Valley confirm extension of mineralized structures substantially below known historic mining levels. HVD002 intersecting gold roughly 60m beneath known historic mining and HVD003 intersecting gold roughly 80m below that.
Confirmation of a section of visible gold assaying at over 78 ounces per tonne (2,430 g/t Au) demonstrates the high-grade potential of the Victorian Goldfields. The presence of four other intersections assaying greater than 3 ounces per tonne demonstrates this is not a ‘one hit wonder’ at Happy Valley. Happy Valley sits within a ~7km corridor of historic gold mines at Myrtleford and that is one of 5 distinct corridors of historic gold mines observed on our Myrtleford property.”
Remaining results for HVD002 and HVD003 and Initial results for HVD004 and HVD005 are pending
Analytical assay results have confirmed the tenor of visible gold and other mineralized zones identified in drill core from the first two diamond drill holes at the Happy Valley prospect. These results confirm the company’s belief that high-grade gold mineralization exists at depth below historic gold mining areas. The current program will generate structural, lithological, alteration and geochemical information to determine their relationship to gold mineralization at the Happy Valley Mining Centre. This information will provide a model for exploration along strike and broader model for the Company’s Myrtleford prospects.
HAPPY VALLEY GOLD PROSPECT
The Happy Valley Prospect is situated in the south eastern portion of the Company’s Exploration Licence EL006724 in Victoria, Australia (Figure 4). It lies within a 7km long trend of historical workings. The Happy Valley Mining Centre has a documented historical production of 34,200 ounces of gold predominantly between 1866 – 1875. The Happy Valley Mining Centre produced at an average grade of ~31g/t Au, which presents E79 with an extremely attractive target. To date, only limited modern exploration has been conducted at this prospect.
Gold mineralization at Happy Valley occurs as quartz infill fractures and spurry formations within carbonate altered sedimentary units of Lower Ordovician age (448 – 443MA). Regionally mineralization appears to be proximal and related to the emplacement of several major regional Devonian age granitic plutons. The gold can occur as free particles within the quartz veins and can also be associated with sulphides, including pyrite and to lesser degrees arsenopyrite and galena.
Drill hole HDV003 was drilled at a dip of -55o, (16o steeper than HVD002), and on the same azimuth as HVD002 (216o mag, 228o Grid). The drill hole has intersected two zones of quartz containing both sulphides and coarse gold. All intersections represent downhole lengths and as such do not represent true width intersections. Historic mining operations were undertaken on subvertical steeply dipping quartz vein structures.
All samples are 1/2 HQ diameter (63.5mm) diamond drill core. Sampling was conducted to geological contacts. Samples were shipped by E79 contractors to ALS Global in Orange, NSW, Australia by DHL. The samples were crushed to a nominal 85% passing 3.15 mm. A 1 kg split was obtained using a Boyd rotary splitter and pulverized in its entirety to a nominal 85% <75 mm. A quartz wash was run through both the crushing and pulverizing equipment between all samples and sizing tests were performed on both the coarse crush and pulverized material. All samples were analysed by 50 g fire assay with an atomic absorption finish (Au-AA26). This method has an upper detection limit of 100 ppm. All samples were also analysed by a second fire assay using a reduced charge weight with an upper detection limit of 10,000 ppm (Au-OR1). Approximately 50% of the samples were analysed by three separate over-range fire assays to confirm reproducibility of the results. Over-range values from Au-AA26 were also re-run following dilution. Four certified reference materials (CRM) and nine coarse quartz blanks were also submitted with the samples to monitor accuracy and possible cross contamination, respectively. The results for all quality control samples lie within acceptable limits.
FIGURE 1 – HVD003 DRILL CORE SECTION (190.40M) SHOWING VISIBLE GOLD MINERALIZATION AND ASSOCIATED SULPHIDES
FIGURE 2 – HVD003 QUARTZ VEIN CONTAINING VISIBLE GOLD (198.50 – 201.50M DOWN-HOLE) 3.00M @ 126.87 G/T AU, WITHIN HYDROTHERMALLY ALTERED AND VEINED SEDIMENTARY UNIT
FIGURE 3 – CROSS SECTION THROUGH DRILL HOLES (228O GDA94) SHOWING LOCATION OF RELEASE ASSAY RESULTS
FIGURE 4 – HAPPY VALLEY MINING CENTRE STRUCTURAL TREND EL006724
FIGURE 5 – EL006724 SHOWING LOCATION OF THE HAPPY VALLEY MINING CENTRE
TABLE 1. DRILL HOLES AND SIGNIFICANT INTERSECTIONS
Table 2. Drill Hole Locations
*Coordinates are from drill design. Not yet surveyed.
- Reviewing follow-up drilling to expand on results once all other assays have been received
- Assessment of geological and structural data collection, assessment of hydrothermal alteration to aid in defining new target areas
- The Company continues to apply observations from the initial results to develop a comprehensive structural model for the Happy Valley target area
- A permit wide review and re-processing of geophysical data from the Myrtleford exploration license to define additional targets
Peter de Vries, MAIMM, MAIG a “Qualified Person” as defined by National Instrument 43-101, has read and approved all technical and scientific information contained in this news release. Mr. de Vries is the owner of Geological, Educational and Mining Services (GEMS) Pty Ltd, a geological consulting services company based in Victoria, Australia, and is Exploration Manager for E79 Resources.
President, Chief Executive Officer and Director
About E79 Resources Corp.
E79 Resources is focused on exploring for Fosterville-type mineralization at its Beaufort and Myrtleford properties in the Victorian Goldfields, Australia. At Beaufort, an opportunity exists to explore for a hard rock source of a major alluvial goldfield along a structure that is known to host gold in the region. The Myrtleford property represents the consolidation of an entire historic gold camp with over 70 past producing gold mines on the property, where the bulk of historic mining stopped at the water table.
Cautionary Note Regarding Forward-Looking Statements
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed “forward-looking statements” with respect to the Company within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”, “indicates”, “opportunity”, “possible” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although E79 believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, the Company’s ability to raise sufficient capital to fund its obligations under its property agreements going forward, to maintain its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general working capital purposes; changes in economic conditions or financial markets; the inherent hazards associates with mineral exploration and mining operations, future prices of gold, copper and other metals, changes in general economic conditions, accuracy of mineral resource and reserve estimates, the potential for new discoveries, the ability of the Company to obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such permits and consents in a timely fashion relative to the Company’s plans and business objectives for the projects; the general ability of the Company to monetize its mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company’s operations, compliance with environmental laws and regulations, dependence on key management personnel and general competition in the mining industry. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.