Sego intersects 0.95 g/t gold over 80 metres at Miner Mountain, British Columbia

Sego Resources Inc. [SGZ-TSXV] reported results of a seven-hole drill program in the Southern gold zone of the 100%-owned Miner Mountain porphyry copper-gold project near Princeton, southwestern British Columbia.

Drilling tested the northern and western extensions of the Southern Gold Zone for the potential of deeper porphyry copper-gold mineralization defined by geophysical anomalies.

Highlights included extended the moderately north-dipping Southern Gold Zone, intersected (0.95 g/t gold over 80 metres) and terminated the Southern Gold Zone to the west.

The hole was drilled the deep magnetic and chargeability anomalies to the south of the Southern Gold Zone to intersect broad intervals of strong disseminated magnetite and pyrite that contain low gold and copper values.

Sego completed surface mapping and petrology within and around the Southern Gold Zone to identify the fine-grained nature of the host rocks, structural controls and alteration assemblages controlling or tracking Au mineralization and unexposed porphyry Cu-Au mineralization.

Future work will fill-in drill holes within an ~80-metre space between previous drill holes in the Southern Gold Zone. Geochemical and chargeability data will be evaluated to support a deep drill test of porphyry Cu-Au mineralization located north of the Southern Gold Zone.

A resource calculation of the Southern Gold Zone mineralization and on-going petrology to point towards porphyry copper-gold targets, not well exposed at surface, are planned for early 2023.

The seven-hole 2022 drill program totalling 1,582 metres was two pronged: DDHs 59, 60-64 to test the western and northern extension of the Southern Gold Zone and DDHs 59 and 65 to explore deep blind and deep inverted chargeability-magnetic anomalies located ~200 metres south of the Southern Gold Zone. The inverted geophysical data was recalculated to locate the true position of the anomalies in a volume of rock and to explore targets not exposed at surface.

DDH 59 was collared 47 metres north on section locating DDH 50 and 52 to test both targets to depth, the northern extension of the Southern Gold Zone and to explore the deep western margin of the chargeability and magnetic anomalies. Based on the inverted data, the anomalies were anticipated to occur at 250-400 metres vertical depths.

DDH 59 intersected the extension of the Southern Gold Zone and returned 0.95 g/t gold over 80 metres. The hole defined the northern extension of Southern Gold Zone and defined a steep northern dip of the zone defined by gold data from DDHs 50 to 52.

Drill holes are proposed on a subparallel section midway between sections DDHs 59-52-50 and DDHs 55-54, which are spaced ~80 metres apart. All these previous holes carried significant values. The steep slope with small cliffs and a gully prohibited early drill programs that could have drill tested this section.

The first and second holes will be collared ~45 metres apart on the northern end of the section and will be inclined 50^◦ to 160^◦. A third hole inclined 50^◦ to 340^◦ will be positioned in the southern end of the section and will be drilled northerly to the first two holes to track the Southern Gold Zone mineralization below the cliffs.

On the same pad, a fourth shallow (~50 m) hole at -50^◦ at 160^◦ will locate the base of the Southern Gold Zone. The other proposed drill holes above will be ~140 metres long and will track the Southern Gold Zone at depth to add to a later resource calculation.

An ~400-metre deep drill hole oriented -50^◦ at 340^◦ on the northern end of this new drill section will explore the potential for porphyry copper-gold mineralization deep below the inaccessible steep slope to the north. Spotty Cu soil anomalies in the area and a chargeability anomaly below the slope are potential clues of deeper mineralization.

An outlier proposed drill hole to be located 175 metres east of the Southern Gold Zone on an upper bench is designed to drill below a vertical 60 metres long drill hole 63-9 previously logged and recorded by Climax Copper in a 1964 assessment report. A 14-metre felsite unit at the bottom of the hole contained several percent disseminated pyrite thought to reflect the known chargeability anomaly in the area. An additional single hole (~140 m long) is proposed inclined at 50^◦ at 160^◦ to explore below the felsite unit.

An initial resource estimate of the Southern Gold Zone is planned in the New Year following the proposed drill program utilizing results from the proposed holes and past DDH results. Interpretation of geological features, particularly rock types, alteration assemblages, mineralized and post-mineral faults, will guide the control of the gold mineralization and the resource calculation.

Miner Mountain is an alkalic copper-gold porphyry project. The property covers 2,056 hectares and is 15 km north of the Copper Mountain Mine operated by Copper Mountain Mining Corp. and Mitsubishi Copper. Sego has a MOU with the Upper Similkameen Indian Band on whose Traditional Territory the Miner Mountain project is situated.