High Grade Gold Zone Intersected At The Iron Butte Project

VANCOUVER - Angold Resources Ltd. reported results for its 2022 drilling program at its Iron Butte Project, located approximately 60 kilometers (km) south of Battle Mountain, Nevada. The key highlights show: Robust mineralization has been confirmed at Red Ridge with 0.81 g/t gold equivalent (0.64 g/t Au and 14.3 g/t Ag) over 94.5 m from surface in hole AAU22-04; A new zone featuring the highest grade ever drilled on the project has been  intersected 91 m beneath the Red Ridge zone with 13.62 g/t gold equivalent (13.48 g/t Au and 11.5 g/t Ag) over 1.52 m from 405.4 m in hole AAU22-04; Anomalous gold was intersected over the entire 457 m length of hole AAU22-04 where the outer extent of the mineralized system was not reached; Step-out drilling has intersected strong mineralization 135 m down-dip from the North Zone with 0.58 g/t gold equivalent (0.45 g/t Au and 10.2 g/t Ag) over 19.8 m from 153.9 m in hole AAU22-02; High-grade potential in the North Zone remains untested below veins mapped at surface; and Potential between Red Ridge and North Zone untested at depth where drilling was historically shallow and widely spaced.

A total of 5 drill holes were completed for a total of 2,152 meters. Drilling was distributed across the project area, with three holes into the Red Ridge Zone, one at the North Zone.

CEO, Adrian Rothwell, said, "Angold is pleased to announce excellent results from its maiden drill program on the Iron Butte Project. This program was high risk, with large step-outs that tested extensions of mineralization. Results confirmed mineralization is constrained within tenure boundaries, and expands opportunities in high grade material at depth as well as in new zones at both Red Ridge and North Zone."

Deeper high-grade vein potential was only tested in the Red Ridge zone and proof of concept was achieved with AAU22-04 (1.52 m @ 13.62 g/t AuEq (13.48 g/t Au and 11.5 g/t Ag) from 405.4 m), encountering high grade veining. This intercept is also coincident with the down-dip projection of a mineralized fault mapped at the surface. The entire length of AAU22-04 is anomalous in gold, suggesting the bottom or eastern edge of the system was not reached in this hole. AAU22-04 was terminated at the depth limits of the RC drill used. The high-grade interval represents the highest-grade gold intercept historically-to date on the project and is deeper than all previous drilling in Red Ridge.

Diamond core drill holes AAU22-01 and AAU22-01A were drilled from a shared pad approximately 168 meters from the southwest edge of the Red Ridge historic resource and were designed to test for significant gold along northeast striking structures mapped to the north and at depth within favorable stratigraphy where they intersect broad resistivity and chargeability anomalies. Though the targeted structures were encountered they were poorly gold mineralized. Despite this, the geologic-stratigraphic data acquired will allow development of a better geologic model when coupled with relogging of historic RC chips.

The intercept in AAU22-02 starting at 153.9 meters represents a step-out of ~135 meters north of the nearest mineralized historic drillhole, effectively expanding the North Zone mineralization to the north and at depth along the Tertiary volcanic-Paleozoic sedimentary rock contact. Deeper high-grade vein potential in the North Zone at depth below 1 to 5 meter wide vein zones mapped at surface was not tested in this program.

 Further exploration for high-grade veins at depth below Red Ridge and the North zone is warranted.

Several intercepts of silver dominant mineralization were encountered in both the North and Red Ridge zones. These intervals are characterized by disseminated silver sulfides-selenides in narrow quartz veins and broader silicified zones outside of or below known gold dominant mineralized zones. While higher grade silver assays from surface rock chip sampling also commonly contained higher gold grades, this proved not to be the case with drilling at depth. These results suggest there was a separate silver dominant epithermal event at Iron Butte.

Red Ridge AAU22-04 tested continuity and verified historic grades within a near surface, higher grade (>1 g/t Au) zone within the overall Red Ridge mineralization, as illustrated by 15.24 m @ 1.83 g/t AuEq (1.55 g/t Au and 23.8 g/t Ag) from 62.5 meters. The hole from surface to 94.5 meters is continuously mineralized at an average grade of 0.81 g/t AuEq (0.64 g/t Au and 14.3 g/t Ag). Additionally, the intercept of 30.48 m @ 0.37 g/t AuEq (0.34 g/t Au and 2.9 g/t Ag) from 160 meters represents a down-dip step-out of 91.4 meters from known mineralization.

Visually, mineralization is best where strongly silicified or quartz veined rocks are present.

In AAU22-01 and AAU22-01A strong chargeability anomalies proved to be gold-poor sooty and brassy pyrite concentrations hosted in Late Paleozoic Havallah Formation sandstone-siltstone and Late Paleozoic Overlap Sequence conglomerate below the Golconda Thrust, while the broad resistivity anomalies identified in MT and IP surveys proved to be quartzite and chert of the Ordovician Valmy Formation (Upper Plate rocks) in the Roberts Mountains Allochthon. AAU22-01A was lost at 710 meters in highly altered and sheared carbonate rock. While this apparent Carlin-style alteration was visually encouraging, it proved only weakly anomalous in gold (15-34 ppb Au) with associated anomalous pathfinders As-Hg-Sb-Tl.

In the North Zone, tested by AAU22-02, gold-silver mineralization is localized within a zone of highly altered felsic dikes or sills directly below the volcanic contact. These dikes-sills are not exposed at surface and with a singular hole in this geologic environment, true thickness can not yet be estimated. Further drilling laterally and at depth along this contact may yield additional mineralization and clarify the orientation of the dikes-sills encountered.

Northern Extension Zone: An encouraging but high-risk, bulk-tonnage type target in the Northern Extension zone, identified under cover through surface geochemistry and IP surveys, was tested with AAU22-03 but did not return any significant gold or silver intercepts. It appears anomalous geochemistry and silicification this far north represents a lateral cooler and mercury dominated, gold barren part of the Iron Butte epithermal system.