New Zone Discovered And Completion Of Trenching With Commencement Of Core Drilling On Placer Mountain

KELWONA - Damara Gold Corporation has discovered a new zone of mineralized quartz veins, completed mechanized trenching and commenced core drilling on its Placer Mountain Project south of Princeton, BC. The Company has now completed a mechanized trenching program consisting of the collection of 110 continuous chip samples from a combined total of 322 meters in 4 separate trenches across the newly discovered Kodiak Vein Zone. Mineralized quartz veins were intersected on the western end of Trenches 1, 2 and the eastern end of Trench 3. Bedrock exposure in Trench 4 was limited to one short section due to deep overburden and did not adequately test the strike extension of the vein system. The series of veins intersected are closely spaced, typically 10-50 cm in width and spatially associated with narrow felsic dykes within granitic intrusive rocks. The veins display stronger sulfide mineralization and wider alteration halo’s than is observed at the Main Zone. Assays remain pending for all trench samples.

Rush assays from 10 selected float grab samples collected by soil samplers at the new Kodiak Zone ranged from below detection up to 70.6 g/t gold and 244 g/t silver. The grab samples were collected from two separate areas. One area is 750 meters southwest along trend of the Kodiak Zone veins and the other is 200 meters south-southeast, on a possible separate trend. Neither area has yet had follow up trenching. The Company awaits analytical results for both the trench samples as well as 660 infill and extension soil samples collected during the Phase II program. The results will be used to design a follow up program of maiden core drilling this year as well as further soil sampling, trenching, ground geophysics in 2022.

The geology at the Main Zone consists of Triassic Nicola Group sedimentary and volcanic rocks which are intruded by granodiorite dykes at the eastern end. Trenching at the Main Zone in 2018 and 2019 demonstrated that the Main Vein horsetails into a series of stringer zones as it enters the granodiorite intrusion to the east. Post-mineral Princeton Group rocks cover mineralization to the east and the underlying geology will be tested with core drilling this year. Approximately 1,000 meters of drilling is also slated for the new Kodiak Zone trenching discovery. Once all assays have been received, the Company will issue a press release detailing those results as well as a finalized drill plan for the Kodiak Zone.

Larry Nagy, CEO, said, “We are very excited to be drilling again at Placer Mountain and testing the along strike extensions of the Main Vein we intersected last Winter. We eagerly await analytical results on the new Kodiak Zone, which will provide us with a second major target to test this year. The recently flooding has unfortunately had a devastating effect on the nearby town of Princeton, and we are working closely with local suppliers and contractors to ensure everyone’s well-being and safety during these difficult times.”