Results From Induced Polarization Geophysical Survey At South Bullfrog

VANCOUVER - Zacapa Resources Ltd. reported on the results of its 21.9 line-km induced polarization (IP) geophysical survey at the South Bullfrog gold project in the center of the Beatty District, Nevada. Some high quality data retuned from 21.9 line-km induced polarization geophysical survey with multiple chargeability and conductivity anomalies. The Shingleback target area anomaly is closely associated with known surface geochemical anomalies and nearby historical workings; Geologists are in the field following-up the survey with mapping and sampling to refine drill targets. The Company anticipates rapid permitting process on exploration friendly Bureau of Land Management ground following finalization of hole locations.

Zacapa's recently completed pole-dipole induced polarization (IP) geophysical survey has returned several prospective geophysical features including one in an area already identified as highly prospective due to surface geochemical anomalies and outcropping rock units known to host gold deposits in the district. This high chargeability, low resistivity features along Line 1, in what has been termed the Shingleback prospect, occurs in an area with several historic shafts some of which appear to have been actively permitted as recently as 2015. The coincidence of a strong chargeability feature adjacent to a highly resistive rocks can be an indication of hydrothermal alteration involving pyrite and silicification or clay alteration. Several deposits in the district are known to contain gold-bearing disseminated pyrite and abundant silicate alteration9,10. Initial geologic mapping in the Shingleback area has revealed a well-developed mineralized fault structure with a chargeability high that appears to expand with depth. Zacapa's is actively mapping in this area and other significant zones of alteration along structures at the Cornerstone, Sledge, and Bottoms Up prospects with an emphasis on defining the ideal locations for initial drill testing.

"To have uncovered such an exciting target at an early stage in our exploration program is very encouraging. Alluvial cover makes South Bullfrog challenging to explore, but where others see difficulty we see opportunity, and the team has embraced the challenge and generated excellent results," commented Adam Melnik, Chief Executive Officer. "We look forward to further refining our understand of several other geophysical anomalies that lie under cover in the east and south of our property."