Mammoth Resources Corp. (TSX-V: MTH), (the
“Company”) is pleased to provide an update on activities
at its Tenoriba gold-silver-copper exploration property in the
Sierra Madre precious metal belt in southwestern Chihuahua State,
Mexico, including:
2017-18 Exploration Program
Summary,
Highlight Results,
Conclusions and Opportunities, and
Recommendations for Future Work.
2017-18 Exploration Program
Summary
Company geologists vacated the property in late
June until early October of this year during what is traditionally
the annual rainy season in the area following a lengthy period of
exploration from late 2017 through the first half of 2018. Mammoth
geologists returned to the property in October to sample gaps in
the drill core between intervals of reported mineralization which
had not previously been sampled and to perform maintenance on roads
in and around the project area following the seasonal rains.
During the 2017-18 diamond drill program Mammoth
drilled, logged and sampled 13 diamond drill holes for a total of
2,705 metres (m) testing to maximum vertical depths of 200 m
numerous targets based on geophysical features, surface geology,
presence of gold, and intriguing geochemistry. The area mapped,
sampled and analysed for gold consists of an approximate 5
kilometres (km) west, south west - east, northeast strike length
and potentially economical grades of gold-silver were intersected
over metres to many tens of metres in 9 of 11 holes reported, two
holes are yet to report results (please refer to table of all
reported drilling posted on the Company’s web site
at:http://www.mammothresources.ca.update.editmec.com/i/maps_figures/2018-11-30_Summary-Drilling-Results-Total-Program.pdf).
The Induced Polarization (IP) and Magnetic (Mag)
geophysics survey covered approximately 40 percent of this area.
Diamond drilling was targeted at confirming whether geophysics
could be a useful tool in targeting features at depth which were
responsible for the surface gold mineralization. In this extent the
drill program was very successful.
Thomas Atkins, President and CEO of
Mammoth commented on the results from drilling, stating:
“We’ve always been impressed and intrigued by the sheer dimensions
of the gold-silver footprint at Tenoriba, one that measures about
15 square kilometres and still remains open to the east and
west.
“Given we intersected potentially economical
values of gold-silver in 9 of 11 drill holes from this campaign and
that 7 of these holes tested areas over one kilometre to the east
and west of the area previously drilled, illustrates the vast
potential of the deposit.
“Another intriguing feature from this drilling
is the evidence we obtained suggesting rocks intersected in
drilling in the western portion of the area of surface
mineralization are deeper in a High Sulphidation – Porphyry system
as evidenced by numerous compelling features in the drill core in
holes drilled in this area. This western portion of the property is
an area in which the geophysics survey, which was so productive in
identifying targets in this drill program, only covered a mere 200
metres of an approximate 2 kilometres of mineralized strike length.
We’re looking forward to covering the remaining 60 percent of the
property not yet having been surveyed with geophysics and testing
targets in this western portion of the property for
gold-silver-copper Porphyry potential.”
Highlight Results
Some highlight, illustrative drill intersections
from each project area include the following:
In the Central project
area:
- TEN 17-04 intersected 10.0 m grading 1.13
grams per tonne (g/t) gold equivalent (AuEq) and 45.4 m grading
0.63 g/t Au Eq;
- TEN 17-05 intersected 23.5 m grading 1.32 g/t
AuEq and 27.0 m grading 0.63 g/t Au Eq.
In the El Moreno project area
(located approximately 1.5 km west of the Central project
area):
- TEN 17-01 intersected 30 m grading 0.79 g/t
AuEq, including 5.9 m grading 3.51 g/t Au Eq;
- TEN 17-03 intersected 15.5 m grading 0.36 g/t AuEq, including
7.2 m grading 4.34 g/t Au Eq of which 7.2 m graded
3.59 percent copper (included in the gold
equivalent).
- TEN 17-02 intersected 80.0 m grading 0.18 g/t AuEq and TEN
17-11 intersected 227.0 m grading 0.14 g/t Au Eq.
In the Carneritos project area
(stretching as much as 1.2 km east of the Central project
area):
- TEN 17-06 intersected 126.8 m grading 0.52 g/t AuEq, including
25.0 m grading 1.21 g/t Au Eq;
- TEN 17-08 intersected 14.9 m grading 0.62 g/t
AuEq.
A location map illustrating surface geology,
mineralization, drill hole locations and including the location of
a longitudinal section line drawn through the deposit is posted on
the Company’s web site
at:http://www.mammothresources.ca.update.editmec.com/i/maps_figures/30-11-2018_Surface-Location-Map.png.
The Ministry of Mining (Direccion General de
Minas), Mexico granted the Company the license for the Mapy 3
concession consisting of 1,850 hectares adjacent and directly east
of the Mapy and Mapy 2 concessions and which captures the potential
eastern extension of mineralization observed to continue to the
east of the Carneritos area.
Mammoth has also been involved since the middle
of the year in numerous corporate development initiatives regarding
the Tenoriba project towards a possible transaction to assist in
advancing exploration at Tenoriba.
Conclusions and
Opportunities
Based on the results obtained from this program
Mammoth has concluded, and believe the following opportunities
exist on the property:
- The El Moreno area (located in the western portion of the
mineralized area on the property) exists as much as 600 m deeper in
the mineralizing system (please refer to longitudinal section:
http://www.mammothresources.ca.update.editmec.com/i/maps_figures/30-11-2018_Long-Section.jpg)
and although limited to only 200 m of coverage, the Induced
Polarization (IP) geophysical survey identified a different suit of
rocks than the hydrothermally altered volcanics which comprise much
of the gold-silver mineralized surface outcrop on the
property.
- Diamond drilling at El Moreno tested geophysical features to
vertical depths of as much as 200 m and intersected
Feldspar Porphyry intrusive rocks (intrusive rocks
are the source of the hydrothermally altered volcanics abundant in
other higher elevation drill holes and surface outcrops on the
property), with Porphyry-style mineralization, including
disseminated sulphides and complex stockwork-sulphide rich veinlets
yielding lengthy intersections of lower grade gold (TEN 17-02
intersected 80.0 m grading 0.18 g/t AuEq and TEN
17-11 intersected 227.0 m grading 0.14 g/t Au Eq)
in combination with other Porphyry-style features, including:
- Phyllic-Pyritic alteration (as indicated by the presence in
drill core of alteration minerals illite, tourmaline and
dickite);
- presence of chlorite, magnetite and epidote, indicative of
alteration at temperatures of approximately 350 degrees Celsius,
temperatures commonly found nearer the Porphyry source in a
Porphyry - High Sulphidation system versus minerals formed under
cooler temperatures (200 degrees Celsius) nearer the area of
typical High Sulphidation mineralization;
- Potassium Feldspar alteration/flooding observed at deeper
intervals within the drill core; and
- the presence of copper; 7.2 m grading 3.59% copper in hole
TEN17-03.
- Having intersected Porphyry-style intrusive rocks at El Moreno,
the opportunity exists over a 2 km strike length
of intermittent surface gold-silver mineralized outcrop, east of El
Moreno west towards the Cerro Colorado area, to discover a large
Porphyry gold-copper mineralizing system with drilling to date
encountering features typical of those found on the flanks of
Porphyry systems.
- At the Carneritos area (located in the eastern portion of the
mineralized trend), the surface geology is more typical of High
Sulphidation (HS) epithermal alteration/mineralization. Limited
drilling to date in this area (only drilled 5 drill holes have
tested the entire approximate 4 square km area of Carneritos) has
intersected intervals of narrow pyrite veinlets in a stockwork
texture associated with silica, dickite and local patchy vuggy
silica alteration, typical of alteration found on the shoulders of
large HS deposits. Potentially economical grades of gold-silver
mineralization were intersected, including hole TEN 17-06 grading
0.52 g/t AuEq over 126.8 m, including 1.21
g/t Au Eq over 25.0 and the opportunity
exists for the discovery of a large, economical
gold-silver mineralized body within Carneritos and/or the extension
up to 800 m east of Carneritos which has not yet been covered by
geophysics.
- Within the main east-west trend of alteration and
mineralization at Tenoriba there appear three orientations of
generally normal displacement faults; one set of faulting has its
axis oriented generally east-west, parallel to the general trend of
mineralization, another set trends northeast-southwest and a third
set trends northwest-southeast, near perpendicular to the second
set. Displacement appears in the order of 25 to 100 metres. There
are instances (particularly within the Central area of the
property) where precious metal mineralization is associated with
the general trend of these structures (TEN 17-05 intersected
23.5 m grading 1.32 g/t AuEq and 27.0 m
grading 0.63 g/t Au Eq) and opportunity
exists to delineate gold mineralization within and in
proximity to these structures.
Recommendations for Future
Work
Based on the results obtained from the recent
drill program and the conclusions and opportunities which have
stemmed from these results, the following is recommended for future
work:
- Cover the remaining 60% of the principal areas of
mineralization which have not undergone any geophysics with a
similar ground IP and Magnetometer geophysical survey to what was
performed previously on the property, including some east-west
oriented survey lines in order to assess the northeast-southwest
and northwest-southeast structural features observed on
surface;
- Employ the services of a highly experienced and industry
recognized HS-Porphyry deposit specialist to review all exploration
data obtained from the Tenoriba project and seek this individual’s
opinion, as an additional point of view, on the interpretation of
the deposit and recommendations for future drilling; and
- Perform additional diamond drilling to follow up on the
encouraging results obtained from the most recent drill program
with particular attention on assessing the Porphyry potential in
the El Moreno-Cerro Colorado areas in the western portion of the
property and the HS potential in the eastern portion of the
property.
The Company looks forward to reporting on
progress towards achieving the recommended work program in the
weeks ahead.
Mammoth would also like to confirm that on
October 16, 2018, following an initial press release announcement
on July 10th, the Company issued 1,840,000 common shares at a
deemed issuance price of $0.05/share to settle a non-accruing debt
to the President and CEO of the Company. The Company would also
like to announce that it has requested approval to issue an
additional 2,414,000 common shares of Mammoth at a deemed issuance
price of $0.05/share to settle amounts owed two third party
creditors. The issuance of these shares are subject to TSX Venture
Exchange approval.
Qualified Person / Quality
Controls:
Richard Simpson, P.Geo., Vice-President
Exploration for Mammoth Resources Corp. is Mammoth's Qualified
Person, according to National Instrument 43-101, for the Tenoriba
property and is responsible for and has reviewed any technical data
mentioned in this news release. Please refer to the Company's
website under the "Projects" section for a description of the
Company's complete QA/QC procedures. Gold Equivalent is calculated
where the silver grade is converted to a gold grade at 75 g/t Ag =
1 g/t Au and 15.3 lbs Cu = 1.0 g/t Au. All drill lengths reported
are core lengths versus perpendicular true length of mineralized
intersections.
To find out more about Mammoth Resources and to
sign up to receive future press releases, please visit the
company's website
at: www.mammothresources.ca, or contact
Thomas Atkins, President and CEO at: 416 509-4326.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward Looking Information: This news release
may contain or refer to forward-looking information. Although the
Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, undue reliance should not be placed on these
forward-looking statements due to the inherent uncertainty therein.
Please refer to the Company’s website at the following link:
http://www.mammothresources.ca/s/FAQ.asp to review the Company’s
complete forward looking statement.
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