Compass Gold: Auger Drilling Confirms Presence of Strong Subsurface Gold Anomalism at an Average Depth of 13 m Over 12 km at Ouassada

TORONTO, May 07, 2018 (GLOBE NEWSWIRE) -- Compass Gold Corp. (TSX-V:CVB) (Compass or the Company) is pleased to provide an update on the previously announced (see Compass news release dated April 3, 2018) ongoing deep soil auger geochemical survey program at the Ouassada exploration permit on its Sikasso Property in Southern Mali.

Highlights

• Deep soil auger sampling has identified a broad 1.5 km wide long and 12 km long zone of anomalous gold at an average depth of 13 m beneath and coincident with the previously reported shallow soil sampling areas. This anomaly, which closely correlates with the bedrock geology, remains open to the north.
  
  
• Gold concentrations up to 2,600 parts per billion (ppb) gold (Au) (2.6 grams per tonne (g/t) Au) occur at the artisanal workings at Farabakoura, and up to 722 ppb Au located 500 m southeast of the workings at Kabangoué North. Highest gold concentrations are not restricted to areas of known workings.
  
  
• Close correlation of anomalous zones with shallow soil geochemistry and a mapped fault bounded Birimian volcanoclastic unit.
  
  
• A total of 1,786 3-m composite deep soil auger samples from 11,556 m of drilling were analyzed over target area 1.

Compass CEO, Larry Phillips, commented, “The initial results from the soil auger sampling program at Ouassada are highly encouraging, particularly as they demonstrate strong gold anomalism closer to the bedrock. They closely follow the known geological structures and lithologies for at least 12 km and correlate well with the previously reported shallow soil results. We continue to be very pleased with both the rate at which our field team has advanced our exploration program and especially the results we’re seeing in an area where several gold companies are now in production or are developing significant gold deposits.”

Deep Soil Auger Sampling

Subsequent to the Company’s April 3rd progress report relating to shallow soil geochemistry, the Company is pleased to report the first results of 1,786 composite deep soil auger assays, collected in the first of three broad prospective zones predominantly within the Ouassada permit (termed target areas 1, 2 and 3; target area 3 also continues onto the Sankarani permit). Target area 1 contained 893 sample points. The targets were identified by interpreting airborne geophysical data, the presence of an extensive zone of artisanal mining (containing bedrock, vein-hosted, gold mineralization) and the similarity of the geological and structural setting to the Yanfolila gold mine, located 40 km along strike to the southwest (see Figure below).

To view this Figure, please click the following link: http://resource.globenewswire.com/Resource/Download/b9b6759b-13a7-4f9f-9b10-801f3139cf50

Detailed Auger Soil Results

The 1,786 auger sample composites were collected over the permits at depths that varied from 1 to 23 m, with an average depth of 13 m. The grid was oriented east-west with a line spacing of 500 m and a sample spacing of 100 m, identical to the location of the shallow soil samples. One metre intervals of soil were collected from the bore holes at the sample site, with the top 3 m, and the bottom 3 m sent to SGS (Bamako) to be dried, split and composited into 3 m intervals. The top and bottom 3 m composites were then analyzed for gold by fire assay analysis at the SGS geochemical laboratory. Top and bottom composites from the same locations were generally in good agreement (R²= 0.79 for all data), and it was decided that only the deeper composite sample would be reported here.

Simple statistical analyses were performed on the data on target area 1, to determine the degree of sample anomalism for the bottom 3 m composite. Background values were considered to be 8 ppb Au or less (number (n) = 651), weakly anomalous (8 - 14 ppb Au, n = 147), moderately anomalous (14 - 22 ppb Au, n = 55), strongly anomalous (22 - 90 ppb, n = 31), and extremely anomalous (> 3 standard deviations from the mean, 90 - 2600 ppb Au, n = 9). The results are illustrated in the figure above.

The results from these deep soil auger samples in target area 1 identified a 12-km long continuous anomaly extending from the artisanal gold workings at Kabangouè, through the largest concentration of workings at Farabrakoura, and continuing for an additional 9 km to the north-northwest. The full northern extent of the anomalism on target 1 is unknown, since complete assay results for the remaining 2.5 km are pending. However, an isolated sample containing 352 ppb Au is present in this area. Unlike the shallow soil sampling, reported on April 3, 2018, which suggested that five north-northwest trending anomalies were present in target area 1, the current deep soil auger results are interpreted to be one north-trending anomaly with a width of up to 1.5 km. This zone corresponds to the underlying geology, which is mapped as a fault-bound Birimian volcanoclastic package. The variance between the shallow soils and the deep soil auger results is likely caused by the effects surface drainage.

Ouassada Target 2 and Ouassada-Sankarani Target 3 Deep Soil Auger Sampling

Approximately 1,500 holes have been drilled on target areas 2 and 3 by the truck-mounted power augers. The composite soil samples collected are currently at the laboratory, and the Company is eagerly awaiting these next assay results.

Once all of the deep soil auger samples have been received, they will be integrated into the remote sensing and geophysical reinterpretation studies to determine the location of drill holes to test the presence of bedrock mineralization.

Sankarani Sampling

Shallow soil sampling was completed in Sankarani on April 6^th, with a total of 1,715 samples collected on the main part of the permit. Results have started to arrive from the ALS assay laboratory in Burkina Faso, and the results are expected by the end of May.

Kalé Sampling

The shallow soil sampling teams have now been redeployed to Kalé 285 km southeast of Ouassada, where they are collecting samples over priority targets within the permit, before moving to priority targets in the Kourou and Tieloulena permit areas. It is anticipated that the work can be completed before the summer rainy season begins in June. The remaining lower priority samples will be collected after the rains in October.

Next Steps

The Company looks forward to reporting the results of the completed auger drilling programs on target areas 2 and 3, and the shallow soil program on the Sankarani permit. Field teams are currently collecting shallow soil samples from priority targets at Kalé and, once complete, will progress to Kourou and Tieloulena. Follow-up sampling, possibly including bedrock drilling, will be planned after reviewing all of the geological and geochemical data, and combining it with the results of the previously noted remote sensing and geophysical studies. The work program is progressing as planned; on time and within budget.

About Compass Gold Corp.
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the TSX-V. Through the recent acquisition of MGE and Malian subsidiaries, Compass holds gold exploration permits located in Mali that comprise the Sikasso Property. The exploration permits are located in three sites in southern Mali with a combined land holding of 1,179 km². The Sikasso Property is located in the same region as several other multi-million ounce gold projects, including Morila, Syama, Kalana and Kodieran. The Company’s Mali-based technical team, led in the field by Dr. Diallo and under the supervision of Dr. Sandy Archibald, P.Geo, is initiating a new exploration program. They are examining the first of numerous anomalies noted for further investigation in Dr. Archibald’s August 2017 “National Instrument 43-101 Technical Report on the Sikasso Property, Southern Mali.

Qualified Person
The technical information in this news release has been reviewed and approved by Dr. Sandy Archibald, P.Geo, Compass’s Technical Director, who is the Qualified Person for the technical information in this news release under National Instrument 43-101 standards.

Forward‐Looking Information
This news release contains "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the Company’s planned exploration work and management appointments. Readers are cautioned not to place undue reliance on forward‐looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward‐looking information except as required by applicable law.

For further information please contact:

Website: www.compassgoldcorp.com

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.