Phoenix Gold Resources Expands on Drilling Results from the 2021 Phase 1 Program at York Harbour, Newfoundland
VANCOUVER, January 17, 2022 - Phoenix Gold Resources Corp. (the "Company") (TSXV:PXA) (OTC:PGRCF) (Frankfurt:5DE) is pleased to provide the assay results from nine diamond drill holes that were completed as part of the Company's successful first phase of drilling on the York Harbour Copper-Zinc-Silver Project situated 27 kilometres west of Corner Brook, Newfoundland. The results presented below expand upon previously released results from selected sample submissions announced on October 12, 2021.
Highlights intersections from initial assay results:
• YH21-04 with 34 m of 0.91% copper, 79.74 g/t cobalt, 0.66% zinc, and 0.03 g/t silver
(Including 0.6 m of 8.68% copper, 424.0 g/t cobalt, 3.90% zinc, and 0.01 g/t silver)
• YH21-06 with 52.2 m of 0.85% copper, 91.8 g/t cobalt, 0.53% zinc and 1.75 g/t silver
(Including 2.60 m of 6.31% copper, 450.65 g/t cobalt, 4.67% zinc, and 0.01 g/t silver)
• YH21-08 with 6.6 m of 0.62% copper, 212.85 g/t cobalt, 0.65% zinc and 0.11 g/t silver
• YH21-09 with 11.6 m of 1.41% copper, 202.94 g/t cobalt, 0.10% zinc and 2.41 g/t silver
The additional laboratory assay results from the Phase 1 confirmation drilling program further validate the historical drilling results with 9 of the 9 drill holes intersecting disseminated and massive sulphide mineralization in 296 samples, totalling 207.7 m of sampled core. The results presented below expand upon previously released results from selected sample submissions announced on October 12, 2021.
The assay results suggest further mineralization potential extending beyond the historical 'A', 'G' and 'H' zones which were the focus of the Phase 1 program. The results also highlight potential for broader zones of mineralization extending beyond the previously known extents of mineralization identified in the historical records that are available.
The results furthermore confirm the expected style of Volcanic Massive Sulphide - Cypress Type mineralization with previously undefined polymetallic mineralization types identified across zones of varying thickness and grade often at above average grade.
Table 1: Summary of best intersections from the Phase 1 diamond drilling program at York Harbour.
| Type | From (m) | To (m) | Interval (m) | Cu % | Zn % | Ag g/t | Au g/t | Co g/t |
| YH21-01 | 37.9 | 38.79 | 0.9 | 1.38 | 11.72 | 24.49 | 0.12 | 35.07 |
| 38.34 | 38.79 | 0.4 | 1.63 | 13.20 | 27.90 | 0.14 | 41.00 | |
| 62.75 | 64.05 | 1.3 | 0.02 | 0.23 | 7.56 | 0.24 | 34.38 | |
| 119 | 120 | 1.0 | 0.09 | 0.45 | 0.75 | 0.02 | 37.00 | |
| 151.8 | 152 | 0.2 | 1.26 | 12.00 | 4.20 | 0.02 | 123.00 | |
| 156.52 | 157.82 | 1.3 | 0.40 | 2.66 | 1.27 | 0.01 | 67.00 | |
| 171.81 | 171.91 | 0.1 | 0.84 | 0.80 | 2.60 | 0.01 | 48.00 | |
| 210.27 | 212 | 1.7 | 0.71 | 17.65 | 15.79 | 0.16 | 31.92 | |
| 210.57 | 210.87 | 0.3 | 0.70 | 36.80 | 24.00 | 0.18 | 17.00 | |
| 211.47 | 212 | 0.5 | 1.25 | 22.00 | 17.70 | 0.10 | 31.00 | |
| 215.43 | 216.03 | 0.6 | 0.09 | 0.29 | 0.77 | 0.01 | 38.00 | |
| 226.68 | 227.38 | 0.7 | 0.09 | 1.95 | 0.85 | 0.04 | 41.37 | |
| 235.2 | 235.31 | 0.1 | 0.17 | 1.70 | 3.70 | 0.05 | 51.00 | |
| YH21-02 | 38 | 44 | 6.0 | 0.63 | 2.44 | 6.15 | 0.06 | 45.44 |
| including | 39.38 | 44 | 4.6 | 0.75 | 2.66 | 7.00 | 0.06 | 50.17 |
| YH21-03 | 26.36 | 27.25 | 0.9 | 0.90 | 2.17 | 7.62 | 0.15 | 68.47 |
| YH21-04 | 140.5 | 143.74 | 3.2 | 0.09 | 0.08 | 0.64 | 0.02 | 41.65 |
| 146 | 146.44 | 0.4 | 0.10 | 1.25 | 0.80 | 0.03 | 56.00 | |
| YH21-04 | 166.11 | 173.57 | 7.5 | 0.58 | 0.03 | 1.13 | 0.01 | 95.18 |
| including | 166.61 | 169.12 | 2.5 | 1.36 | 2.37 | 2.37 | 0.01 | 138.97 |
| YH21-04* | 179.45 | 213.46 | 34.0 | 0.91 | 0.66 | 1.35 | 0.03 | 79.74 |
| including* | 180.03 | 182 | 2.0 | 3.68 | 0.08 | 3.59 | 0.01 | 257.80 |
| and | 188 | 197.25 | 9.3 | 1.57 | 0.05 | 1.14 | 0.01 | 131.82 |
| and incl* | 188.97 | 189.54 | 0.6 | 8.68 | 0.11 | 3.90 | 0.01 | 424.00 |
| and* | 197.25 | 199.69 | 2.4 | 0.80 | 2.67 | 2.44 | 0.02 | 81.77 |
| and | 201.56 | 207.03 | 5.5 | 0.51 | 1.24 | 13.11 | 0.02 | 40.23 |
| and | 209.66 | 213.37 | 3.7 | 0.71 | 1.75 | 10.66 | 0.04 | 46.30 |
| Type | From (m) | To (m) | Interval (m) | Cu % | Zn % | Ag g/t | Au g/t | Co g/t |
| YH21-05 | 146.2 | 147.2 | 1.0 | 0.83 | 0.05 | 1.35 | 0.02 | 88.00 |
| YH21-05 | 147.8 | 166.87 | 19.1 | 0.27 | 0.35 | 1.49 | 0.02 | 59.50 |
| including | 148.23 | 149.38 | 1.2 | 0.59 | 3.13 | 6.67 | 0.24 | 61.48 |
| 175.06 | 178.06 | 3.0 | 0.59 | 0.04 | 2.16 | 0.01 | 58.67 | |
| YH21-06* | 145.36 | 197.6 | 52.2 | 0.85 | 0.53 | 1.75 | 0.01 | 91.81 |
| including* | 146.26 | 148.06 | 1.8 | 1.19 | 5.09 | 13.47 | 0.21 | 67.00 |
| and | 156.95 | 159.55 | 2.6 | 0.59 | 0.09 | 2.13 | 0.02 | 102.42 |
| and* | 178.35 | 184.15 | 5.8 | 3.52 | 0.09 | 2.80 | 0.01 | 283.03 |
| and incl* | 178.7 | 181.3 | 2.6 | 6.31 | 0.13 | 4.67 | 0.01 | 450.65 |
| and* | 190.15 | 193.2 | 3.0 | 3.34 | 0.13 | 2.77 | 0.01 | 211.15 |
| and incl* | 191.9 | 192.3 | 0.4 | 9.91 | 0.27 | 7.50 | 0.01 | 568.00 |
| and | 194.05 | 198.5 | 4.4 | 0.84 | 0.16 | 4.15 | 0.00 | 91.71 |
| YH21-07 | 115.75 | 121.39 | 5.6 | 0.01 | 0.07 | 1.95 | 0.02 | 39.13 |
| YH21-08* | 121.3 | 130.7 | 9.4 | 0.46 | 0.53 | 2.67 | 0.08 | 60.09 |
| including* | 122.3 | 128.9 | 6.6 | 0.62 | 0.65 | 3.37 | 0.11 | 66.92 |
| YH21-09* | 5 | 16.61 | 11.6 | 1.41 | 0.10 | 2.41 | 0.00 | 202.94 |
* Partially reported intervals according to Phoenix Gold news release dated October 12th, 2021.
The above intervals are drilling lengths, not true widths, because the true orientation of the mineralization has not yet been established.
Higher grades from the 2021 Phase 1 drill program combined with often broad mineralized intersections, up to 52.5 m demonstrate excellent potential for bulk grade continuity both along strike and down dip extending beyond the known extent of mineralization identified historically at the 'A', 'G' and 'H' zones at the York Harbour project.
Andrew Lee, President and CEO commented "We are very encouraged with the excellent VMS copper-zinc-silver-cobalt potential on the York Harbour property, as demonstrated by these results of the first phase of drilling results. In addition to these excellent assay results, this drilling program showed that the known mineralization is both near surface and readily accessible by the existing underground workings. Based upon these results, the Company has proceeded with expanded drilling programs in the Main area and with exploration drilling targeting several identified VMS targets elsewhere on the property."
Table 2: Summary of Phase 1 drill hole locations and down hole specifications.
| HOLE-ID | EASTING | NORTHING | ELEVATION | LENGTH | AZIMUTH | DIP |
| (UTM NAD 83) | (UTM NAD 83) | (m AMSL) | (m) | (degree) | (degree) | |
| YH21-01 | 404276.33 | 5433424.70 | 355.04 | 248.00 | 60.00 | -45.00 |
| YH21-02 | 404285.23 | 5433411.64 | 356.10 | 44.00 | 60.00 | -45.00 |
| YH21-03 | 404289.23 | 5433414.48 | 356.47 | 27.25 | 60.00 | -45.00 |
| YH21-04 | 404331.94 | 5433415.40 | 359.19 | 218.00 | 60.00 | -60.00 |
| YH21-05 | 404385.07 | 5433399.98 | 368.02 | 185.00 | 60.00 | -60.00 |
| YH21-06 | 404358.57 | 5433406.81 | 361.81 | 206.00 | 60.00 | -60.00 |
| YH21-07 | 404345.28 | 5433442.01 | 359.34 | 134.00 | 60.00 | -60.00 |
| YH21-08 | 404528.52 | 5433679.03 | 360.65 | 140.00 | 240.00 | -60.00 |
| YH21-09 | 404385.79 | 5433766.81 | 309.23 | 20.00 | 60.00 | -45.00 |
QA / QC Comments
Three hundred Phase 1 diamond drill core samples of sawn core have been collected from core lengths usually varying from 0.3 to 1.50 m depending upon geological and mineralogical constraints. Samples were delivered Activation Laboratories ("ActLabs") in Ancaster, Ontario, an ISO/IEC-accredited laboratory. There they were crushed to a nominal minus 2 mm, split into representative sub-samples and then pulverized to at least 95% minus 105 microns before collecting sub-sample pulps for each of the core samples.
All sub-sample pulps were initially analyzed for 36 elements using ICP QC procedures which included fusing with Na2O2. The fused samples were then dissolved in purified water and acidified with concentrated nitric and hydrochloric acids. The solutions were then measured by an ICP. Samples are analyzed with a minimum of 10 certified reference materials, and every 10th sample was prepared and analyzed in duplicate plus a blank is prepared every 30 samples and analyzed. In addition, a 5 g sub-sample pulp for each core sample was analyzed for gold using fire assay fusion techniques with an atomic absorption finish ('FA/AA'). On each tray of 42 samples there is two blanks, three sample duplicates and 2 certified reference materials, one high and one low (QC 7 out of 42 samples).
Based upon the initial ICP results, any element returning predetermined over-limit values, specifically for copper, zinc, silver and gold, were automatically assayed using conventional assay procedures. There were no over limit gold values but there were several copper, zinc and silver over- limit ICP results. For each of these samples a 5 g sub-sample was split and assayed using conventional fire assay procedures with an atomic absorption finish ('FA/AA'). The laboratory QA/QC procedures for these samples were the same as for the previous gold FA/AA analyses.
Phase 2 drilling
On December 15, 2021, the Phase 2 drilling program concluded with an additional 29 holes completed totalling 4,562 m of drilled core (See figure 1). To date 1,219 drill core samples have been collected comprising disseminated to massive sulphide mineralization. A total of 204 standard, blank and duplicate samples have been inserted into the sample string for a total of 1423 samples. The samples were collected from one-half of the drill core sawn lengthwise between each identified sample interval and they were later shipped to the ISO/IEC-certified assay laboratories of Activation Laboratories Ltd. ('Actlabs') in Ancaster, Ontario. In addition to the 5% inserted quality control samples, the assay laboratory also inserts their own QA/QC samples and, at least, 10% of the final analyzed and/or assayed drill core samples are being check-assayed at a different ISO-accredited laboratory.
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Figure 1: Phase 1 and Phase 2 York Harbour Drill hole locations and down hole traces.
About the York Harbour Mine Property
The York Harbour Mine Property is known to be prospective for its copper-zinc-silver-gold-cobalt massive sulphide deposits. The known mineralization exhibits characteristics consistent with classic mafic-type flow dominated (Cyprus-type) VMS deposits. Similar geological environments and styles of mineralization have formed relatively large VMS copper-zinc deposits elsewhere worldwide.
Qualified Person: Luke van der Meer, P.Geo is an independent consultant for the Company and a Qualified Person as defined by National Instrument 43-101 Standards for Disclosure of Mineral Projects, and he has reviewed and approved the scientific and technical information in this news release.
About the Company
Phoenix Gold Resources Corp. (TSXV:PXA) (OTCPK: PGRCF) (Frankfurt: 5DE) is an exploration and development company focused on the York Harbour Copper-Zinc-Silver Project, a mineral property located approximately 27 km from Corner Brook, Newfoundland. The Company plans to continue drilling the 11 known mineralized zones and test other new massive sulphide targets, like the No 4 Brook showing, while focusing on gaining access to the 400-level and Sea Level adits.
The Company's Phoenix Gold Project is in Battle Mountain, Nevada, USA, and is described more thoroughly in the Company's geological technical report entitled, "NI 43-101 Technical Report on the Phoenix Gold Project, Lander County, Nevada, USA" dated effective September 15, 2020 by Yingting (Tony) Guo, P.Geo. Nevada is considered one of the most active mining jurisdictions globally, and the Battle Mountain Mining district is well-known for production of gold, copper and silver over the past few decades. As described in the technical report, the Phoenix Gold Project is located within 5 km of Nevada Gold Mines' (Newmont/Barrick JV) Phoenix/Fortitude open-pit mining operations.
For more information on Phoenix Gold Resources Corp. please contact info@phoenixgoldresources.ca Tel: +1-778-302-2257 or visit the website at www.phoenixgoldresources.ca for the French version of this news release, past news releases, media interviews and opinion-editorial pieces by CEO and Chairman Andrew Lee.
ON BEHALF OF THE BOARD OF DIRECTORS
Andrew Lee
CEO, President and Director
Telephone: 778-302-2257 | Email: andrew@phoenixgoldresources.ca
Website: www.phoenixgoldresources.ca
1518 - 800 Pender Street W, Vancouver, BC, Canada V6C 2V6
Cautionary Statement Regarding Forward-Looking Information
This news release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Forward-looking statements herein include but are not limited to statements relating to the prospects for development of the Company's mineral properties, and are necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to business, market and economic risks, uncertainties and contingencies that may cause actual results, performance or achievements to be materially different from those expressed or implied by forward looking statements. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements.
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 press release.
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