Zacapa Resources Provides An Exploration Update On The Pearl Porphyry Copper Exploration Project In Arizona

VANCOUVER, July 12, 2022 - Zacapa Resources (TSXV: ZACA) (OTCQB: ZACAF) (DE: BH0) provides an update of exploration activities to date at its 100% owned Pearl porphyry copper project adjacent to BHP's past-producing San Manuel-Kalamazoo porphyry copper mine in Arizona (1,390 Mt at 0.6% Cu, 0.011 % Mo, 0.017 g/t Au, 1.8 g/t Ag)^1,2. Zacapa Resources has identified a window of porphyry copper prospective Laramide-age igneous rocks situated immediately north of San Manuel-Kalamazoo and completed a systematic campaign of geochemical and geophysical surveys across the property to identify and advance the most prospective targets to the drill testing phase.

• Geologic mapping at Pearl demonstrates propylitic alteration and a fault architecture similar to the San Manuel-Kalamazoo deposit
• Previously unknown Laramide age porphyry dikes identified by Zacapa (U/Pb geochronology) overlap with the age of the adjacent 1,390 Mt San Manuel-Kalamazoo porphyry copper deposit
• Initial geochemical and geophysical surveys revealed multiple anomalies for follow-up, including two large, copper-in-soil anomalies with up to 1415 ppm Cu
• Numerous, previously undocumented, historic mine workings identified during field mapping with mineralized rock samples containing up to 7.3% Cu, 0.43% Mo, 19.9% Pb, 4.9% Zn, 360 g/t Ag, and 1.8 g/t Au

"The presence of copper mineralization at surface and prospective Laramide age intrusions on the Pearl property represent a significant step forward for the project. The Pearl project contains favorable host rocks in a newly identified window of Laramide igneous activity only one kilometre from BHP's 1.39 billion tonne San Manuel-Kalamazoo porphyry copper deposit," comments Adam Melnik, CEO and Director. "Zacapa's technical teams are actively progressing the project toward drill testing, which will be an important step towards unlocking latent value from within Zacapa's portfolio."

Since acquiring the Pearl project by claim staking in 2021, Zacapa has initiated exploration by completing reconnaissance scale mapping, sampling, and geophysical surveys. A 346 line-km Z-axis Tipper Electromagnetic (ZTEM) and aeromagnetic geophysical survey (200-metre line spacing) was conducted in June 2021, followed by initial mapping and rock/soil sampling in December 2021. Geological mapping of the property revealed a fault-bound inlier of Proterozoic and Cretaceous igneous rocks surrounded to the east and west by post-mineralization volcanic and sedimentary cover rocks (Figure 1). The same post-mineral faults displace the western (Kalamazoo) half of the San Manuel-Kalamazoo orebody concealing it beneath younger post-mineral cover³.

At Pearl, the basement (Proterozoic) rocks are locally overprinted by propylitic (chlorite-epidote-carbonate) alteration, which is common feature in distal porphyry hydrothermal systems. The propylitic alteration occurs in several areas along a NW-SE trending zone roughly parallel to the San Manuel fault that bisects the San Manuel-Kalamazoo orebody (Figure 2). Mapping also identified Laramide age porphyry dikes which Zacapa dated, obtaining preliminary U-Pb ages of 71 ± 8 Ma and 73.5 ± 6 Ma. These age dates are significant and encouraging as they are the first documentation of Laramide age dikes on the property and their ages coincide with the timing of formation of the San Manuel-Kalamazoo copper deposit (approximately 68 Ma²).

Reconnaissance soil sampling (n = 108) was conducted on a 400 x 400 metre grid over areas not overlain by post-mineral cover. Numerous highly anomalous copper and molybdenum bearing samples were observed, with up to 1415 ppm copper, 674 ppm molybdenum, 4860 ppm lead, 2580 ppm zinc, and 1.46 g/t silver (Figure 2). At least two large, anomalous copper-in-soil footprints have been identified, each measuring greater than 1 km by 1 km. Follow up soil sampling will be required to refine the anomalies. Rock chip and grab samples (n = 50) were collected throughout the area including from 26 mineral occurrences documented during mapping (Figure 3). Mineralized samples display high concentrations of copper (up to 7.3%), molybdenum (up to 0.43%), lead (up to 19.9%), zinc (up to 4.9%), silver (up to 360 g/t), and gold (up to 1.8 g/t).

The Pearl porphyry copper project is in the San Manuel Mining District, less than a kilometre north of BHP's past-producing San Manuel-Kalamazoo deposit (1,390 Mt at 0.6% Cu)². Pearl is comprised of 241 unpatented mining claims covering 4,983 acres (20.2 km²). The Pearl project area exhibits widespread mineralization associated with epithermal veins, including the historic Pearl mine with visible copper mineralization over more than 800 metres at surface. Propylitic alteration observed in the area is permissive for the presence of an underlying porphyry hydrothermal system. Exploration is focused on utilizing alteration and geochemistry of exposed outcrops along with advanced structural interpretations and geophysics to develop drill targets beneath post-mineral cover. Zacapa is one of the only exploration companies drilling for porphyry copper in southeast Arizona, which is dominated by Freeport, BHP, and Rio Tinto.

Zacapa is a copper and gold focused mineral exploration company engaged in responsible exploration for the new energy economy. Its projects are concentrated in world class jurisdictions in the southwest U.S., including Arizona, Nevada, and Idaho. The portfolio includes porphyry copper projects at Red Top, Pearl, and Dewdrop, and epithermal gold projects at South Bullfrog and Miller Mountain. These assets are being advanced by a highly disciplined and seasoned professional team with successful track records of discovery, resource development and mine permitting.

For more information, please visit www.zacaparesources.com. All documents are available on Zacapa's profile page on SEDAR at www.sedar.com.

On behalf of the Board of Directors,
"Adam Melnik"

All scientific and technical information contained in this press release was prepared under the supervision of Daniel MacNeil, MSc., P. Geo., and a "Qualified Person" as defined by National Instrument 43-101.

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 Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although Zacapa believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Zacapa cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond Zacapa's control. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Readers are advised to rely on their own evaluation of such uncertainties. Except as required under applicable securities legislation, Zacapa undertakes no obligation to publicly update or revise forward-looking information.

SOURCE Zacapa Resources