ZACAPA RESOURCES PROVIDES DETAILS OF SOUTH BULLFROG EXPLORATION DRILL PROGRAM IN THE BEATTY DISTRICT, NEVADA

VANCOUVER, BC, Oct. 25, 2022 /CNW/ - Zacapa Resources (TSXV: ZACA) (OTCQB: ZACAF) (DE: BH0) provides details regarding its upcoming drill campaign at its 100% owned South Bullfrog gold project in the Beatty District of Nevada.

HIGHLIGHTS

Figure 1 – Maps of recently completed soil and rock sampling following up anomalies from prior sampling campaigns and zones of visible alteration in mapping. Map in the upper left displays an overview of the South Bullfrog area and is surrounded by detailed maps displaying the soil and rock sampling locations in the respective target areas. (CNW Group/Zacapa Resources)

Figure 1 – Maps of recently completed soil and rock sampling following up anomalies from prior sampling campaigns and zones of visible alteration in mapping. Map in the upper left displays an overview of the South Bullfrog area and is surrounded by detailed maps displaying the soil and rock sampling locations in the respective target areas. (CNW Group/Zacapa Resources)

Figure 2 – Location maps and cross sections displaying the surface geology and alteration from remote sensing (above) and IP Resistivity geophysics results and geologic model for the Longtail area (below), all displaying the location of proposed drill holes. (CNW Group/Zacapa Resources)

Figure 2 – Location maps and cross sections displaying the surface geology and alteration from remote sensing (above) and IP Resistivity geophysics results and geologic model for the Longtail area (below), all displaying the location of proposed drill holes. (CNW Group/Zacapa Resources)

Figure 2 – Location maps and cross sections displaying the surface geology and alteration from remote sensing (above) and IP Resistivity geophysics results and geologic model for the Longtail area (below), all displaying the location of proposed drill holes. (CNW Group/Zacapa Resources)

Figure 3 – Geologic map of the Shingleback area and proposed drill holes (above) and IP Resistivity cross section along IP geophysical survey line (below left) displaying the location of the high resistivity zone targeted by drill hole SB-016. Field photograph of the Twin Shafts fault outcrop (below right). (CNW Group/Zacapa Resources)

Figure 3 – Geologic map of the Shingleback area and proposed drill holes (above) and IP Resistivity cross section along IP geophysical survey line (below left) displaying the location of the high resistivity zone targeted by drill hole SB-016. Field photograph of the Twin Shafts fault outcrop (below right). (CNW Group/Zacapa Resources)

Figure 3 – Geologic map of the Shingleback area and proposed drill holes (above) and IP Resistivity cross section along IP geophysical survey line (below left) displaying the location of the high resistivity zone targeted by drill hole SB-016. Field photograph of the Twin Shafts fault outcrop (below right). (CNW Group/Zacapa Resources)

Figure 4 – Location map illustrating the extent of the Sledge fault and potential drill locations along its strike length. (CNW Group/Zacapa Resources)

Table 1 – 3,000 metre phase 1 drilling program at South Bullfrog. (CNW Group/Zacapa Resources)

Figure 5 – Beatty District land tenure map with deposits and Zacapa target areas. The deposits/mines within the Beatty District provide geologic context for the South Bullfrog project but are not necessarily indicative that the South Bullfrog project hosts similar mineralization, grades, or tonnages of mineralization. Table 2 below includes grades, tonnage and confidence for the resources summarized on Figure 5. (CNW Group/Zacapa Resources)

Table 2 – Details of disclosed gold resources in the Beatty District.3, 4, 5, 6, 7, 8, 12 (CNW Group/Zacapa Resources)

• Follow-up rock chip sampling and soil sampling campaigns completed in September, results pending
• 3,000 metre phase 1 RC drill program to commence this winter on the highest priority drill targets at Longtail, Shingleback, and Sledge
• Drilling contract secured with premier driller Boart Longyear to provide top quality RC drilling services

"Zacapa continues to progress its cornerstone South Bullfrog gold project towards its inaugural drilling campaign," comments Adam Melnik, CEO and Director. "The follow up geochemical programs conducted are enhancing our understanding of the most prospective drill targets at the project. We are well positioned to execute on the phase 1 drill program with Boart Longyear following the expected receipt of permits from the BLM. AngloGold Ashanti's continued consolidation of the Beatty District, following its acquisition of Coeur Mining's Crown & Sterling projects for up to US$200 million, demonstrates a clear path to value creation for Zacapa by exploring in a prolific district where major mining companies are actively making new discoveries, acquiring competitors, and building new mines."

Follow up soil grids (25 metre stations by 50 metre lines) have been completed at Longtail and Bottom's Up to aid in defining the structural orientation of previously discovered geochemical anomalies and outcropping silicified zones (Figure 1). Additional reconnaissance sampling was also completed in the Sourdough area along the northward projection of a major fault that displays extensive alteration at the Vanderbilt Mine at the southern boundary of Zacapa's claims. Rock chip and grab sampling was conducted along mapped structures in the Shingleback and Sledge areas. In total, 893 soil samples, and 294 rock chip and grab samples have been collected. Results are expected this month.

Longtail drill targets

The Longtail prospect consists of a intensely silicified, alunite and kaolinite altered rocks surrounded by alluvial cover and occurs near the intersection of several geophysical lineaments identified in both magnetic and gravity surveys (Figure 2; see news release August 24, 2022). The area is also contains a resistivity feature (elevated resistivity) identified by an IP geophysical survey (see news release April 27, 2022). Recent geological and structural mapping suggests that the western portion of the outcrop may be down dropped by faults and covered by post-mineral sedimentary units and recent alluvium. A drill fence is proposed to test this hypothesis by drilling across the silicified outcrop, into the resistivity anomaly and perpendicular to the inferred fault.

Shingleback drill targets

The most pronounced IP/resistivity and chargeability features in the 21 line-kilometer survey occur on the south side of the Shingleback target area where several faults are present. Zacapa has chosen to test this anomaly from the SE (SB-016) to maximize the number of fault intersections while drilling the core of the strong IP resistivity high. While this is the primary focus, Zacapa is also testing the potential for gold mineralization at the Twin Shafts fault (SB-006B) and the Basalt fault (SB-011) separately in addition to testing the structure hosting mineralization at the Schoch Shaft (SB-012) that has seen exploration activity within the last decade (see Figure 3).

Sledge drill targets

The Sledge area contains several N-S trending through-going faults (Figure 4). Initial drilling at Sledge is focused on testing the most significant structure, the east dipping Sledge fault, which parallels the western boundary of the property and is interpreted as a northern splay off the Montgomery-Shoshone fault which hosts the historical Montgomery-Shoshone deposit¹⁰. Drilling is designed to test the gold potential at multiple locations along strike of the Sledge fault starting with three reconnaissance drill locations. 

About the South Bullfrog Gold Project

The South Bullfrog gold project is centrally located in the Beatty District in the heart of the Walker Lane Trend. The Beatty District has seen rapid increases in gold resources, currently over 8.6 million ounces of gold. Zacapa's project area is 5 kilometres south of AngloGold Ashanti's North Bullfrog development project, and 11 kilometres west of AngloGold Ashanti's Motherlode and Silicon projects that are anticipated to be producing gold within the next 3 years. AngloGold Ashanti completed its acquisition of Corvus Gold for US$370M¹ and recently continued to consolidate the Beatty District by acquiring the Crown & Sterling projects from Coeur Mining for up to US$200M⁸. AngloGold has stated that the combined assets will help the Beatty District become a large, long life, low-cost operation with the potential to develop Tier-1 "company making" mines (Figure 5)². South Bullfrog is comprised of 488 unpatented mining claims covering approximately 9,900 acres with a clear path to value creation by executing rigorous exploration in the centre of an increasingly active district where major gold mining companies are actively acquiring property and developing new mines.

About Zacapa Resources

Zacapa is a 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 and Pearl 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.

References

^1	AngloGold Ashanti Signs Definitive Agreement to Acquire Corvus and Consolidate the Beatty District of Nevada, September 13, 2021
^2	Corvus Gold and AngloGold Ashanti Announce Completion of Acquisition of Corvus by AngloGold Ashanti, January 18, 2022
^3	Augusta Gold Announces Significant Resource Update at Bullfrog of 1.2 M Oz Measured and Indicated and 0.26 M Oz Inferred Resource, March 10, 2022
^4	North Bullfrog Project's, Preliminary Economic Assessment – Corvus Gold's Detailed Phase-1, Standalone, Near-Term Mine Development Plan in the Bullfrog Mining District, Nevada, October 7, 2020
^5	Corvus Gold Announces Mother Lode Preliminary Economic Assessment Results for a Standalone Future Mining Expansion Project, in the Bullfrog Mining District, Nevada, October 7 2020
^6	AngloGold Year End 2021 Results Report, February 22, 2022
^7	Augusta Gold Acquires Fully Permitted Low-cost Heap Leach Gold Project Seven Miles From Its Bullfrog Project in Nevada, April 21, 2022
^8	AngloGold Ashanti agrees to acquire Nevada properties from Coeur Mining to further consolidate and enhance development potential of the Beatty District of Nevada, September 19, 2022
^9	Downer, R., and House, A., 2021.  NI 43-101 Technical Report Mineral Resource Estimate, Bullfrog Gold Project Nye County, Nevada by Forte Dynamics, Inc.
^10	Cornwall, H.R. and Kleinhampl, F.J., 1964, Geology of Bullfrog Quadrangle and ore deposits related to Bullfrog Hills Caldera, Nye County, Nevada and Inyo County, California: US Geological Survey Professional Paper 454-J, 25 p.
^11	Jorgensen, D.K., Rankin, J.W., and Wilkins, J. Jr., 1989, The geology, alteration and mineralogy of the Bullfrog gold deposit, Nye County, Nevada: AIME Preprint 89-135, 13 p.
^12	Nicholson, D., 2021, Technical Report Summary Silicon Project, an initial assessment report: AngloGold Ashanti, 62 p.

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

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.

On behalf of the Board of Directors,

"Adam Melnik"                                                          

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. 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 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

Adam Melnik, Zacapa Resources, Chief Executive Officer & Director, [phone], [email protected]; Michelle Borromeo, Vice President Investor Relations, [phone], [email protected]