Everest Gold (01815) updates major exploration results of Shannan mine and Shigatse mine

Zhitong Finance App News, Everest Gold (01815) issued an announcement relating (among others) to the company's acquisition of 51% of the shares of a company holding all shares of Tibet Longtianyong Mining Co., Ltd., while Tibet Longtianyong Mining Co., Ltd. holds an exploration license for a specific area in Shannan, Tibet (Shannan Mine), and subsequent exploration updates relating to Shannan Mine; and the company's acquisition of 35% of the shares of a company holding all of the shares of Tibet Shigatse Huaye Mining Development Co., Ltd., while Tibet Shigatse Huaye Mining Development Co., Ltd. holds 35% of the shares of Tibet Shigatse Huaye Mining Development Co., Ltd. A specific one in Tibet and Shigatse Regional exploration license (Shigatse mine).

The Gudui area has continued to carry out geological exploration activities, including geological mapping, drilling, core logging and sample testing. As of the date of this announcement, about 24 drilling rigs have been deployed in Gudui District. Up to now, the main exploration results of the Shannan mine are summarized as follows:

1. The drilling and related exploration work that has been completed so far has initially defined a mineralized zone in the Gudui area: the mineralized zone has an approximate east-west direction and a traced path length of about 1,000 meters, and the downward slope range is about 500 meters. The path and depth of the mineralized remains unsealed. According to the reports of each drilling section between boreholes, there are differences in thickness and currently ranges from about 6 meters to 100 meters. Preliminary laboratory results of selected samples showed gold mineralization, and associated antimony and cobalt mineralization was also found in some locations. Mineralization occurs mainly within carbonaceous slates and appears to be controlled by tectonic fractures. Multiple boreholes reveal mineralized bodies along the inferred mineralization belt, providing a basis for further drilling work along the direction and trend.

2. Geological observation results up to now show that there is a hydrothermal gold polymetallic mineralization system in the region, accompanied by a combination of hydrothermal alterations such as silicification and chlorite petrification. The Shannan mine geological exploration team also observed signs that mineralization may extend along deep hydrothermal channels. Any relationship with deep porphyry-related mineral systems is currently an untested geological hypothesis and requires further drilling and laboratory work.

Xiaqiu District continues to carry out geological exploration activities, including geological mapping, low-altitude aeromagnetic surveying, drilling, core logging and sample testing. As of the date of this announcement, about 6 drilling rigs have been deployed in Xiaqiu District. Up to now, the main exploration results of the Shigatse mine are summarized as follows:

1. The drilling that has been completed so far has the following preliminary findings: angular petrification and garnet silica rock alteration. Narrow chalcopyrite veins in tuff intersect at the shallow end, indicating the presence of local copper mineralization. Preliminary surface troughing identified silica-type polymetallic mineralization, including copper, lead, zinc and silver mineralization, as well as magneto-rich iron ore sections. Several deep-drilled rock core logging identified altered granodiorite porphyry, including infiltrated and fine-veined molybdenum ore mineralization, and veined and reticular lead-zinc mineralization.

2. An aqueous sediment anomaly was previously discovered in the central part of the Xiaqiu district. After geological verification, an outcrop was found, indicating molybdenum mineralization. The outcrop produces roughly horizontally and is located in the contact zone between metamorphic feldspar quartz sandstone, metamorphic quartz sandstone, and granodiorite porphyry. The outcrop follows an east-west intermittent trail with a length of about 1 km, and the reported vertical thickness is about 1 meter to 20 meters. Preliminary laboratory analysis of selected samples taken from this outcrop revealed molybdenum mineralization.

Considering comprehensive aeromagnetic survey results, structure and alteration mapping data, the above observation signs indicate that there may be a composite porphyry-silica-hydrothermal vein polymetallic mineralization system containing molybdenum, copper, lead, zinc and silver, but further exploration is needed to confirm the existence, scope and continuity of this mineralized system.

In the case of the Shannan mine, additional deep drilling will continue to be carried out to further delineate the mineralized boundary along the direction and trend. At the same time, geophysical exploration, geological and geochemical data interpretation work will also be carried out, and systematic sampling and laboratory tests will be carried out to assess the scope, morphology and continuity of mineralization. In the case of the Shigatse mine, further deep drilling is expected to test the possible presence and location of porphyry mineralization centers and the extent of copper and molybdenum mineralization. In addition, aeromagnetic measurement data will be comprehensively interpreted, and priority target areas will be identified based on surface molybdenum mineralization and associated erosion distribution, and systematic verification will be carried out through deep drilling. In addition, systematic sampling will continue to be carried out for petrographic testing and chemical analysis to improve the geological model of the Shigatse mine.