March 21, 2018
Pinecrest Drilling Expands Shallow Zones of Oxide Gold Mineralizaton at 100% Owned Enchi Gold Project, Ghana
Results Include: 38.0 Metres Grading 1.12 g/t Gold, 35.0 Metres Grading 1.15 g/t Gold
Vancouver, British Columbia: Pinecrest Resources Ltd. (TSX-V: PCR) (the “Company” or “Pinecrest”) is pleased to announce drill results from its 3,400 metre Reverse Circulation (“RC”) drill program on the 100% owned Enchi Gold Project (“Enchi or the Project”), located in Southwest Ghana, a region well-known for prolific gold resources and production. The Enchi Gold Project currently hosts a +1 million ounce inferred gold resource (37.36 Mt grading 0.9 g/t gold) with a positive Preliminary Economic Assessment (“PEA”) study completed demonstrating a Pre-tax NPV 5%: US$102 million using US$1,300/oz gold and Post-tax NPV 5%: US$62 million using US$1,300/oz gold, (see news release dated May 24, 2017 for full details). The district hosts numerous historical and current operating open pit and underground gold mines located along strike to the northeast of the Project including the Chirano Gold Mine owned and operated by Kinross Gold Corporation.
Highlight Drill Results including several drill holes successfully intersecting gold mineralization outside of the currently defined NI 43-101 Inferred Resource
Sewum Gold Zone
Kojina Hill Gold Target
Boin Gold Zone
Boin Northwest Gold Zone
Ryan King, President & CEO of Pinecrest, commented: “The Enchi gold project’s total land package is 568 km2 with numerous untested gold targets to explore along a 40 km long strike covering the prolific Bibiani Shear Zone. The Bibiani Shear Zone hosts a number of open pit and underground gold mines including the Chirano gold mine operated by Kinross Gold Corporation located 70 km northwest of the Project. Pinecrest drilling confirms the significant potential to expand the current +1 million oz gold resource at the Boin and Sewum deposits and identifies additional new zones like the newly discovered Kojina Hill.”
The 2017 Enchi Drill Program
The 2017 RC drill program included 28 holes totalling 3,406 metres of infill, step out and exploration drilling on the Sewum Gold Zone, Kojina Hill Target, Boin Gold Zone and Boin Northwest.
SEWUM GOLD ZONE
The Sewum Gold Zone (“Sewum”) is one of the main deposits contributing to the current NI 43-101 inferred resource estimate. Sewum is located 13.0 km south of the major town of Enchi and 5.0 km southeast of the other major gold resource identified at Boin. Roads and power pass through the project area. Gold mineralisation at Sewum can be traced continuously for over 2.0 km and is contained within broad (up to 40.0 m thick) steep, gold-bearing shear zones. In 2017, eleven RC holes totalling 1,396 metres were drilled at Sewum to test extensions of known mineralised zones aimed at expanding resources. Wide intervals of gold mineralisation were intersected in several holes with significant potential to expand the current inferred resource.
SEWUM GOLD ZONE - TABLE 1
KOJINA HILL GOLD TARGET
Kojina Hill is located approximately 400 metres northwest of the Nyam Zone and not included in the current NI 43-101 Inferred Resource Estimate. A steeply dipping, northeast striking gold zone currently known to be approximately 100 metres long and up to 30 metres wide has been defined in RC and Diamond Drilling. Previous drilling highlights from only eight drill holes included near surface intercepts of: 42.0 metres grading 1.68 g/t gold and 17.0 metres grading 0.94 g/t gold. The 2017 program consisted of 2 holes totaling 200 metres, intersecting mineralization to a depth of 80 metres below surface. During the 2017, RC drilling program drill hole KJRC010 intersected 9.0 metres of 1.99 g/t gold and 29.0 m grading 0.87 g/t gold confirming continuity of the mineralized gold zone.
KOJINA HILL GOLD TARGET - TABLE 2
BOIN GOLD ZONE
The Boin Gold Zone is the primary deposit forming the current NI 43-101 inferred gold resource at the Enchi Gold Project. Boin is well located with nearby roads, power and the town of Enchi. The 2017 RC drill program was targeting infill and expansion drilling along the mineralized zone. The program consisted of 12 holes totaling 1,445 metres, intersecting mineralization to a depth of 150 metres below surface and successfully extended the main zone of continuous gold mineralization to 2,500 m in length and 150 m depth.
BOIN GOLD ZONE - TABLE 3
BOIN NORTHWEST TARGET
The Boin NW target is located approximately 1,000 metres northwest of the main Boin zone and importantly not currently included in the NI 43-101 Inferred Resource Estimate or PEA. Previous trenching intersected 26.0 metres grading 0.61 g/t gold and 40.0 metres grading 0.54 g/t gold including 10.0 m at 1.64 g/t gold. Past limited drilling intersected 23.0 m at 0.43 g/t gold and 39.0 m at 0.43 g/t gold within the near surface oxidized material. The 2017 program consisted of 3 holes totaling 365 metres, intersecting mineralization to a depth of 120 metres below surface. Highlight drill hole KBRC126 successfully intersected three mineralized zones; 18.0 m grading 0.59 g/t gold, 7.0 m grading 0.70 g/t gold, and 6.0 m grading 1.06 g/t gold.
BOIN NORTHWEST TARGET - TABLE 4
Mr. Gregory Smith, P.Geo, the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained in this news release.
About Pinecrest Resources
Pinecrest engages principally in the acquisition, advancement and development of precious metal properties with the Company’s primary focus being the 100% owned Enchi Gold Project located in Southwest Ghana. Major shareholders of Pinecrest include Kinross Gold Corporation, Management and Directors.
Pinecrest Resources Ltd.
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This news release contains certain forward-looking statements, Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or does not expect”, “is expected”, anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results “ may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with respect to the price of gold, potential mineralization, reserve and resource determination, exploration results, and future plans and objectives of the Company involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Atlas to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
COMPLETE 2017 INTERCEPT RC DRILLING TABLE 5
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