Vancouver, British Columbia – TheNewswire - October 24, 2022 – Au Gold Corp (TSXV:AUGC) (“AUGC” or the “Company”) is pleased to announce that Dr. Jeffery Hedenquist, an independent consultant and one of the world’s leading experts on epithermal gold systems, recently visited the road accessible Ponderosa epithermal gold project, 16 km southwest of Merritt BC (“Ponderosa”).  The assessment provided suggestions for how to continue to test the potential of an epithermal feeder zone at the Ponderosa gold system.

Dr. Hedenquist reviewed diamond drill core from the Company’s spring drill program and spent time on the property inspecting zones of interest.  He noted a number of features characteristic of low sulphidation epithermal gold systems, including cryptocrystalline quartz, fine colloform laminations in quartz veins/veinlets, episodic brecciation and banded to acicular adularia occurrences.  These features are consistent with relatively low temperatures and shallow depths of formation in addition to boiling; a key parameter for the deposition of precious metals.  Dr. Hedenquist noted that feeders to the shallow anomalies have yet to be identified.  One possibility is that the epithermal mineralization associated with the recently tested Tomahawk Zone and the historical Axel Ridge Zone is associated with shallow lateral outflow along structures, down the paleohydraulic gradient that existed at that time.

Dr. Hedenquist made a range of practical and cost-effective recommendations to advance the project, including:

• Infill soil sampling along key trends 

• Spectral analysis of clay minerals to identify proximal vectors 

• Additional close-spaced ground magnetic surveys 

• Detailed analysis of existing data, focusing on structural architecture 

• RC/RAB drilling to identify additional vein structures associated with feeder zones 

Management of AUGC are encouraged by Dr. Hedenquist’s validation of the exploration target at Ponderosa and have commenced work on his recommendations.  

The Company’s spring drill program comprised 20 diamond drill holes with anomalous gold values (>0.2 g/t gold) returned from 9 of the 20 holes in shallow intersections.  The most significant intersection in hole PD22-13 returned 18.91 m grading 0.44 g/t gold and 0.88 g/t silver from 25.91 m depth downhole.  Full details, including images of drill core, individual samples and a zone map can be viewed here: https://augoldcorp.com/Drilling/

Qualified Person

All scientific and technical information in this press release has been prepared by William Wengzynowski, P. Eng., a qualified person as defined by NI 43-101. Mr. Wengzynowski is the Exploration Manager for Au Gold Corp.

Ponderosa Gold Property

The Ponderosa Gold Property is located 16 km southwest of Merritt, BC, within the Spences Bridge Gold Belt which forms a northwest trending belt roughly 180 km long and up to 24 km wide.

Exploration by AUGC and others, notably Westhaven Gold Corp., has identified the potential for gold associated with low-sulphidation epithermal mineralization (quartz-adularia).  Examples of this style of mineralization include Kupol (Kinross Gold Corp.), Hishikari (Sumitomo Metal Mining) and Fruta Del Norte (Lundin Gold).

Rocks of immediate interest in the belt and underlying much of the Property comprise successions of Cretaceous subaerial and pyroclastic volcanic flows which host significant gold mineralization at Westhaven Gold Corp.’s Shovelnose project approximately 20 km southeast of the Ponderosa Gold Property.  Geology across the Ponderosa Gold Property claim group is broadly divided into two Cretaceous age volcanic sequences comprising subaerial and pyroclastic volcanic flows of the Pimainus and Spius Formations.

The Ponderosa Gold Property is located within the unceded traditional territory of the Nlaka’pamux People.

Further information on the Property can be found on the Company’s website: https://www.augoldcorp.com/ponderosa-property/.

Cautionary Note

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Au Gold Corp

Marc G. Blythe, MBA, P.Eng., President & Chief Executive Officer

Sandrine Lam, Investor Relations Phone: 1-604-687-3520 Ext. 250

Email: info@augoldcorp.com

To learn more visit: https://www.augoldcorp.com

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. STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.