Vancouver, British Columbia – TheNewswire - September 22, 2021 – Au Gold Corp (TSXV:AUGC) (“AUGC” or the “Company”) is pleased to provide an update on exploration activities at its Ponderosa Gold Project near Merritt, BC.  During spring and summer, the Company completed a successful property-wide helicopter-borne magnetic survey, followed by subsequent target select drone-based photogrammetry surveys and infill soil geochemistry.  The program refined and prioritized known drill targets and identified new target areas where additional work will be required.   Drill permitting is underway for the highest priority targets and the fully funded exploration program, including both drilling and mechanical trenching will commence as soon as approval is granted.

Processed data from each of the airborne surveys was used to conduct detailed lineament and structural analyses of the project area focusing strongly on those characteristics associated with existing mineralized bedrock exposures and immediate peripheral regions.  The interpretation suggests a complex structural setting while confirming observed orientations at the Tomahawk and Ribeye Zone bedrock exposures.  Numerous parallel to sub-parallel structural trends are indicated as well as strike extensions of existing zones.

Follow-up assessment was carried out at a number of specific sites where geochemical anomalies of varying tenor coincide with newly interpreted structural targets.  This ground inspection identified several zones of localized silicification, oxidation and angular epithermal vein material of varying sizes.  

Based on the improved structural interpretation across much of the property and the successful confirmation of epithermal mineralization and associated alteration at a number of new sites, the historical soil geochemical results were closely re-examined.  Most of the vintage sampling was done at relatively coarse spacing with samples collected at 50 m intervals along lines spaced 100 m apart and to a lesser degree, 50 m apart.  These sampling campaigns identified coincident gold and arsenic soil geochemical anomalies within several of the higher elevation regions where till cover and accumulated organic material in drainage systems are thin to non-existent.   Sample results from the broader peripheral regions contain mostly scattered point anomalies.  Of particular interest, however, is the Tomahawk Zone where gold-bearing epithermal mineralization (individual samples returned 2.96 g/t Au) contained within a vein zone exposed for 55 m along strike and 15 m across the widest continuous exposure, has no associated soil anomalism within the historical grid.  

To better understand the surface expression of the Tomahawk Zone and other potential mineralized zones on the property, the Company conducted closely spaced deep auger soil sampling within five isolated grids of the broader historical sample area including a 400 m portion of the projected trend of the Tomahawk Zone.  The grids targeted interpreted structural trends, most of which are associated with at least single point gold-in-soil anomalism from the historical sampling.  A total of 576 soil samples were collected and most are infill at a spacing of 25 by 25 m with some sites replicating historical sample locations.  All samples were delivered to ALS Global Laboratories in North Vancouver, BC for analysis.

AUGC personnel are highly encouraged by the work carried out to date which indicates potential for extension of several known mineralized showings and the discovery of new vein systems along the broader trend.

The Company is planning an initial diamond drill program, comprising 1,500 metres, along with mechanized trenching once permits are received from the Province of British Columbia.

Numerous forest fires occurred in the region, although none impacted the project directly, aside from periods of heavy smoke.  Many communities were directly impacted and this resulted in high demand for accommodations in Merritt.  The Company shortened its planned work program to free up accommodation and avoid fire hazards during the August campaign.

Community engagement and baseline environmental data collection is continuing and will support the planned exploration.

Qualified Person

All scientific and technical information in this press release was prepared by William A. Wengzynowski, P. Eng., a qualified person as defined by NI 43-101. Mr. Wengzynowski is the Exploration Manager of 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.

Work conducted at Ponderosa in 2019 and 2020 significantly upgraded three historic showings and identified an entirely new showing. These showings in order of priority are referred to as the Tomahawk, Flat Iron, T-Bone and Rib Eye zones. The Tomahawk Zone is the most advanced and highest priority showing on the Property.

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.