Vancouver, British Columbia – TheNewswire - January 22, 2024 – Au Gold Corp (TSXV:AUGC) (“AUGC” or the “Company”) is pleased to provide an update on its Ponderosa Gold Project, located near Merritt, BC.

Highlights:

• 223 soils samples collected completing gaps in the grid as recommended by industry expert Dr. Jeffery Hedenquist (https://augoldcorp.com/wp-content/uploads/2024/01/Hedenquist_Report.pdf 

• New zones of gold anomalism coincident with Ponderosa Structural Corridor 

• 2 km trend of moderately -to- strongly anomalous gold geochemistry 

• Company to display 2022 drill core at AME Roundup Conference (Vancouver), January 24 25 

2023 Field Work

During 2023, infill soil samples (223) were collected from the central part of the Ponderosa property to fill in gaps between areas of previously defined anomalous gold and arsenic response.  This sampling returned anomalous gold values, mostly within the structural boundaries of the newly interpreted Ponderosa Structural Corridor, with samples ranging in value from below detection to 390 ppb gold.

Despite favourable results from the recent soil sampling program and the newly interpreted structural model, the Company delayed plans to carry out further drilling at Ponderosa in 2023 due to the difficult market conditions.  It instead elected to adopt a cash conservation strategy.  The Company does however plan to continue drill exploration when market conditions improve.

Ponderosa Structural Corridor

Completion of infill soil sampling in the central part of the property provided the final information defining the trace of the Ponderosa Structural Corridor (PSC).  The corridor consists of a series of sinistrally offset en-echelon structural segments that trend due north through the central part of the property.  The PSC can be traced for approximately 2 km and features continuous and scattered elevated gold and arsenic geochemistry with localized clusters of gold-bearing vein samples along much of the trend (historical surface samples reported up to 46.90 g/t Au and 110 g/t Ag).  The PSC ties together most of the known gold-bearing zones on the property and will be the basis for future exploration. (https://augoldcorp.com/wp-content/uploads/2024/01/Structural_Layout_Final.pdf)

Axel Ridge, the initial showing upon which the Ponderosa property was staked, is situated at the center of the Ponderosa Structural Corridor and is an enigmatic occurrence that was drill tested by previous operators.  Despite multi-gram gold samples up to 12.82 g/t gold at surface and favourable epithermal textures, drilling was unable to trace the zone even to shallow depths.  In conjunction with the Ponderosa Structural Corridor, management now interprets Axel Ridge to be associated with lateral fluid flow along the paleo gradient, rather than an upflow or feeder zone.  Management believes feeder zones are located close by and likely at lower elevations along the Ponderosa Structural Corridor.  Future drilling at Ponderosa will focus on identifying the source of these gold-bearing fluids and following them to depth.

Roundup Coreshack Exhibit

Au Gold Corp. has been selected by AMEBC to be an exhibitor at the Coreshack during the annual Roundup Convention in Vancouver, BC on January 24 and 25.  The Company invites shareholders and interested parties to view the core during the convention at booth 920.

Analytical Information

Soil samples collected during 2023 at Ponderosa were located using GPS coordinates and extracted from below the vegetation layer.  Samples were delivered to ALS Global in North Vancouver, Canada for analysis.  After drying, a Supertrace gold detection technique was selected (Au-ST44) with a 50 g sample being analysed by aqua regia extraction with ICP-MS finish.

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 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.

Historical exploration at Ponderosa focused almost exclusively on an in-situ occurrence referred to as “Axel Ridge”, which is characterized by outcropping cryptocrystalline/saccharoidal to crustiform and colloform banded epithermal quartz. A series of trenches were excavated across these outcropping exposures with highlights including 2.22 g/t gold over 11.7 m, 1.92 g/t gold over 14.0 m (with 3.03 g/t gold over 8.0 m) and 3.6 g/t gold over 7.0 m. Follow-up diamond drilling of seven holes at Axel Ridge was unsuccessful in intersecting the surface mineralization at depth.  

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://augoldcorp.com.

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://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.