Vancouver, BC - TheNewswire - May 23, 2023 - Au Gold Corp. (TSXV:AUGC) (“AUGC” or the “Company”) is pleased to provide an update for the 2023 exploration season at Ponderosa.  Management continues to be enthusiastic about the project and believes it has the potential to host a significant gold discovery.

“Au Gold Corp remains extremely positive that a significant gold discovery will be made at Ponderosa” states AUGC President and CEO, Marc Blythe.  “While the initial drilling at Tomahawk has verified the presence of high-level gold-silver-bearing epithermal style mineralization, six priority targets bearing moderate to strong gold-arsenic soil geochemical responses and/or prospecting sample results remain to be tested”.

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

2022 Exploration Summary – Why We Are Excited About Ponderosa

During 2022, exploration focused exclusively on the Tomahawk and Flat Iron targets.  Drilling successfully identified epithermal alteration and mineralization in all 20 holes drilled with 10 of 20 holes yielding anomalous gold (>0.20 g/t – 2.20 g/t Au) and silver intervals (described in the News Release dated August 4, 2022).  Management focused its efforts at the Tomahawk and Flat Iron zones on the basis of significant outcrop exposure (Tomahawk) and historical trench references (Flat Iron).  Both target areas are represented by only intermittent weak gold/arsenic-in-soil anomalism but host broad outcrop exposures indicative of a high-level low sulphidation epithermal system.  Sections showing the geology and assay results for the 2022 drilling have been posted to the Company’s website at https://augoldcorp.com/project/ponderosa-2022-drill-results/.

Following industry expert Dr. Jeffery Hedenquist’s drill core review and property visit in September 2022 (the details of which are described in the news release dated October 24, 2022), the Company has been progressing a number of the recommendations from this visit in addition to conducting a detailed compilation of the project data including a revised interpretation of the Ponderosa mineralizing system.

The Company believes the Tomahawk and Flat Iron targets are associated with secondary structural elements parallel to a primary northerly trending structural system newly termed the “Ponderosa Structural Corridor” (PSC) which bisects the property along its main access road through the central part of the claim block.  This structural feature is dextrally offset with en-echelon geometry and hosts a series of intermittent moderately- to well-defined gold-arsenic soil geochemical anomalies along a 1.7 km trend from the T-Bone to the Cattle Guard South zones and the Ribeye Zone.  Recent and historical gold-bearing prospect samples largely fall within or very near the traces of the PSC.

Click Image To View Full Size

 

Work Program for 2023

Infill soil sampling of strategic gaps along the PSC will commence shortly as conditions permit.  A series of RAB drillhole fences has also been designed to test the best coincident gold-arsenic geochemical anomalies and areas of gold bearing surface prospecting samples along the PSC trend from the T-Bone to the Cattle Guard zones and the Ribeye target.  The RAB program will evaluate a much broader area both laterally and vertically below the relative position of the Tomahawk target to identify epithermal mineralization associated with structural feeder zones.

The company expects to begin field work in May 2023 and will provide further updates as work progresses.

About the Ponderosa Gold Project

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 Waihi (Oceanagold), 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 is broadly divided into two Cretaceous age volcanic sequences comprising subaerial and pyroclastic volcanic flows of the Pimainus and Spius Formations.

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

Qualified Person Statement

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 the Company.

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

Forward Looking Information

Certain statements made, and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, the statement that the Company intends to complete the Acquisition and all actions in connection with the Acquisition are forward-looking statements and contain forward-looking information. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would". Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the closing of the Acquisition, the receipt of regulatory approvals for the Acquisition and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guaranteeing of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.

Neither 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.