Au Gold Corp. provided an update on its Ponderosa Gold Project, located near Merritt, BC. 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). 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.