Sego Resources Inc. announced results from seven additional diamond drill holes in the Southern Gold Zone of the Miner Mountain Porphyry Copper-Gold project near Princeton, BC. The Southern Gold Zone is an intrusion disseminated hosted gold zone discovered during the Company's 2020 field program and first drilled during April 2021. A third stage of the 2021 drill program at the Southern Gold Zone was completed from November 12 to 30, 2021.

The time frame included a 3-day drill break caused by the heavy rains that flooded the village of Princeton and washed-out portions of Highway 3 that accesses the village for services. Seven drill holes (MM-21-52 to 58) totaled 925 m and except DDH55, all other holes were inclined 50 degree oriented to 160° azimuth. Six out of seven drill holes (MM-21-52 to 58) in this drill stage carried significant Au values.

The drill results range from 0.79 g/t Au over 74.5 m to 0.15 g/t over 35 m on the east margin of the zone to contain maximum value of 5.5 g/t Au. The Southern Gold Zone was expanded to 280 m long and ~100 to 130 m wide. The zone pinches to the east where DDH 58 intersected unmineralized diorite, monzonite and sediments.

On the west slope of the Southern Gold mineralized zone, DDH 54 and DDH 55 parallel other sections and were inclined 50 degrees oriented 160° and 340° collared on the same drill pad. They intersected 0.37 g/t Au over 54 m and 0.69 g/t Au over 81 m, respectively. The zone is open downslope to the west towards a lower bench ~150 m west of DDH 54 and DDH 55.

The slope has poor exposure and talus effectively masks the potential of gold mineralization. Proposed holes A-C would test the immediate extension of the Southern Gold Zone and, depending on results, additional holes will test the potential farther west to the bench. 3D modelling of the geology, alteration and mineralization will be compiled to help identify deeper potential targets, either extensions of the gold mineralized zone or porphyry Cu-Au mineralization.

Both would require deeper drill holes. Cu soil or talus anomalies on the slope north of the proposed holes A-C indicates a potential porphyry Cu-Au target. The Southern Gold Zone is primarily hosted by a fine-grained biotite diorite pervasively altered to variable amounts of calcite, chlorite, sericite, albite, K feldspar and other carbonates assemblages.

They are based on petrographic microscope examination of 40 representative samples from holes DDH 46, 47, 49 and 50. Very fine-grained pyrite-hematite and relatively minor chalcopyrite occur as disseminated, in microfractures and lesser calcite-chlorite veinlets. Gold intervals >0.10 g/t are spatially associated with variable strengths of alteration assemblages and variable abundance of pyrite-hematite and chalcopyrite.

Very fine-grained gold are difficult to recognize in some samples and would require scanning electron microscopy to confirm. The preliminary metallurgical bench scale test reported late last year concluded 9.8% of the gold reports to gravity concentration and 59.3% recovered in 1 hour and 72.6 % after 3 hours using a cyanide leaching process. An impressive 95.8% of the gold was recovered from the composite sample with additional leaching time.