Sierra Nevada Gold Inc. announced its recent drilling at the Warrior gold project in central Nevada, USA, has returned encouraging initial results confirming a large, epithermal gold system at the project, with highly anomalous gold and silver results that have extended the Warrior Mine Trend by 1.5km. SNX completed six reverse circulation (RC) holes for 1,329m at Warrior, prior to winter curtailment, with exploration activities now planned to recommence in April 2023. Initial drilling has focused on testing the Warrior Mine Trend in both Gold Coin and Discovery Shaft areas and in prospective northwest zones, where mineralisation appears to underlie a sequence of post-mineralisation cover rocks.

Drill hole WARC007 successfully intercepted high-grade Au-Ag mineralisation close to historic underground workings, returning 17.07m at 1.57g/t Au & 3.43g/t Ag, including 2.44m at 7.76g/t Au & 6.25g/t Ag. Scout hole WARC012, collared to investigate a blind target 1.5kms to the northwest, returned highly anomalous gold and silver of 143.86m at 0.24g/t Au & 1.31g/t Ag, from beneath the post mineral cover rocks to the end of hole (at 353.55m). Importantly Au and Ag grade is increasing towards the end of hole.

WARC007 successfully intercepted high-grade Au-Ag mineralization close to historic underground workings, returning 17.07m at 1.57g/t Au & 3.43g/t Ag, including 2.44m at 7.76g/t Au & 6.25g/t Ag. Geological studies (spectral, alteration, geochemical & geophysical) indicate the chalcedonic to weakly crustiform veins worked in historic mines are part of a high-level, northwest trending feeder structure. These restricted, high temperature feeder zones formed along prominent mineralised structures, with links to overlying sinter zones.

These well-established northwest trending zones are underpinned by coherent geophysical (IP) anomalies and offer SNX more than 2 strike km of highly prospective, drill ready targets along the Warrior Mine Trend. SNX collared scout hole WARC012 to investigate a blind target, along trend of a sub-cropping sinter zone and surface geochemical pXRF (portable x-ray fluorescence spectrometer) anomaly. Located 1.5km's northwest of the Warrior mining centre, WARC012 encountered a thick (210m) sequence of barren andesitic volcanic rocks, before intersecting strongly altered felsic volcanic and intrusive assemblages, virtually identical in composition to the felsic volcanic rocks that host epithermal mineralisation to the south at the Warrior mining centre.

Upon assay, drill samples from this felsic volcanic package were found to be highly anomalous in both gold and silver, returning 143.86m at 0.24g/t Au & 1.31g/t Ag, from the top of the unit to the end of hole (at 353.55m). Gold grades increase towards the bottom of the hole with an intercept of 35.36m returning 0.71g/t Au from 316m, together with higher grade intersections of 2.44m at 3.06g/t Au from 318.19m and 4.88m at 2.30g/t Au from 347.46m. Increased gold and silver grade occurs across the transition from the upper lower temperature kaolinite dominant clays into higher temperature illite-sericite clays intersected towards the bottom of this hole.

This observation is entirely compatible with SNX's working epithermal targeting model. These highly encouraging results reaffirm the large scale of the Warrior hydrothermal system, together with the targeting model developed by SNX's technical teams. Meanwhile, re-analysis of existing IP geophysical data has identified more than 10kms of new blind targets across the project, with future programs planned to test chargeable zones, located along and within north-northwest trending feeder structures. Next Steps: SNX expects to drill further targets within this large and fertile epithermal system.

The equally prospective and currently underexplored OMCO mine area, will undergo field mapping and sampling, as well as geophysical (IP) investigations prior to drilling recommencement. SNX has engaged the world-renowned epithermal gold expert, Dr. Richard Sillitoe, to undertake a technical review of the Warrior project. This vital research will undoubtedly improve exploration understanding and future targeting activities.