First Exploration Hole Drilled On Prospect Mountain Property

First Exploration Hole Drilled On Prospect Mountain Property

CALGARY – North Peak Resources Ltd. reported that its 3,253-foot first exploration core hole (PM23-001) successfully drilled the conductive Mobile MT geophysical anomaly identified from surveys on its Prospect Mountain Property in Eureka, Nevada.

This first exploration hole was drilled to the west from the easily accessible Diamond Mine portal and intersected at least 8 mineralized zones of the Carbonate Replacement (CRD) style that were within altered Hamburg dolomite, the host rock of the Diamond Mine workings. Significant intersections include 9.5% Zn, 221.6 g/t Ag, 0.8% Cu, and 0.3% Pb over 1.0 m (3.28 ft), 7.3% Zn, 54.6 g/t Ag, and 0.8% Pb over 1.9 m (6.23 ft), and 355 g/t Ag and 4.6% Pb over 0.3 m (1 ft). An intersection of 0.6 g/t Au over 3.1 m was located along the Jackson Fault that was historically thought to be devoid of gold, indicating potential Carlin style gold leakage along the fault.

“This initial drill hole was positioned to enable us to target the MT anomaly identified from an operationally efficient location in winter,” said Mike Sutton, Director and Senior Geologist. “The hole intersected some of the faults that run across the Property, and this will help us test theories of the fault systems that exist in the Eureka camp and drive the multiple types of mineralization that exist in the camp, in particular how to best drill the other large targets further north on the Property.”

PM23-001 was successful in intersecting several zones of pyrite, sphalerite, galena +- chalcopyrite mineralization in the projected area of the MT geophysical anomaly. Given the accompanying zinc rich and low gold nature of the massive sulphide mineralization intersected, it is thought that this hole intersected “halo” style mineralization peripheral to larger, more conductive bodies that should have higher galena and gold further north in the system. These low lead-zinc ratios are indicative of distal halo mineralization; in surface soil sampling, higher lead-zinc ratios are intimately associated with historical workings and increase markedly to the north.

A BHEM survey is being undertaken to evaluate the optimal orientation for potential wedging of this hole, as it should help to identify the location of the best conductors (sulphides) relative to the position of the original hole.

North Peak previously released assay results from one historical hole (WS02) drilled in 2017 from surface at Prospect Mountain, which intersected 8.0% Zn over 7.0 m located 90 m (295 ft) above the underground workings (stopes) at Shaft #2, and 12.9 g/t Au, 195 g/t Ag, 0.8% Pb and 0.5% Zn over 2.5 m at 280 m (919 ft) southwest of the underground workings. WS01, drilled vertically to 294.8 m (967 ft) at the same collar as WS02, intercepted 3.3% Zn over 4.8 m (15.8 ft) from 112.5-117.3 m (369-384.8 ft), including 12.1% Zn over 0.4 m (1.3 ft) from 115.2-115.6 m (377.9-379.2 ft). These results from WS01 and WS02 are consistent with the localized gold and polymetallic intercepts found in PM23-001.

Towards the end of PM23-001 (west of the underground workings), marbelization of the dolomite is present and granitic dyke was intersected. This could indicate a heat source for the fluids.

There are three styles of mineralization present in the Eureka district that includes Prospect Mountain, carbonate hosted porphyry related skarn lead (Pb), zinc (Zn), gold (Au) mineralization associated with Cretaceous intrusions, Au, silver (Ag), Pb, Zn arbonate replacement mineralization (CRD) and Au only Carlin style mineralization. CRD mineralization in the area is heavily oxidized to depths of at least 610m (2000 ft) below the top of the ridge line.