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Compass Gold: Drilling Planned to Commence in Early November to Test First of 14 Identified Bedrock Targets

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TORONTO, July 31, 2018 (GLOBE NEWSWIRE) -- Compass Gold Corp. (TSX-V: CVB) (Compass or the Company) is pleased to provide an update on the current geochemistry and geophysics surveys, and the planned Q4 work program on the Sikasso Property in Southern Mali.

Figure 1
Geology map showing the zone of proposed drilling locations on the Ouassada permit. The first phase of drilling will take place close to the artisanal workings.



Highlights

  • Completion of phase 1 exploration on Ouassada permit, and review of results has identified 14 targets over a distance of 12 km that warrant bedrock drilling
  • Proposed phase 2 drilling will target near-surface bedrock gold mineralization
  • Four zones containing active artisanal mining are considered priority areas; will involve six fences of drilling totaling approximately 3,500 m
  • The average length of the 14 drilling targets is 1.2 km; the longest zone is 2.45 km
  • Targets based on shallow and deep (auger) soil gold anomalism; induced polarization (IP) conductors; geological mapping; and, interpretation of high-resolution airborne magnetic geophysics

Compass CEO, Larry Phillips, commented, "This represents an exciting new chapter for the Company, as it will be the first bedrock drilling program ever executed on our 1,179 sq. km Sikasso property. We've achieved this pending milestone through the dedicated work of our technical team, led by Dr. Madani Diallo, which has complied the results of extensive exploration geochemistry and geophysics work to identify these first 14 bedrock drilling targets.  While we had already planned and budgeted to examine the first two targets in this second phase, we have identified still more priority targets. Now, with the additional funds raised in May, we are looking to expand our bedrock drilling to test four priority target zones in areas of current artisanal mining activity. We hope that drilling will begin in early-November when ground conditions are suitable."

Proposed Bedrock Drilling Program
A detailed review has been performed on the exploration results the Company has received to date to determine suitable locations for bedrock drilling.  The data reviewed consisted of shallow soil geochemistry; deep auger soil geochemistry (to depths of 22 m); remote sensing structural analysis; reinterpretation of high-resolution airborne magnetics, electro-magnetics (EM), and radiometric surveys; interpretation of a recently completed induced polarization (IP) study; and geological mapping.  The presence of artisanal workings was also taken into consideration.  From all the information investigated, Dr. Madani Diallo's technical team identified 14 areas (Figure 1) over a distance of 12 km on the Ouassada permit that require bedrock drilling to determine the cause of gold anomalism in the shallow and deep soil samples.  All the areas are apparently underlain by a Birimian felsic volcaniclastic unit cut by the Siekeroli Shear Zone.  The average surface length of the anomalies is 1,250 m, but they range from 640 to 2,840 m.  The widths are estimated to be on the order of 200 to 500 m.  Based on previous work in southern Mali it is anticipated that fresh rock will be at a depth greater than 50 m

Approximately 12,000 m of drilling has been identified, with 3,500 m (35 drill holes) considered to be high-priority due to the proximity of these targets with known artisanal gold operations.  The artisanal workings cover a strike length of 4 km.  Initially this work will be done by air core (AC) and reverse circulation (RC) drilling.  It is anticipated that additional diamond drilling techniques will be required to provide additional geological information.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/d394ad86-59a0-46f1-8c22-95891f1dea6c

Deep auger drilling at target area 2 (Ouassada)

Assay results from a total of 103 deep auger soil samples are still pending from the Ouassada permit.  These results are from target area 2 (TA2), which is centred on the contact between the western granitoids and the central mafic volcanic and volcaniclastic rocks illustrated on Figure 1.  These results will be released as soon as possible.

Deep auger drilling at Sodala and Tarabala anomalies (Sankarani permit)

As reported in the press release dated July 16, 2018, an expedited deep auger drilling program has also been completed over the Sodala and Tarabala shallow soil gold anomalies on the Sankarani permit (Figure 1).  The samples have been sent to SGS (Bamako) for analysis.  Results are pending.

Shallow soil sampling (Kalé, Kourou, and Tiélouléna permits)

In May and June, approximately 7,500 shallow soil samples were collected over the most prospective areas within the Kalé, Kourou, and Tiélouléna permits.  These samples are currently at the ALS assay laboratory in Johannesburg, RSA, and will be reported once the assays have been certified.

Summary

The results of all of the available exploration conducted on the Ouassada permit were used to identify 14 bedrock drilling targets. These targets are all within a felsic volcaniclastic unit that has numerous highly-anomalous gold in soil samples, and also contain two large artisanal gold workings.  Compass's technical team has developed a 12,000 m drilling program with up to 120 drill holes, and it is anticipated that drilling, which will be funded from the Company's current treasury, will begin at the end of the rainy season.  Meanwhile, assay results from shallow soil samples taken from Kalé, Kourou, and Tiélouléna are pending, as are results from deep soil auger drilling from Sankarani.

About Compass Gold Corp.
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the TSX-V. Through the recent acquisition of MGE and Malian subsidiaries, Compass holds gold exploration permits located in Mali that comprise the Sikasso Property. The exploration permits are located in three sites in southern Mali with a combined land holding of 1,179 km2. The Sikasso Property is located in the same region as several other multi-million-ounce gold projects, including Morila, Syama, Kalana and Kodieran. The Company's Mali-based technical team, led in the field by Dr. Diallo and under the supervision of Dr. Sandy Archibald, P.Geo, is initiating a new exploration program. They are examining the first of numerous anomalies noted for further investigation in Dr. Archibald's August 2017 "National Instrument 43-101 Technical Report on the Sikasso Property, Southern Mali.

Qualified Person
This news release has been reviewed and approved by Dr. Sandy Archibald, P.Geo, Compass's Technical Director, who is the Qualified Person for the technical information in this news release under National Instrument 43-101 standards.

Forward‐Looking Information
This news release contains "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the Company's planned exploration work and management appointments. Readers are cautioned not to place undue reliance on forward‐looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward‐looking information except as required by applicable law.

For further information please contact:  

Compass Gold Corporation Compass Gold Corporation
Larry Phillips – Pres. & CEO Greg Taylor – Dir. Investor Relations & Corporate Communications
lphillips@compassgoldcorp.com gtaylor@compassgoldcorp.com
T: +1 416-596-0996 X 302 T: +1 416-596-0996 X 301

Website: www.compassgoldcorp.com

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