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Rise Gold Announces Significant Exploration Target at the Idaho-Maryland Gold Project

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Vancouver, British Columbia--(Newsfile Corp. - June 28, 2019) - Rise Gold Corp. (CSE: RISE) (OTCQB: RYES) (the "Company") is pleased to announce the successful completion of the initial surface exploration drilling program, the estimation of a significant Initial Exploration Target based on recent exploration drilling, and the Company's strategy to advance the Idaho-Maryland ("I-M") Gold Project towards the re-opening of the mine.

The Company has completed 19 drill holes, totalling 20,584 meters, over the past 20 months in the Company's initial surface exploration drilling program at the Idaho-Maryland Gold Project.

Drilling has confirmed the presence of significant extensions of previously mined veins and structures. Numerous high-grade gold intercepts have been encountered, both near the existing mine workings and to depths of over 1 km below historic mining areas.

The Company has calculated an Initial Exploration Target based on Rise Gold's exploration drill results supported by historic data from the Idaho-Maryland Gold Project. The initial target represents the mineralized material in close proximity to and accessible from the existing mine workings that can be readily drilled from surface and/or underground to define a mineral resource.

The Initial Exploration Target provides a basis for the engineering required to permit and plan for the re-opening of Idaho-Maryland Mine. The Company is now focusing its resources on engineering work to advance the project. The Company has temporarily curtailed surface exploration drilling.

The Company has commenced engineering work to support an application for a Use Permit from Nevada County to allow the following activities:

  1. Dewatering of the underground mine workings.
  2. Underground exploration drilling.
  3. Full commercial mining with onsite mineral processing at the historic throughput of 1,000 tons per day.

Information on regulatory and environmental aspects of the Idaho-Maryland Gold Project was previously released on May 17, 20191.

The Initial Exploration Target is estimated to range between 2,280,000 tons - 3,410,000 tons of mineralized material, as detailed in Table 1. Approximately 50% of the mineralized material is hosted in wide zones, estimated to average ~29 feet (9 m) in true width, and potentially amenable to high productivity sub level long hole mining methods. The remaining mineralized material is estimated to average ~10 feet (3 m) in true width and would likely require more selective mining methods such as cut and fill mining.

The grade of this mineralized material cannot reliably be estimated without more extensive sampling. However, Rise Gold's drill core assays in conjunction with historic geological information show high grade gold values similar to grades that were encountered in historic operations at the Idaho-Maryland Mine.

Past production of the Idaho-Maryland for the period from 1866 to 1955 is estimated at 2,414,000 oz of gold at an average mill head grade of 0.50 oz per ton (17 grams per tonne) gold. Over the five years from 1937-1941 before the mine was forced to shutdown during WWII, the mine produced an average of 941 tons per day at an average head grade of 0.34 oz per ton (11.6 grams per tonne) and 116,000 oz gold per year2.

The Company cautions investors that the potential quantity and grade of the Initial Exploration Target is conceptual in nature and there has been insufficient exploration to define a mineral resource. The exploration target therefore does not represent, and should not be construed to be, an estimate of a mineral resource or mineral reserve. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Initial Exploration Target is derived from Rise Gold's drill intercepts where geology can be correlated to historic workings. Many of Rise Gold's recent drill intercepts are excluded from the estimate until further drilling can allow the full and reliable interpretation of this data. An exceptionally high gold intercept encountered below the modeled exploration target in drill hole I-18-10 was excluded from the Initial Exploration Target. This interval assayed 4.35 oz per ton gold over 22.4 feet and included 63.85 oz per ton gold over 1.5 ft. This high-grade interval may represent a new and significant high-grade discovery but further drilling in this area is required to understand the orientation and nature of the mineralization.

Numerous known veins shown by historic drilling and mapping, pillars, and broken ore inventory in historic shrinkage stopes are excluded from the Initial Exploration Target. The Company believes there is significant potential in these tertiary targets that will be best targeted, in the future, from underground.

The large mineral potential to depth, as described in Rise Golds news release dated May 21st 20193, is not included in the Initial Exploration Target and justifies extensive exploration. The Company believes that the potential for gold mineralization to depth is very significant and that it may be possible to delineate resources similar to or greater than the past production achieved at the Idaho-Maryland Mine.

TABLE 1 - Initial Exploration Target Summary




Tons Mineralized
Material
Estimated True
Width
Block Zone Level Low
Case
Base
Case
feet meters
A Idaho #2 I2700L - B3280L 540,000 810,000 33 10.1
B Idaho #2 I2700L 200,000 300,000 16 4.9
C Idaho #2 - Splays I2400L 170,000 250,000 8 2.4
D Idaho #1 Morehouse I2400L - B3280 L 170,000 250,000 8 2.4
E Idaho #1 I2400L - B3280 L 320,000 480,000 8 2.4
F Brunswick #1 B1600L - B1880L 290,000 440,000 26 7.9
G Brunswick #32 B1300L-B1880L 120,000 180,000 11 3.3
H Brunswick #10HW B1600L - B1880L 80,000 120,000 8 2.5
I Brunswick #10 FW B1600L - B1880L 90,000 130,000 9 2.7
J Brunswick #41 B1880L - B2650L 300,000 450,000 23 6.9

TOTAL
2,280,000 3,410,000

 

 

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FIGURE 1 - Location of Areas Included in Initial Exploration Target

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IDAHO #2 VEIN & RECENT DRILL RESULTS

Recent drill hole I-19-14A provided important geological information to prepare a substantial exploration target estimate for a portion of the Idaho #2 Vein. This zone of mineralization is estimated to have a true width of ~33 ft (10 m) and range in size from 540,000 - 800,000 tons.

Drill hole I-19-14A assayed 1.4 gpt gold over 14.9 m (0.04 oz per ton / 49.1 ft) including 6.2 gpt gold over 1.9 m (0.18 oz per ton / 6.3 feet).

Information from Drill hole I-19-14A provides geological context to previous intersections and historic information in this area of the Idaho #2 Vein. Drilling shows two important veins of the Idaho #2 zone which should be composited into a single zone.

Therefore, the previously released intersection for this area from drill hole I-19-13A is restated as 27.1 gpt gold over 14.8 m (0.79 oz gold per ton over 48.7 feet) with a true width of 14.1 m (46.4 ft). All drill hole intersections in this area of the Idaho #2 Vein are shown in Table 3.

A diabase dike is consistently present in the hanging wall of the mineralized zone. A gold-quartz vein is present immediately adjacent to the diabase (hanging wall vein). A second vein is separated from the hanging wall vein by approximately 18 ft (the center vein). The rock between the two veins is intensely altered and contains persistent but lower grade gold values. A weaker vein (footwall vein), occurs at a distance of approximately 20 ft from the center vein.

Historic drill hole I-2800-5 shows a similar style of mineralization with a hanging wall, center, and footwall vein. The historic operator did not assay the mineralized material between the veins and therefore 31 feet of the 63-foot mineralized interval in historic drill hole I-2800-5 is assigned a zero-gold grade.

Drill hole I-19-13 and I-19-13A are closely spaced, approximately 1.5 m (5 ft) apart, and show consistent geology but differ in grade substantially due to the coarse nature of the gold occurrence in this zone. For example, a section of the center vein in I-19-13A assayed 458 gpt gold over 0.81 m (13.35 oz per ton gold / 2.7 feet) and showed coarse gold in the retained half of the drill core as shown in Figure 2. The corresponding sample from I-19-13 assayed 12.5 gpt gold over 0.85 m (0.36 oz per ton gold / 2.8 feet). Rise Gold geologists inspected the retained half core from the corresponding I-19-13 interval and noted gold just below the surface of the drill core. This retained sample was split and revealed coarse gold present (shown in Figure 3), which may have resulted in a much higher assay if the entire core was submitted for assay.

Drill hole I-19-14A intersected the Idaho #2 Vein ~25.9 m (~85 feet) north of the mineralized intervals in drill holes I-19-13 and I-19-13A.

Drill hole I-19-14 intersected the Idaho #2 Vein 19.8 m (~65 feet) north of I-19-14A. The vein shows a sharp change in strike in this location, mirroring the historic drifting above on the I2700 level, and results in a significant decrease in vein widths, intensity of alteration, and gold grades. Based on historic records from the I2700 level above, it is suspected that gold grades may improve as the strike of the Idaho #2 Vein turns towards the Idaho #3 Vein, approximately 70 m (230 ft) north of the I-19-14 intercept.

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FIGURE 2 - Visible Gold in Drill Intercept I-19-13A(in retained half core)
(Assayed 13.35 oz per ton / 2.7 feet)

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FIGURE 3 - Visible Gold in Drill Intercept I-19-13(in retained half core)
(Assayed 0.36 oz per ton / 2.8 feet)

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INITIAL EXPLORATION TARGET

The Company prepared an estimate of potential tonnages for a number of exploration targets where recent drill results can be correlated with historic geology and operational data. Each zone was modelled using Rise Gold's drill hole information along with historic mapping and historic drilling where it was available. To account for uncertainty in geometry, a low case value of 67% of the base case value is presented in the exploration target summary. The historic mineralized material density of 12 ft3 / ton was used for tonnage estimates.

The Initial Exploration Target only includes mineralization above the B3280 level which is the lowest level of the existing historic mine. Rise Gold has drilled several important intersections much deeper than the B3280 level which suggests important gold mineralization extends well below the B3280 level. The historic operator also anticipated that gold mineralization continued well below the B3280 level and invested significant capital to upgrade the mine hoist and was actively sinking the shaft towards the 5000 ft level below surface. The historic operator reached a depth of 3470 ft below surface when the mine was forced to close in 1942.

Drawings showing the location and geometry of the zones included in the Initial Exploration Target can be downloaded from the following link. All drawings are in imperial units and shown in mine grid coordinates. The mine grid uses an elevation of 10,000 ft as the datum for sea level. Mine grid north is similar to true north.

https://riseg.sharefile.com/d-s59c224538744036b

The estimated dimensions used for the calculation of the Initial Exploration Target is displayed in Table 2. Drill intersections used for the modelling of the Initial Exploration target are displayed in Table 3 through Table 5. Important Rise Gold drill intersections which were excluded from the Initial Exploration Target are presented in Table 6.

TABLE 2 - Estimated Dimensions for Initial Exploration Target



Estimated
Block Zone Strike Length
(ft)
Dip Length
(ft)
True Width
(ft)
Dip
(deg)
A Idaho #2 574 510 33 30
B Idaho #2 454 485 16 0 (flat)
C Idaho #2 - Splays 454 421 2 x 8 = 16 0 (flat)
D Idaho #1 Morehouse 497 754 8 35
E Idaho #1 1340 533 8 45 - 90
F Brunswick #1 438 461 26 35
G Brunswick #32 300 659 11 60
H Brunswick #10HW 480 378 8 60
I Brunswick #10 FW 480 378 9 60
J Brunswick #41 222 1085 23 45

 

TABLE 3 - Rise Gold & Historic Drill Intersections within Idaho #2 Initial Exploration Target

Hole From
(ft)
To
(ft)
From
(m)
To
(m)
Gold
(gpt)
Gold
(oz per ton)
Intercept Length
(ft)
Intercept Length
(m)
Estimated True Width
(ft)
Estimated True Width
(m)
Vein
I-19-13 3273.0 3323.8 997.60 1013.09 2.9 0.09 50.9 15.50 44.75 13.64 I2 - Bk-A
  Including 3307.0 3323.8 1007.97 1013.09 5.5 0.16 16.8 5.12 14.78 4.51