Juan de Herrera Project

Juan de Herrera Project

Additional Information on The Dominican Republic's Tireo Gold Trend

Juan de Herrera Drill Hole Summary Result Tables: https://www.precipitategold.com/projects/dominican...

Latest News from Juan de Herrera

Southeast Zone Copper Trench Results: September 19, 2017

Highlight continuous rock chip results from Trench 7 at the Southeast Zone are as follows:

3.0m of 2.78% copper, within 8.0m of 1.28% copper within a broader 18.0m of 0.70% copper

The true width of the mineralized intervals is uncertain as the orientation of mineralization observed to date is not fully understood.

See news release, https://www.precipitategold.com/news/2017/precipit...

Juan de Herrera Project Location

Precipitate's Juan de Herrera project is well located within the prospective Tireo Gold Trend in western Dominican Republic. The Juan de Herrera project concessions are variably road accessible and cover an estimated 40 kilometres of prospective strike length of target Tireo Formation lithologies (see property maps). The Tireo Formation is an Upper Cretaceous aged package of volcanic and sedimentary rocks that bisects central Hispaniola, trending northwesterly through the Dominican-Haitian nations borders. These rocks were largely unexplored until recent discoveries by GoldQuest Mining Corp (Romero), Unigold (Neita-Candelones) and Newmont (La Miel). Approximately 5.0 million gold equivalent ounces have been discovered and advanced in in the belt in the last decade, while vast areas of similarly prospective and proximal terrain remains largely underexplored.

Project Technical Milestones and Highlights

- JDH Project acquisition October 2012 via option agreement; December 2016 Precipitate earned 100% control interest in the JDH Project.

- Completion of property wide regional prospecting and geochemical sampling yields numerous gold/copper/zinc targets.

- Detailed ongoing exploration at six areas: Ginger Ridge (East), Southeast, South Jengibre, Peak, Melchor and JT; with a number of other regional targets yet to be followed up on.

- Helicopter airborne high sensitivity magnetic and radiometric geophysical survey complete.

- Focused exploration at Ginger Ridge Main Zone: including detailed soil and rock sampling, geological mapping, numerous phases of IP & magnetic geophysical surveys, and 3,270 metres of diamond drill testing. Identification of a combined VMS-intermediate sulphidation mineral system and discovery hole GR14-05 with highlight result of 18.0m @ 4.54 g/t gold.

- Tireo Gold Camp data sharing and collaboration agreement with GoldQuest Mining Corp.

- Extensive regional scale IP geophysical survey program completed over the current five priority exploration zones. Numerous combined chargeability/resistivity anomalies identified.

- Identification of Ginger Ridge East Zone VMS mineralization target via soil and trench sampling; Current diamond drill program includes 8 short holes for 811 metres total, with more drilling planned.

Current focus and Goals

- Additional diamond drill testing and geological interpretation of the Ginger Ridge East Zone VMS mineralization target, with a focus of identifying similar VMS style mineralization as at GoldQuest’s nearby “Cachimbo Zone”.

- Southeast, South Jengibre, Peak and Melchor Zones: collection of detailed soil samples and additional exploration target refinement for drill testing of the numerous high level multi-layered geophysical, geochemical and geological anomalies. The Southeast and South Jengibre zones are the near term focus. Especially the recently identified copper enriched Southeast Zone Trench 7 area (3.0m of 2.78% copper within 8.0m of 1.28% copper).

Ginger Ridge Zone Exploration Summary

Precipitate's primary exploration focus is on the Juan de Herrera concession, which is a highly prospective and emerging exploration camp with intermediate sulphidation epithermal and VMS styles of mineralization. Since announcing its initial Dominican Republic property acquisitions in August 2012, the Company has completed multiple phases of regional and local scale exploration work. Follow up exploration programs have focused on the Main Ginger Ridge Zone, as well as the newly identified Ginger Ridge East and Ginger Ridge South zones where exploration (sampling and trenching and limited drilling) has been conducted.

Detailed exploration at Ginger Ridge Zone includes geological mapping, rock-soil sampling, hand trenching, multiple phases of induced polarization and ground magnetic geophysical surveying and 15 diamond drill holes totalling 3,270m (3 phases).

Phase 1 drilling at the Ginger Ridge Zone discovered a new zone of gold-enriched massive sulphide mineralization, as discovery hole GR14-05 cut 98.1 metres of strongly disseminated, semi to massive sulphides (dominantly pyrite), containing an 18.0 metre wide interval of 4.54 g/t gold (including 5.0 metres at 13.37 g/t gold. See the maps and figures and table below for additional information. Holes reported from Phase 2 drilling (holes 7 to 11) were not as robust as the mineralization identified in the discovery hole. Subsequently completed and reported holes reported results from Holes 12 – 15 testing the Main and South parts of the Ginger Ridge area. Highlight results include the discovery of mineralization in a previously untested anomaly to the south of the Main zone yielding a 1.1 m interval of 2.59 g/t gold, (including 0.11% copper, 0.6% lead and 0.65% zinc) (GR17-15) and a Main Zone drill intercept of 14.73m of 1.16 g/t gold, including 2.67m of 2.23 g/t gold (GR17-13).

Ginger Ridge Zone Surface Sampling and IP Geophysics

Soil and rock sampling has established a northwest-southeast trending gold anomaly (plus pathfinder elements) about 2.0 kilometres long over the east slope of Ginger Ridge. The enriched multi-element core anomaly, centred in the control grid, is characterized by a correlation of gold and silver with several pathfinder elements which variably include arsenic, antimony, barium, lead, copper, thallium and zinc. Surface sampling at Ginger Ridge covers an estimated area measuring 2,200m by 750m, blanketing most of the eastern slope of Ginger Ridge.

IP geophysical surveys covers an area measuring approximately 1.6 km by 1.0 km, blanketing much of the zone's multi-element surface geochemical anomaly that marks anomalous mineralization in Tireo volcanic rocks.

In early 2017, the Company announced soil sampling results from the newly identified gold-in-soil geochemical anomaly Ginger Ridge East zone, located approximately 1.0km east of the main Ginger Ridge anomaly. Subsequent comprehensive and concentrated soil sampling program (density of 25m by 25m) has demarcated a robust soil anomaly measuring >1,000 metres (“m”) long by an estimated average width of 100 metres (up to 200m wide locally). The northwest-southeast trending soil anomaly reports elevated gold, lead and zinc values throughout the surface anomaly along with intermittent copper values.

Additional Zones at Juan de Herrera

Regional sampling and mapping in early 2016 identified 5 new priority geochemical anomalies, namely “Southeast”, “Jengibre South”, “Melchor”, “Peak”, and “JT”. Geochemical sampling results have substantiated and refined the size and form of these significant multi-element surface anomalies and all five are coincident with regional airborne magnetic anomalies and are hosted within favourable Tireo volcanic lithologies.

In May of 2017, the Company announced completion of an extensive Induced Polarization (“IP”) geophysical survey program over multiple zones within the project. The survey focused on Ginger Ridge and the five other target areas (namely, Southeast, South Jenigbre, Peak, Melchor and JT zones) previously identified by airborne magnetics, mapping, and soil and rock geochemical programs over areas known to be underlain by favourable Tireo volcanic rocks. Property-wide, a total of 80 line kilometres have been surveyed, including the 2014 Ginger Ridge IP geophysical work (which consisted of gradient, pole-dipole and Insight arrays). In addition, the Company has collected ground magnetic readings from 73 line kilometres surveyed within the project; selective magnetic geophysical surveying is ongoing.

Recently completed interpretation of newly generated geophysical data along with current exploration data of the Southeast and South Jengibre Zones has yielded the following highlight results:

Southeast Zone

  • 650 metre (“m”) by 125m multi-element soil anomaly with gold up to 144 parts per billion (“ppb”), plus various pathfinder elements (open in all directions, except to the southeast);
  • Northwest trending soil anomaly coincident with important geophysical features, including moderate-high IP chargeability and resistivity and magnetic low signatures important for potential gold mineralization in the region;
  • Discovery of a new early stage high grade copper showing with strong disseminations of chalcopyrite (rock grab samples reporting up to 13.5% copper, 0.5 g/t gold, and 52.1 g/t silver*); Continuous rock chip results from Trench 7: 3.0m of 2.78% copper, within 8.0m of 1.28% copper within a broader 18.0m of 0.70% copper; and
  • Sampling of other areas between Southeast and South Jengibre has reported copper values up to 1.1% and gold values up to 1.1 g/t
  • South Jengibre Zone

  • 350m by 150m multi-element soil anomaly with gold up to 229 ppb, open to the southeast;
  • Gold-in-soil anomaly correlates with pathfinder elements, zinc and lead, with lesser silver and antimony;
  • Soil anomaly is coincident with moderate IP chargeability and high IP resistivity and moderate magnetic low signatures;
  • Located only two kilometres south of GoldQuest Mining’s Jengibre zone, where past work reported highlight rock channel sampling results of 59.5 metres grading 1.58 g/t gold (see GoldQuest news release of October 7, 2009) and rock samples to 17.7 g/t gold and 1.4% copper; and
  • Rock grab sampling southwest of the main trend has reported gold values up to 5.2 g/t and 1.25 g/t across a 4.0 metre outcrop
  • Highlight results for the combined newly generated geochemical and geophysical data for the Melchor and Peak Zones is as follows:

    Melchor Zone

  • Target area measuring 2.2 km by 0.6 km including three parallel and fairly well defined multi-element soil anomalies with gold up to 181 parts per billion (“ppb”);
  • Highlight rock grab sampling with gold values up to 7.7 g/t Au;
  • The three southeast trending soil anomalies are further defined by various geophysical features of mixed moderate-high and low IP chargeability-resistivity and magnetic low signatures, important for potential gold mineralization in the region; and
  • Geological mapping indicates much of the area to be underlain by regionally favourable rhyolite and dacite rocks.
  • Peak Zone

  • Target area measuring 2.0 km by 0.7 km, includes four loosely outlined multi-element soil anomalies with gold up to 286 ppb;
  • Highlight rock grab sampling with gold values up to 1.57 g/t Au and copper values to 0.6%;
  • Geophysical responses including mixed moderate-high and low IP chargeability-resistivity and magnetic signatures; are coincident with the soil anomalies;
  • Located 4.5 km southeast of GoldQuest Mining’s Jengibre zone, where past work reported highlight rock channel sampling results of 59.5 metres grading 1.58 g/t gold (see GoldQuest news release of October 7, 2009) and rock samples to 17.7 g/t gold and 1.4% copper; and
  • Sampling of other areas between Peak and Melchor zones has reported gold-in-soil values up to 490 ppb and a rock grab sample with 0.47 g/t gold and greater than 1% zinc.
  • * NOTE: Surface rock grab samples are selective by nature and are unlikely to represent average grades of the zone.