Barsele Announces the Resumption of Diamond Drilling Activities

Rhea-AI Summary

Agnico Eagle Mines (AEM) has resumed diamond drilling at the Barsele Gold Project in Northern Sweden, initiated on July 14th. The drilling aims to explore Regional Orogenic Gold and Volcanogenic Massive Sulphide targets, focusing on continuity and extensions of higher-grade intercepts in the Avan and Central zones. Initial studies on spectrographic Ore/Waste separation have also begun. Agnico Eagle holds a 55% stake in the Barsele Project and can earn an additional 15% through a pre-feasibility study. Safety protocols against COVID-19 are enforced during operations.

Positive

• Resumption of diamond drilling at Barsele Gold Project may enhance resource identification.
• Focus on higher-grade gold intercepts in Avan and Central zones could lead to improved project viability.
• Initiation of spectrographic Ore/Waste separation studies may optimize resource extraction.

Negative

• None.

Coring was initiated on July 14th

• Drill will test Regional Orogenic Gold and Volcanogenic Massive Sulphide targets.
• Drill will test for continuity and extensions of higher-grade intercepts within the Avan and Central zones.
• Early stage Spectrographic Ore/Waste separation studies have been initiated.
• Stringent COVID-19 protocols will be enforced, in order to keep the workers and people in the surrounding community safe.

VANCOUVER, BC, July 20, 2020 /PRNewswire/ - Barsele Minerals Corp. – (TSXV: BME) ("Barsele") is pleased to provide an operational update regarding ongoing exploration activities within the Barsele Gold-VMS Project area in Västerbottens Län, Northern Sweden (the "Barsele Project"). The exploration program is being operated by joint venture partner Agnico Eagle Mines Limited – (TSX, NYSE: AEM) ("Agnico Eagle"). Ownership in the Barsele Project is 55% Agnico Eagle and 45% Barsele. Agnico Eagle can earn an additional 15% in the Barsele Project through the completion of a pre-feasibility study. There is no cash outlay requirement by Barsele until a pre-feasibility study is completed.

Between January 1^st and June 30^th, Agnico Eagle personnel and certain contractors have been carrying-out office-related and field-specific exploration activities, at a number of exploration sites, throughout the property. Work has included gravity and magnetic surveying, plus base of till sampling, along with the more recent initiation of a large surface till sampling campaign. Site personnel have also been focused on the project database, with emphasis on lithogeochemical and structural reinterpretation of all pre-2020 drill core, toward vectoring in on sectors of the Avan-Central-Skiråsen zones, exhibiting superior gold grades. Work has also involved studies related to high-grade gold occurrences associated with certain elements, minerals and alteration phases. Furthermore, as part of their comprehensive approach to the Barsele Project, Agnico Eagle personnel have undertaken initial studies related to spectroscopic Ore/Waste sorting.

Barsele's President, Gary Cope states: "Since early 2020, Agnico Eagle management and site personnel have been utilizing a combination of advanced technologies to further interpret and model the exploration results achieved to date. It is now time to drill test some of these evolving concepts and interpretations and I look forward to the results of this work. While there is no certainty of a positive outcome, I also look forward to the results from recently initiated spectrographic Ore/Waste separation studies."

Technical information related to this news release was verified by way of a site visit in January of 2020 by the Qualified Person, wherein certain data was discussed with the site management and the technical staff and the database was reviewed and drill core and till sampling material and handling procedures were examined. Agnico Eagle maintains comprehensive quality control/quality assurance protocols. Recently, updates have been via monthly reports and video conferencing between Barsele management and Agnico Eagle management.

As project operator, Agnico Eagle has developed a community relations program to engage the various stakeholders in the Barsele Project area. Basic environmental assessment and surface water characterization, species studies and hydrogeology studies are ongoing.

About the Barsele Gold Project

The Barsele Project is located on the western end of the Proterozoic "Skellefte Trend", a prolific volcanogenic massive sulphide deposits belt, that intersects with the "Gold Line" in Northern Sweden. Both polymetallic "VMS" deposits and intrusive hosted "Orogenic Gold" deposits are present in this region and on this property. Current and past producers in the region include Boliden, Kristineberg, Bjorkdal, Svartliden and Storliden.

Pre-2019, drilling at Barsele was mainly focused on verifying, defining and expanding the "Orogenic Gold" mineral resources within and along the trend of the Avan-Central-Skiråsen gold zones and more recently, the Risberget Zone and the Skirliden area.

On February 21^st, 2019, Barsele released an independently verified Mineral Resource Estimate that was completed by Quebec-based InnovExplo Inc., for the purposes of the Company. The study concluded that drilling to the end of 2018 along the Avan–Central–Skiråsen gold zones at a 0.50 g/t gold cut-off for a pit constrained extraction mining method, a 1.50 g/t gold cut-off for a bulk underground extraction mining method, a 1.80 g/t cut-off for a selective underground extraction mining method, has in combination, outlined an Inferred Resource of 25,495,000 tonnes grading 2.54 g/t gold (2,086,000 ounces of contained gold) and an Indicated Resource of 5,578,000 tonnes grading 1.81 g/t gold (324,000 ounces of contained gold).

The main gold-bearing system remains open in all directions. The structurally linked gold mineralized "lodes" occur mainly within a granodiorite host and to a lesser extent, volcanic and sedimentary rocks. Multiples of parallel to sub-parallel "lodes" that vary in width from 10 metres to 100 metres, combine for a maximum known thickness (including low grade-waste islands) of 425 metres. The Avan–Central–Skiråsen zones have a strike length approaching 3.6 kilometres and that same northwest trending structural corridor does contain localized bodies with gold mineralization over an additional 4.4 kilometres. The drill tested depth of the mineralized system approaches 1.0 kilometre and remains open. Gold is generally associated with arsenopyrite and low base metal content, but also occurs as native metal.

Since January 2019, drilling has been mainly focused on the pursuit of polymetallic massive sulphide mineralization that is hosted in rocks of volcanic and sedimentary composition, partitioned by post mineral intrusive dykes and sills.

This announced 2020 drilling will probe for both "Orogenic Gold" and polymetallic "VMS" mineralization.

Art Freeze, P.Geo. is the Qualified Person as defined in NI 43-101 and takes responsibility for the technical disclosure contained within this news release.

About Barsele Minerals Corp.

Barsele is a Canadian-based junior exploration company managed by the Belcarra Group, comprised of highly qualified mining professionals. Barsele's main property is the Barsele Gold Project in Västerbottens Län, Sweden, a joint venture with Agnico Eagle. An updated NI 43-101 Technical Report on the Barsele Project with an effective date of February 21^st, 2019, was filed on SEDAR on April 2^nd, 2019.

ON BEHALF OF THE BOARD OF DIRECTORS

Gary Cope
President

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements and Barsele undertakes no obligation to update such statements, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Barsele Minerals Corp.

FAQ

What are the recent developments for Agnico Eagle Mines (AEM) at the Barsele Gold Project?

Agnico Eagle Mines has resumed diamond drilling as of July 14th, targeting higher-grade gold and VMS mineralization at the Barsele Gold Project.

What is the ownership structure of the Barsele Gold Project involving AEM?

Agnico Eagle holds a 55% interest in the Barsele Gold Project, with the option to increase its stake to 70% through a pre-feasibility study.

When was diamond drilling initiated at the Barsele Project?

Diamond drilling at the Barsele Project was initiated on July 14th.

What are the objectives of the current drilling campaign by AEM at Barsele?

The drilling aims to test for continuity and extensions of higher-grade intercepts in the Avan and Central zones, as well as other mineral targets.

What safety measures are being implemented during drilling activities at the Barsele Project?

Stringent COVID-19 protocols are being enforced to ensure the safety of workers and the surrounding community.