Sun Peak Metals Announces Encouraging Assay Results from 2020 Drill Program

Rhea-AI Summary

Sun Peak Metals (TSXV:PEAK, OTCQB:SUNPF) has announced favorable assay results from its 2020 drill program, suspended due to the Tigray regional conflict in Ethiopia. The program involved 11 holes at the Meli Main Target, 2 at the Meli Far-West, and 10 at the Anguda Southern Limb. Key findings include ML-013 intercepting 8.89 meters averaging 2.22% copper, 2.76 g/t gold, and 31.8 g/t silver, and MW-001 intercepting 15.84 meters averaging 1.90 g/t gold. These results indicate high-grade mineralization and extend the known VMS zones. The current drill program, announced in April 2024, aims to explore further within the Anguda VMS System, with initial assay results expected by June 2024.

CEO Greg Davis expressed satisfaction with the retrieval of intact drill cores and the confirmation of large VMS systems. VP of Exploration David Daoud noted the significant copper, gold, silver, and zinc content, highlighting the potential for large VMS deposits similar to those in the Arabian-Nubian shield.

Positive

• ML-013 intercepted 8.89 meters averaging 2.22% copper, 2.76 g/t gold, and 31.8 g/t silver, indicating high-grade mineralization.
• ML-014 intercepted 11.48 meters averaging 2.38% copper, 3.57 g/t gold, and 31.2 g/t silver, extending the Meli Main VMS zone.
• MW-001 intercepted 15.84 meters averaging 1.90 g/t gold, validating the Far-West target's potential.
• The retrieved drill core was mostly intact, preserving integrity despite the suspension in 2020.
• Results confirmed the presence of large VMS systems, supporting the geological model and increasing the potential for large-scale deposits.
• The current drill program aims to further explore the promising Anguda VMS System with results expected soon.

Negative

• The 2020 drill program was abruptly suspended due to the Tigray regional conflict, causing delays.
• Several drill holes (ML-011, ML-012, ML-015, ML-016, ML-017, and MW-002) did not intercept significant mineralization.
• The exploration efforts were hampered, impacting progress and potential timely discoveries.
• The Meli Main zone is truncated by a fault, complicating the exploration and future mining efforts.
• While results are promising, the extended timelines and political instability in the region pose ongoing risks.

VANCOUVER, BC / ACCESSWIRE / May 28, 2024 / Sun Peak Metals Corp. (the "Company" or "Sun Peak") (TSXV:PEAK)(OTCQB:SUNPF) is pleased to report final drill assay results from the suspended drill program from October and November 2020.

Exploration work, including drilling with two diamond drills, had begun in October 2020 and was abruptly suspended when the Tigray regional conflict in Ethiopia began on November 4, 2020. During this time, 11 drill holes for 1,534 meters were drilled at the Meli Main Target, 2 drill holes for 108 meters were drilled at the Meli Far-West Target, and 10 drill holes for 730 meters were drilled at the Anguda Southern Limb Target, located on the Terer License. See Figure 1: Shire Project License Area

In early 2024, the exploration team was able to recover the drill core and resume work, including logging and sampling the core from 2020.

Highlights

• ML-013 intercepted 8.89 meters averaging 2.22 % copper, 2.76 g/t gold, and 31.8 g/t silver, extending the Meli Main VMS zone down dip.
• ML-014 intercepted 11.48 meters averaging 2.38 % copper, 3.57 g/t gold, and 31.2 g/t silver.
• ML-018 intercepted 9.61 meters averaging 2.21 % copper, 3.18 g/t gold, and 32.3 g/t silver.
• MW-001 intercepted 15.84 meters averaging 1.90 g/t gold, including 7.55 meters of 2.94 g/t gold, the first drill hole targeting the Far-West target, located approximately 3 km west of Meli Main and potentially along strike.

"While drilled in 2020, the drill core had not been fully logged or sampled before the unexpected halting of work." stated CEO and President, Greg Davis, "We were very pleased to discover that the drill core had been retrieved mostly intact with the integrity of the storage preserved." Mr. Davis goes on to say, "Results at both Meli and Anguda Southern Limb targets help confirm the presence of the large scale VMS systems we set out to discover in 2019 and continue to pursue now that we are back in the field."

VP of Exploration, David Daoud stated, "Overall these results continue to support our geological model that these targets share the characteristics of large VMS deposits in the Arabian-Nubian shield similar to both the Bisha and Emba Derho deposits. At Meli, we continue to see high-grade copper and gold mineralization over significant intercepts. Combining these results with the results at the Far-West target and the large, still untested, gravity anomaly that was found in-between the two targets continue to create excitement for the emerging trend. We have just started our work on the Far West target, but we are very excited about the potential of the central and the western portions of the Meli target."

Regarding the Anguda Southern Limb targets, Mr. Daoud stated, "The consistent copper, gold, silver, and zinc content in the southern limb combined with observations of the greater Anguda VMS system area, are very encouraging. They point to the existence of a large and strong VMS system encompassing the entire Terer/Anguda trend, an area of more than 10km strike length. We are hopeful the current drilling will help reveal more of what could potentially be a massive VMS deposit."

Figure 1: Shire Project License Area

Current Drill Program Update

The current drill program, which was announced April 5, 2024, is further testing various targets within the Anguda VMS System area including the Hamlo and Terer VMS Targets. The first assays from the current program are expected around the end of June.

2020 Drill Program Results

Meli Main Target

At the Meli Main Target 11 drill holes for 1,534 meters were drilled in October and November 2020. This is in addition to the seven drill holes for 746.4 meters drilled earlier that same year. The Meli primary sulfide zones are copper and gold rich VMS style mineralization. The higher gold and copper grades could imply the mineralization is near a VMS vent (or vents) with potential for massive sulfide mineralized layers near to these vents.

The drilling from October and November 2020 successfully extended the copper-gold rich VMS mineralization to depth and the zone remains open for expansion to the west and to depth. The drilling defined the eastern contact of the Meli Main zone which appears to be truncated by a normal fault (down dropped by a block fault). See Figure 2: Drill Plan Map and Figure 3: Drill Cross Section.

The VTEM geophysical data and detailed ground gravity combined with the geological mapping show the potential of the trend extending to Meli Central and Far-West target. This VMS trend is approximately 3 km between drilling at Meli Main and where drilling at the Far-West target intercepted near surface VMS gold rich gossan. See Figure 4: Plan Map of Meli VMS Trend to Far-West Target.

Figure 2: Meli Main Drill Plan Map

Figure 3: Meli Main Cross Section

Figure 4: Plan Map of Meli VMS Trend to Far-West Target with Gravity Background.

Table 1: Meli Main Drill Results from November and October 2020

DH	From (m)	To (m)	Length (m)	Au g/t	Ag g/t	Cu %	Zn %
ML-009	68.8	71.16	2.36	1.60	7.4	1.42	0.74
ML-010	13.65	17.5	3.85	0.01	1.9	0.66	0.10
ML-013	142.23	151.12	8.89	2.76	31.8	2.22	1.75
ML-014	162.6	174.08	11.48	3.57	31.2	2.38	0.65
ML-018	108.64	118.25	9.61	3.18	32.3	2.21	0.56

Note: ML-011, ML-012, ML-015, ML-016, and ML-017 did not intercept the zone

Table 2: Meli Main Drill Results from February and March 2020 (*previously reported)

DH	From (m)	To (m)	Length (m)	Au g/t	Ag g/t	Cu %	Zn %
*ML-001	55.6	70.9	15.3	3.18	25.0	2.2	1.4
*ML-002	47.37	84.6	37.23	2.45	29.4	2.4	1.3
*ML-003	87.74	123.17	35.43	2.52	22.3	1.8	1.5
*ML-004	72.46	83.2	10.74	3.34	27.3	1.8	1.0
*ML-005	90.26	101.25	10.99	3.01	26.8	1.8	0.8
*ML-006	70.95	74.79	3.84	2.57	30.3	1.9	0.7
*ML-007	18.05	23.3	5.25	<0.01	3.3	2.3	<0.1
*ML-007	34.05	35.17	1.12	3.07	45.2	5.7	<0.1
*ML-007	52.55	53.53	0.98	4.34	38.9	5.4	<0.1
*ML-007	61.03	63.32	2.29	2.97	24.2	1.5	0.65

Far-West Target

The Far-West Target is located approximately 3 km west of Meli Main along the Meli VMS trend. In November 2020, 2 shallow drill holes for 108 meters were drilled at the target which were designed to test the gold oxide gossan.

Drilling confirms the presence of significant gold mineralization in the gossan and demonstrate the potential for the Meli West Target to host gold and copper VMS sulphide to depth. The Meli VMS mineralized trend has now successfully been extended for over 3km along strike. The mineralization still open to depth and along strike, and future drilling at the Far-West target will test the massive sulfide potential beneath the gossan.

Table 3: Far-West Target Results

DH	From (m)	To (m)	Length (m)	Au g/t	Ag g/t
MW-001	5.5	21.34	15.84	1.90	10.7
including	5.5	7	1.50	2.34	0.6
including	11.05	21.34	10.29	2.51	15.6
including	11.05	18.6	7.55	2.94	16.0

Note: MW-002 did not drill any significant intercepts.

Anguda Southern Limb Target

The Company completed 10 drill holes for 730 meters at the Anguda Southern Limb Target in October and November 2020. The Anguda southern limb VMS prospect consists of over 1km long VMS gossan. The immediate area around this target is referred to as the Anguda VMS System area (see Figure 5: Anguda VMS System Area), which is part of large defined VMS cluster that trends southwest-northeast for over 20km by over 10km wide. The drilling successfully tested the VMS mineralized system at Anguda southern limb which is located only about 300m south of the large gravity high Anguda North VMS anomaly and represents its hanging wall rocks. See Figure 6: Anguda Southern Limb Drill Plan Map and Figure 7: Anguda Southern Limb Cross Section.

Figure 5: Anguda VMS System Area, with Gravity

Figure 6: Anguda Southern Limb Drill Plan Map, with Contoured Gravity

Table 4: Anguda Southern Limb Drill Results

DH	From (m)	To (m)	Length (m)	Au g/t	Ag g/t	Cu %	Pb %	Zn %
AN-002	25.95	29.09	3.14	0.35	4.67	0.45	0.02	0.33
AN-003	44.07	46.23	2.16	0.27	3.50	0.50	0.02	1.22
AN-004	70.9	72.35	1.45	0.25	4.12	0.46	0.03	1.25
AN-006	63.75	66.75	3	0.21	3.33	0.48	0.01	0.64
AN-007	99.9	107.35	7.45	1.29	2.95	0.42	0.01	0.81
AN-008	42.51	44.06	1.55	0.54	2.49	0.02	0.03	0.53
AN-008	47.46	54.46	7	0.20	4.15	0.33	0.02	1.76
AN-009	63.46	67.23	3.77	0.22	4.46	0.27	0.04	1.59
AN-009	69	71.61	2.61	0.20	5.60	0.64	0.01	0.99
AN-010	99.06	99.36	0.3	1.12	8.80	0.03	0.08	1.54
AN-010	107.87	116.14	8.27	0.18	4.95	0.36	0.02	0.87
including	107.87	110.75	2.88	0.20	6.29	0.28	0.04	1.17
including	111.55	116.14	4.59	0.19	4.95	0.47	0.01	0.82

Figure 7: Anguda Southern Limb Cross Section

QUALIFIED PERSON'S STATEMENT

David K. Daoud, P. Geo, Vice President Exploration is the Qualified Person overseeing Sun Peak's exploration projects in Ethiopia and has reviewed and approved this press release.

All drill holes reported are diamond drill core holes.

A Quality Assurance/Quality Control program was part of the sampling program on the Meli Main, Meli West and Angoda Southern Limb prospects. This program includes the systematic submittals of standards, duplicates, and blank samples into the flow of samples produced by the sampling.

Samples were prepared at ALS Laboratory in Addis Ababa, Ethiopia and analyzed at ALS Laboratory in Dublin, Ireland. Gold is assayed using a 50-gram of -75 micron-size pulp is fire assayed and finished by ICP-AES analysis to detect content between 0.01 and 10.0 ppm. Gold returning over limit values are re-assayed with higher detection limits using a gravimetric finish. As well, a 0.5 gram cut from the pulp of each rock sample is dissolved by aqua regia acid digestion and analyzed by mass spectrometry for a suite of 51 additional elements. Analytical values for silver, copper, zinc, and lead over detection limits are re-assayed with higher detection limits, using aqua regia digestion. Drilling intercept lengths and estimated true thicknesses are reported in the tabulations.

ABOUT SUN PEAK METALS CORP.

Sun Peak is exploring the district-scale Shire VMS Project in the Tigray Region of northern Ethiopia. The Shire Project is comprised of six exploration licenses and covers approximately 1,450 square kilometers in the prospective Arabian Nubian Shield. The licenses are in the same geological environment as both the Bisha Mine and the Asmara Projects. The Meli and Terer Licenses are part of a joint-venture agreement with Ezana Mining, a private Ethiopian Company and the other four are 100% owned by Sun Peak. The Sun Peak team have worked in East Africa for more than two decades and the Company's strategy is to apply exploration techniques that have worked successfully in the region before, to build assets through major copper-gold VMS discoveries.

ON BEHALF OF THE BOARD OF DIRECTORS OF SUN PEAK METALS CORP.

Greg Davis
President, CEO & Director

FOR FURTHER INFORMATION, PLEASE CONTACT:

Greg Davis
(T): +1 (604) 999 1099
(E): info@sunpeakmetals.com

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

Disclaimer for Forward-Looking Information

Certain information and statements in this news release may be considered forward-looking information or forward-looking statements for purposes of applicable securities laws (collectively, "forward-looking statements"), which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of information or statements that are not purely historical, including any information or statements regarding beliefs, plans, expectations or intentions regarding the future. Such information or statements may include, but are not limited to, statements with respect to the goal of making a significant discovery and the development of a large-scale project in Ethiopia and identifying other potential properties and opportunities both in Ethiopia and globally. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Sun Peak will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: the risk that the results of the planned exploration programs at the Shire Project do not meet expected results. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, Sun Peak assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Prospectus filed with Canadian security regulators.

SOURCE: Sun Peak Metals Corp.

View the original press release on accesswire.com

FAQ

What are the key findings from Sun Peak Metals' 2020 drill program?

Key findings include intercepts such as ML-013 with 8.89 meters averaging 2.22% copper, 2.76 g/t gold, and 31.8 g/t silver, and MW-001 with 15.84 meters averaging 1.90 g/t gold.

How did the Tigray conflict affect Sun Peak Metals' drill program?

The Tigray regional conflict in Ethiopia caused the suspension of the drill program in November 2020, leading to delays in exploration.

What is the current focus of Sun Peak Metals' drilling efforts?

The current focus is on further testing various targets within the Anguda VMS System, with initial assay results expected by June 2024.

What potential does the Meli Main Target show for Sun Peak Metals?

The Meli Main Target shows high-grade copper and gold mineralization, extending to depth and remaining open for expansion.

What impact did the drill core retrieval have on Sun Peak Metals' exploration?

The retrieval of intact drill cores allowed Sun Peak Metals to resume work, including logging and sampling, which confirmed the presence of large VMS systems.