Sandman Resource Estimate Grows By 60%

VANCOUVER - Gold Bull Resources Corp. reported a Mineral Resource Estimate (MRE) for the Sandman Project, located near the town of Winnemucca in Nevada.

The effective date of this MRE is January 20, 2021. CEO, Cherie Leeden, said, “This resource estimate incorporated the additional drilling that has been completed at the project since the 2007 resource estimate which totaled 309,000 ounces. Since acquiring the project from Newmont in December 2020, it is a fantastic outcome to have grown our resource base to 494,000 ounces of gold (comprised of 433,000 ounces of Indicated plus 61,000 ounces of Inferred) before we even commence our drill program. Future resource estimates may also consider silver, which tends to be associated with the gold at a ratio of about 10:1 and has not been adequately investigated yet. The Mineral Resource Estimate (MRE), for the Sandman Project, was completed by Steven Olsen, who is an Independent Consultant and is a qualified person under NI 43-101. This MRE was derived from 249 historical surface diamond drill holes and 650 RC drill holes totaling 20,201 m of diamond drilling and 75,573.3 of RC drilling.”

The MRE was constrained within an open pit design which was used for the purpose of restricting the MRE to gold mineralization that has “reasonable prospects” for eventual economic extraction. The MRE has been reported from within this open pit constraint, and all material outside of this pit constraint has been excluded from the MRE. The cut-off grade applied to the MRE is based on estimated processing costs and gold recoveries which are commensurate with a gold price of approximately US$1,800 per ounce (US$1690 for fresh and US$1814 for oxide). Metallurgical information completed to date from Sandman indicates that different processing methods and operating costs will be required for the oxidized rock compared with the unoxidized rock, also known as fresh rock. A cut-off grade of 0.15g/t gold has been applied to the oxide rock which compares with the cut-off grade for unoxidized (fresh) rock of 0.30g/t gold.

Sandman is located in Townships 36 and 37 North, Ranges 35 and 36 East, Mount Diablo Meridian, Humboldt County, Nevada, USA. The property is situated south of the Slumbering Hills and west of the Tenmile Hills, circa 24 km northwest of the town of Winnemucca, Nevada. The property lies 23 km south of the Sleeper Mine. Sandman is accessed by driving west from the town of Winnemucca on Jungo Road for 15 km, and then an additional eight km to the north on dirt roads that lie largely within the property boundaries.

The Sandman deposits belong to a series of deposits that are dated between 14 and 17 million years old. Many of these deposits have formed on major regional faults or rift zones and are interpreted to have formed as a result of the same geological rifting event. The Sandman deposit is located on a large regional fault known as the Central Northern Nevada Rift (NNRC) and is located some 23 km south of the significant Sleeper deposit on the same interpreted major structure. Location of the Sandman deposit and surrounding gold deposits which are interpreted to have formed as part of the same geological event (after Saunders and Hames, 2015). Reference to other mines and producing properties is for information purposes only and there are no assurances that the Company will achieve the same results.

The Southeast Pediment, Silica Ridge, North Hill, and Abel Knoll Au+Ag mineralization at Sandman are classified as low-sulfidation, quartz-adularia, epithermal deposits. The mineralization is hosted by Tertiary volcanic rocks, primarily in tuffaceous units, andesite porphyry, tuffaceous sedimentary units, and basalt. Northwestern Nevada contains a number of similar middle Miocene Au-Ag deposits that occur in silicic volcanic or subvolcanic rocks, including the Sleeper, Tenmile, National, and Hog Ranch deposits (Conrad et al., 1993).

In general, higher-grade gold mineralization at Sandman can be stratigraphically controlled along contacts between basalt flows, interbedded fluvial conglomerates and tuffaceous rocks (e.g., North Hill Deposit), or structurally controlled as lens-shaped pods, with high-continuity, lower-grade disseminated gold in sediments and volcanics (e.g., Silica Ridge and SE Pediments Deposits). Quartz-adularia alteration dominates the ore zones, whereas propylitic, argillic, and sericitic alteration are associated with the known resource areas more distally.

Much of the property area is covered by windblown sand deposits which effectively covers the underlying prospective rocks to the gold mineralization. Mapping, exploration drilling, and shallow auger drilling through the sand indicate that they are underlain by the hosts to the gold mineralization of Tertiary tuffaceous rocks and andesite, which in turn overlie Late Triassic to early Jurassic metasedimentary clastic and subordinate carbonate rocks.

Gold Bull has identified 42 drill hole targets for approximately 8000 m. The Company will commence with a Phase 1 drill program consisting of 3000 m for 17 drill holes in February 2021 (or as soon as permit transfers have been completed). The initial drill program will consist of 1500 m of resource development drilling aimed at extending known resources and 1500 m of exploration drilling aimed at testing undrilled targets. The Company will then seek to obtain assay results for the initial 3000 m prior to embarking on Phase 2 drill program. The Company recently completed a ground geophysics (induced polarization) survey at the project and is awaiting the data. This data is anticipated to guide Phase 2 drill targets.