Significant IP Anomalies And New Model For Targets At Champagne Gold Project

TORONTO - Idaho Champion Gold Mines Canada Inc. reported the results of the 2020 induced polarization - resistivity (IP) survey at the Company's Champagne Gold Project near Arco, Idaho. Champion designed the IP survey to evaluate the subsurface beneath the extensive alteration across the property, which spans more than 26 square kilometers.

"There is a strong IP response at Champagne that can be confidently correlated between profiles over approximately two-kilometers of strike," said, Jonathan Buick, President and CEO. "More importantly, careful 3D modeling of the geophysics and integration with our geological mapping has revealed that shallow anomalies around the historic mining areas are likely detached from a much larger anomaly to the northwest. Our first round of drilling was directed at these historic targets, but our next phase of work will focus on high priority targets with considerable size potential."

The 2020 IP survey at the Champagne Project consisted of 6 lines oriented almost east-west (azimuth of 280 degrees) and nominally spaced 400 meters apart. Along the lines, the survey employed a 200 meter dipole-dipole array, which yielded an expected depth of investigation of 500 to 600 meters. The survey was originally conceived to include approximately 12 line kilometers, but the scale of the target and early results necessitated almost doubling the survey to 21.4 line kilometers and adding a sixth line. Line 6 ran directly across the North Pit of the historic mine.

Chargeability and resistivity data across the Champagne Project demonstrated the applicability of the IP technique to mapping the known sulfide-bearing mineralization in and around the historic mines ("Mine Hill"). The survey also identified deeper chargeable and resistive bodies that likely represent the buried roots of the Champagne precious metals system. The new targets are open to the northwest, north and south of the main historic mining areas on the Champage Project .

The Champion technical team identified a very strong (+20 to 30 mV/V) and wide IP response positioned to the west of Mine Hill. There are weaker and more limited anomalies associated with the historic mines, but the response in both chargeability and resistivity is much stronger to the northwest. These anomalies correlate well with surface anomalies in rock and soil geochemistry. The technical team collected two orientation soil survey lines and numerous rock samples across the district. These samples yielded anomalies in Au, Ag, As, Hg, Te, Cu, Pb, and Zn associated with structures in and around the main IP feature. A total of 454 soil samples are still pending laboratory analyses.

An interpretation of the IP chargeability pseudo-sections reveals that the anomaly beneath the Mine Hill breccias and sheeted veins is abruptly cut off just beneath the Moran Tunnel level. The eastern lobe of the anomaly is rootless, whereas the larger chargeable feature to the northwest is deeper rooted and has an apparent gap nearer surface. The Champion team has developed a working model that links the Mine Hill mineralization to the deeper rooted system on the west via a low angle detachment structure. The upper Mine Hill block (allochthonous) is interpreted to have been displaced approximately 800 meters eastward. This also explains the relatively shallow termination of surface and shallow underground mining at Mine Hill despite historic indications of good grade and thickness.

This model suggests that the Mine Hill breccia veins, North and South open pit deposits, plus some of the outlying breccia and veins to the west (Arco Valley, Oxide, and Ella Mines) are all positioned in the upper (allochthonous) block and have been displaced by a considerable distance. An integrated interpretation of the IP data with geologic mapping and geochemical sampling reveals exciting potential on the western and northwestern portions of the Champagne property. The Champagne mineral system covers a large area and boasts significant precious and base metal enrichment in Champion sampling of altered rocks and historical prospects, up to: 294 g/t Ag, 2.67 g/t Au, 2.79% Zn, 6.58% Pb, and 0.29% Cu. It is important to put these results into context with the evolving 3D model of the system in order to focus the next phase of exploration on the highest priority targets.

While awaiting additional surface geochemistry data from the lab, the technical team is hard at work designing the exploration program for 2021 to include additional geophysics, mapping, sampling, and drilling into the main body of the IP target.