New High Grade Structures At Wels Project

VANCOUVER - K2 Gold Corporation reported on assay results from its 2023 Reverse Circulation (RC) drilling program at the Wels Project, located in west-central Yukon. Results from a proof-of-concept program consisting of six holes targeting the Saddle, Saddle North, and Saddle South Zones are reported herein, assays from six additional holes across the property are pending.

The highest-grade gold assay to date at the Wels Project, was returned from drilling at the Saddle South target in newly defined structures, including multiple high-grade gold intersections: 34.7 g/t Au over 1.52m in WRC23-006 from 82.3m down hole; and 1.60 g/t Au over 21.34m in WRC23-005 from 3.05m down hole, including 3.22 g/t Au over 9.14m. High grade gold drilled in a structure 60m south of the Saddle Main target returned 7.14 g/t Au over 3.05m from 60.96m down hole, in WRC23-003. First test hole at the Saddle North target returned 1.17 g/t Au over 7.62m from 25.91m down hole (WRC23-004). A set of at least 8 steeply-dipping, stacked mineralized structures within a +400m wide corridor which is open to the NW, SE, and at depth, now comprise the Saddle Zone.

Anthony Margarit, CEO, said, “The results of the first assays from our 2023 drill program at the Wels have proven that the Saddle Zone hosts multiple stacked mineralized structures over a more than 400m wide corridor which remains fully open along strike to the west, east, and at depth The program was a successful proof-of-concept and confirms that our exploration strategy is working. We were successful in discovering an entirely new set of mineralized structures, which significantly expanded the footprint of mineralization. The dataset we have complied combined with these new discoveries suggest the system extends hundreds of metres along strike. The goal of K2's drilling at the Saddle Zone was to expand the area of known mineralization, where earlier drilling identified high-grade gold over a limited area and in two host structures. The 2023 proof-of-concept drilling at Saddle consisted of six RC holes drilled in a NNE-SSW oriented fence across the target area to test for additional stacked, high-angle, mineralized structures with coincident surficial gold anomalism. All six RC holes returned anomalous gold mineralization with values ranging from trace to 34.7 g/t Au.

"The fence-style drill layout provided coverage over the entirety of the Saddle target and led to the discovery of a new structural corridor at Saddle South. This new set of structures hosts the highest gold grades drilled to date at Wels and remains fully open for expansion." Stated Eric Buitenhuis, K2's VP Exploration. "Saddle now exhibits many features that we observed initially at the Coffee gold deposit, including a strong structural control, mineralization in all rock types drilled to date, and a strong gold-arsenic-antimony geochemical signature. Crucially, the high-grade gold drilled south of the Saddle Main structure suggests that each structure at the target area has the potential to host these high grades and points to a strong mineralizing event."

The results from the greater Saddle Zone demonstrate the presence of a stacked system of approximately east-west trending, high-angle mineralized structures. The structures are observed to cut all observed rock types, including quartzite found at the Saddle North and South targets as well as the granite hosting the Saddle Main target, with high grade mineralization found in all rock types. The results of the drilling suggest that each mineralized structure drilled to date has the potential to host high grade gold mineralization. Direct controls on the distribution of high-grade gold are currently unknown but may be structural in nature. All structures drilled to date remain open along strike and at depth.