Makara Identifies Strong Soil Anomaly At Rude Creek Gold Project

VANCOUVER, BC - Makara Mining Corp. reported that recent soil sampling program has identified a strong gold-in-soil anomaly (up to 1,167 ppb Au) with a coincident IP/resistivity anomaly, at its Rude Creek Gold Project in the White Gold region of the Yukon.

Highlights: A tight-spaced (25m x 50m) soil survey was recently conducted on the NE prospect at Rude Creek; Strongest soil samples returned include 1,167 ppb Au, 648 ppb Au, 612 ppb Au and 514 ppb Au, with 24 samples over 50 ppb Au and ten samples above 100 ppb Au; Anomaly measures approximately 150m by 300m along a northwesterly trend and continues to the southeast for at least another 600m (as defined by the pre-existing wider-spaced soil grid); & The new soil anomaly is underlain by and coincident with a linear IP/resistivity anomaly (chargeability high and adjacent resistivity high), suggesting a structural zone sub-parallel with the soil anomaly.

"The new dataset is encouraging and provides a big help in determining drill locations," said Grant Hendrickson, President and CEO. "We look forward to an exciting drill program at Rude Creek which we intend to announce details.”

Field crews were mobilized to the Rude Creek project area on June 19th. Work included the collection of 171 soil samples over a close-spaced grid measuring 750 metres by 250 meters (along five lines 750 metres long, spaced 50 metres apart and sampled every 25 metres along each line; plus a sixth line 750 metres long and sampled every 50 metres) within the NE prospect. After soil sampling was completed, a ground geophysical survey consisting of induced polarization and resistivity (IP/resistivity) was conducted over the same grid.

The new soil lines returned anomalous results, including 1,167 ppb Au, 648 ppb Au, 612 ppb Au and 514 ppb Au, with 24 samples over 50 ppb Au and ten samples above 100 ppb Au. The anomaly measures approximately 150m by 300m along a northwesterly trend and continues to the southeast for at least another 600m.

For reference, last year's successful RC hole (ROY-RC-19-09) which returned 9.15m of 1.42 g/t Au and 20 g/t Ag, is located near the northern portion of the newly defined gold-in-soil anomaly. The southern extension of the gold-in-soil anomaly remains untested by any historic drilling.

This year's soil survey when integrated into the previous years soil sampling has clearly defined a significant gold in-soil geochemical anomaly over a strike length of 700 meters, trending NNW and dipping very steeply to the west. The overall geochemical signature, multi element, is quite typical of soils over shallowly buried orogenic gold deposits.

The small shallow looking high horizontal resolution IP/resistivity survey over only the northern portion (200 meters strike length) of the soil anomaly has indicated the presence of a near surface vertical structure of good depth extent that is coincident with the gold in soil anomaly. The near surface width of this structure, likely an intrusion related vein system, appears to be approximately 20 meters at its northern end but becomes significantly wider and more complex to the south where it is more likely to encounter multiple vein systems of various orientations but generally NNW to remain coincident with the larger gold in soil anomaly. It is common for orogenic gold deposits to display a strong structural control.

There are numerous good drill locations to test the large well-defined gold in-soil anomaly and the apparent coincident structural control defined by the geophysical program. The expanded drill program will be able to test many of the best targets defined by the above-mentioned surveys in a timely manner during mid-August, 2020.