Tarachi Gold Provides Update on Drilling Programs in Sonora, Mexico

In Sonora, the Company continues to drill test the La Dura–Zaragoza Gold Trend and will commence a second phase of diamond drilling in May-June at the San Javier Concession gold-bearing breccia pipe.

Past drilling at the La Dura mine area returned broad, high-grade intercepts such as 20.75 metres at 5.05 g/t Au and 20.1 metres of 4.54 g/t Au.

We continue to make steady progress at our Tarachi exploration project and expect to receive the first batch of assays from this phase of drilling over the next few weeks.

The purpose of these holes is to test the eastern and southern extent of gold mineralization associated with fractured and highly silicified and quartz vein to micro-vein bearing, dacitic to rhyodacitic volcanics indicated in Figure #1.

From November to December 2020, diamond drilling at the San Javier Concession focused on areas with known gold mineralization from historic drill programs. The gold mineralization was previously thought to be concentrated along a low angle, west dipping shear zone mainly within monzo-diorites.

Upon completion of the Company’s Magistral tailings drilling program as part of the Preliminary Economic Assessment study , Tarachi’s senior geologists will commence a second phase of diamond drilling in May-June at the mineralized breccia pipe with four holes planned to depths of over 250 metres.

They are exercisable for a period of five years from the date of the grant and are subject to the policies of the Canadian Securities Exchange.

Sample tags were submitted into each bag before being sealed and stored at the campsite in a secure area and were later transported by company truck directly the Bureau Veritas Mineral Laboratories in Hermosillo, Sonora, Mexico.

Laboratory control samples comprising certified reference samples, duplicates and blank samples were inserted by the laboratory into the sample stream and analyzed as part of the quality assurance/quality control protocol.

The Company’s Tarachi project covers 3,708ha of highly prospective mineral concessions in the Sierra Madre gold belt of Sonora, Mexico in close proximity to Alamos Gold’s Mulatos mine and Agnico Eagle’s La India mine.

This news release includes certain “Forward–Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward–looking information” under applicable Canadian securities laws.

Such factors include, without limitation: the Company’s dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company’s mining activities in Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company’s management team and outside contractors; risks regarding mineral resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company’s interactions with surrounding communities and artisanal miners; the Company’s ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption “Risk Factors” in Tarachi’s management discussion and analysis.

Hawkmoon Resources is a Canadian gold exploration company focused on identifying, acquiring, and developing undervalued projects in the province of Quebec, a tier-one mining district.

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