Golden Tag Reports 175.30 m of 88.54 g/t Ag.Eq, 10% Grade Improvement Observed, From Infill Sampling at San Diego

TORONTO, Feb. 17, 2021 (GLOBE NEWSWIRE) — Golden Tag Resources Ltd. (“

Golden Tag

” or the ”

Company

“) (TSX.V: GOG) (OTCQB: GTAGF) is pleased to provide initial results from the ongoing 4,500 metre (“

m

”) exploration program on the Company’s 100% owned San Diego Project, one of the largest undeveloped silver projects in Mexico. A program of infill sampling on historical diamond drill holes has advanced, results from two holes have significantly expanded the size of identified mineralized zones and in one of the holes, increased previously reported grades by 10%.

Key highlights include:

• 
  Infill sampling from historic hole SD-11-42 identified a significantly broader zone of mineralization, compared to the area originally sampled, including 175.30 metres of 88.54 g/t Ag.Eq. Four new mineralized zones were identified proximal to the Fernandez Zone
  
  ,
  
  including two shallower zones.
  
  
• 
  Infill sampling from historic hole SD-11-40 resulted in an increase in the reported grade by 10%, intersecting 298.02 metres of 101.96 g/t Ag.Eq. Three new shallower zones of mineralization have been identified above the Fernandez Zone.
  
  
• 
  A comprehensive infill sampling program will be implemented on 2,500 – 3,000 metres of historical diamond drill holes, with a goal of realizing further improvements in geological, mineralization, and grade continuity within the broad mineralized envelope. Collectively these have the potential to significantly increase the mineralization envelopes and provide further grade improvements.
  
  

Greg McKenzie, President and CEO commented: “We are pleased to see the current drill program is advancing with strong productivity, despite challenges associated with COVID. Infill sampling and assays of previously unsampled areas have generated insight, and allow us to significantly expand mineralized areas, improve continuity and has demonstrated higher grades. As our exploration program continues over the coming months, we look forward to unlocking further value on the San Diego Project.”

Status of Ongoing 4,500 Metre Exploration Program

During the fourth quarter of 2020 the Company initiated a 4,500 metre diamond drill program on the San Diego Project, the first drill program on the property since 2012. To date a total of approximately 2,700 m of drilling has been completed in 6 holes targeting the Trovador Structural Zone, and the area up-dip, and to the south of the Fernandez Zone. A total of 1,787 samples have been sent to ALS Geochemistry for analysis with assays pending. Current drilling is being conducted with oriented core so that the spatial orientation of the mineralization can be determined.

Infill Sampling Identifies Large Areas of New Mineralization, Increases Grades & Widths

In preparation for the current program, historical holes SD-11-40 and SD-11-42, drilled in 2011 prior to discovery of the Fernandez Zone, were relogged leading to several key observations. Both holes were previously unsampled throughout significant portions of the holes, likely a result of focusing exploration on narrow high-grade silver veins. A total of 852 samples were sent for analysis, initial results are highly encouraging and demonstrate the bulk tonnage potential of the zones.

Hole SD-11-42 was collared approximately 130 m to the west-southwest of SD-11-40 and crosses it obliquely at approximately 500 m vertically above SD-11-40.

Infill sampling results from Hole



SD-11-42



:

Systematic sampling of hole SD-11-42 has now identified a significantly broader zone of mineralization above, within, and slightly below the Trovador and MS Zones compared to what was originally understood to be present. Together, this area (Trovador Structural Zone) returned

175.30 m grading 88.54 g/t Ag.Eq

and is likely related geologically to the Fernandez Zone. The Trovador and MS Zones are part of a much larger northwest trending structural zone containing mineralization which was previously unreported or unrecognized. The relogging of the core has led to the observation that several areas are mineralized with both quartz-sulphide veins and disseminated sulphides.

Four new mineralized zones were identified, including two new shallower zones that could potentially be amenable to open pit mining within the first 300 metres from surface as indicated in Table 1.

Table 1 – 2021 Infill Sampling from SD-11-42

Previous sampling of hole SD-11-42 resulted in two zones being included within the resource model: Trovador Zone with 7.03 metres of 249.22 g/t Ag.Eq, and MS Zone with 4.97 metres of grading 339.55 g/t Ag.Eq

⁽²⁾

, as indicated in Table 2.

Table 2 – Historical Results from SD-11-42 Included in Resource Model

⁽¹⁾

All results in this release are rounded. Assays are uncut and undiluted. Widths are core-lengths, not true widths as a full interpretation of actual orientation of mineralization is not complete. Intervals of stockwork quartz-sulphide vein mineralization were chosen based on a 25 g/t Ag.Eq cutoff with no more than 7 m of dilution. Silver equivalent: Ag.Eq g/t was calculated using 3-year trailing average commodity prices of $17.75 Ag, $0.90 Pb, $1.20 Zn, $1500 Au, and $2.85 Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value, the Company is planning to perform additional metallurgical studies later in 2021.

⁽²⁾

Ag.Eq numbers have been recalculated to reflect the parameters presented in Footnote

⁽¹⁾

.

<sup>(

3

)</sup>

Notations A-G refer to Figure 2.

Infill sampling results from Hole



SD-11-40



:

Systematic infill sampling of hole SD-11-40 extended the Fringe Zone up-dip by 3.29 m (from 487.35 m to 484.06 m) but more importantly

increased the Ag.Eq grade by 10%

(from 92.22 g/t Ag.Eq to 101.96 g/t Ag.Eq)

over a length of 298.02 m

. In addition, three new zones of quartz-sulphide vein mineralization which were previously unreported or unrecognized have been identified above the Fernandez Zone, including a shallower zone that could potentially be amenable to open pit mining within the first 300 metres from surface.

Table 3 – 2021 Infill Sampling from SD-11-40

Table 4 – Historical Results from SD-11-40 Included in Resource Model

The current drill program has been amended to include the Trovador Structural Zone, and results from drilling as well as infill sampling, will be included in a future resource update. Based on the positive results from infill sampling of these two historical drill holes, a comprehensive infill sampling program will be implemented on 2,500 – 3,000 metres of historical diamond drill holes (depending upon core recovery) to the east of the Fernandez Zone, focused on realizing further improvements in geological, mineralization, and grade continuity within the broad mineralized envelope. Collectively these have the potential to significantly increase the mineralization envelopes and provide further grade improvements.

Sample Analysis and QA/QC Program

Golden Tag Resources uses a quality assurance/quality control program that monitors the chain of custody of samples and includes the insertion of blanks, duplicates, and reference standards in each batch of samples sent for analysis. Drill core is photographed, logged, and cut in half with one half retained in a secured location for verification purposes and one half shipped for analysis. Sample preparation (crushing and pulverizing) is performed at ALS Geochemistry, an independent ISO 9001:2001 certified laboratory, in Zacatecas, Mexico and pulps are sent to ALS Geochemistry in Vancouver, Canada for analyses. The entire sample is crushed to 70% passing -2 mm and a riffle split of 250 grams is taken and pulverized to better than 85% passing 75 microns. Samples are analyzed for gold using a standard fire assay with AAS (Au-AA23) from a 30-gram pulp. Gold assays greater than 10 g/t are re-analyzed on a 30-gram pulp by fire assay with a gravimetric finish (Au-GRA21). Samples are also analyzed using a 35 element inductively coupled plasma (ICP) method with atomic emission spectroscopy (AES) on a pulp digested by aqua regia (ME-ICP41). Overlimit sample values for silver (>100 g/t), lead (>1%), zinc (>1%), and copper (>1%) are re-assayed using a four-acid digestion overlimit method with ICP-AES (ME-OG62). For silver values greater than 1,500 g/t samples are re-assayed using a fire assay with gravimetric finish on a 30-gram pulp (Ag-GRA21). No QA/QC issues were noted with the results reported herein.

True widths of drill intercepts have not been determined. Assays are uncut except where indicated.

Review by Qualified Person and QA/QC

The scientific and technical information in this document has been reviewed and approved by Bruce Robbins, P.Geo., a Qualified Person as defined by National Instrument 43-101.

About Golden Tag Resources

Golden Tag Resources Ltd. is a Toronto based mineral resource exploration company. The Company holds a 100% interest, subject to a 2% NSR, in the San Diego Project, in Durango, Mexico. The San Diego property is among the largest undeveloped silver assets in Mexico and is located within the prolific Velardeña Mining District. Velardeña hosts several mines having produced silver, zinc, lead and gold for over 100 years. For more information regarding the San Diego property please visit our website at www.goldentag.ca.

For additional information, please contact:

Greg McKenzie, President & CEO

Ph: 416-504-2020

Email: [email protected]


www.goldentag.ca

Cautionary Statement:

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release. Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, statements regarding the effects of the Company’s exploration program, assay results from the ongoing drill program, the expansion of the Trovador Structural Zone or the Fernandez Zone, further improvements in mineralization, continuity or grades. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Figure 1: Plan Map of SD-11-40 and SD-11-42 with Fernandez, Trovador and MS Zones



https://www.globenewswire.com/NewsRoom/AttachmentNg/7d54c91c-543c-4e2c-88f6-aa24ebbeac9f

Figure 2: 3D View to NW of SD-11-40 and SD-11-42 Showing Infill Sampling Results (Tables 1 & 3)



https://www.globenewswire.com/NewsRoom/AttachmentNg/8c0bb1e8-258f-431a-8e6a-fe20fd851c65

(1) Silver equivalent: Ag.Eq g/t was calculated using 3-year trailing average commodity prices of $17.75 Ag, $0.90 Pb, $1.20 Zn, $1500 Au, and $2.85 Cu. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value, the Company is planning to perform additional metallurgical studies later in 2021.