Sego Plans to Advance the South Gold Zone and the Cuba Zone Porphyry Copper-Gold Mineralization
July 08, 2025 3:27 PM EDT | Source: Sego Resources Inc.
Vancouver, British Columbia--(Newsfile Corp. - July 8, 2025) - Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is planning to execute a non-brokered private placement of up to $700,000 to fund a drilling and development program at its Miner Mountain Project, near Princeton, BC, subject to regulatory approval. Alkalic Porphyry Copper-Gold mineralization that occurs at Miner Mountain encompasses a disseminated, near-surface bulk mineable disseminated gold mineralization in the South Gold Zone and deeper porphyry structural controlled copper-gold mineralization in the Cuba Zone.
Drill intersections of the South Gold Zone range to maximum 1.08 gpt gold over 88.0 m and occur within a mineralized oval zone measuring 285 m long, a maximum 145 m wide and vertical depth of ~70 m (Figure 1).
Program – South Gold Zone
The South Gold Zone status is currently viewed as a "Target Reviewed" 90,000 to 150,000 ounces of gold in near surface mineralization, based on the 2024 SRK Canada Consulting review (Sego News Release September 24, 2024).
Five holes that total ~430 metres are planned to confirm the continuity of gold mineralization in the 80 m gap between sections on the attached map of the South Gold Zone and collect specific gravity measurements of drill core and elevate the Gold Zone into an NI 43-101 resource "possible" category (Figure 1).
A non-cyanide based leaching process of South Gold Zone samples will be tested to confirm a preliminary bench scale cyanide test which returned gold recoveries of 95% completed in 2021 (News Release, August 11, 2021) and to also improve the economic and environmental benefits of this new process.
Figure 1. Proposed drill holes (green) at the South Gold Zone, gold grade (Au) and intervals of diamond drill holes, the boundary of mineralization (red) and on a geological base map.
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Figure 2. North-northeast long section of the Cuba Zone mineralization; distance between horizontal lines are 150 m apart.
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Program – Cuba Zone
Deep drill holes are planned in the Cuba Zone located 1,700 m northeast of the South Gold Zone.
Three holes will explore >200 to 500 m depths below a +1% copper porphyry intersection shown in a long section in Figure 2 that total ~1500 metres.
Drill hole 37 carried 4.4 m of 1.2% copper and 0.24 gpt gold within a wider 11 m interval containing 0.6% copper, 0.12 gpt gold mineralization at the final depth of 233 m (News Release February 28, 2019).
In addition, platinum group metals will be analyzed in zones of new mineralization which are indicated in 0.13 gpt palladium over 2 m in drill hole 37 (News Release October 24, 2023).
Private Placement
The offering will consist of up to 20,000,000 flow-through units ("FTU") at $0.025 per unit for gross proceeds of up to $500,000 and up to 10,000,000 non-flow-through units ("NFTU") at $0.02 per unit for gross proceeds of up to $200,000. The flow-through units and non-flow-through units may vary in totals depending on demand. The total of the financing is expected to be $700,000.
Each FTU will consist of one flow-through common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share at $0.05 for two years from closing of the private placement. Each NFTU will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share at $0.05 for three years from the closing of the private placement.
The placement may close in several tranches and insiders may participate in the private placement. The flow-through proceeds will be expended on continued exploration on the Company's Miner Mountain Copper-Gold Alkalic Porphyry project and South Gold Zone, near Princeton, BC. The non-flow-through proceeds will be used for working capital and general corporate purposes.
Finder's fees may be payable on all or a portion of the offering and will consist of a cash fee of 7% and a broker's warrant, where applicable, which will entitle the holder to subscribe for one common share for two years from the closing date of the offering at $0.05 per share.
This offering will be subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. All of the securities sold pursuant to the offering will be subject to a four-month hold period from the date of closing.
The Company also plans to utilize British Columbia Instrument 45-536 which opens private placements to non-accredited investors provided the purchaser has obtained advice regarding the suitability of the investment and that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction and any other exemptions that may be applicable. Completion of the private placement is subject to the TSX Venture Exchange approval.
There is no minimum offering size for the private placement and the maximum number of units proposed to be issued is 30,000,000 units for gross proceeds of $700,000. The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.
The gross proceeds from the FT offering will be used for Canadian Exploration Expenses ("CEE") as such term is defined in Paragraph (f) of the definition of Canadian Exploration Expense in Subsection 66.1(6) of the tax act. The CEE will be incurred in British Columbia ("B.C.") and will qualify as B.C. flow-through mining expenditures as defined in Subsection 4.721(1) of the Income Tax Act (British Columbia). The CEE will be incurred before December 31, 2026, and renounced to investors with an effective date no later than December 31, 2025. The British Columbia mining flow-through share tax credit allows B.C. residents who invest in flow-through shares to claim a provincial tax credit of 20 per cent of their investment, in addition to the Federal 15 per cent tax credit.
None of the securities issued in the Offering will be registered under the United States Securities Act of 1933, as amended (the "1933 Act").
There is no material change about the issuer that has not been generally disclosed.
Qualified Person
The technical information in this news release was reviewed and approved by Ron Britten, Ph.D., P.Eng., who is a Qualified Person under the definitions established by NI 43-101 and is a consultant to the company.
For further information please contact:
J. Paul Stevenson, CEO
(604) 682-2933
ceo@segoresources.com
About the Project
Sego is 100% owner of the Miner Mountain Project, an alkalic copper-gold porphyry and gold exploration project located near Princeton, British Columbia. The property is 2,056 hectares in size and is 15 km north of the Copper Mountain Mine operated by Hudbay Minerals Inc. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band on whose Traditional Territory the Miner Mountain Project is situated. Sego has received an Award of Excellence for its reclamation work on the Miner Mountain Project.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No regulatory authority has approved or disapproved the information contained in this news release.
This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.
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