Sierra Nevada Gold : Drilling commences at Blackhawk Porphyry Project, USA

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26th July 2022

SNX drilling key targets at Blackhawk Porphyry Project, USA

Diamond core drill rig is testing high priority Porphyry Cu/Au targets at SNX's

Blackhawk Project, Nevada, USA

Highlights

• SNX has planned up to 2500m of drilling to test targets identified through modelling
• First hole will test the Badger target which is underlain by extensive near-surface and deep IP chargeability anomalies
• First hole expected to be complete in four weeks with results to follow in Q4 CY22
• SNX has planned 12,000m of drilling in its first 12 months of ASX listing

Sierra Nevada Gold (ASX: SNX) is pleased to announce drilling has commenced at its highly prospective Blackhawk Porphyry Cu/Au project located in southern Nevada, USA, following the arrival on site of a core rig. SNX has planned up to three holes for 2,500m to test several key positions within the Blackhawk porphyry system which have undergone progressive modelling, using a wide range of geological, geochemical and geophysical exploratory techniques.

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Drilling operations at the Badger Target area, Blackhawk Project, Nevada, USA.

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Background

Prior to its ASX listing in May 2022, SNX developed a suite of highly prospective drill-ready targets to test for the presence of a potentially large, concealed Cu/Au porphyry system at its Blackhawk project. An initial hole will test the Badger target which is underlain by extensive near-surface and deep IP chargeability anomalies, together with a well-defined array of steeply dipping highly mineralised porphyry style "D" veins.

As these veins have undergone exploitation at the Birdsong, Badger and London Lead mines and commonly overlie deep porphyry systems, SNX has completed extensive sampling. Thus far, these rock chip sampling programs have been encouraging with multiple high-grade precious and base metal assays observed over broad survey areas.

Next Steps

This first core drill hole is expected to be completed within four weeks, with assay results likely available by Q4 2022. SNX plans to continue core drilling at Blackhawk with two additional holes to target other high priority porphyry targets. Geological mapping and geochemical sampling will continue across the large porphyry target area.

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Figure 2. Plan view showing hole SNX001D in relation to the large (+13.5km2) and coherent IP chargeability high and overlying phyllic and porphyry style "D" vein array on 1VD Magnetics.

Drill hole SNX001D is expected to test depth extensions of previously mined high-grade precious and base metal and porphyry "D" veins, together with the northern limits of a large and vertically attenuated high chargeability anomaly. At depth, it will also test a well-defined zone of high resistivity interpreted as a potential zone of silicification or intrusion.

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About the Blackhawk Epithermal and Porphyry Project

SNX has identified two major and extensive components of a large mineralised system at its Blackhawk Project, these being epithermal and porphyry components.

The Blackhawk epithermal vein system is prospective for high-grade, structurally controlled Ag-Au and base metal deposits and is partially coincident with, and adjacent to, the northern edge of the extensive Blackhawk porphyry system. Between the 1860s and the early 1900s, at least eight historic mining areas operated within the Blackhawk epithermal vein and porphyry systems, including the Endowment, Morning Star and Blackhawk mines. The epithermal vein system covers an area of approximately 5km2 and contains up to 22- line kilometres of mostly untested veins. SNX has obtained bonanza grade precious and base metal rock chips from the epithermal vein system and has a suite of drill ready targets.

Figure 3. Oblique view looking north showing the Blackhawk epithermal vein field, silver rock chip geochemistry (g/t) and historical mines and production and areas of historic resource estimates. Note the vein field extends to the north and northwest beneath the post mineral cover rocks.

The prospective porphyry target is defined by an open, large and fertile alteration system, which measures more than 30km2 in area. It is marked by a central, 4km diameter ring of historic mines which exploited porphyry style mineralisation. As these are underlain by a large, >13km2 zone of high chargeability IP anomalies, SNX is eager to test for analogous, porphyry-relatedCu-Au mineralisation at depth.

The Blackhawk Project comprises 657 contiguous 20-acre claims covering 53km2. The project is situated in close proximity to existing highways and local infrastructure.