News

P2 Gold Silver Reef Phase 1 Drill Program Results

September 29, 2020

VANCOUVER, British Columbia, Sept. 29, 2020 (GLOBE NEWSWIRE) -- P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD) reports on the Phase 1 drill program at its Silver Reef Property located in northwest British Columbia.

The Silver Reef Phase One exploration drill program has been completed, which consisted of 10 holes totaling 1,315 meters and intersected up to 521 g/t silver.  Eight of the drill holes targeted the Main Zone, with the remaining two holes targeting the Northwest Zone.  (See Table 1 for Phase 1 drill results.) Both zones host silver/gold/lead/zinc mineralization within and on the margins of graphitic shears that are proximal to an altered felsic dyke.

Drilling demonstrated that the Main Zone and Northwest Zone structures are well defined with mineralization typical of silver deposits within the silver belt that runs from Idaho through British Columbia into Yukon.  Select drill results include:

• Hole SR-004 (Main Zone) intersected 1.18 g/t gold, 521.0 g/t silver, 0.71% lead and 2.17% zinc over 0.5 meters within a 1.3 meter interval grading 0.93 g/t gold, 245.25 g/t silver, 0.33% lead and 0.98% zinc; and
• Hole SR-010 (Northwest Zone) intersected 0.51 g/t gold, 27.6 g/t silver, 0.97% lead and 1.99% zinc over 0.8 meters within a 6.7 meter interval grading 0.23 g/t gold, 30.71 g/t silver, 0.47% lead and 1.04% zinc.

A plan map and drill hole sections of the Silver Reef 2020 Phase 1 drill program are available at https://p2gold.com/site/assets/files/5693/maps_and_sections_phase_1_drill_results_september_29-_2020.pdf?v=0419 .

Prospecting has shown that the Main Zone is now at least four kilometers long, and that the Northwest Zone is a separate, parallel trend that is at least two kilometers long.  In addition, prospecting also identified several other showings between these two primary trends suggesting the property hosts a stacked system of multiple zones.  This more than doubles the known strike extent of the mineralization, which remains open in all directions.  Assays from the later field work are pending and will be released when available.

Typical of the mines in the North American silver belt, the silver to gold ratio is approximately 100 to 1; gold is showing a strong association with arsenic; and silver is associated with both copper and lead.  In light of the regional geology and results to date, the Phase 1 drill program has shown that the Silver Reef Property has excellent potential to host a significant high-grade silver-gold deposit.  Analysis of the results from the Phase 2 drill program along with the airborne geophysical surveys will be used to refine the understanding of the structural controls of the mineralization and identify possible feeder zones that may be associated with the mineralization.

The Phase Two exploration drill program has also been completed at Silver Reef consisting of four holes totaling 374 meters.  Two of the drill holes targeted the Main Zone, with the other two holes targeting the Northwest Zone.  Assays will be reported on receipt.

Table 1: Selected Silver Reef Property Drill Results, September 2020 (SR-001 to SR-010) ^{(1, 2)}

Hole	Collar Coords	Dip/ Azimuth	From (m)	To (m)	Interval (m)	Gold (g/t)	Silver (g/t)	Lead (%)	Zinc (%)
SR-001	6205841N 604447E	-45/25	45.49	46.13	0.64	0.18	5.18	0.01	0.05
SR-002	6205896N 604362E	-50/45	56.27	60.96	4.69	0.04	3.22	0.03	0.35
		incl.	60.56	60.96	0.40	0.21	3.03	0.02	1.98
			63.30	63.60	0.30	0.79	5.50	0.05	0.02
SR-003	6205896N 604362E	-70/45	72.65	73.05	0.40	0.18	342.00	0.37	1.81
SR-004	6205722N 604517E	-50/45	31.27	41.82	10.55	0.20	34.49	0.06	0.36
		Incl.	34.60	35.00	0.40	0.11	242.00	0.09	0.85
		Incl.	41.32	41.82	0.50	0.42	186.00	0.20	0.18
			72.30	73.60	1.30	0.93	245.25	0.33	0.98
		Incl.	72.30	72.80	0.50	1.18	521.00	0.71	2.17
SR-005	6205722N 604517E	-80/45	27.28	27.58	0.30	0.45	7.48	0.02	1.36
			37.89	39.26	1.37	0.27	25.70	0.20	1.37
			38.76	39.26	0.50	0.56	17.22	0.17	3.15
SR-006	6205786N 604430E	-50/45	No significant values
SR-007	6205601N 604578E	-45/45	No significant values
SR-008	6205601N 604578E	-60/45	49.40	50.40	1.00	0.14	2.78	0.10	0.14
SR-009	6207685N 603599E	-50/45	22.16	25.70	3.54	0.20	61.47	0.40	0.47
		incl.	23.90	24.40	0.50	0.13	168.00	0.39	0.30
			64.81	65.81	1.00	0.36	5.51	0.01	0.02
SR-010	6207685N 603599E	-80/45	27.00	33.72	6.72	0.23	30.71	0.47	1.04
		incl.	31.40	32.20	0.80	0.51	27.60	0.97	1.99

(1) True thickness to be determined.
(2) All samples were submitted for preparation and analysis by MSALABS at its facilities in Terrace, BC. All samples were analyzed using multi-digestion with ICP finish and fire assay with AA finish for gold. Samples over 100 ppm silver were reanalyzed using four acid digestion with an ore grade ICP analysis. Samples over 1,500 ppm silver were fire assayed with a gravimetric finish. Samples with over 10 ppm gold were fire assayed with a gravimetric finish. One in 20 samples was blank, one in 20 was a standard sample, and one in 20 samples had a sample cut from assay rejects assayed as a field duplicate at MSALABS in Langley, BC.

Quality Assurance

Amanda Tuck, P.Geo is the qualified person responsible for the Silver Reef Property and has reviewed, verified and approved the scientific and technical information in this news release relating thereto.

About P2 Gold Inc.

P2 is a mineral exploration and development company focused on advancing precious metals discoveries and acquisitions in the Pacific Northwest.

For further information, please contact:

P2 Gold Inc. www.p2gold.com Joseph Ovsenek President, CEO and Chairman [email protected] Tel: +1 (604) 558-5167

Chris Hopkins, CFO [email protected] Tel: +1 (416) 786-9793

Forward Looking Information

This press release contains "forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. “Forward-looking information” includes statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, the Company’s expectations, strategies and plans for the Silver Reef Property, including the Company’s planned expenditures and exploration activities.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See “Risk Factors” in the Company’s final prospectus dated October 4, 2018 filed on SEDAR at www.sedar.com for a discussion of these risks.

The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.

Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.