Sego intercepts phyllic alteration at Cuba zone

Executive Summary

• Sego Resources Inc. intercepted significant porphyry-related phyllic and patchy potassic alteration in drill hole DDH25-71 at its Cuba zone, located 1,200 meters northeast of the Billy Zone porphyry copper discovery.
• The intercepts suggest the presence of deeper, structurally controlled porphyry copper mineralization, with geological features resembling the best mineralized intervals previously found in hole MM-18-37.
• High magnetic susceptibility readings were recorded from 560 meters to 588 meters, supporting the presence of alteration associated with porphyry systems.

Key Details

• Drill Hole: DDH25-71 at the Cuba zone.
• Location: 1,200 meters northeast of the South Gold zone (now part of the larger Billy zone).
• Objective: Exploration of potentially deeper, structurally controlled porphyry copper mineralization based on earlier copper intercepts from holes DDH-MM-18-37 and DDH-MM-18-34.
• Alteration Intercepted:
  • Phyllic Alteration: A classic porphyry-related phyllic alteration zone was intercepted, containing fine, disseminated pyrite with occasional stringers and veinlets, along with local quartz stockwork.
  • Potassic Alteration: Patchy potassic (K-feldspar) alteration was intercepted in the lowermost part of the hole, starting at 542.93 meters and extending to the end of the hole at 586.64 meters. The size and intensity of this alteration increased with depth.
• Geological Correlation:
  • Below 577.68 meters, and specifically between 580.84 meters and 586.64 meters (end of hole), the core appearance (patchy potassic, K-feldspar alteration, and brecciated nature) is similar to the best mineralized intervals of drill hole MM-18-37 (225–233 meters).
• Geophysical Data:
  • Magnetic susceptibility readings showed a sharp, significant increase at 560 meters.
  • Readings from 560 meters to 588 meters (measured at every meter) were high to very high.
• Next Steps: The next drill hole at the Cuba zone is planned to be drilled from the northeast to potentially intercept the mineralized zone earlier.
• Status: Core logging is complete; core cutting and sample preparation for shipping to the lab in Calgary are ongoing.
• Qualified Person: Goran Markovic, MSc, PGeo, independent consulting geologist, reviewed and approved the technical information under National Instrument 43-101.