Toronto, Ontario – October 9, 2020 - Evergold Corp. (TSX-V: EVER, OTC: EVGUF, FRA: 5EG) (“Evergold” or the “Company”). On September 22 the Company announced the closing of the first (hard dollar-focused) tranche of its previously announced (news, August 28) non-brokered private placement along with its intention to complete a second tranche targeted primarily at flow-through funds. At the same time the Company also announced its desire to await initial assays from drilling this summer at the Company’s promising GL 1 ‘Main’ target, located on the Golden Lion property in northern British Columbia, Canada, prior to completing the second tranche of the financing.
Geochemistry labs in B.C. are seriously backed up at present and assay results are taking much longer than originally promised due to robust financing markets for juniors and government restrictions for COVID-19. In common with its industry peers, the Company has been impacted by these delays and continues to await assays from Golden Lion, which the Company’s analytical services provider has indicated will start to flow in the very near term.
“We are frustrated by these lab delays as the IP geophysical survey we completed over the target area in late August and early September provided us with a very good combined chargeability-resistivity target that we really like. It has strike extent, goes to depth, and has a clear association with the best historical drill results by Newmont,” said Kevin Keough, President and CEO. “These historical results included, for example, 1.01 g/t Au over 87 metres from 10 to 97 metres in hole GL-84-20, including 3 metres of 7.61 g/t Au from 72 to 75 metres. Our intent is to get at least some of our initial GL1 ‘Main’ assays out, then to continue with the financing, with closing of the second tranche anticipated to occur on or before November 7, 2020, subject to the approval of the TSX Venture Exchange.”