Vancouver, British Columbia--(Newsfile Corp. - January 4, 2019) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink:
MLYCF) ("CuMoCo" or the "Company") announces that it has completed its review of all the information gathered during the 2017
drill program conducted at its Calida Gold project. As a result of the Company's assay detailed verification program, it was
discovered that there was high variability between individual assays, especially for silver. Also, several assays indicated no
precious metals present within the sample where samples were within 20 feet of previous historical samples containing precious
metals. As a result of these discrepancies, upon completion of the drill program and the receipt of all assays, including checks
and duplicates, the Company submitted seven core samples for microscopic analysis to Vancouver Petrographics Ltd of Langley, BC.
The results of the analysis indicate two major points:
1. Native silver was observed in samples that assayed low-grade silver
2. A large portion (60 to 90%) of the copper-bearing sulphides were completely replaced by iron oxides.
The Vancouver Petrographics report has been placed on the Company's website, including photographs of the samples.
The Company has determined that the assay variation was due to a "nugget effect" created by the irregular distribution of the
precious metal grains in the samples, such that taking a standard 50-gm assay split from 8 to 15 kg samples was not representative
of the precious metal (Au and Ag) contained in the sample. Also, it should be noted that the results revealed that this is a
fine-grained effect, and therefore standard techniques, such as metallic assays, are not applicable.
Having established the presence of precious metals in the samples, the Company then submitted an entire sample from one of the
better intersections to Process Mineralogical Consulting Ltd. of Maple Ridge, BC for detailed metallurgical analysis. The results
from this sample indicated the presence of twelve (12) fine grains of native gold, ten (10) grains of Electrum, a naturally
occurring alloy of gold and silver with trace amounts of copper and other metals, (average 75.4% gold, 24.6% silver, ranging from
61 to 93% gold) and four (4) grains of native silver. The observed gold grain size was below eight (8) microns, with the majority
reporting to the minus 38-micron fraction. Twelve (12) % of the copper grade reported as sulphide. These results confirm the
presence of precious metals within the system. The report is available on the Company's website.
The head grade of the sample from the study was 1.2 gms Ag and 60 ppb Au, which is higher than the assay grade for the sample of
0.37 g/tonne silver and 3 ppb gold.
The following table lists the grades of the intersections of the mineralized zones within the 2017 drill program:
List of Significant Intersections for the Calida Gold Drill Program
| Hole |
From |
To |
length |
|
Cu |
Ag |
Au |
vein
|
| name |
feet |
meters |
feet |
meters |
feet |
meters |
% |
PPM |
PPB |
name
|
| CA71-01 |
185 |
56.39 |
205 |
62.48 |
20 |
6.10 |
0.55 |
0.30 |
257 |
Main
|
| CA71-01 |
230 |
70.10 |
235 |
71.63 |
5 |
1.52 |
0.40 |
0.23 |
14 |
Main
|
| CA71-02 |
150 |
45.72 |
155 |
47.24 |
5 |
1.52 |
0.27 |
0.58 |
9 |
Main
|
| CA71-02 |
220 |
67.06 |
225 |
68.58 |
5 |
1.52 |
0.93 |
0.21 |
5 |
Main
|
| CA71-03 |
105 |
32.00 |
125 |
38.10 |
20 |
6.10 |
0.05 |
0.06 |
nd* |
Main
|
| CA71-04 |
110 |
33.53 |
115 |
35.05 |
5 |
1.52 |
0.16 |
0.09 |
25 |
Main
|
| CA71-04 |
205 |
62.48 |
215 |
65.53 |
10 |
3.05 |
0.12 |
1.93 |
34 |
Main
|
| CA71-05 |
95 |
28.96 |
110 |
33.53 |
15 |
4.57 |
0.08 |
0.06 |
12 |
Main
|
| CA71-05 |
145 |
44.20 |
150 |
45.72 |
5 |
1.52 |
0.27 |
0.21 |
52 |
Main
|
| CA71-08 |
23 |
7.01 |
50 |
15.24 |
27 |
8.23 |
0.06 |
0.10 |
nd* |
Main
|
| CA71-08 |
165 |
50.29 |
175 |
53.34 |
10 |
3.05 |
0.24 |
0.33 |
36 |
Main
|
| CA71-09 |
90 |
27.43 |
95 |
28.96 |
5 |
1.52 |
0.16 |
0.27 |
222 |
Main
|
| CA71-09 |
165 |
50.29 |
170 |
51.82 |
5 |
1.52 |
0.23 |
0.31 |
17 |
Main
|
| CA71-10 |
60 |
18.29 |
65 |
19.81 |
5 |
1.52 |
0.02 |
0.86 |
nd* |
Main
|
| CA71-11 |
105 |
32.00 |
110 |
33.53 |
5 |
1.52 |
0.22 |
0.09 |
nd* |
Main
|
| CA71-13 |
180 |
54.86 |
190 |
57.91 |
10 |
3.05 |
0.11 |
0.14 |
nd* |
Main
|
| CA71-15 |
185 |
56.39 |
235 |
71.63 |
50 |
15.24 |
0.29 |
0.53 |
nd* |
Main
|
| CA71-16 |
190 |
57.91 |
220 |
67.06 |
30 |
9.14 |
0.19 |
0.09 |
nd* |
Main
|
| CA71-17 |
223.5 |
68.12 |
235 |
71.63 |
11.5 |
3.51 |
0.25 |
0.43 |
17 |
Main
|
| CA71-17 |
255 |
77.72 |
290 |
88.39 |
35 |
10.67 |
0.33 |
0.54 |
53 |
Main
|
| including |
270 |
82.30 |
278 |
84.73 |
8 |
2.44 |
0.66 |
0.89 |
21 |
Main
|
| CA71-18 |
210 |
64.01 |
275 |
83.82 |
65 |
19.81 |
0.60 |
0.27 |
30 |
Main
|
| including |
245 |
74.68 |
250 |
76.20 |
5 |
1.52 |
2.14 |
0.99 |
52 |
Main
|
| including |
265 |
80.77 |
270 |
82.30 |
5 |
1.52 |
1.59 |
0.27 |
3 |
Main**
|
| CA71-19 |
382 |
116.43 |
385 |
117.35 |
3 |
0.91 |
0.18 |
1.02 |
nd* |
Main
|
| CA71-20 |
221.5 |
67.51 |
227 |
69.19 |
5.5 |
1.68 |
0.28 |
0.70 |
nd* |
Main
|
| CA71-21 |
415 |
126.49 |
430 |
131.06 |
15 |
4.57 |
0.14 |
0.22 |
nd* |
Main
|
| CA71-21 |
443 |
135.03 |
448 |
136.55 |
5 |
1.52 |
0.26 |
1.62 |
nd* |
Main
|
| CA71-22 |
335 |
102.11 |
366.5 |
111.71 |
31.5 |
9.60 |
0.33 |
0.54 |
169 |
Main
|
| CA71-23 |
391 |
119.18 |
402 |
122.53 |
11 |
3.35 |
0.33 |
0.56 |
74 |
Calida
|
Notes
* nd - assay below detection limit
** Metallurgical work shows 1.2 gms/tonne Ag and 60 ppb Au |
Currently, the Company cannot confirm the actual precious metal grade of the mineralized zones. The oxidation and subsequent
destruction of minerals due to surface water penetration have significantly changed the original mineral composition. The Calida
structures are extremely broken, which has not only led to penetration of the mineralizing fluids into the rocks but also extensive
surface water penetration and subsequent destruction and leaching of a large portion of the metals contained within the upper parts
of the structures. The 2017 drilling program was designed to examine the upper 350 feet of the 1.5-mile-long vein/breccia
structures. The drilling intersected the structures as expected, and all intersections contained visible copper mineralization.
To get an accurate estimate of grades present at Calida Gold, additional drilling is required to find fresh, unaltered zones
below the level of oxidization. The presence of the two forms of gold (native and Electrum) and native silver, together with
copper, encourages continued work.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company, is the designated qualified person for the CuMo
Project and the Calida Gold project and has prepared the technical information contained in this news release.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. CuMoCo is also advancing its Calida Gold project.
Management is continuing to build an even stronger foundation from which to move the Company and its projects forward. For more
information, please visit www.cumoco.com, www.idahocumo.com and www.cumoproject.com.
For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
Cautionary statement regarding forward‐looking information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation
including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates
will or may occur in the future. Often, but not always, forward-looking statements can be identified by the use of words such as
"plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets",
"aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by
statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements and information include, but are not limited to, statements with respect to the transactions
contemplated under the Private Placement, the completion of the Private Placement, Technical Report Environmental Studies and NSR
Amendment and the revocation of the Cease Trade Order. Forward-looking statements and information are based on forecasts of future
results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are
inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-looking statements
and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the
Company to control or predict, that may cause the Company's actual results, performance or achievements to be materially different
from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors
set out herein, including but not limited to: the requirement for regulatory or Exchange approvals or third-party consents, the
impact of general business and economic conditions, and the absence of control over the completion of certain aspects of the
Technical Report or Environmental Studies and the issuance of a full revocation of the Cease Trade Order. 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 statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as
required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking
information.
