AMN - EGYPT: Strong gold results from Rodruin

Aton Resources has received further strong gold results from a phase 1 reverse circulation percussion (RC) drilling program at its advanced Rodruin prospect. This prospect is within the company’s 100%-owned Abu Marawat Concession in the Eastern Desert of Egypt.

Assay results have been received from a further 10 RC drill holes.

One hole is mineralised with precious and base metals from the surface, and returned an overall intersection of 163 metres at 0.90 g/t gold from surface. This hole intersected oxidised and fresh sulphide mineralisation.

The overall intersection included intervals of 34 metres at 1.39 g/t gold and 8.86% zinc in the oxide zone from surface, and 55 metres at 1.23 g/t gold and 1.40% zinc in fresh rock, from 108 metres.

All other holes intersected mineralisation, including intercepts of 26 metres at 1.82 g/t, 34 metres at 1.28 g/t and 25 metres at 1.30 g/t in near-surface oxidised gossan. There were also deeper intersections of fresh sulphide mineralisation, including intercepts of 34 metres at 0.49 g/t and 21 metres at 0.55 g/t.

The new results continue to indicate the development of gold-silver-zinc mineralisation at Rodruin, both at and near to the surface, as well as sulphide mineralisation in the fresh rock.

The identification of sulphide-hosted gold mineralisation in the drilling is considered very significant, as it confirms the potential for development of a large hypogene gold mineralisation system at Rodruin.

Aton's president and CEO Mark Campbell said: “These results continue to support our belief that Rodruin has the potential to become a significant bulk minable open-pit gold mine.

"We continue to see gold mineralisation over wide drilling intervals, which contain good grades with higher grade shoots interspersed. We are particularly encouraged by the wide zones of sulphide-hosted mineralisation we have intersected in the latest drilling, which indicate potential for the development of large bodies of primary mineralisation at depth.

"The first pass 4,000-metre drilling program continues apace as we move across the South Ridge so as to get an overall perspective of what we have, and we will use this as the basis of our next drilling campaign early next year.

"The exploration drilling at Rodruin and the 17 exploration targets over our 738sqkm concession area, coupled with the coming changes to the mineral resources legislation in Egypt, combine to make the future for Aton and our shareholders a bright one.”

The phase 1 RC drilling program is expected to be completed around the beginning of December 2018.

Aton has also entered into a bridge loan facility with Ou Moonrider, a significant shareholder of the corporation.

This will see the corporation borrow C$1 million from Moonrider. The loan is repayable on the earlier of six months from closing, on the occurrence of various standard events of default, or on the closing of any debt or equity financing by the Corporation in an amount in excess of C$1.5 million.

The loan will bear interest at a rate of 10% per annum, payable when the loan is due.  

The proceeds will be used to fund further exploration work at Abu Marawat, and for general working capital purposes.

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