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Leagold Reports Additional Drill Results, Including High-Grade Intercepts Along Western Flank Of Bermejal Underground

November 20, 2017 Download PDF

Vancouver, November 20, 2017 – Leagold Mining Corporation (TSX:LMC; OTCQX:LMCNF) (“Leagold” or the “Company”) reports additional results from the Bermejal Underground drill program at the Los Filos mine in Mexico. Highlights include 5.8 grams per tonne (“gpt”) over 41.9 metres, including 10.6 gpt over 8.6 metres and 23.2 gpt over 3.5 metres; 19.0 gpt over 4.2 metres; and 8.3 gpt over 7.6 metres (all capped grades and true widths; see Table 1). The 22 new holes are part of a 56,000-metre infill and step-out exploration program, and follow 66 holes previously reported. Over 52,500 metres (94%) of the drill program have now been completed.

Leagold CEO Neil Woodyer stated: “The results of the drill program at Bermejal Underground have exceeded our expectations to date, with several areas of high-grade mineralization already defined. We continue to see excellent results as we focus the remainder of the drilling on the Central and Western side of the deposit. We have 15 rigs on site and will complete the drill program in November.

“In the meantime, work continues on the Bermejal Underground ramp. We have advanced 99 metres to date and are on track to reach the test mining area in Q2 of next year. Operational improvements under the guidance of the new management team at the Los Filos Mine continue to steadily progress.”

Nine of the 22 holes reported today provide infill in the area that will be accessed for test mining in Q2 2018 on the eastern flank of the Bermejal Underground deposit. This includes hole BUT-07-17 which intercepted 14.3 gpt over 4.2 metres.

An updated resource estimate is expected before year end. The drill holes reported in this news release, and the results from the continuing program, will be incorporated into a final resource estimate for year-end reporting.

Bermejal Underground is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres providing extensive additional areas for further exploration. The area being drilled as the Bermejal Underground mineralization extends approximately 1,600 metres along the strike of the intrusive contact and has a vertical depth extent of over 800 metres (Figure 1). The drilling shows consistent oxide mineralization at carbonate/intrusive contacts either along the intrusive contact or below the intersection between the sill and the Bermejal intrusive contact (a “sub-sill” deposit).

Table 1: Drilling Program Highlights for Bermejal Underground Deposit

Sector

Hole ID

Zone

Skarn Type

From (m)

To

(m)

Length (m)

True Width (m)

Grade (g/t Au)

Capped (g/t Au)

East

BU-47A-17

LI

Exo

574.05

576.15

2.10

1.97

8.24

LI

Exo

605.75

611.55

5.80

5.26

5.44

East

BU-63-17

LI

Exo

625.65

632.40

6.75

2.31

6.45

East

BU-64-17

LC

Exo

504.95

511.15

6.20

5.83

3.51

LC

Exo

514.65

522.70

8.05

7.56

8.28

LC

Exo

539.60

544.25

4.65

4.37

3.39

East

BU-68-17

SILL

Endo

460.35

465.25

4.90

4.01

3.64

West

BU-69-17

LI

Exo

410.10

411.30

1.20

1.04

8.65

Central

BU-73-17

LC

Exo

447.75

452.15

4.40

3.81

6.07

LI

Exo

659.70

662.80

3.10

2.68

4.11

West

BU-74-17

LC

Exo

318.80

319.80

1.00

0.94

9.98

and

LI

Exo

436.30

479.65

43.35

41.87

6.13

5.77

including

LI

Exo

444.20

447.80

3.60

3.48

23.18

18.95

including

LI

Exo

462.00

471.15

9.15

8.60

10.55

including

LI

Exo

475.15

479.65

4.50

4.23

7.37

Central

BU-75-17

UI

Exo

119.90

125.25

5.35

1.38

8.31

and

LI

Exo

277.30

281.40

4.10

2.35

10.67

and

LI

Exo

451.40

459.95

8.55

6.05

8.36

Central

BU-78-17

LI

Exo

455.35

469.20

13.85

13.64

3.79

East

BU-81-17

UI

Exo

227.10

232.45

5.35

4.85

3.37

UI

Endo

244.10

247.40

3.30

2.53

4.40

UI

Endo

276.40

280.60

4.20

2.70

13.89

LI

Endo

429.00

430.50

1.50

0.75

18.80

Central

BU-83-17

UC

Endo

250.20

252.70

2.50

1.77

35.27

20.09

Sill

Endo

324.15

328.10

3.95

2.79

4.07

Sill

Endo

392.00

400.15

8.15

7.39

4.52

LI

Exo

418.05

420.45

2.40

2.32

15.43

LI

Exo

429.30

432.00

2.70

2.61

9.66

East

BUT-01-17

UC

Exo

215.15

229.70

14.55

13.29

3.12

including

UC

Exo

220.30

224.70

4.40

4.02

3.65

and

UC

Exo

252.85

259.20

6.35

5.80

3.58

East

BUT-02-17

UC

Exo

254.60

263.05

8.45

7.32

3.79

including

UC

Exo

254.60

257.20

2.60

2.25

5.01

including

UC

Exo

260.60

263.05

2.45

2.12

5.55

East

BUT-04-17

UC

Exo

285.85

290.65

4.80

3.68

3.92

East

BUT-05-17

UC

Exo

293.00

295.95

2.95

2.26

4.46

East

BUT-06-17

UC

Exo

312.40

315.80

3.40

2.19

6.25

and

UI

Endo

402.55

404.55

2.00

1.29

7.17

East

BUT-07-17

UC

Exo

263.45

269.40

5.95

4.21

19.09

14.31

East

BUT-09-17

UC

Exo

269.30

280.70

11.40

9.34

3.21

including

UC

Exo

269.30

272.10

2.80

2.29

5.25

and

UI

Endo

342.85

346.30

3.45

2.64

3.98

NOTES:

  • Intervals in bold are mentioned in the text of the news release
  • All intercepts are over 3 gpt when diluted to a minimum true width of 3 metres. Drill holes BU-71-17, BU-72-17, BUT-03-17 and BUT-08-17 all intercepted mineralization but dilute below 3 gpt after diluting to 3 metres
  • UC = Upper Contact of Sill; LC = Lower Contact of Sill; Sill = Oxide within Sill; UI = Intrusive Contact above Junction with Sill; LI = Intrusive Contact below Junction with Sill
  • Individual assays within the intercepts were capped using 40 gpt limit

Figure 1: Plan View Map of Bermejal Area Showing Geology, Drill Holes Reported and Outline of Bermejal Underground Resource


Qualified Persons

Doug Reddy, P.Geo, Leagold’s Senior Vice President – Technical Services, is a Qualified Person under NI 43-101, and has reviewed and approved the technical contents of this news release on behalf of Leagold.

Los Filos Mine employs industry standard drilling and sampling procedures. All exploration samples are sent to an ALS Global facility in Guadalajara for preparation and Vancouver for analyses by fire assay and ICP. A full quality control and assurance program and protocols are in place and are aligned with best practices including regular insertion of certified reference standards, blanks, and duplicates.

About Leagold Mining Corporation

Leagold is building a new mid-tier gold producer with a focus on opportunities in Latin America. Leagold is based in Vancouver, Canada and is listed on the TSX under the trading symbol “LMC” and trades on the OTCQX market as “LMCNF”. The recent acquisition of the Los Filos Mine, a low-cost gold producer in Mexico, provides an excellent platform for growth.

For more information please visit the Company website at www.leagold.com or contact:

Meghan Brown, Vice President – Investor Relations

+1-604-398-4525

mbrown@leagold.com

This news release contains "forward-looking statements" and “forward looking information” (as defined under applicable securities laws), including but not limited to plans for future development of the Los Filos Mine. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "expected", "budgeted", "forecasts" and "anticipates". Forward-looking statements and information, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the Los Filos Mine, risks related to the successful integration of the acquisition; risks related to international operations; risks related to general economic conditions and credit availability, actual results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Leagold operates. Although Leagold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward-looking information are made as of the date hereof and Leagold disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information. Please refer to Leagold's most recent filings under its profile at www.sedar.com for further information respecting the risks affecting Leagold and its business.

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