Fredonia Mining Inc. Announces the Completion of Drilling Program at ?El Dorado Monserrat'

TORONTO, Aug. 23, 2022 (GLOBE NEWSWIRE) -- Fredonia Mining Inc. (the "Company" or "Fredonia") (TSXV: FRED), is pleased to announce the completion of a further drilling program at its El Dorado Monserrat ("EDM") property, located in Santa Cruz, Argentina.

10 HQ diamond drill core holes were drilled at the La Herradura prospect, ("LH") with a further drill hole on the ?Gladys' prospect, 4.5 km to the north west. In total 11 holes were drilled for 2,482.80m.

"We are extremely pleased and encouraged with the continuity of the results from the initial assays of this third stage of our drilling program, and the significant percentage and tenor of intersections of merit in our drill holes," commented Estanislao Auriemma, Fredonia's CEO. "Drill results to date have confirmed the strike and depth of extensional potential at La Herradura. We anticipate further drilling will increase both the extent of the prospect's mineralisation, and also the grades intersected. The results support the confidence to initiate further drilling to begin in October, to also include other prospective areas within EDM. The objective remains to confirm and increase the potential overall of the El Dorado Monserrat Property."

Table of the recently completed 2022 drill program

With the cessation of drilling, the principal activity in the field base at EDM is the focus on the processing of the drill core: cutting and sampling (including QA/QC). It is anticipated that all sampling will be completed by month's end. The camp will then be put on ?care and maintenance' until the Austral spring. The Company anticipates drilling will recommence in October. Preparations are already underway for this 2,500m follow-up drilling phase at LH, but which will also include further exploration drilling on other prospective targets on the EDM property.

Drill holes have intercepted hydrothermal breccias, veins and stockworks, hosted in a phreatomagmatic breccias, felsic domes and dykes that intrude the andesite flows which form the country rock.

The final assay results for the initial four holes at LH are now available. The significant intersections are tabled below. Further assay results from the remaining six holes will be reported as they become available. The drilling has added additional credibility that the potential for a large tonnage Au-Ag occurrence with included high grade zones exists at LH.

Table of best intersections

1. Reported interval length are down hole widths and not true widths.
2. Gold equivalent ("AuEq") is calculated using metal prices of US$ 1,750/oz for Au and US$ 20/oz for Ag. The equation used is: AuEq g/t = Au g/t + (Ag g/t ÷ 87.5).
3. AuEq assumes Au recovery of 90%. The limited metallurgical studies by Fredonia (selective Bottle rolls from Main Veins material) have indicated high (>90%) recovery of gold in oxide material. The Cerro Vanguardia mine to the east of EDM with similar mineralisation reports recoveries in the high 90% for Au.

There are assays pending for the remaining 6 drill-holes at LH.

The recent drilling whilst of limited meters has enhanced the project's potential and although assays for only 4 of the 10 holes have been received these have confirmed the presence of wide intersections of mineralised material with higher grade inclusions.

The results to date support and indicate the geological model of a low sulphidation epithermal Au-Ag mineralised system within an extensive lower grade breccia halo hosted in a predominantly andesitic, variably brecciated formation.

Historical drillholes in the same prospect area, including previous drilling by Fredonia are:

Table of (selected) historic drill intersections, La Herradura

As information (drill-hole geology and geochemistry) becomes available drill sections are being interpreted and integrated with the previous drilling. This will be further refined when all assays are received. Once completed the updated geological interpretations of the LH drill sections will assist in determining the hole by hole detail of the next phase of drilling at LH. This information in parallel with the geochemical data will allow realistic planning of the future drilling intended to target the identified structures to maximise discovery along strike / dip and focus on potential high grade zones. The objective of the follow-up program is to advance LH towards a maiden resource estimate.

The geological model for the mineralisation being developed by the exploration team is constantly being refined as drilling and mapping information is integrated. The data continues to support the presence of a potential diatreme surrounded by an extensive brecciated host system, the dimensions of which are as yet undefined being geologically open in all directions. The Fredonia geological team believe further drilling is warranted to define this model and extend the zone of known mineralisation.

Gold mineralisation is related to a quartz + sericite alteration and minor bladed calcite and adularia, interpreted as evidence of a boiling zone in an epithermal system. The shallow and distal zones show a chlorite + hematite + pyrite alteration, while in the deeper sections there are veins of platy calcite + fluorite. Superimposed on the system is an alteration halo of kaolinite + alunite and vuggy quartz, which occurs in shallow and medium-deep sectors.

The recent drill holes at LH were drilled primarily to target the high grade intervals in drill holes HDDH013 and HDDH011 and their potential depth extensions. These historic drill holes are about 250m apart along a defined roughly west ? east strike of the mineralised trend identified to date. Drill holes were also drilled further along strike to the east. Geologically the drilling has extended the mineralised trend from the previously known 1,100m by potentially 300m to the east (HDDH040 100m to the east of HDDH011 intercepting 63 veins, averaging 3cm, assays pending, in 305m of core) and remains open. Mineralisation is also identified to depths of >200m.

Based on drill intersections to date the mineralised system is interpreted to remain open in all directions and Fredonia believes more drilling is warranted.

Quality Assurance/Quality Control

All core samples were submitted to the principal Alex Stewart Laboratories in San Julián city for preparation, and in Mendoza city for the analysis. Alex Stewart Laboratories is independent of Fredonia. All samples were analysed for Au and Ag by fire assay/ AA finish 50 g, plus a 39-element ICP-AR finish. Fredonia followed industry standard procedures for the work with a quality assurance/quality control (QA/QC) program. Blanks and reference material of High grade/ Low grade Gold and High grade/ Low grade Silver standards were included with all sample shipments to the principal laboratory. Field duplicates were made from coarse reject. Fredonia detected no significant QA/QC issues during review of the data. Mr. Marc J. Sale, is an independent qualified person as defined by Canadian National Instrument 43-101 and has read and approved the technical contents of this release.

Data Verification

Mr. Sale has previous experience with the EDM property and the historical QA/QC procedures undertaken for the preparation of previous results, and has previously conducted the verification activities on drilling and sampling results described in Fredonia's technical report entitled "Technical Report on the El Dorado-Monserrat Property In Santa Cruz Province, Argentina" dated February 15, 2021 (the "EDM Technical Report"), subject to the limitations described therein. Mr. Sale was not physically present to inspect and take verification samples from drill core in the most recent drilling campaign, but did conduct desktop-based verification of drill results against data-base information provided by management to ensure the assays results presented are those in the database. Original final assay reports (certificates) were not available to the QP at the time of disclosure for verification.

About Fredonia

Fredonia indirectly owns a 100% interest in certain license areas (totalling approximately 18,300 ha.) (collectively, the "Project"), all within the Deseado Massif geological region in the Province of Santa Cruz, Argentina, including the following principal areas: El Aguila, approx. 9,100ha, Petrificados, approx. 3,000ha, and the flagship, advanced El Dorado-Monserrat property covering approx. 6,200ha located close to Anglo Gold Ashanti's Cerro Vanguardia mine, subject to a 1.5% net smelter return royalty on the EDM project, 0.5% net profits interest on Winki II, El Aguila I, El Aguila II and Hornia (ex Petrificados).

For further information: Please visit the Company website www.fredoniamanagement.com or contact: Omar Salas, Chief Financial Officer, Direct: +1-416-846-7807, Email: [email protected].

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation relating to the Company and the EDM project, including statements regarding the prospectivity of the EDM project for gold and silver mineralization, including the potential for metal recoveries from any mineral processing activity, the potential for a mineral resource estimate at the Project, and the Company's future exploration plans. Words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology are used to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by the Company in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors, including, without limitation, the factors described in the Company's filing statement dated June 22, 2021 available on SEDAR at www.sedar.com under the heading "Risk Factors" that may cause actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information and the Company can give no assurance that they will prove to be correct. The statements in this press release are made as of the date of this release. The Company undertakes no obligation to update forward-looking statement made herein, or comment on analyses, expectations or statements made by third parties in respect of the Company or its securities, other than as required by law.