TSX-V: TECT $0.075 OTCQB: TETOF $0.0555 Gold $2,363


Tectonic Metals Drills 10.78 g/t Au Over 3.05 Metres Within Interval of 4.50 g/t Au Over 7.62 Metres at Tibbs Gold Project, Alaska

Final RAB Drill Results from Tibbs Identifies Additional High-Grade Gold at Lower Trench Zone

VANCOUVER, B.C., October 6, 2020 Tectonic Metals Inc. (TSX-V: TECT; OTCQB: TETOF) ("Tectonic" or the "Company") today announced the final assay results from the completion of its 3,202 metre (“m”), 27 hole Rotary Air Blast (“RAB”) drilling campaign at the Tibbs Gold Project (“Tibbs”). Drilling this summer at the Lower Trench (“Lower Trench”) and Wolverine (“Wolverine”) Zones represented the first drill holes at either target since 1997. Results from Lower Trench include a highlight intercept of 10.78 grams per tonne gold (“g/t Au”) over 3.05m within a broader interval of 4.50 g/t Au over 7.62m, with gold found in association with disseminated sulphides in sericite-altered granodiorite and discrete quartz-sulphide veins, identical to the Michigan Zone (“Michigan”, additional information here) 1.5km to the southeast. Both Lower Trench and Wolverine are believed to represent structural blocks which were initially connected to Michigan, where 2019 and 2020 drilling intersected gold in every hole including highlights such as 6.71 g/t Au over 9.14m and 6.03 g/t Au over 28.95m.  The recognition of Michigan-style mineralization at Lower Trench indicates that a significant hydrothermal system was active throughout a multi-kilometre structural damage zone, greatly expanding the potential of both the Michigan and Lower Trench targets.

RAB Drilling Highlights and Key Takeaways

  • Drilling at the Lower Trench target identified Michigan-style mineralization – highlights include:
    • 4.50 g/t Au over 7.62m including 10.78 g/t Au over 3.05m (TBRB20-032)
    • 2.38 g/t Au over 3.05m (TBRB20-032)
    • 0.79 g/t Au over 13.72m including 2.28 g/t Au over 1.52m (TBRB20-035)
  • Mineralized Structures Continue
    • Mineralization at Lower Trench is identical to Michigan but is located 1.5km to the northwest in a separate fault block
    • Lower Trench represents a ~1km long portion of the Michigan Structural Corridor, offset to the west after the mineralizing event. Mineralization at Lower Trench is open along trend and at depth
  • Pogo Geological Model Remains Relevant
    • Both low and high-angle structures control gold mineralization at Northern Star Resources’ Pogo Mine (“Pogo”), located 35km to the west of Tibbs
    • Mineralized low-angle structural features observed at Lower Trench, with similar features observed at Michigan
    • Recognition of mineralized low-angle features at Lower Trench and Michigan suggests an interplay between high-angle faulting and low-angle regional extension and shearing
  • Wolverine – Further Work Required
    • Drilling conducted on ridge top, up-slope of high-tenor gold-in-soil anomalies believed to be transported
    • Minor gold mineralization encountered, with low arsenic and antimony response
    • 1,000 x 400m historic gold-in-soil anomaly warrants further work; drilling to date has not explained the size nor tenor of the anomaly
  • Upcoming Assay Results
    • Seventymile drilling – 6 zones tested by 2,582m of RAB drilling - Assays pending
    • Tibbs Soil Sampling Program - >1,100 soil samples collected at Tibbs, with focus on gneissic rocks in west; ideal Pogo analogues – Interpretations ongoing
    • Induced Polarization (IP) geophysical survey at Michigan Zone completed – Results pending
    • Prospecting and mapping campaigns completed at the Maple Leaf and Mt. Harper Projects - Interpretations pending

Eric Buitenhuis, VP Exploration, commented, “Tectonic is encouraged to confirm additional Michigan-style gold mineralization in our final results from our successful Summer 2020 drill program at Tibbs. Hole TBRB20-032 at Lower Trench returned high-grade gold within a broad, lower-tenor mineralized envelope; essentially a carbon copy of mineralization drilled by Tectonic at Michigan this year, 1.5km to the southeast. Our 2020 drill holes represent the first test in over 20 years at the Lower Trench target and have significantly advanced our understanding of the structural story at Tibbs and the potential of these structurally controlled gold targets. The identical nature of the mineralization at the Michigan and Lower Trench targets suggests a well-developed hydrothermal system, which we know is capable of producing high-grade gold mineralization in multiple locations.”

Drill Highlights – Lower Trench and Wolverine Zones

Zone Drill Hole From (m) To (m) Weighted Grade (g/t Au) Length (m)*
Lower Trench TBRB20-032 12.19 13.72 0.67 1.52
  24.38 27.43 2.36 3.05
  33.53 41.15 4.50 7.62
including 33.53 36.58 10.78 3.05
TBRB20-033 25.91 33.53 0.67 7.62
including 30.48 33.53 1.35 3.05
TBRB20-034 56.39 57.91 0.65 1.52
TBRB20-035 94.49 102.11 0.28 7.62
  106.68 120.40 0.79 13.72
including 106.68 108.20 2.28 1.52
TBRB20-039 103.63 106.68 0.75 3.05
Wolverine TBRB20-045 4.57 6.10 0.57 1.52
TBRB20-046 51.82 53.34 0.67 1.52

 *True widths are not known at this time. All widths reported are drilled widths. “TBRB20” drill hole prefixes equate to 2020 RAB drill holes. RAB drill holes are sampled on 5-foot drill rod lengths and converted to metric for input into the drill database and assay table. Lengths rounded to two significant figures.

A table of drill results from Tectonic’s 2020 drill holes at the Lower Trench and Wolverine Zones as well as maps, cross sections, and drill assay sheets associated with this news release can be viewed by clicking here.

Additional information about the Tibbs Gold Project, including historical information, can be found in the Amended and Restated NI 43-101 Technical Report, Tibbs Property , Alaska, United States of America with an effective date of October 31, 2019, prepared by Carl Schulze, P.Geo., of Aurora Geosciences Ltd. in accordance with NI 43-101, which is filed under the Company’s profile on SEDAR.

Tibbs Gold Project – 2020 Drill Strategy

Building upon 2019’s exploration success, which included a highlight intercept of 6.03g/t Au over 28.95m, with Ground Truth America’s RAB drill, Tectonic chose to utilize this cost-effective and rapid drill method to step out on 2019’s highlight drill intersection at the Michigan Zone of 6.03 g/t Au over 28.95m. Drilling in 2020 focused on stepping out from this highlight drill intercept, while also testing for additional Michigan-style structures along a 3km long prospective corridor at the Lower Trench and Wolverine Zones.

Drilling was conducted as fences of angled holes designed to cross interpreted high-angle mineralized structures. Drill holes were dominantly oriented to the east or southeast, depending on the zone being drill tested, with dips of 55 degrees to cut the dominantly northwest dipping structures. At Lower Trench, drill holes were planned to test for near-surface mineralization within a 400m wide saddle formed by a prominent northeast-trending fault zone. At Wolverine, drill holes were sited up-slope of gold-in-soil anomalies believed to be transported downhill due to solifluction.

A goal metreage of 2,500m drilled was outlined prior to the commencement of the drill season. Tectonic significantly exceeded this goal at Tibbs, drilling 3,202m in total without incurring additional costs. A total of 16 drill holes were completed at Lower Trench (951m) and Wolverine (614m), for a total of 1,565m between the two targets.

Geology and Mineralization – Lower Trench & Wolverine

Drilling was conducted at the Lower Trench and Wolverine Zones, both >1km long, northeast trending structural corridors with associated gold, arsenic, and antimony anomalism defined by soil and rock geochemistry and air photo lineaments.

At Lower Trench, mineralization exhibits the same geochemical and morphological characteristics as observed at the Michigan Zone, located 1.5km to the southeast. High-grade mineralization is characterized by quartz-pyrite-arsenopyrite-stibnite veining, with the best drilled intervals consisting nearly entirely of quartz-sulphide vein material. Low-tenor mineralization consists of strongly sericite-altered granodiorite with disseminated sulphides (pyrite, arsenopyrite and stibnite). Both Lower Trench and Michigan host low-angle diorite sills which pre-date mineralization, the margins of which may focus fluid flow due to rheological contrast with the host granodiorite. The western portion of Lower Trench hosts high levels of antimony enrichment with lower gold values. This portion of the Lower Trench target is separated from the eastern drilled area (i.e. holes TBRB20-032, TBRB20-035) by an inferred near-vertical fault, and is upthrown relative to the eastern block as indicated by the relative orientation of the diorite sills.

Drilling at the Wolverine Zone returned thin intercepts of low tenor gold mineralization (0.67 g/t Au from 51.82-53.34m in hole TBRB20-46, 0.57 g/t Au from 4.57-6.10m in hole TBRB20-045). Notably the 2020 drilling at Wolverine has indicated that gold mineralization is only weakly associated with arsenic and is not associated with antimony. The differing geochemical signature defined by the 2020 drilling at Wolverine suggests that the target represents a separate structural block. Future work at Wolverine will look for the source of the high-tenor gold-in-soil anomaly, which remains unexplained.

Exploration Upside and Next Steps

A follow-up induced polarization (“IP”) geophysical survey at the Michigan Zone has now been completed. The goal of the survey was to determine the geophysical signature of drilled, near-surface mineralization at Michigan within the centre of the target and test for a similar signature both at depth and along strike within the corridor. In addition to the Michigan Zone, an IP line was completed at the Lower and Upper Trench zones to aid in structural interpretation of the target area. Survey results will be interpreted once received.

Tectonic also completed a comprehensive soil sampling campaign to both infill and expand the historic soil grid over previously untested ground to the west and east. The goal of the soil program was to generate new exploration targets with a focus on exploring the gneissic rocks in the west of the property, where low-angle thrust faults have been mapped by previous workers. The interplay of low-angle regional shears and high-angle fault structures as observed at Pogo, where both styles of structure acted as hydrothermal fluid conduits. The presence of interpreted low-angle structural features at both the Lower Trench and Michigan Zones at Tibbs suggests that similar relationships may be present within the gneissic rocks just west of these targets.

Qualified Person & QA/QC

Tectonic’s disclosure of a technical or scientific nature in this press release has been reviewed, verified, and approved by Eric Buitenhuis, M.Sc., P.Geo., Tectonic’s Vice President Exploration, who serves as a Qualified Person under the definition of National Instrument 43-101.

Quality Assurance and Quality Control procedures include the systematic insertion of blanks and standards into the drill sample string at a rate of approximately 1/10 (10%). In addition, field duplicate samples are systematically collected at a rate of 3 duplicates per 100 samples. Samples are placed in sealed bags and shipped directly to the Bureau Veritas Laboratories (“BV”) preparation facility in Fairbanks, Alaska. The analytical work for the 2020 Tibbs RAB drilling program was performed by BV, an internationally recognized and accredited analytical services provider, which is independent of Tectonic. All RAB drill samples were prepared using procedure PRP70-250 (crush, split, and pulverize 250g to 200 mesh). Samples were then sent to Vancouver, Canada, where they underwent analysis for gold by method FA430 (30-gram Fire Assay fusion with an atomic absorption finish (AAS). Samples returning >10 g/t Au were re-analyzed using method FA530-Au (30g Fire Assay with gravimetric finish). Following this, a 0.25g pulp was sent to the Vancouver lab for four-acid Inductively Coupled Plasma Emission Spectrometer analysis for 35 elements using method MA300.

About Tectonic

Tectonic Metals Inc. is a mineral exploration company created and operated by an experienced and well-respected technical and financial team with a track record of wealth creation for shareholders.  Key members of the Tectonic team were involved with Kaminak Gold Corporation, the company that raised C$165 million to fund the acquisition, discovery and advancement of the Coffee Gold Project in the Yukon Territory through to the completion of a bankable feasibility study before selling the multi-million ounce gold project to Goldcorp Inc. (now Newmont Goldcorp) for C$520 million in 2016.

Tectonic is focused on the acquisition, exploration, discovery, and development of mineral resources from district-scale projects in politically stable jurisdictions that have the potential to host world-class orebodies.

Tectonic believes that responsible mineral exploration and development can positively impact the communities in which the company lives and operates and is committed to early and ongoing community engagement, best practices in environmental stewardship and the development of a strong safety culture. Whether at home or at work, the Tectonic team is grounded on the following core values:  passion, integrity, patience, focus, perseverance, honesty, fairness, accountability, respect, and a play big mindset.  The company works for its shareholders and is committed to creating value for them. 

On behalf of Tectonic Metals Inc.,

Tony Reda

President and Chief Executive Officer

For further information about Tectonic Metals Inc. or this news release, please visit our website at www.tectonicmetals.com or contact Bill Stormont, Investor Relations, at toll-free 1-888-685-8558 or by email at info@tectonicmetals.com.

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Cautionary Note Regarding Forward-Looking Statements and Historical Information

Certain information in this news release constitutes forward-looking information and statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions and include, but are not limited to, statements with respect to the potential for mineralization at Tectonic’s projects and any future exploration activities.   The Company makes no representation or warranty regarding the accuracy or completeness of any historical data from prior exploration undertaken by others other than the company and has not taken any steps to verify, the adequacy, accuracy or completeness of the information provided herein and, under no circumstances, will be liable for any inaccuracies or omissions in any such information or data, any delays or errors in the transmission thereof, or any loss or direct, indirect, incidental, special or consequential damages caused by reliance on this information or the risks arising from the stock market.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental  and other approvals and financing on time, obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Tectonic, and there is no assurance they will prove to be correct.

Although Tectonic considers these beliefs and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation: the Company’s ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. 

Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Although Tectonic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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. Tectonic does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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