Sego Resources Inc. reported that, after a full exploration data review, alkalic porphyry copper-gold (Cu-Au) mineralization has been recognized beneath the off-setting flat fault in the Cuba Zone at the Miner Mountain Property near Princeton, BC. Diamond Drill Hole 37 (DDH37) penetrated a shallow-dipping fault and intersected 11 m (metres) of 0.6% copper and 0.13 gpt (grams per tonne) gold at the bottom of the hole. Within this interval a 2 m sample was recently analyzed and returned 0.13 gpt palladium in addition to the previously reported copper and gold.

The review also indicated that the geological setting of the Southern Gold Zone is very similar to the geological setting of the recently recognized gold zone at New Gold's New Afton Mine. At New Afton the gold zone is distal and lateral to the main copper-gold mineralization and a similar setting has been proposed for the Southern Gold Zone. Drilling is planned to test associated deep alkalic porphyry copper-gold mineralization to the north.

Highlights Of Cuba Zone Data Review: A new deep drill target within the large IP Chargeability High below the Cuba Zone under previously intersected, shallow, Cu-Au mineralization from 0 to 150 m in the same zone; The new drill target is also beneath the shallow-dipping fault which offsets the near surface mineralization in the Cuba Zone; Palladium, commonly found in alkalic porphyries, was analyzed and confirmed in the Cu-Au mineralized zone at the bottom of DDH37. Sego plans to test the Cuba Zone. The exploration data review highlighted a significant intersection of 11 m of 0.6% copper with 0.12 gpt gold, that includes 4.4 m of 1.2% copper and 0.24 gpt gold at the bottom of DDH 37 located below the shallow-dipping fault.

Disseminated chalcopyrite mineralization occurs in strongly altered fine-grained intrusion or volcanic host. During the data review the same interval was analysed for platinum group metals and a 2 m sample carried 0.13 gpt palladium. New Exploration Target South Zone: Recent studies have shown that lateral and higher gold zones can be found above deeper porphyry copper-gold mineralization, as seen in the New Afton deposit and their position could be similar in the Southern Gold Zone.

Based on geology, soil, and chargeability anomalies, as well as sporadic copper mineralization known to the northeast of the Southern Gold Zone, Sego Resources plans to drill for potential porphyry copper-gold mineralization north of the Southern Gold Zone anticipated to occur approx. 400 to 600 m deep. Planned Drill Campaign/Website Update: A deep drill program is planned to test these two targets.

The Company plans to finance and to complete this diamond drill program in late fall-early winter.