Sego Resources Selects Drill Holes and Prepares for Drilling Strong Chargeability Anomalies Deep Below the Cuba and South Gold Zone Mineralization Mid-October

Sego launches a fully funded 2,000m drill program targeting deep copper-gold anomalies.

What the company is saying

Sego Resources Inc. is announcing the imminent start of a fully funded 2,000 metre diamond drill program at its 100%-owned Miner Mountain project in British Columbia. The company emphasizes that drill sites have been selected based on 3D inversion of induced polarization (IP) data, targeting deep chargeability anomalies at both the Cuba and South Gold Zones. The release highlights specific technical details, including the geometry and depth of the chargeability highs, and references historic drill results with explicit copper and gold grades and intervals. Sego underscores its operational readiness, stating that the program will commence in mid-October 2026 and that quality assurance protocols are in place. The company also points to its Memorandum of Understanding with the Upper Similkameen Indian Band and its Award of Excellence for reclamation, presenting itself as both technically and socially responsible. The announcement is reviewed and approved by Tor Bruland, P.Geo., a non-independent consulting geologist, lending technical oversight to the disclosure.

What the data suggests

The announcement provides detailed operational data, specifying a 2,000 metre diamond drill program scheduled to begin within weeks. Technical targets are defined by deep IP chargeability anomalies exceeding 12 ms, with two holes in the Cuba Zone planned to intersect these at 500 m depth and one hole in the South Gold Zone at 300 m. Historic drill results in the Cuba Zone include intervals such as 0.23% copper and 0.13 g/t gold over 24.4 m (DDH 10-19), 0.96% copper and 0.55 g/t gold over 100.4 m (DDH 12-21), and 0.93% copper and 0.26 g/t gold over 27.0 m (DDH 17-29), among others. South Gold Zone historic holes show up to 0.61 g/t gold, 0.41 g/t silver, and 0.02% copper over 56.9 m (DDH 21-49). The property covers 2,056 hectares and is located 15 km north of the Copper Mountain Mine. No new assay results or resource estimates are disclosed; all grades cited are from prior campaigns. The program is described as fully funded, but no dollar amounts or sources are provided. Quality control measures are outlined, including insertion of reference samples and check assays. The data supports a technically robust, near-term exploration effort, but economic viability and resource scale remain unquantified.

Analysis

The announcement is proportionate in tone, focusing on the imminent commencement of a fully funded 2,000 metre diamond drill program at the Miner Mountain project. The release provides detailed technical context, including specific drill targets, historic assay results, and quality assurance protocols. While some forward-looking statements are present (e.g., expectations for drill hole intersections), these are standard for an exploration-stage update and are not exaggerated relative to the evidence. The majority of claims are factual and relate to realised milestones (drill program funded and scheduled, historic results, project ownership, community agreements). There is no promotional language about resource size, economic potential, or production, and no claims of imminent financial impact. The capital outlay is typical for a junior exploration program and is already funded, with no suggestion of large, long-dated, or uncertain returns. Overall, the narrative is well-supported by disclosed facts and technical data.

Risk flags

• ●Operational risk is present as the program targets deep geophysical anomalies that may not correspond to economically viable mineralization, despite promising historic grades nearby. The technical challenge of drilling to 500 m depths increases cost and complexity, with no assurance of success.
• ●Disclosure risk exists because the announcement does not provide budget figures, cash balances, or funding source details for the 'fully funded' program, limiting transparency on financial resilience if results are disappointing.
• ●Exploration-stage risk remains high: the absence of current resource estimates or economic studies means the project's potential value is still speculative, and any negative drill results could materially impact perceived asset quality.
• ●Community and permitting risk is partially mitigated by the Memorandum of Understanding with the Upper Similkameen Indian Band, but ongoing social license cannot be assumed if project scale or impacts increase.

Bottom line

Sego Resources is moving quickly to test deep copper-gold targets at its 100%-owned Miner Mountain project, with a 2,000 metre drill program starting imminently. The technical rationale is well supported by historic drill results and recent geophysical data, but the outcome remains uncertain until new assays are returned. No financial or resource-scale data is provided beyond the statement that the program is fully funded, leaving the company's broader financial position opaque. Investors should focus on the upcoming drill results as the next major catalyst, as these will determine whether the targeted anomalies translate into resource potential. The most important takeaway is that Sego is entering a high-impact, high-uncertainty phase where technical success could unlock significant value, but failure would highlight the risks inherent in early-stage exploration.

Announcement summary

(TSXV:SGZ) Sego Resources Inc. announced that drill sites have been located for a fully funded 2,000 metre diamond drill program scheduled to start mid-October 2026. The program targets deep IP chargeability anomalies identified by a 3D inversion of the Volterra diamond array induced polarization survey at both the Cuba and South Gold Zones on the Miner Mountain project near Princeton, British Columbia. The Cuba Zone will see two proposed holes (CG1 and C2) targeting chargeability highs greater than 12 ms at 500 m depth, with CG1 collared in the west and north of the Cuba Zone and drilled south, and C2 collared south of the southeast portion and drilled northeast. Historic drill results in the Cuba Zone include DDH 10-19: 0.23% copper and 0.13 g/t gold over 24.4 m (66.14 m to 90.53 m), DDH 12-21: 0.96% copper and 0.55 g/t gold over 100.4 m (10.06 m to 110.45 m), DDH 17-29: 0.93% copper and 0.26 g/t gold over 27.0 m (8.0 m to 35.0 m), plus 0.16% copper and 0.51 g/t gold over 21.0 m (77.0 m to 98.0 m). Additional intersections for C2 include DDH 12-27: 0.23% copper and 0.21 g/t gold over 76.2 m (20.4 m to 96.6 m), DDH 18-31: 0.06% copper and 0.11 g/t gold over 62.0 m (21.0 m to 83.0 m) and 0.011% copper and 0.07 g/t gold over 99.0 m (122.0 m to 221.0 m), DDH 18-32: 0.14% copper and 0.15 g/t gold over 129.0 m (14.0 m to 314.3 m), and DDH 18-33: 0.36% copper and 0.07 g/t gold over 45.0 m (14.0 m to 314.3 m). The South Gold Zone will be tested by Hole A, collared northwest and directed southeast toward a medium depth chargeability high, with historic results including DDH 21-49: 0.61 g/t gold, 0.41 g/t silver, and 0.02% copper over 56.9 m (23.0 m to 79.9 m), DDH 21-53: 0.16 g/t gold, 0.27 g/t silver, and 0.01% copper over 82.2 m (3.1 m to 85.3 m), DDH 21-56: 0.13 g/t gold, 0.27 g/t silver, and 0.01% copper over 53.7 m (5.5 m to 59.2 m), and DDH 21-57: 0.34 g/t gold, 0.35 g/t silver, and 0.01% copper over 59.65 m (42.65 m to 102.30 m). The Miner Mountain project is 100% owned by Sego Resources Inc., covers 2,056 hectares, and is located 15 kilometres north of the Copper Mountain Mine operated by Hudbay Minerals Inc. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band, on whose Traditional Territory the project is situated. The company has received an Award of Excellence for reclamation work at Miner Mountain. Quality assurance and quality control protocols include systematic insertion of certified reference samples, duplicates, and blanks, as well as regular check assays at another laboratory. The news release was reviewed and approved by Tor Bruland, P.Geo., Non-Independent Consulting Geologist commissioned by Sego Resources Inc.

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