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Caza Gold Completes Phase 1 Prospecting Program on El Diamante Project and Identifies Gold-bearing Quartz-Sulfide Veins

Vancouver, Canada – August 23, 2016 – Caza Gold Corp. (the “Company” or “Caza”, TSX-V: CZY, FSE: CZ6)

Brian Arkell, President and CEO of Caza Gold Corp. is pleased to provide an update on exploration results at the El Diamante Project in Nicaragua.

The Caza Gold exploration team recently completed the first phase of fieldwork at El Diamante outlining a large area of altered lithocap and quartz-sulfide veins with gold values as high as 0.16 g/t Au and silver up to 5.2 g/t Ag. Diamante is one of four early-stage generative exploration projects where Caza has identified large areas of epithermal-style alteration and anomalous geochemistry, in previously unexplored regions. Located in the Chontales Department, 125 kilometers east of Managua along Federal Highway 7, the Diamante project consists of a 25 hectare exploration concession, centered on a large area of alteration. Caza’s geologists initially identified the area using airborne and remote sensing techniques followed up by ground-based, reconnaissance exploration. This initial work identified a broad zone of strong alteration, or lithocap in andesitic volcanic rocks.

The recently completed fieldwork outlined an area of alteration approximately 10 square kilometers. This lithocap is characterized by varying degrees of advanced argillic alteration, containing silica, alunite and other clays, along with iron oxides after pyrite. Locally, silicification is very strong accompanied with pyrite or iron oxides. Vuggy silica and silicified breccias, associated with structural zones, were also observed. Peripheral to the main zone of alteration on the southwestern side, is a zone of intense opalization which in places, contains up to 3-4% fine, disseminated pyrite. 

The altered lithocap tends to form prominent topographic highs. In the southeastern portion of the property, where drainages have cut into the lithocap, Caza discovered abundant quartz-pyrite veins in float. Due to the size and abundance of the float blocks, Caza believes there may be mineralized material under shallow soil cover below. Seven samples were taken of which four returned significant gold and / or silver values:

Sample #
Gold (g/t Au)
Silver (g/t Ag)
8175
--
1.3
8177
0.16
1.3
8179
0.16
5.2
8182
--
1.8

The alteration in the lithocap is consistent with the upper parts of an epithermal system, indicating potential for concealed target below. The assay results would support a potential gold-silver target at shallow depths below cover. Brian Arkell, President and CEO of Caza Gold Corporation, states: “These early results on the Diamante project are quite encouraging, especially the gold and silver results in the southeast. The alteration is very strong and covers a very large area, which together with the geochemistry indicates potential for a sizeable concealed target”.

Caza is currently planning a second phase follow-up program, subject to financing, to collect more detailed information and further advance the project.

See map at: http://www.cazagold.com/_resources/pdf/Diamante-NR-Geology-Aug-22-2016.pdf

Sampling, Analytical Methods, and QA/QC

Caza has a quality control and quality assurance program in place for all projects based on industry best-practice standards and guidelines. Surface samples are collected following established procedures and protocol under the supervision of Company geologists. Samples are bagged and labeled in the field, then transported to a secure storage area. Coarse, blind, blanks and blind commercial standard gold reference materials for analysis control are inserted in the sample stream. Samples in sealed bags are transported to the primary laboratory by Company or Inspectorate personnel. All samples were prepared at the Inspectorate prep facility in Managua, Nicaragua and analyzed at applicable Reno, Nevada or Vancouver, British Colombia analytical labs. Analyses are done following industry best-practice standards and guidelines and include multi-acid digestion followed by fire assay, gravimetric, AA, or ICP methods. Assay results along with blanks and standard reference material results are reviewed by Company personnel and found to be within acceptable ranges. Data is then imported directly into a secure database by a Company database specialist.

Qualified Person

Brian Arkell, MSc. Geology, SME Registered, Fellow AusIMM, President and CEO, is the Qualified Person who reviewed and approved the contents of this news release.

About Caza Gold Corp.

Caza Gold Corp. is a gold and copper exploration company focused on discovering new deposits in Nicaragua. The Company controls a large land position in the highly prospective but largely undeveloped gold belts of Nicaragua. Caza has developed a large portfolio of projects in Nicaragua, including the Los Andes gold-silver project and the Piedra Iman copper-gold project.

Caza controls over 425 square kilometers of prospective ground within the central Nicaragua Gold Belt. In addition to the Los Andes Gold Project, Caza is exploring the Piedra Iman porphyry in northern Nicaragua along with five high-sulfidation volcanic hosted Au-Ag targets located in west-central Nicaragua near the Pan-American Highway.


CAZA GOLD CORP.
Per:

/s/ Brian Arkell

Brian Arkell
President and CEO


For more information, please contact Brian Arkell at 1-720-883-7338 or the Company at Toll Free: 1-877-684-9700, tel: (604) 685-9750, fax: (604) 685-9744, email:  brian.arkell@cazagold.com or visit our website, www.cazagold.com


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