DGAP-News

Blackrock Gold Signs Earn-in Agreement on Portero Gold-Silver Project, Durango State, Mexico

DGAP-News: Blackrock Gold Corp. / Key word(s): Miscellaneous
Blackrock Gold Signs Earn-in Agreement on Portero Gold-Silver Project,
Durango State, Mexico

24.10.2016 / 15:00
The issuer is solely responsible for the content of this announcement.

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Vancouver, British Columbia--(Newsfile Corp. - October 24, 2016) -
Blackrock Gold Corp. (TSXV: BRC) ('Blackrock', or the 'Company') is pleased
to announce the signing of a Letter of Intent to earn up to an 80% interest
in the Portrero Au-Ag project, located 235km NW of the city of Durango,
Mexico, and 33km NW of Fresnillo's 4000t/d La Cienega, Ag-Au-Zn-Pb
underground mine.

Highlights regarding the project are as follows:

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Epithermal veins and fault structures which have been mapped on surface
over a strike extent of at least 1.5km

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The principal Dos de Mayo structure averages 10m in width and has been
developed over a strike extent of 470m. Three vertically dipping
high-grade shoots have been encountered. Historic non-43-101 compliant
resource estimates of these shoots reported average grades of 7.43g/t
Au and 248.7g/t Ag

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A small 50t/d processing plant is located on site, and could
potentially be expanded and brought back into production within
18-24months

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The property is immediately adjacent to Fresnillo's Manzanillas Au-Ag
deposit. Fresnillo has reported Measured Resources of 75,000t @ 6.76g/t
Au and 130g/t Ag (for 16,000oz of Au and 316,000oz of Ag), Indicated
Resources of 897,000t @ 3.59g/t Au and 70g/t Ag (for 103,000oz Au and
2.014Moz Ag) and 297,000t of Inferred Resources @ 2.08g/t Au and 48g/t
Ag (for 20,000oz of Au and 455,000oz of Ag) for Mazanillas

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The agreement provides for 4 months of due diligence after which
Blackrock shall have an option to earn an initial 55% interest in the
project by spending US$2M over 2 years and making payments totaling
US$850,000. Blackrock has an option to increase its interest in the
project to 80% by sole funding an additional US$3M in expenditures and
making payments of US$1.5M

The Portrero project is located within the western Sierra Madre of Durango
state in a geological belt that includes a number of well-known gold-silver
mines, the largest of which is the San Dimas (Tayoltita) mine with historic
production of 11Moz of gold and 582Moz of silver. The Cienega mine of
Fresnillo Plc is located 33km SE of El Portrero which reported 2015
production of 85,662oz Au, 4.8Moz Ag, 5,425t Pb and 5,970t Zn.

Gold-silver mineralization at El Portrero is characterized by a series of