10:46:35 EDT Thu 28 Sep 2023
Enter Symbol
or Name

Gold Terra Resource Corp
Symbol YGT
Shares Issued 196,471,494
Close 2022-10-05 C$ 0.185
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Gold Terra samples up to 32.9 g/t Au at Mulligan

2022-10-05 12:29 ET - News Release

Mr. Gerald Panneton reports


Gold Terra Resource Corp. has released new trenching results from its 2022 summer surface sampling program on the Mulligan property, located in Restigouche county, New Brunswick, 100 kilometres west of Bathurst. Summer work consisted of trenching and sampling on two areas with previously reported gold and silver mineralization referred to as trench 1 and trench 2. Channel sampling returned very positive results, including up to 32.9 grams per tonne gold (Au) and 579 g/t silver (Ag) in trench 1, indicating a potential hydrothermal system that extends at least 700 metres long by possibly 20 metres between the trenches, and is open in all directions.

Chairman and chief executive officer Gerald Panneton commented: "The Mulligan project was acquired in 2019 as part of the acquisition of Gold Matter Corp. While our primary focus is on the Con mine option in Yellowknife, NWT, we have completed a modest exploration program as part of the New Brunswick Junior Mining Assistance Program (NBJMAP), with a net cost of $30,000. We are confirming that the excellent potential of the Mulligan project will add value and optionality to our property portfolio with such very positive results. As part of our project criteria strategy, the property is located very close to existing infrastructure, and more importantly, the project is of a very high-grade nature, typical of an epithermal system."

Highlights of results

Summary results on the 2022 trench No. 1 and trench No. 2 work are as follows.

Trench No. 1

Two stockwork systems were exposed in trench No. 1 at Mulligan Gulch felsic porphyry:

  1. Stockwork/sericite alteration trending 296 degrees/78 degrees northwest-southeast orientation:
    • Channel sampling (32 samples of 0.5 metre) averaged 3.48 g/t over 16 m;
    • Highest channel sampling gold value of 32.9 g/t Au and silver value of 579 g/t Ag.
  2. Stockwork/sericite alteration zone trending 225 degrees/80 degrees southwest-northeast orientation:
    • Grabs samples averaged 5.44 g/t over 24.8 metres along the strike of the stockwork trend;
    • Highest gold value of 24.7 g/t.

Trench No. 2

Outcrop was stripped over an area approximately 20 by 40 metres and 48 grab samples were collected over this broad area for analysis. The average gold grade for the 48 samples is 0.98 g/t Au with highest value of 7.1 g/t Au.

The company received a grant of $15,000 from the New Brunswick Junior Mining Assistance Program and the company contributed an additional $30,000 for a work program of $45,000. The 2022 trenching and stripping program was conducted to follow up on the anomaly and gold/silver mineralization discovered and sampled in 2017/2018. Based on the company's 2022 positive results, future exploration activity will be proposed for the project area to create cost-effective value and optionality to the company and its shareholders. The Mulligan project is situated close to the western edge of the Bathurst mining camp, 10 kilometres north-east of the Puma William Brook gold discovery (see Puma news release -- high-grade intersections such as 14.90 g/t Au over 3.60 m in hole WB22-96 and 10.96 g/t Au over 3.75 m in hole WB22-91) and 12 kilometres from the Trevali Caribou VMS (volcanogenic massive sulphide) mine.

The Mulligan project appears to be a low-sulphidation (LS) epithermal system as indicated by the presence of extensive silicification and alteration near stockwork and veins and a strong brecciation and silicification of the rhyolite. Extensive sericite alteration is associated with the gold and silver mineralization. Mineralization consists of gold, silver, arsenic, zinc and lead.

The 2022 sampling program confirms high-grade gold-silver hydrothermal mineralization within the Mulligan felsic breccia. The hydrothermal system could be very large, extending at least 700 metres between trench 1 and 2. Geophysical signatures from lower-chargeability and higher-resistivity induced polarization survey data could indicate a northeast-trending silicified alteration and mineralization system developed over a minimum distance of 1.7 kilometres.

The company intends to continue its work on the Mulligan property as the project is a very attractive high-grade Au-Ag new discovery in an area poorly explored in the past. Gold Terra's recent program in 2022 has outlined multiple areas of high-grade mineralization at surface covering an area of 50 metres by 700 metres, which is open in all directions. The Mulligan felsic breccia and its hydrothermal system could be very large, extending more than what has been defined. As geophysical signatures from lower-chargeability and higher-resistivity IP survey data indicate northeast-trending silicified alteration and a much larger mineralization system, the company intends to continue its work in 2023 to better outline the overall system with additional geophysical surveys.

In 2017/2018, gold was discovered on the property with initial sampling yielding up to 8.9 g/t Au and 1,500 g/t Ag. The average gold grade was 5.7 g/t over 16 metres. In September of 2020, a drilling program was conducted totalling 1,650 metres in 11 holes to test high-chargeability IP anomalies from a survey conducted in 2019. A total of 1,100 samples were fire assayed for gold and silver values. Gold values varying between 0.1 and one g/t were encountered, but the source of the higher-grade gold and silver was not replicated. As such, the 2022 summer program to strip overburden, trench and sample was conducted to better understand the geology and the structural model before doing another drill program. The 2022 summer program for a direct cost of $30,000 illustrates the systematic approach that Gold Terra's team uses to evaluate its assets from early discovery to advanced exploration and adding high-grade ounces such as at the Con mine property, the company's flagship project in the Northwest Territories.

Full sampling results

Trench No. 1 channel Au and Ag results -- stockwork trending northwest-southeast 296 degrees/78 degrees

Only several high-grade Au samples were assayed for Ag, when over 10 g/t Au. These high-grade samples indicate the potential for substantial added value to the Mulligan prospect.

Qualified persons

Joe Campbell, PGeo, chief operating officer for Gold Terra, a qualified person within the meaning of National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

About Gold Terra Resource Corp.

The Mulligan Gulch project is a secondary, but important, exploration property for Gold Terra. Gold Terra's primary exploration focus is the Yellowknife City gold (YCG) project encompassing 800 square kilometres of contiguous land immediately north, south and east of the city of Yellowknife in the Northwest Territories. Through a series of acquisitions, Gold Terra controls one of the six major high-grade gold camps in Canada. Being within 10 kilometres of the city of Yellowknife, the YCG is close to vital infrastructure, including all-season roads, air transportation, service providers, hydroelectric power and skilled tradespeople. Gold Terra is currently focusing its drilling on the prolific Campbell shear, where 14 million ounces of gold have been produced, and most recently on the Con mine option claims immediately south of the past-producing Con mine (1938 to 2003).

The YCG lies on the prolific Yellowknife greenstone belt, covering nearly 70 kilometres of strike length along the main mineralized shear system that host the former-producing high-grade Con and Giant gold mines. The company's exploration programs have successfully identified significant zones of gold mineralization and multiple targets that remain to be tested which reinforces the company's objective of re-establishing Yellowknife as one of the premier gold mining districts in Canada.

We seek Safe Harbor.

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