05:28:40 EDT Thu 20 Jun 2024
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Gold Terra Resource Corp
Symbol YGT
Shares Issued 281,202,484
Close 2023-08-17 C$ 0.075
Market Cap C$ 21,090,186
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Gold Terra suspends Yellowknife drill program

2023-08-17 15:02 ET - News Release

Mr. Gerald Panneton reports

GOLD TERRA PROVIDES UPDATE ON YELLOWKNIFE WILDFIRE EVACUATION AND CAMPBELL SHEAR TARGET BELOW THE CON MINE, CON MINE OPTION PROPERTY, NWT

Gold Terra Resource Corp. has confirmed that the Yellowknife drill program has been suspended for the time being due to the current Yellowknife wildfire evacuation order. As a precaution, the company has decided to suspend its drilling activities commencing Wednesday, Aug. 16, 2023, until further notification. All Gold Terra and contractor employees have been demobilized out of Yellowknife immediately.

Hole GTCM23-055 reached a depth of 1,900 metres, and, subsequently, the drilling contractor ran into an issue caused by one of the operators. The issue was recently fixed by the contractor after three attempts, just before the evacuation order. The hole is targeting the downplunge extension of the notable Campbell shear zone and designed to test gold mineralization at depth below the Con mine deposit (1938 to 2003), where 5.1 million ounces of gold were produced at an average grade of 16 grams per tonne. The Con mine option (CMO) property is under option from subsidiaries of Newmont Corp. and is acquirable by the company upon fulfilment of certain conditions set out in the CMO property agreement, as reported in the company's news release dated Nov. 22, 2021.

Chairman and chief executive officer Gerald Panneton commented, "Safety first for all employees and Yellowknife residents for the time being as we wish Yellowknife residents a safe evacuation and hopefully lots of rain in the near future."

While the focus of hole GTCM23-055 is targeting the prolific gold-bearing Campbell shear, the company is very excited about the progress and having intersected gold in the Con shear, which was thought to be closed off at depth. This new intersection opens another area which has the potential for additional ounces to add to the company's future inventory in an area where existing infrastructure is in place. The Con shear was in production from 1938 until the 1960s for a total of one million ounces at 20 grams per tonne gold based on an average drilling grade of seven grams per tonne gold.

The drill crew encountered some operational issues in hole GTCM23-055 at 1900 metres after jamming the drill bit. Subsequently, the contractor had to cut off the rods in three attempts at different depths to be able to free the rods. The last attempt was performed on Friday, Aug. 11, 2023, and was successful at the depth of 1,770 metres. A successful wedge was placed and drilling continued pass the wedge to a depth of 1,773 metres. Following the evacuation order, the drill is now on standby.

Hole GTCM23-055 is in good shape as sometimes blockage and wedges are needed to correct azimuth and dip at these depths. As the operational issues were encountered by the drilling contractor, it has taken full responsibility to bring back the hole to the depth of 1,900 metres at its own cost. The company wishes to thank the contractor for its professionalism and its their employees involved with this technical issue.

Drill hole GTCM23-055 highlights:

  • Hole GTCM23-055 has reached a depth of 1,900 metres.
  • Hole GTCM23-055 is currently at the depth of 1773 metres.
  • The Campbell shear zone is expected to be intersected around 2,150 metres.
  • The Con shear zone was intersected at 858 metres with assay results for gold mineralization as follows:
    • 1.06 grams per tonne gold over 6.4 metres from 864.6 metres;
    • 1.67 grams per tonne gold over 1.5 metres from 877.65 metres;
    • 1.5 grams per tonne gold over 4.5 metres from 898.7 metres;
      • Including 4.03 grams per tonne gold over 0.05 metre at 898.7 metres to 899.2 metres;
      • Including 3.76 grams per tonne gold over 0.7 metre at 902.5 metres to 903.2 metres.

The anomalous gold intersected in the Con shear is indicative of two important points:

  • The zone is open and gold mineralization is present.
  • More drilling will be planned next winter to assess the Con shear potential at depth.

The Con shear mineralization consists of arsenopyrite, pyrite, pyrrhotite with trace amounts of sphalerite, chalcopyrite, stibnite and scheelite, associated with smoky quartz veining and moderate to strong sericite alteration. Visible gold was intersected in the footwall zone at 902.7 metres.

Background

The Con and Campbell shears are the major ore-bearing structures of the Con mine; both strike north-northwest and dip 50 to 65 degrees west.

Orebodies in the con shear comprise tubular quartz zones within sericite-chlorite-carbonate schist. The ore zones rake steeply to the south. Orebodies vary from one metre to 12 metres in thickness, extending 15 metres to 100 metres along strike and as much as 600 metres (1,968 feet) down dip, conforming to the attitude of the shear zone.

The focus of the 2023 drilling program is to expand the September, 2022, initial mineral resource estimate (MRE) (see Sept. 7, 2022, press release) of 109,000 indicated ounces of contained gold and 432,000 inferred ounces of contained gold between surface and to a depth of 400 metres below surface along a two-kilometre corridor of the Campbell shear. Refer to the Oct. 21, 2022, technical report titled "Initial Mineral Resource Estimate for the CMO Property, Yellowknife City Gold Project, Yellowknife, Northwest Territories, Canada," with an effective date of Sept. 2, 2022, by qualified person Dr. Allan Armitage, PhD, PGeo, SGS Geological Services, which can be found on the company's website and on SEDAR.

Qualified person

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

About Gold Terra Resource Corp.

The Yellowknife project (YP) encompasses 918 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 YP 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 (CMO) property claims immediately south of the past-producing Con mine, which produced 6.1 million ounces between the Con, Rycon and Campbell shear structures (1938 to 2003).

The YP and CMO properties lie on the prolific Yellowknife greenstone belt, covering nearly 70 kilometres of strike length along the main mineralized shear system that hosts 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, reinforcing 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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