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Contact Gold Corp
Symbol C : C
Shares Issued 82,371,973
Close 2019-09-17 C$ 0.19
Recent Sedar Documents

Contact Gold drills 28.96m of 0.38 g/t Au at Pony Creek

2019-09-18 09:05 ET - News Release

Mr. John Glanville reports

CONTACT GOLD CONTINUES TO EXTEND GOLD MINERALIZATION AT THE APPALOOSA ZONE AT PONY CREEK

Contact Gold Corp.'s exploration drill results from the 2019 program have returned broad zones of gold mineralization in the first holes drilled in two years into the Pony's Appaloosa zone (formerly the North zone).

The Appaloosa zone is an oxide gold corridor located 1.2 kilometres northeast of the property's Bowl zone and currently extends over a 1.6 km strike length that is 200 metres wide. The Appaloosa zone has been sparsely drilled and is open in all directions. It represents a sizable zone of significant oxide gold mineralization at Pony Creek.

Drill holes PC19-15 through PC19-18 reported today were drilled to target the extension, in both north and south directions, of the two highest grade gold intercepts in historical drilling in the Appaloosa zone (38.1 m at 0.91 g/t Au in PC-06-03 and 36.5 m at 0.92 g/t Au in 95-08). These historical holes were not surveyed by historical operators and thus the location and projection of the mineralized intervals were uncertain.

Contact Gold drill highlights -- Appaloosa zone

  • 0.38 gram per tonne Au over 28.96 m from 83.82 m in hole PC19-16;
    • Including 2.19 g/t Au over 3.05 m from 89.92 m;
  • 0.84 g/t Au over 7.62 m from 85.35 m in hole PC19-17;
    • Including 1.56 g/t Au over 3.05 m from 88.39 m;
  • 0.31 g/t Au over 13.72 m from 106.68 m in hole PC19-17.

"The Appaloosa zone represents the third sizable zone of shallow gold mineralization drilled by our team at Pony Creek. Future drilling at the Appaloosa zone will leverage off these results and will also focus on the low-hanging fruit identified in the soil and rock anomalies generated by Contact Gold. We plan to aggressively advance this zone and add another shallow oxide gold corridor as we continue to grow our Pony Creek project," said Matt Lennox-King, president and chief executive officer of Contact Gold.

Appaloosa zone

  • The Appaloosa zone is an at-to-near-surface oxide gold corridor stretching over 1.6 km, potentially connecting in a southwest direction 1.2 km to the Bowl zone, and to the northwest to the Mustang target. This trend, defined by Contact Gold through soil sampling, rock sampling and drilling, ultimately terminates at Contact Gold's property boundary with Gold Standard Ventures' (GSV) Railroad-Pinion project and their newly defined Jasperoid Wash deposit.
  • The grades and thicknesses intersected in initial drilling at the Appaloosa zone are broadly comparable with those found in exploration drilling at many existing Carlin-type gold deposits such as those found at the Bald Mountain mine to the southeast of Pony Creek. The best historical intercepts are at the rhyolite/sediment contact where intersected by high-angle structures.
  • PC19-16 extended gold mineralization north within rhyolite between two sets of historical drill intercepts.
  • PC19-17 had several short intercepts of variably oxidized gold mineralization within rhyolite extending gold mineralization south from the current position of historical drilling.
  • PC19-19 was lost above target due to poor ground conditions, and was targeting a potential new gold zone where the northernmost part of the Appaloosa zone gold-in-soil anomaly connects to the Mustang target.
  • In 2017 Contact Gold returned the highest-grade rock sample ever taken on the Pony Creek project from the Appaloosa zone returning 2.71 g/t Au in an area yet to be drilled by Contact Gold. This area is also defined by strong gold-in-soil values up to 1.18 g/t Au and will be ready to drill upon approval of the company's plan of operations permit.

As a follow-up to the successful 2017 and 2018 programs which resulted in new oxide gold discoveries at the Bowl and Stallion zones, Contact Gold has completed 4,660 metres in 24 drill holes at the Bowl, Appaloosa and Stallion zones in this initial 2019 program. Assays are pending for six drill holes.

Pony Creek is located on the Carlin trend in Elko county, Nevada, adjacent to GSV's Railroad-Pinion project.

        TABLE OF APPALOOSA ZONE DRILL RESULTS

Drill hole    From (m)   To (m)   Interval   Au (g/t)
 
PC19-15         76.20    79.25        3.05      0.19
                97.54   100.59        3.05      0.15
PC19-16         83.82   112.78       28.96      0.38
including       89.92    92.97        3.05      2.19
               128.02   131.07        3.05      0.33
PC19-17         70.10    76.20        6.10      0.22
                85.35    92.97        7.62      0.84
including       88.39    91.44        3.05      1.56
               106.68   120.40       13.72      0.31
               128.02   131.07        3.05      0.14
               135.64   138.69        3.05      0.19
PC19-18         22.86    25.91        3.05      0.14
               210.31   213.36        3.05      0.16
PC19-19   no significant intercepts, watered out

Pony Creek is an early-stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. There has been insufficient exploration to define a mineral resource estimate at Pony Creek. Additional information about Pony Creek is summarized in the NI 43-101 technical report entitled "NI 43-101 Technical Report on the Pony Creek Project, Elko County, Nevada, USA" prepared for Contact Gold, with an effective date of Oct. 16, 2018, and dated Oct. 22, 2018, as prepared by Vance Spalding, CPG; vice-president of exploration of Contact Gold, and can be viewed under Contact Gold's issuer profile on SEDAR.

The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, vice-president of exploration, Contact Gold, who is a qualified person within the meaning of NI 43-101. Drill intercepts were calculated using a minimum thickness of 3.05 metres averaging 0.14 part per million gold and allowing inclusion of up to 4.57 metres of material averaging less than 0.14 ppm gold for low-grade intervals and higher-grade intervals were calculated using a minimum thickness of 3.05 metres averaging 1.00 ppm gold and allowing inclusion of up to 4.57 metres of assays averaging less than 1.00 ppm gold. Gravimetric assays are used for all fire assays above 4.00 ppm gold. Cyanide solubility assays are completed on all fire assays greater than 0.1 g/t. True width of drilled mineralization is unknown, but owing to the apparent flat-lying nature of mineralization, is estimated to generally be at least 70 per cent of drilled thickness.

Quality assurance/quality control consists of regular insertion of certified reference standards, blanks and duplicates. All failures are followed up and resolved whenever possible with additional investigation whenever such an event occurs. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab. Check assays are completed at a second, reputable assay lab after the program is complete.

About Contact Gold Corp.

Contact Gold is an exploration company focused on producing district-scale gold discoveries in Nevada. Contact Gold's extensive landholdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold's land position comprises approximately 140 square kilometres of target-rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.

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