18:10:10 EDT Sat 19 Oct 2019
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
GFG Resources Inc
Symbol C : GFG
Shares Issued 92,814,648
Close 2019-07-09 C$ 0.21
Recent Sedar Documents

GFG Resources begins drilling at Rattlesnake Hills

2019-07-09 09:29 ET - News Release

Mr. Brian Skanderbeg reports

GFG AND NEWCREST BEGIN DRILLING AT RATTLESNAKE HILLS GOLD PROJECT, WYOMING

GFG Resources Inc. has started its 2019 drilling program at its Rattlesnake Hills gold project in Wyoming. The program will consist of approximately 5,000 to 6,000 metres of core drilling and is fully financed by GFG's partner, Newcrest Resources Inc., a wholly owned subsidiary of Newcrest Mining Ltd., through its option and earn-in agreement (see news release dated Sept. 11, 2018). The drill program includes two drill rigs that will focus on testing moderate to deep gold targets proximal to the North Stock deposit and on greenfield targets. The drill program is anticipated to be completed in October of 2019.

Highlights:

  • The drill program will consist of 5,000 m to 6,000 m in six to eight holes using two core drill rigs testing both brownfield and greenfield targets.
  • The majority of the drill program, approximately 5,000 m in four to six holes, will test moderate to deep gold targets below the North Stock deposit where historic deep drilling intersected 2.49 grams of gold per tonne over 22.9 m.
  • Greenfield targets are currently being prioritized and may see up to 1,000 m of drilling in two to four holes.
  • The 2019 exploration program has a budget of approximately $3.5-million (U.S.) and is anticipated to be completed in October.
  • GFG is the operator of the program and will receive a 10-per-cent management fee on the total expenditures.

Brian Skanderbeg, president and chief executive officer, commented: "We are thrilled to resume drilling at our Rattlesnake Hills gold project in Wyoming with our partner Newcrest. Our partnership with Newcrest has been excellent and the asset has advanced considerably with the culmination of Newcrest's and GFG's world-class expertise in alkaline gold systems and the application of machine-learning technology. We are optimistic that we will be able to demonstrate that a robust gold system is present at depth where historic drilling successfully intersected high-grade gold mineralization over meaningful widths."

Mr. Skanderbeg added: "The drill program is anticipated to be completed in October with initial results expected to be available late in the third quarter or early in the fourth quarter. As we aggressively advance our Rattlesnake Hills gold project, we also continue to make excellent progress at our Pen gold project with our summer exploration program and plan to resume drilling late in the third quarter."

Drill program 2019 outline

The 2019 drill program is anticipated to consist of 5,000 m to 6,000 m of core drilling on both brownfield and greenfield targets for a total budget of approximately $3.5-million (U.S.). Much of the drill program, approximately 5,000 m in four to six holes, will focus on the brownfield environment proximal to and at depth to the North Stock deposit. The remaining 1,000 m, in two to four holes, are allocated for greenfield drilling on regional targets that are currently being evaluated and prioritized.

The brownfield drilling will be focused on four moderate to deep gold targets; South Deep, North Deep, North Diatreme and Middle Ground. These targets were developed in the context of a new deposit-scale alteration model generated from Corescan hyperspectral scanning of historic drill core, recently completed geophysical inversions and the application of machine-learning technology. Modelling of the brownfield environment suggests the presence of high-grade feeder zones to the gold mineralization at the North Stock diatreme-hosted deposit. These deep feeder zones are thought to be structural conduits that have focused intrusive activity, mineralizing fluids and gold mineralization. Alteration is typically moderate to intense within and approaching the corridors, consisting of adularia-carbonate-sericite and high-temperature clays (montmorillonite-illite). The establishment of deposit-scale zonation has been a critical step in vectoring toward drill targets within this large gold system.

Drill target descriptions

The South Deep target is located on the southeast flank of the North Stock deposit. The target is 600 m in length, 125 m wide and at a depth of 800 m to 1,500 m. It is associated with multiple strong, subvertical, resistivity gradients and hosts numerous gold-mineralized feldspar porphyry and monzodiorite dikes. Historic drilling updip of the target area indicates the presence of high-grade zones of gold mineralization such as RSC-027 which intersected 2.49 g/t Au over 22.9 m in an altered interval of monolithic schist breccia, heterolithic volcanic breccia and feldspar porphyry. Alteration of this interval consists of intense, vuggy adularia with sericite-montmorillonite-illite-carbonate. Additional mineralized highlights include gold values as high as 7.20 g/t Au in the volcanic breccia, 3.12 g/t Au in the feldspar porphyry dikes and 2.97 g/t Au in the host schist.

The North Deep target is located directly beneath the North Stock deposit. The target is 700 m long, 100 m wide and at a depth of 800 m to 1,500 m. It is directly associated with the North Stock diatreme and diatreme contact, has a strong, subvertical, resistivity gradient and is related to phonolite and feldspar porphyry intrusive bodies. No historic deep drilling has tested this corridor, although at shallow to intermediate depths it hosts the North Stock gold deposit and associated moderate to intense adularia with carbonate-sericite-montmorillonite alteration.

The North Diatreme target is focused along the northern contact of the North Stock diatreme and has seen limited historic drilling. It extends for approximately one kilometre along strike of the North Stock deposit and is associated with a strong resistivity gradient and anomalous gold-in-soil geochemistry. Initial drill testing proposes to test the target at shallow to intermediate depths (100 m to 500 m).

The Middle Ground target may be prioritized based on further evaluation and results from initial drilling of the North and South Deep targets. The target is located at the southwestern extent of the South Deep target, at the intersection with a series of prominent, northwest-oriented structures. Historic drilling of the target at shallow depths (less than 300 m) has intercepted feldspar porphyry dikes, monolithic schist breccia and carbonate breccia with associated Au plus/minus copper-molybdenum-bismuth. Highlights in this area include hole RSR-011 which returned 0.59 g/t Au over 53.3 m, bottoming in one g/t over 10.7 m, and RSC-169 which returned 0.40 g/t Au over 21.8 m.

The greenfield drilling program, which may consist of up to 1,000 m in two to four holes, will test new targets in the northern portion of the company's 135 square km property. The targets share geological similarities with the mineralization seen at North Stock including tertiary rocks intruding Precambrian host rocks, the presence of heterolithic volcanic breccias and pervasive potassic alteration. Geophysical inversions of the gravity, airborne magnetic and versatile time domain electromagnetic surveys have been completed. Greenfield target prioritization will be based on results of a planned summer field program with drilling to be completed toward the end of the proposed drill program.

The drill program is expected to be completed by the end of October, 2019. The company anticipates receiving the initial drill results late in the third quarter or fourth quarter.

In conjunction with the Rattlesnake Hills gold project drill program, the company continues to advance the Pen gold project, located west of the prolific Timmins gold district, with an extensive summer field exploration program consisting of regional till sampling, ground geophysics, prospecting and mapping with a plan to resume drilling late in the third quarter of 2019.

Qualified person

Mr. Skanderbeg, PGeo and MSc, serves as president and CEO of GFG, and is a qualified person within the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Skanderbeg has reviewed the respective core intervals, sampling and quality assurance/quality control procedures and results thereof as verification of the historical drilling data disclosed herein and has approved the information contained in this news release.

Quality assurance and quality control

The quality assurance and quality control measures utilized by Evolving Gold Corp. in respect of the historical drilling data disclosed herein included the following: drill hole intervals were weighted averages with each assay interval weighted according to the core length. Rigorous quality assurance and quality control procedures were implemented including routine insertion of internal standard reference materials, certified reference materials, blank material and duplicate samples from both crush and pulp material. Gold assays were completed by SGS Canada Inc. in Toronto, using a 30-gram charge, fire assay, with an inductively coupled plasma finish. SGS Canada's laboratory in Toronto is International Organization for Standardization accredited. GFG Resources follows similar measures for reporting drill assays and insertion of blanks and standards. Gold assays for GFG are performed by Bureau Veritas using a 30-gram fire assay with an atomic absorption spectroscopy finish.

Gold intervals reported in this news release are based on a 0.20 g/t or 0.50 g/t Au cut-off. Weighted averaging has been used to calculate all reported intervals. True widths are estimated at 60 per cent to 100 per cent of drilled thicknesses.

About GFG Resources Inc.

GFG is a North American precious metals exploration company focused on district-scale gold projects in tier-one mining jurisdictions, Ontario and Wyoming. In Ontario, the company owns 100 per cent of the Pen and Dore gold projects, two large and highly prospective gold properties west of the prolific gold district of Timmins, Ont. The Pen and the Dore gold projects have the same geological setting that hosts most of the gold deposits found in the Timmins gold camp which have produced over 70 million ounces of gold. In Wyoming, the company has partnered with Newcrest through an option and earn-in agreement to advance the Rattlesnake Hills gold project.

We seek Safe Harbor.

© 2019 Canjex Publishing Ltd. All rights reserved.