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GFG Resources Inc
Symbol GFG
Shares Issued 109,207,016
Close 2019-11-20 C$ 0.165
Recent Sedar Documents

GFG Resources resumes drilling at Pen project

2019-11-21 07:10 ET - News Release

Mr. Brian Skanderbeg reports

GFG BEGINS 6,500 METRE DRILL PROGRAM AT ITS PEN GOLD PROJECT WEST OF TIMMINS, ONTARIO

GFG Resources Inc. has resumed drilling at its 100-per-cent-owned, district-scale, Pen gold project located 20 kilometres west of the prolific Timmins gold district in Ontario. Over the next six months, the company plans to drill approximately 6,500 metres of which approximately 2,500 metres will be completed before year-end 2019 and the remaining 4,000 metres planned to be completed by the end of the first quarter of 2020. The current program will include 10 to 12 holes testing six targets in the Deerfoot, Tremblay and Reeves regional target areas.

Brian Skanderbeg, president and chief executive officer, commented: "With the completion of our recent financing, we are excited to get back on the ground in Timmins. Our current drill program is designed to follow up on our discoveries from 2018 and 2019 as well as test new concepts that our team has generated over the last year. We are confident that we will continue to outline significant zones of gold mineralization at multiple targets and are optimistic that our new targets will provide evidence to support our thesis that this underexplored region of the Abitibi greenstone belt can host multiple gold systems."

Drill target descriptions

Deerfoot region -- Sewell North

At Sewell North, drilling will test an underexplored structure north of the Sewell prospect where recent and historic drilling intersected high-grade gold mineralization associated with stacked shear zones cutting a diorite intrusive body. In 2018, the company confirmed the high-grade gold nature of the mineralization in this area returning intercepts of 33.77 grams per tonne of gold (g/t Au) over 1.1 metres and 12.10 g/t Au over 0.9 metre in deformed pyroxenite horizons within the Sewell intrusive complex (see news release: "GFG drills 33.77 g/t gold over 1.05 metres at Pen gold project west of Timmins, Ont.").

Deerfoot region -- HGM prospect

At HGM, drilling will test for the westward extension of high-grade mineralization where historic drill assays returned up to 21.59 g/t Au over 3.9 metres and 4.30 g/t Au over 5.0 metres. Detailed review of historic drill logs and relogging of available drill core outline a series of stacked, replacement-style gold lenses within a sequence of carbonate-sericite altered, brecciated mafic volcanic rocks. The system remains open to the west and at depth to the east and provides justification for further drill testing.

Deerfoot region -- Crawford prospect

At Crawford, a discovery made by GFG in 2018 (See news release: "GFG discovers new gold zone with 21.26 g/t gold over 1.7 metres at Pen gold project west of Timmins, Ont."), drilling will focus on testing the eastern and western extensions of the mineralized zone. In 2018, the company intersected an interval of quartz-carbonate veining and sulphide mineralization at the sheared contact between felsic porphyry and mafic volcanic rocks. This zone contained visible gold and returned 21.26 g/t Au over 1.7 metres including 39.70 g/t Au over 0.9 metre. Follow-up drilling in 2019 confirmed that the gold mineralization continued at depth proximal to the same shear zone and also identified a distinct intrusion-related style of mineralization at depth. Current drilling will target the shear-zone-related mineralization and the intrusion-related system at depth.

Deerfoot region -- regional

A two-kilometre segment of the Porcupine Destor fault zone, between the HGM and Sewell prospects, remains untested due to the lack of outcrop in the area. The current drill program will test the main deformation zone and structural intersections interpreted from magnetic and IP data to determine which features relate to the mineralized zones at Crawford, HGM and Sewell.

Reeves region -- Nib prospect

Drilling at Nib will follow up on mineralized zones intersected in the 2018 program that contained visible gold associated with quartz veins and arsenopyrite and/or pyrrhotite mineralization within sheared and carbonate-altered diorite. Of the three zones intersected, the lowermost zone displayed the highest intensity of alteration and deformation and returned an intercept of 0.89 g/t Au over 7.0 metres. While only low-grade gold mineralization was returned from assays, the occurrence of visible gold confirms the prospectivity of this northeast-trending deformation zone which has seen very limited drilling.

Tremblay region -- Broadway prospect

Detailed review of historic drill logs and investigation of surface outcrops at the Broadway prospect have revealed a 30- to 50-metre-thick package of variably altered and deformed diorite and intermediate volcanic rocks containing numerous sheeted quartz veins ranging in width from two to 30 centimetres. While the historic drill logs do not contain assay data, grab samples collected by GFG have confirmed that the quartz veins are gold-bearing grading from 0.25 to eight g/t Au. Planned drilling will test the mineralized zone 150 metres south of the surface showing.

Outlook

The company plans to complete the current 2,500-metre drill program in mid-December with assay results expected to be received early in Q1 2020. Following the receipt of assay results, the company intends to resume drilling at the Pen gold project in Q1 2020 with a target to drill approximately 4,000 metres by mid-April.

Qualified persons

Brian Skanderbeg, PGeo, and MSc, president and CEO, is the qualified person for the information contained in this press release and is a qualified person within the meaning of National Instrument 43-101. Mr. Skanderbeg has reviewed the sampling and quality assurance/quality control procedures and results thereof as verification of the sampling data disclosed above and has approved the information contained in this news release.

Sampling and quality control

Surface grab and drill core samples are being analyzed by Bureau Veritas Commodities Canada Ltd. Preparation of a one-kilogram pulp and gold assay of a 50-gram aliquot by Pb collection fire assay with an atomic absorption spectrometry finish (package FA450) are being done in Timmins, Ont. Samples assaying above three parts per million Au are being routinely rerun using gravimetric finish (package FA550). Mineralized zones containing visible gold will also be analyzed by screen metallic fire assay. Multielement analysis for 59 other elements using a four-acid digestion and an ICP-MS finish (package MA250) is being done in Vancouver, B.C. Quality control and assurance measures include the monitoring of results for inserted certified reference materials, coarse blanks and preparation duplicates of drill core.

Sampling protocols, quality control and assurance measures, and geochemical results related to historic till, rock grab, and drill core samples quoted in this news release have not been verified by the qualified person and therefore must be regarded as estimates.

About GFG Resources Inc.

GFG Resources is a North American precious metals exploration company focused on district-scale gold projects in Tier 1 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., Canada. 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 Mining Ltd. through an option and earn-in agreement to advance the Rattlesnake Hills gold project.

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