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GFG Resources Inc
Symbol GFG
Shares Issued 109,207,016
Close 2020-01-08 C$ 0.30
Recent Sedar Documents

GFG Resources drills 2.2 m of 7.53 g/t Au at Pen

2020-01-08 07:08 ET - News Release

Mr. Brian Skanderbeg reports

GFG RETURNS MULTIPLE ZONES OF HIGH-GRADE GOLD MINERALIZATION AT THE HGM TARGET, PEN GOLD PROJECT WEST OF TIMMINS, ON

GFG Resources Inc. has released initial assay results from the 2019 phase 2 drill program at its 100-per-cent-owned Pen gold project located 40 kilometres west of the prolific Timmins gold district in Ontario, Canada. In the fourth quarter of 2019, the company completed 2,500 metres of drilling from eight drill holes testing six targets.

The initial results from four drill holes are highlighted by hole PEN-19-39 which successfully outlined mineralized stacked lenses with high-grade gold intercepts at the HGM target grading 7.53 grams per tonne gold over 2.2 metres and 25.96 g/t Au over 1.0 metre.

Brian Skanderbeg, president and chief executive officer, commented: "This was our first attempt at following up on the historic drilling at the HGM target. These results validate our model of a robust gold system with multiple high-grade stacked lenses. The system remains open for growth and we plan to further drill test the HGM target in the upcoming 4,000-metre drill program along with other high-priority targets at Slate Rock, Crawford and Nib. With further results pending from both the Pen Gold project and Rattlesnake Hills gold project, and drilling anticipated to restart at Timmins in the coming weeks, 2020 should be an exciting year for GFG."

Deerfoot region -- HGM prospect

The HGM prospect was initially discovered and drilled by Hemlo Gold Mines and successively tested between 1994 and 2011 with 15 holes. It is hosted along the Deerfoot corridor, a one-by-three-kilometre area in the easternmost part of the Pen gold project, that contains the westward extension of the Porcupine-Destor fault zone and second order subparallel shear zones and fault splays. Detailed review of historic drill logs and relogging of available drill core by GFG outlined a series of stacked, replacement-style gold lenses within a sequence of carbonate-silica-sericite-altered, brecciated mafic volcanic rocks. Historic drilling focused on the first 300 metres from surface and returned multiple high-grade assays over broad widths such as up to 21.59 g/t Au over 3.9 metres and 4.30 g/t Au over 5.0 metres.

During phase 2 of the 2019 drill program, GFG drilled two holes at the HGM target to test the eastern depth and western strike continuity of the system. Assays received to date from drill hole PEN-19-39, the deepest and easternmost hole testing the system, outlined five distinct mineralized intervals within a 225-metre-long section from 146.2 to 372.0 metres downhole. Most significant are two visible gold-bearing intervals that assayed 7.53 g/t Au over 2.2 metres (including 31.80 g/t Au over 0.5 metre) and 25.96 g/t Au over 1.0 metre (including 51.80 g/t Au over 0.5 metre) from 309.7 and 371.0 metres, respectively. The former is hosted within a strongly silicified and sericitized, quartz breccia-veined mafic volcanic interval with 10 per cent disseminated and stringer pyrite with visible gold. The latter is associated with quartz-carbonate brecciated mafic volcanic hosting 10 per cent disseminated and stringer chalcopyrite, pyrrhotite, pyrite with visible gold. More uphole several lower-grade intervals returned 0.49 g/t Au over 1.2 metres, 0.63 g/t Au over 0.5 metre and 1.24 g/t Au over 1.0 metre from 146.2, 215.8 and 233.6 metres. Assays remain outstanding for a number of sections between and below the aforementioned intervals.

Mineralized intervals from hole PEN-19-39 are interpreted to link to historic hole 94-18 located 75 metres up plunge that returned 6.52 g/t Au over 2.0 metres and 21.59 g/t Au over 3.9 metres and to hole 95-23 located 50 metres along strike to the west that returned 21.94 g/t Au over 1.0 metre.

Drill hole PEN-19-36 tested the western strike extension of the HGM target and intersected two distinct mineralized intervals ranging from 269.6 to 322.7 metres downhole. Most significant is a 7.4-metre interval that returned 0.93 g/t Au, including 1.2 metres at 2.86 g/t Au. The interval is associated with a moderately quartz-carbonate brecciated and veined mafic volcanic interval with 1 to 5 per cent disseminated and stringer pyrite and pyrrhotite. More downhole, an interval returned 0.42 g/t Au over 1.3 metres.

The system at HGM remains open along strike to the east and west as well as at depth and will be the focus of further drilling in the coming 2020 drill program.

Deerfoot region -- Sewell North

GFG drilled one hole at the Sewell North target to on follow up on a historic hole that returned multiple gold-mineralized intervals associated with a structure approximately 250 metres northwest of the Sewell prospect. Assays received to date from drill hole PEN-19-35 include two distinct, diorite-hosted, quartz-veined intervals hosting tourmaline, pyrite and arsenopyrite. The two intervals assayed 1.21 g/t Au over 1.0 metre and 2.89 g/t Au over 1.0 metre from 39.1 and 47.0 metres, respectively. The system remains open in all directions.

Deerfoot region -- regional

The company completed two holes along an untested two-kilometre segment of the Porcupine Destor fault zone, between the HGM and Sewell prospects. Hole PEN-19-37 was drilled to test a complex fold structure and structural intersection associated with a resistivity break. No significant assays were returned from the hole. Assays from a second hole, located 600 metres northeast along the same segment, are pending.

Outlook

Over the coming weeks, the company expects to receive the remaining assay results from the 2019 phase 2 drill program and will provide an update once received. Starting in early February, the company will resume drilling at the Pen gold project with a target to drill approximately 4,000 metres focused on follow-up drilling at the Slate Rock, HGM, Crawford and Nib prospects and other regional targets.

At the company's Rattlesnake Hills gold project in Wyoming, the company anticipates being able to provide final assay results from its 2019 drill program in the coming weeks.

        INITIAL RESULTS FROM THE 2019 PHASE 2 
        DRILL PROGRAM AT THE PEN GOLD PROJECT

Hole ID               From         To     Length         Au 
                       (m)        (m)        (m)      (g/t)

PEN-19-35             39.1       40.1        1.0       1.21
and                   47.0       48.0        1.0       2.89
PEN-19-36            269.6      277.0        7.4       0.93
incl.                269.6      270.8        1.2       2.86
and                  321.4      322.7        1.3       0.42
PEN-19-37                          no significant intercept
PEN-19-39            146.2      147.4        1.2       0.49
and                  215.8      216.3        0.5       0.63
and                  233.6      234.6        1.0       1.24
and                  309.7      310.2        2.2       7.53
incl.                310.2      310.7        0.5      31.80
and (1)              371.0      372.0        1.0      25.96
incl. (1)            371.5      372.0        0.5      51.80

* Gold intervals reported in the table are at 0.1 g/t 
cut-off. 
Weighted averaging has been used to calculate all reported 
intervals. 
True widths are estimated at 70 to 90 per cent of drilled 
thickness.  
(1) True width is unknown.

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.

Qualified persons

Brian Skanderbeg, PGeo, and MSc, president and chief executive officer, 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 rock samples collected in 2019 were analyzed for gold by Activation Laboratories Ltd. in Timmins, Ont., using a 50-gram aliquot, lead collection fire assay and an atomic absorption spectrometry finish (package 1A2-50). Samples assaying above five parts per million Au were rerun using a gravimetric finish (package 1A3-50). Selected rock samples were also be submitted for multielement analysis using a four-acid digestion and an ICP-MS finish (package MA250) at Bureau Veritas Laboratories in Vancouver, B.C. Quality control and assurance measures include the monitoring of results for inserted certified reference materials coarse blanks and preparation duplicates.

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.

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