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GFG Resources Inc
Symbol GFG
Shares Issued 109,207,016
Close 2020-01-15 C$ 0.30
Recent Sedar Documents

GFG drills 57.7 m of 0.55 g/t Au at Rattlesnake

2020-01-16 07:17 ET - News Release

Mr. Brian Skanderbeg reports

GFG ANNOUNCES DRILL RESULTS FROM THE RATTLESNAKE HILLS GOLD PROJECT IN WYOMING, US

GFG Resources Inc. has released assay results from the 2019 drill program at the Rattlesnake Hills gold project in Wyoming that is managed by GFG under the option and earn-in agreement with Newcrest Resources Inc., a wholly owned subsidiary of Newcrest Mining Ltd. The drill program, consisting of 3,900 metres of core drilling in three holes, tested multiple gold targets proximal to the North Stock deposit.

Brian Skanderbeg, president and chief executive officer, commented: "The 2019 drill program intercepted broad gold intervals associated with shallow extensions to the RSH gold system, extending the North Stock system to the west and southeast. This initial test of the North Deep and South Deep targets outlined encouraging and widespread alteration, brecciation, sulphidation and multiple porphyry bodies; however, results from this test returned relatively low gold grades.

"Working with a high-calibre Newcrest team over the past 16 months has strengthened our exploration model and understanding of the district. Over the next few months, we will work on developing a plan to advance and prioritize the many drill-ready brownfield and greenfield targets across the property that remain to be tested.

"While we plan our next steps at RSH, we anticipate being in a position to announce the remaining assay results from our Pen gold project and will begin our 4,000-metre drill program in the coming weeks."

Drill results commentary

The 2019 drill program consisted of 3,900 metres of core drilling from three holes testing the South Deep and North Deep targets as well as strike extensions to North Stock and Antelope basin deposits. The deep targets were developed to test for potential feeder zones to the gold mineralization at the North Stock diatreme-hosted deposit while passing through prospective extensions of shallower mineralization.

RSC-194 tested four distinct targets, namely the strike extension of the Antelope basin deposit, the Cowboy target, the South Deep target and the North Deep target.

The upper portion of the hole hosted 0.55 gram of gold per tonne (g/t Au) over 57.7 metres in altered schist cut by quartz monzodiorite dikes including a subinterval of 0.99 g/t Au over 19.8 metres. The dike is strongly fractured, clay altered and hosts carbonate stockwork veining and the schist is weakly sericitized and cut by quartz veins and carbonate stockwork veining. This intercept extends mineralization previously intercepted at the Cowboy target significantly southward and subparallel to the Antelope basin deposit. The hole intersected a second quartz monzodiorite from 832 m to 977 m depth that is interpreted as the northern strike and downdip extension of the Antelope basin system. This dike is fractured, clay and sericite altered, variably sulphidized, and hosts carbonate veinlets. Anomalous gold grades of up to 0.24 g/t Au were returned from narrow sections of this interval.

More downhole, the hole tested the South Deep target, a downdip extension of the mineralized zone seen in historic drill hole RSC-027 that hosted 2.47 g/t Au over 22.9 metres associated with multiple strong, subvertical, resistivity gradients and numerous mineralized feldspar porphyry dikes. The hole intersected the South Deep target from 1,122 metres to 1,338 metres, returning zones of weakly to moderately altered schist and heterolithic breccia cut by carbonate- and potassic-altered feldspar porphyry dikes that host pyrite and attain thicknesses of up to 13 metres. Peak gold grades of up to 0.44 g/t Au were intersected within a porphyry dike and brecciated interval that graded 0.14 g/t Au over 25.9 metres.

Near the base of the drill hole, the North Deep target was tested as the hole passed through the Precambrian/Tertiary contact around 1,692 metres. It intersected broad zones of intensely fractured, fluorite-bearing, pyritic, potassic- and carbonate-altered heterolithic breccia. The bottom 26 metres of the hole hosted a feldspar porphyry with strong potassic alteration, cut by abundant pyrite and magnetite veining. Despite the encouraging geological setting, no significant gold grades were returned from this interval.

RSC-195 was drilled to test the North Deep target downdip of gold mineralization associated with the North Stock deposit.

The hole passed through broad zones of heterolithic breccia and phonolite before passing into monolithic schist breccia cut by phonolite and feldspar porphyry dikes and finally terminating in schist at 1,081 m depth. Logging indicates an increasing intensity of potassic and clay alteration as well as increasing amounts of sulphide and iron oxide with depth in the phonolite and feldspar porphyry units. Multiple low-grade gold intervals were returned over narrow intervals including 0.16 g/t over 6.1 metres, 0.22 g/t over 6.1 metres and 0.15 g/t over 7.2 metres from 122.5, 505.4 and 906.0 metres, respectively.

RSC-196 was drilled to test the western extent of the North Deep target, approximately 200 metres west of RSC-195.

The hole passed through a broad interval of altered, heterolithic breccia before passing into intercalated heterolithic breccia and phonolite from 484 through 825 metres; bottoming in potassic- and carbonate-altered phonolite through to the base of the hole at 1,010 metres. As with RSC-195, the intensity of potassic alteration is strongest near the phonolite and increases with depth, along with iron oxide veining and fracture intensity. A significant zone of gold mineralization was intercepted from 19.2 through 132.0 m depth returning 0.25 g/t Au over 112.8 metres. This interval of heterolithic breccia is fractured, strongly stained with iron oxides and hosts moderate potassic and clay alteration. More downhole, several narrow intervals returned 0.10 to 0.44 g/t Au including 0.33 g/t Au over 7.6 metres from 758.7 metres hosted in heterolithic breccia and phonolite.

Based on geological review, 3-D modelling and CSAMT data, holes RSC-195 and RSC-196 are interpreted to have either remained in the diatreme throughout their length or to have passed from the North Stock diatreme through its north contact into the Precambrian schists, and only partially testing the North Deep target. The majority of gold mineralization associated with the North Stock deposit is related to the southern contact of the diatreme and this contact remains to be tested at depth.

Outlook

GFG will continue to work with its project partner Newcrest over the coming months to evaluate and prioritize the next steps to advance the project. As per the option and earn-in agreement, Newcrest has met its obligations of the option phase and in March of 2020, can elect to exercise its option to earn-in. If Newcrest elects to advance to stage 1, it will make a cash payment to GFG of $500,000 (U.S.) and will have the right to earn 49 per cent of the project over a four-year period by spending an additional $14.0-million (U.S.), less any excess amount spent in the option phase, with a minimum annual exploration expenditure of $1.0-million (U.S.).

At the company's Pen gold project, the company expects to receive the remaining assay results from the 2019 phase 2 drill program in the coming weeks and begin its winter drill program of approximately 4,000 metres. The drill program will be focused on follow-up drilling at the Slate Rock, HGM, Crawford and Nib prospects, and other regional targets.

        HIGHLIGHTED ASSAY RESULTS FROM THE 2019 DRILL 
        PROGRAM AT THE RATTLESNAKE HILLS GOLD PROJECT 
 
Hole ID         From         To         Au     Length    Cut-off
                 (m)        (m)      (g/t)        (m)      (g/t)

RSC-194        122.7      180.4       0.55       57.7        0.2
includes       125.6      129.1       1.33        3.5        0.5
includes       154.5      174.4       0.99       19.8        0.5
and           1179.0     1204.9       0.14       25.9        0.2
RSC-195        122.5      128.6       0.16        6.1        0.1
and            505.4      511.5       0.22        6.1        0.1
includes       505.4      508.4       0.35        3.1        0.2
and            906.0      913.2       0.15        7.2        0.1
RSC-196         19.2      132.0       0.25      112.8        0.2
includes        22.2       31.4       0.36        9.2        0.5
includes        63.4       68.0       0.71        4.6        0.5
and            213.1      217.6       0.26        4.6        0.2
and            758.7      766.3       0.33        7.6        0.2
 
* Gold intervals reported in the table are 
reported at a minimum three-metre width and a 0.1, 0.2 
or 0.5 g/t Au cut-off. Weighted averaging has been 
used to calculate all reported intervals. True 
widths are estimated at 50 to 100 per cent of drilled 
thicknesses.

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.

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 above 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 ICP (inductively coupled plasma) finish. SGS Canada laboratory in Toronto is ISO 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 g fire assay with an AAS (atomic absorption spectroscopy) finish.

Gold intervals reported in this news release are based on a minimum three-metre width and a 0.1, 0.2 or 0.5 g/t Au cut-off. Weighted averaging has been used to calculate all reported intervals. True widths are estimated at 50 to 100 per cent of drilled thicknesses.

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

We seek Safe Harbor.

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