23:00:20 EDT Fri 25 Sep 2020
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
GFG Resources Inc
Symbol GFG
Shares Issued 109,207,016
Close 2020-04-06 C$ 0.185
Recent Sedar Documents

GFG Resources drills 8.5 m of 71.27 g/t Au at Pen

2020-04-06 10:42 ET - News Release

Mr. Brian Skanderbeg reports

GFG DRILLS 71.27 GRAMS OF GOLD PER TONNE OVER 8.5 METRES AT THE PEN GOLD PROJECT WEST OF TIMMINS, ONTARIO

GFG Resources Inc. has intersected a significant high-grade gold system at the Nib prospect at its 100-per-cent-owned Pen gold project, located 40 kilometres west of the prolific Timmins gold district in Ontario, Canada. Hole PEN-20-47 intersected 71.27 grams per tonne (g/t) of gold (Au) over 8.5 metres (m), including 511.00 g/t Au over 1.15 m at a vertical depth of approximately 50 m below surface.

During the first quarter of 2020, the company completed seven holes (2,751 m) as part of its 2020 phase 1 drill program. Currently, the company is drilling the final hole of the program at the HGM prospect and expects to finish the hole in the coming week. The phase 1 drill program was designed to test targets at the Nib, HGM and Slate Rock prospects with approximately 3,500 m of drilling. Additional assays will be reported as they become available.

"Hole PEN-20-47 is the most significant intercept ever drilled on our 500-square-kilometre Pen gold project," stated Brian Skanderbeg, president and chief executive officer. "This exceptional intercept, along with the multiple mineralized intervals further downhole, demonstrates that the Nib prospect has the potential to host a large-scale gold system. These recent results, in combination with numerous significant intercepts at our other regional targets, validates our view that this portion of the Abitibi has the potential to host multiple gold deposits next to a world-class gold camp. We look forward to follow-up drilling on this very exciting and underexplored target in our phase 2 2020 drill program in the third quarter."

Nib prospect overview

At the Nib prospect, in the central part of the Pen gold project, gold mineralization occurs in altered and variably sheared and veined diorite along the western margin of the Reeves ultramafic complex. Extensive swamp and esker cover in this area have hindered historic exploration and prevented explorers from realizing the significance of the gold mineralization at the Nib-Yellowknife occurrence.

In 2018, the company completed initial drill testing of the Nib prospect and identified three distinct northeast-trending, mineralized zones with hole PEN-18-017 returning 0.89 g/t Au over seven m. Despite the low gold grade, the occurrence of visible gold in multiple zones of highly altered rocks and a regional structural setting, that includes sheared polymictic conglomerates similar to those in the vicinity of Newmont's Dome mine in Timmins, lead the company to drill two additional holes in 2020.

Hole PEN-20-047 was designed to test for the depth extension of the zones intersected in PEN-18-017, as well as any sub-parallel vein sets. In addition to intersecting the three mineralized vein zones at depth, a very high-grade interval was encountered in a new zone 52.0 m downhole that returned 71.27 g/t Au over 8.5 m, including 511.00 g/t Au over 1.15 m.

The high-grade gold zone consists of moderately to strongly silica-carbonate-chlorite-biotite altered and variably quartz-carbonate-veined diorite with 5 per cent to 8 per cent disseminated pyrrhotite and arsenopyrite as vein halos and disseminations. Quartz veining comprises approximately 20 per cent of the mineralized interval. Visible gold was identified in three consecutive samples corresponding to gold grades of 511.00 g/t, 1.50 g/t and 14.00 g/t. The gold can be associated with veining but also occurs as disseminated grains within altered diorite.

Additional gold mineralized intervals in hole PEN-20-47 were identified at 70.0, 204.1, 232.6 and 309.9 m downhole corresponding to 1.01 g/t Au over five m, 0.90 g/t Au over seven m, 0.73 g/t Au over four m and 1.11 g/t Au over 3.1 m. These stacked, mineralized intervals consist of variably quartz-veined, chlorite-silica-albite-altered diorite with associated disseminated pyrrhotite and arsenopyrite.

Hole PEN-20-046 was designed to test for the northeastern extension of the vein system identified in PEN-19-017 with a 150 m stepout. While similar diorite host rock was encountered, only low gold values were returned.

The identification of stacked gold zones within multiple holes and the identification of very high grades in PEN-20-047 demonstrates the potential for a significant gold system at the Nib prospect. All gold zones remain open at depth and along strike and further drilling will be conducted to test for extensions. Regionally within the Reeves area, several other targets have been generated by the company where north-east and east-trending structural corridors intersect the western margin of the Reeves complex. Given the results from the current program, these are being evaluated for drill testing in 2020.

Outlook

The company anticipates completing the current drill program in the coming week. The remainder of the assays from the phase 1 program, including multiple follow-up holes from the HGM target, will be released as they become available. Due to potential disruptions in core logging and processing, sample shipping and assaying, the company anticipates that the release of final results may be delayed.

Following the completion of the drill program, the technical team will focus on interpreting the phase 1 drill data, evaluate and model the recently completed airborne magnetic survey on the Dore gold project, and prepare for the upcoming field season. The company anticipates to resume drilling on its recent successes and test regional targets in the third quarter.

COVID-19 update

To date, the company has had no suspected or confirmed cases of COVID-19. The company has implemented specific protocols to protect its employees, contractors and the communities where it operates. The company has also initiated a work-from-home policy for corporate and non-essential exploration staff. Following the public guidance from the government and Ontario Health Authority, in addition to encouraging proper hygiene, the company is operating the drill program with a reduced work force, a rotational work schedule and designated work areas to limit interaction between staff and limit the chance of transmission of the virus.

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.

Qualified persons

Brian Skanderbeg, professional geoscientist and master of science, 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

Drill core samples are being analyzed for gold by Activation Laboratories Ltd. in Timmins, Ont. Gold analysis consists of the preparation of a 500-gram pulp and an assay of a 50-gram aliquot by lead collection fire assay with an atomic absorption spectrometry finish (package 1A2-50). Samples assaying above five parts per million Au are routinely rerun using a gravimetric finish (package 1A3-50). Mineralized zones containing visible gold will be analyzed by a screen metallic fire assay method. Selected samples are also undergoing multielement analysis for 59 other elements using a four-acid digestion and an ICP-MS finish (package MA250) by Bureau Veritas Commodities Canada Ltd. 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.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.