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GFG Resources Inc
Symbol GFG
Shares Issued 132,549,481
Close 2020-07-14 C$ 0.245
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GFG Resources samples up to 11 g/t Au at Pen

2020-07-15 09:57 ET - News Release

Mr. Brian Skanderbeg reports

GFG CONFIRMS NEW HIGH-GRADE GOLD TARGET WITH UP TO 11 G/T GOLD FROM SURFACE SAMPLING AND PROVIDES EXPLORATION UPDATE AT THE PEN GOLD PROJECT WEST OF TIMMINS, ON

GFG Resources Inc. has provided an update on its current exploration programs, including initial high-grade gold results from its continuing regional surface exploration program at its 100-per-cent-owned Pen gold project in Ontario, Canada.

The Pen Gold Project is located 40 kilometres west of the prolific Timmins Gold District and is part of a consolidated, underexplored land package of approximately 680 square kilometres that includes the Dore Gold Project. Over the next five months, the Company plans to complete further geochemical and geophysical surveys and resume drilling in August with approximately 8,500 metres at the Pen Gold Project.

Brian Skanderbeg, president and chief executive officer, commented: "The recent sampling results from the new Boundary target are very encouraging and confirm a mineralized gold trend that is over three kilometres long. As we continue to execute our summer field program, we are excited to resume our drill program in August to follow-up on our recent Nib discovery and test highly prospective regional targets for the next discovery."

Program Update

The Company re-commenced field activities at the end of May with prospecting, mapping and till sampling of priority areas in the central part of the Pen Gold Project at the Boundary, Broadway and Nib regions. In addition, to enhance ongoing structural mapping efforts and determine drill hole placement, high resolution drone magnetic surveys have been completed at the Boundary and Broadway regions. Based on new prospecting results, as described below, drone magnetic survey coverage is being doubled to over 1,200 line kilometres.

Boundary

The Boundary Trend is an early-stage multi-kilometre scale target in the Jehann East Region of the Pen Gold Project. In 2019, the Company prioritized the Boundary Trend for prospecting based on highly anomalous gold-grain counts from till samples located down-ice from an underexplored structural corridor interpreted from airborne magnetic data. Initial prospecting identified six areas along the three-kilometre trend with greater than 1.0 grams of gold per tonne and up to 6.9 g/t Au from outcrop samples. Follow-up prospecting in 2020 has confirmed the significance of the trend and has reinforced the prospectivity of the western end with rock samples returning up to 11.1 g/t Au.

While most of the gold occurrences along the Boundary Trend are hosted by deformed and altered mafic volcanics, the new occurrence on the western end is hosted in a previously unrecognized diorite body which is the same host rock as the high-grade gold mineralization at the nearby Nib Prospect. The Boundary Trend remains open to the west in an area of extensive cover where it intersects a north-east trending structural corridor that hosts the Nib discovery.

Targets along the Boundary Trend are being prioritized by ongoing structural mapping and the drone magnetic survey data. This area will be tested as part of the upcoming drill program.

Broadway

The Broadway Prospect is an early stage, kilometre-scale target in the northeast portion of the Pen Gold Project in the Tremblay Region. In 2019, following-up on positive prospecting results, the Company drilled 2.29 g/t Au over 2.5 m including 7.30 g/t Au over 0.7 m in sheared and quartz-carbonate altered diorite. Anomalous rock samples (up to 0.8 g/t Au) and till gold grain counts (up to 55 grains; 84% pristine) suggest that the mineralized system could extend up to 700 m south of this intercept. Ongoing mapping and drone magnetic survey data are being used to prioritize targets along this previously undrilled trend. Selected high priority targets will be tested as part of the upcoming drill program.

Nib

In the first quarter of 2020, the Company drilled a new gold zone at the Nib Prospect that returned 71.27 g/t Au over 8.5 m including 511.00 g/t Au over 1.15 m in sheared and altered diorite. This new zone is part of a stacked vein system that is related to north-east and east-trending structures along the western margin of the Reeves Ultramafic Complex. Additional parallel structures have been interpreted from airborne magnetic data and are additional high priority drill targets. To better constrain these targets, in this region of extensive swamp and esker cover, a high-resolution drone magnetic survey is being conducted that will cover the greater Nib Prospect area and extend eastward to cover the new high-grade surface showing at the west end of the Boundary Trend. Identified high priority targets from the drone magnetic survey will be tested as part of the upcoming drill program.

Outlook

Over the next several months, the Company will continue its aggressive exploration program at the Pen Gold Project with drilling to commence in August. The Company plans to complete 8,500 m of drilling by the end of the year with most of the drilling allocated to the Nib discovery. Prospecting, mapping and till sampling programs will occur concurrently with the drill program and continue into the fall. Prospecting and mapping, once completed at Boundary, Broadway and Nib, will focus around the Slate Rock Prospect located in the west block of the Pen Gold Project. Similarly, till sampling efforts are being directed to various parts of the Pen Gold property to infill anomalous areas and to extend regional sampling coverage.

About GFG Resources Inc.

GFG Resources 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% of the Pen and Dore gold projects, two large and highly prospective gold properties west of the prolific gold district of Timmins, Ontario, Canada. The Pen and the Dore gold projects have similar geological settings that host most of the gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold. The Company also owns 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project located approximately 100 kilometres southwest of Casper, Wyoming, U.S. The geologic setting, alteration and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which, collectively, have produced over 50 million ounces of gold.

Qualified Persons

Brian Skanderbeg, PGeo, 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 QA/QC 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, Ontario using a 50-gram aliquot, Pb collection fire assay and an Atomic Absorption Spectrometry finish (Package 1A2-50). Samples assaying above 5 ppm Au were re-run using a gravimetric finish (Package 1A3-50). Selected rock samples were also be submitted for multi-element analysis using a four-acid digestion and an ICP-MS finish (Package MA250) at Bureau Veritas Laboratories in Vancouver, British Columbia. 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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