SASKATOON, Saskatchewan, Nov. 08, 2021 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has initiated its Phase 1 3,000 metre (“m”) drill program testing bulk tonnage and high-grade vein targets at its Montclerg Gold Project (the “Project” and/or “Montclerg”). Drilling is anticipated to continue into December, with planning in progress for a more extensive H1 2022 program.
The Montclerg Gold Project is located 48 kilometres (“km”) east of the prolific Timmins Gold Camp and is adjacent to multiple current and historic gold mines (See Figure 1). The Project consists of patented and unpatented mining claims that cover 10 km of the highly prospective Pipestone Deformation Zone (See Figure 2). GFG recently closed the acquisition of the Project, and in parallel with the drill program, will advance a systematic exploration program to evaluate and improve the property scale understanding.
Brian Skanderbeg, President and CEO commented, “We have already made great progress at Montclerg and are now in a position to begin our Phase 1 drill program. This Phase 1 drilling will focus on the MC prospect where historic drill campaigns outlined up to five separate gold zones over a strike length of 1.5 km.”
“The vast majority of the historic drilling was completed prior to 1970 and focused on shallow, high-grade segments of the systems; typically only sampling material above three grams of gold per tonne (“g/t Au”). GFG acquired Montclerg with a view that the property hosts both bulk-tonnage and high-grade underground potential within a large-scale gold system that remains highly under-explored. We are excited to begin drilling at Montclerg and combined with catalysts from our activities at both the Pen and Rattlesnake Hills Projects, we are well-positioned to deliver consistent news flow and value creation.”
Montclerg 2021 Exploration Program
In support of the Montclerg acquisition, the Company undertook a systematic approach to evaluating the Project, specifically focused on building a comprehensive understanding of the gold systems, ore controls and potential targets. Building upon this work, and to refine drill targets, the exploration team has already completed significant work, including:
- Completion of a detailed drone magnetic survey covering the core extensions of the MC and CX trends;
- Property wide compilation of historic geophysical and geochemical data;
- Relogging and sampling of historic drill core; and
- Detailed 3D geological, geochemical and structural modelling of both the MC and CX targets.
Montclerg 2021 Drill Program
The 3,000 m Phase 1 drill program will include 10 to 12 holes varying in length from 125 to 400 m testing a strike length of approximately 500 m. The program will systematically test the strike and dip-extensions of the MC Central and MC East targets and the prospective MC Footwall target (See Figure 3).
At the MC Central target, drilling is designed to follow-up on historic drilling that outlined three lenses with composite grade and thickness on the order of 0.74 g/t Au over 124.5 m. Drilling 150 m west of the above hole returned multiple intercepts in individual holes including 46.3 m at 1.43 g/t Au as well as 2.42 g/t Au over 10.7 m, above 100 m vertical depth. These broad zones of sheeted quartz-veining are hosted in rhyolite and felsic porphyry and are typically associated with disseminated pyrite and arsenopyrite. Broadly spaced drilling has intercepted these MC Central zones in excess of 500 m of strike, with 1940’s drilling suggesting strike continuity into the MC East target for a further 500 m. Significantly, individual historic holes at MC East host stacked, higher grade intervals of 5.14 g/t Au over 1.89 m, 4.12 g/t Au over 1.74 m, 3.43 g/t Au over 4.0 m and 2.57 g/t Au over 9.1 m, above 150 m vertical depth. Phase 1 drilling has been prioritized to confirm and expand the MC Central mineralization and test the continuity for the MC Trend along strike to the east.
Drilling at the MC Footwall target will be to test two deeper gold zones that were intersected in several historic drill holes that tested the mafic volcanic footwall stratigraphy (See Figure 2). These zones are higher grade, shear and vein-hosted with disseminated pyrite-arsenopyrite and have returned up to 3.69 g/t Au over 7.4 m (including 9.23 g/t Au over 2.2 m) and 6.05 g/t Au over 2.0 m. Broadly spaced drilling indicates the MC Footwall system extends over a strike length of 175 m and potentially an additional 350 m to the west and remains untested and open across the property. The Company interprets a direct structural relationship between the MC Footwall zones and the MC porphyry and rhyolite-hosted gold systems. This depth continuity target to the MC Footwall will be tested as part of the current program.
The Company notes that a qualified person has not verified the data disclosed in respect of the Project, including sampling, analytical and test data underlying this information. The data comes from historic reports prepared by previous operators.
Outlook
The Company plans to complete the 3,000 m drill program before year-end 2021 with results expected to be released in early 2022 based on anticipated assay lab turnaround time. In addition to the on-going drill program at Montclerg, the Company will continue additional exploration activities and target development. A more extensive Phase II drill program is in the planning stages and will commence in Q1 2022.
At the Pen Gold Project, the Company will continue to refine and develop drill targets for 2022 and is planning a sonic till drilling program in Q1 2022. At this time, the Company is reviewing various alternatives to advance the Dore Gold Project and will provide further information as it becomes available.
At the Rattlesnake Hills Gold Project, the Company has partnered with Group 11 Technologies Inc. (“Group 11”) to apply In-situ Recovery technology to gold mining. Initial metallurgical results from Stage 1 of the program are in progress with initial results anticipated in Q4 2021. A more extensive sampling and testing program is planned for Q1 2022. The Company is optimistic that the Stage 1 program will demonstrate that the non-cyanide, water-based solution can effectively recover gold and will be the first step in proving that this technology can be successfully applied to the gold industry.
Photos accompanying this announcement are available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c945efce-1776-4922-89c2-23396f48fd63
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About GFG Resources Inc.
GFG 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 operates the Montclerg, Pen and Dore gold projects, each large and highly prospective gold properties within the prolific gold district of Timmins, Ontario, Canada. The 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. In Wyoming, the Company has partnered with Group 11 through an option and earn-in agreement to advance the Company’s Rattlesnake Hills Gold Project with a technology that could revolutionize the gold mining industry. 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.
For further information, please contact:
Brian Skanderbeg, President & CEO
Phone: (306) 931-0930
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: info@gfgresources.com
Website: www.gfgresources.com
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Qualified Persons
Brian Skanderbeg, P.Geo. and M.Sc., 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.
Drill intercepts are historical and presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of 0.0 to 10.0 m at grades less than 0.1 0 g/t Au. True width is estimated to be 50 to 90% of drilled length.
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.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of historical fact, contained in this news release constitute “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). Forward-looking statements include, but are not limited to, the future price of gold, success of exploration activities and metallurgical test work, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of exploration work, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
All forward-looking statements are based on various assumptions, including, without limitation, the expectations and beliefs of management, the assumed long-term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour, and that the political environment within Canada and the United States will continue to support the development of mining projects in Canada and the United States. In addition, the similarity or proximity of other gold deposits to the Rattlesnake Hill Gold Project, the Pen Gold Project and the Dore Gold Project is not necessary indicative of the geological setting, alteration and mineralization of the Rattlesnake Hills Gold Project, the Pen Gold Project and the Dore Gold Project.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: actual results of current exploration activities; environmental risks; future prices of gold; operating risks; accidents, labour issues and other risks of the mining industry; delays in obtaining government approvals or financing; and other risks and uncertainties. These risks and uncertainties are not, and should not be construed as being, exhaustive.
Although GFG has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of the date hereof and GFG assumes no obligation to update any forward-looking statements, except as required by applicable laws.
