GFG Intercepts Multiple Gold Zones in First Hole at the Montclerg Gold Project and Provides Corporate Update
SASKATOON, Saskatchewan, Jan. 24, 2022 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF)(“GFG” or the “Company”) announces that it has received assays from the first hole from its 2021 Phase 1 drill program at the Montclerg Gold Project (the “Project” and/or “Montclerg”) (See news release: “GFG Provides Exploration Update and Launches 3,000 Metre Drill Program at Montclerg Gold Project, East of Timmins”). The hole returned both high grade and bulk tonnage intercepts from the MC Central Panel at Montclerg (See Table 1 and Figures 2-3). In 2022, the Company is planning to drill approximately 10,000 metres (“m”) at Montclerg with a first phase of 3-4,000 m of drilling to start in February.
Hole MTC-21-001, a 50 m step-out hole from historic drilling in 1986, has returned multiple bulk tonnage intercepts which include 1.56 grams of gold per tonne (“g/t Au”) over 27.5 m and 0.78 g/t Au over 40.5 m. Hole MTC-21-001 is the first hole to follow-up from the 1986 drilling and outlines stacked zones of vein-hosted and disseminated gold mineralization. In the Phase 1 program, the Company completed 11 holes focused on the MC Central target and three holes on the MC Eastern target; testing a strike length in excess of 500 m. Assay results are pending for the remaining holes and the Company expects to report these results throughout the first quarter.
Table 1: Assay Results from Hole MTC-21-001
|Hole ID||From (m)||To (m)||Length (m)||Au g/t|
* Drill intercepts are historical and presented using a 0.20 g/t Au cut-off and as drilled length. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. True width is estimated to be 50 to 90% of drilled length.
Brian Skanderbeg, President and CEO commented, “We are very pleased with these initial results from step-out drilling as they confirm our belief that the Project hosts a significant gold system that merits an aggressive exploration program. We look forward to the results from the remaining 13 holes from our 2021 program and believe they will continue to demonstrate the scale and opportunity to grow the gold systems on the Project. Based on results received to date and logging of the outstanding holes, we are planning a much more aggressive program for 2022 with drilling to ramp-up again in mid-Q1.”
Mr. Skanderbeg added, “2022 will be an exciting year for GFG. We are well-financed and strongly believe that our exploration plans and upcoming catalysts from both Montclerg and Rattlesnake Hills will drive shareholder value.”
Montclerg 2021 Drill Program
In the fourth quarter of 2021, the Company drilled a total of 3,210 m from 14 holes in its inaugural Phase 1 drill program. The 14 holes varied in length from 125 to 400 m and tested a strike length of over 500 m. The program systematically tested the strike and dip-extensions of MC Central and MC East and the prospective MC Footwall zone (See Figure 2).
The two broad zones of gold mineralization intersected in MTC-21-001 are typical of the mineralization encountered in historic drill holes at MC Central. The upper zone occurs in massive to locally flow-banded and/or fragmental rhyolite that is moderately to intensely sericite and silica altered. Extensional quartz veins occur throughout the interval and typically comprise 5 to 25% of the rock. Pyrite and arsenopyrite occur throughout the altered host rock as fine-grained disseminations with contents ranging from trace amounts up to 10% at vein margins.
The lower zone occurs in massive, brecciated and tuffaceous rhyolite that is moderately to intensely sericite, silica and chlorite altered. Similar to the upper zone, extensional quartz veins are typically centimeter-scale with vein densities ranging from less than 1% and up to 30% of the rock. Finely disseminated pyrite and arsenopyrite occur throughout the zone with abundances ranging from trace amounts up to 5%. The higher-grade core to the lower zone is marked by an increase in vein density and sulphide.
As shown on the cross section in Figure 3, these gold zones are interpreted to dip moderately to the north and extend towards surface as demonstrated by historical intercepts of 1.64 g/t Au over 15.2 m, 2.30 g/t Au over 18.9 m and 2.42 g/t Au over 10.7 m. The majority of the completed drill holes, for which assays are pending, have similar or more intense alteration, veining and sulphide to that seen in MTC-21-001 which, along with historical intercepts within the MC Central, East and West targets, is suggestive of a large gold system.
In 2022, the Company plans to complete 10,000 m of drilling on its Timmins portfolio with an emphasis on the Montclerg Gold Project. In the first half of 2022, the Company will complete 3-4,000 m of drilling and while assay turnaround times remain to be a challenge, we expect to see a steady stream of assays returned over the coming weeks and months. In addition to the on-going drill program at Montclerg, the Company will continue additional exploration activities and target development across the Project.
At the Pen Gold Project, the Company will continue to refine and develop drill targets during 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, metallurgical test work remains on going with the Company’s joint venture partner Group 11 Technologies Inc. (“Group 11”). The Rattlesnake Hills Gold Project provides a variety of mineralized settings that are ideal for the research Group 11 is conducting to apply In-Situ Recovery technology for the extraction of gold which could reduce the use of conventional mining methods. Initial metallurgical results from Group 11’s Stage 1 program are pending and GFG anticipates being able to provide an update in the near future. As the results become available, Group 11 will confirm next steps on conducting further laboratory testing and potential field work. Group 11’s goal is to demonstrate that the non-cyanide, water-based solution along with In-Situ Recovery technology can effectively recover gold and be applied to the gold mining industry.
About the Montclerg Gold Project
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.
Figure 1: Regional Map of GFG Gold Projects accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d1554796-ad11-4de4-98b3-a527ffab98db
Figure 2: Montclerg Gold Project Plan View Map accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f4869435-eba0-45d7-97e7-3db6bcc82bed
Figure 3: Montclerg Gold Project Cross Section Map accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/33808122-c2ac-4796-9de1-2653b9db386c
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.
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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 up to 3 metres at grades less than 0.2 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 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.
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