K9 Gold receives interpretation of VTEM survey on Stony Lake project, Newfoundland; New high priority targets identified
#2310 -1177 W. Hastings St.
Vancouver, BC V6E 2K3 Canada
P. 604 662 8184
www.k9goldcorp.com
K9 Gold receives interpretation of VTEM survey on Stony Lake project,
Newfoundland; New high priority targets identified
January 7, 2021 – K9 Gold Corp. (KNC: TSX-V) (WDFCF : OTC) (5GP:GR: FSE) (“K9” or the “Company”) is
pleased to report that the Company has received a r eport interpreting the data from the airborne
geophysical survey carried out on its Stony Lake pr oject, Newfoundland. The objective of the VTEM
(Versatile Time Domain Electromagnetic) survey was to outline linear trends that demonstrate changes in
resistivity due to faulting, alteration, sulphide m ineralization and intrusive activity. This objecti ve has
been met, and a number of linear trends have been i dentified. The interpretation shows two highly
significant areas of interest that are coincident with various anomalies from earlier work, and will improve
our understanding of the geological setting of these areas. The two areas are the Jumper’s Pond zone and
Island Pond. Additionally, there are numerous indications of potential narrow vertical conductive zones
in the basement rocks beneath the Botwood sediments. This new information will be used to refine plans
for the upcoming 2021 field season which includes drilling.
The interpretation of the VTEM data was contracted out to Campbell & Walker Geophysics Ltd, of North
Vancouver BC. The main interpretive tool used was resistivity depth imaging (RDI) which converts the EM
profile decay data into an equivalent resistivity versus depth cross section, by deconvolving the measured
time domain EM data. RDIs provide reasonable indic ations of conductor relative depth and vertical
extent, as well as accurate 1D layered-earth apparent conductivity /resistivity structure across flight lines.
It is apparent that resistivity low (or conductivity high) zones can be mapped at all depths (to at least 600
m below surface), with locally stacked anomalies which correlate well with interpretations from the 2019
airborne magnetic survey. These stacked anomalies also correlate well with areas of known gold
anomalies in lake sediments, till samples, rock samples from outcrop and boulders.
In the Jumper’s Pond area, which is contiguous to S okoman’s Moosehead property, there is a highly
conductive zone that is interpreted to be in the ba sement rocks, beneath the Botwood sediments, at a
depth of approximately 200m below surface. Interpr etation of the 2019 airborne magnetic survey
indicates that this structural zone extends from the Moosehead discovery through the northern property
boundary and for approximately 1 km to the south. Exploration work carried out by Cornerstone
Resources in this area in 2001 and 2002, which incl uded ground geophysics (IP/Resistivity and
magnetometer), identified various areas of interest in the same zone. That work identified numerous
northwest trends which are interpreted to represent cross faulting. Work on adjacent properties has
shown these cross-cutting structural trends as highly significant in the localization of gold mineralization.
Eight diamond drill holes were completed by Corners tone in 2002, four of which intersected multistage
quartz veining and brecciation with associated sulp hide and sulphosalt mineralization hosted by late,
northwest trending structures.
#2310 -1177 W. Hastings St.
Vancouver, BC V6E 2K3 Canada
P. 604 662 8184
www.k9goldcorp.com
At Island Pond, there is a large (3000 by 500 m) re latively shallow conductive zone, possibly within t he
Botwood sediments, with indications of several deep er vertical conductive structures directly beneath.
Historic work in this area has resulted in numerous overburden gold bearing till anomalies with coincident
highly anomalous lake sediment samples, as well as a cluster of mineralized boulders. This area also
correlates with quartz feldspar intrusive activity. Prospecting over this area was carried out in the fall of
2020 for which analytical results are pending.
News Releases from other companies active in the Central Newfoundland Gold Belt continue to increase
the profile of this newly emerging gold district. For example, on November 19, 2020 Sokoman Minerals
announced drill results which included two zones in hole MH-20-115, 47.2 g/t Au over 4.60m and 68.7 g/t
Au over 8.10m at their Moosehead project, immediate ly adjacent to K9’s Stony Lake property. On
December 15, 2020, New Found Gold announced intercepts of 45.3 g/t Au over 13.1m in hole NFGC-20-
32 and 25.0 g/t Au over 16.9m in hole NFGC-20-29 at their nearby Queensway property.
K9 CEO Jeff Poloni states “With the VTEM and Mag surveys we continue to define both lithological trends
and structure. The importance of these structures c annot be overstated as they are the conduits for
auriferous fluids. Over the next few weeks we will be compiling the information from additional surveys
and will be better able to define high priority targets for ground geophysics, trenching and drilling."
About Stony Lake Project
The Stony Lake project lies within the Cape Ray/Valentine Lake structural trend in Central Newfoundland,
lying parallel to that of New Found Gold’s Queensway project, along the prolific Dog Bay Line. The project
covers 13,625 ha and 27 kilometers of favorable trend between Sokoman’s Moosehead discovery to the
northeast and Marathon's Valentine Lake deposit to the southwest.
At Stony Lake, large areas of significant gold mineralization occur primarily in altered Botwood sediments
and quartz-feldspar porphyry intrusives associated with intense silicification, sericite-chlorite-carbonate
alteration and a strong pyrite-arsenopyrite mineral ogical association. These features indicate
epizonal/mesozonal temperatures for the hydrotherma l fluids and support the exploration model of
hydrothermal fluids leaking upwards into the Botwood sediments from a deeper igneous intrusive source.
This area is now referred to as the Exploits Subzone gold district which essentially covers the Silurian-age
clastic sediments surrounding the Mount Peyton intrusive.
Prior to the 2020 field season, airborne geophysic al coverage, with follow-up ground prospecting and
sampling, has led to the identification of eight area of highly anomalous to high grade gold mineralization.
The gold mineralization is hosted in a variety of e nvironments, including quartz-feldspar porphyries,
reduced sandstones, quartz stockworks and quartz veins. The property hosts both widespread low grade
mineralization (up to 4.0 g/t Au) within the Botwood Formation and high grade veins (>4.0 g/t Au) in the
basement rocks below the Botwood, similar to the nearby New Found Gold Queensway project, and the
immediately adjacent Sokoman Minerals Moosehead discovery.
#2310 -1177 W. Hastings St.
Vancouver, BC V6E 2K3 Canada
P. 604 662 8184
www.k9goldcorp.com
On-going interpretive work on the Stony Lake proper ty has yielded several direct comparisons with the
Sokoman Minerals Corp Moosehead discovery, immediat ely to the northeast of Stony Lake’s Jumper’s
Pond area (note - this area was previously named “F lyers Grid,” and since significant portions of the
historic Flyers Grid lie off K9’s property, K9 has renamed the area to avoid confusion).
Published information on the Moosehead discovery indicates that the mineralization is spatially related
to reworking of a major basement structure which is likely the main pathway for the mineralizing fluids.
The spatial association of the faulting with mafic intrusives appears to be highly significant. The
Moosehead mineralization is hosted by N to NW trend ing and east dipping faults, which appear to be
related to meso-scale anticlinal folding. These ty pes of mineralizing systems typically have great lateral
and depth extents (measured in kilometers).
Recent (2019) and historic (2001) geophysical work on the Jumper’s Pond area strongly suggests the
presence of a large fold structure that plunges to the NE towards Moosehead, as well as several NW-
trending structural features. The presence of mafic rocks is also indicated for this area. The major fault
structure related to the Mooseheads discovery can clearly be traced by regional magnetics for 5 – 6 km
onto the Stony Lake property. These similarities i ncrease K9’s confidence in the prospectivity of the
Jumper’s Pond area.
About K9 Gold Corp
K9 Gold Corp has assembled a highly-experienced an d dynamic team to explore its Stony Lake Project.
The project has been acquired District Copper Corp by an option agreement, whereby K9 can earn up to
a 100% interest in the project (see Company release dated July 30, 2020). The Company also owns a 100%
interest in the Desert Eagle Vanadium project located in the historic Henry Mountains Mining District in
SE Utah. The area has seen extensive historic vanadium and uranium mining and is close to Anfield Energy
Inc’s Shootaring Canyon mill.
To ensure a safe workplace environment that protec ts the health and safety of employees and
contractors, K9 Gold follows all federally and prov incially mandated and recommended guidelines
regarding Covid 19.
Chris M. Healey, P.Geo, Consulting Geologist, is the qualified person under NI 43-101 guidelines who is
responsible for the technical content of this release, and consents to its release.
Toll Free Number: (833) 434-GOLD (4653)
Kosta Tsoutsis
Director
K9 Gold Corp.
email: [email protected]
Telephone: 604 808-9134
#2310 -1177 W. Hastings St.
Vancouver, BC V6E 2K3 Canada
P. 604 662 8184
www.k9goldcorp.com
Brian Morrison
Chief Financial Officer and Director
K9 Gold Corp.
email: [email protected]
telephone: 604 312-6910
The Company is listed on the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding K9’s
intention to continue to identify potential transactions and make certain corporate changes and applications. Forward-looking
statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results,
performance or developments to differ materially from those contained in the statements. No assurance can be given that any of
the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits K9 will obtain from them.
These forward-looking statements reflect managements’ current views and are based on certain expectations, estimates and
assumptions which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially
from those expressed or implied by the forward-looking statements, including K9’s inability to identify transactions having
satisfactory terms or at all and the results of exploration or review of properties that K9 does acquire. These forward-looking
statements are made as of the date of this news release and K9 assumes no obligation to update these forward-looking statements,
or to update the reasons why actual results differed from those projected in the forward-looking statements, except in accordance
with applicable securities laws.