GFG Drills 4.82 g/t Gold over 26.0 Metres and Continues to Intercept Multiple Gold Zones at the Montclerg Gold Project
Media Release
GFG Drills 4.82 g/t Gold over 26.0 Metres and Continues to
Intercept Multiple Gold Zones at the Montclerg Gold Project
February 10, 2022, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX-V: GFG)
(OTCQB: GFGSF) (“GFG” or the “Company”) reports new assay results from three drill holes
that have intersected multiple zones of significant gold mineralization at the Montclerg Gold
Project (the “Project” and/or “Montclerg”) , located 48 kilometres (“km”) east of the prolific
Timmins Gold District in Ontario, Canada (See Figure 1).
During the fourth quarter of 2021, the Company drilled a total of 3,210 metres (“m”) from 14 holes
in its inaugural Phase 1 drill program. To date, the Company has received drill assay results from
five holes and have successfully returned both high-grade and bulk tonnage intercepts from the MC
Central target (see Table 1 and Figures 2-6) with highlights including:
Hole MTC-21-005:
• Upper Footwall zone: 4.82 grams of gold per tonne (“g/t” Au) over 26.0 m including
12.32 g/t Au over 5.5 m; and
• Upper Footwall zone: 11.29 g/t Au over 1.7 m
Hole MTC-21-004:
• Upper Main zone: 0.73 g/t Au over 24.2 m; and
• Lower Main zone: 1.24 g/t Au over 10.4 m including 2.37 g/t Au over 4.1 m
• Lower Footwall zone: 1.23 g/t Au over 15.5 m including 3.09 g/t Au over 3.3 m
Brian Skanderbeg, President and CEO commented, “These great results confirm our belief in the
potential for both high -grade and bulk tonnage gold mineralization at Montclerg. We are very
encouraged by the stacked nature of the system, impressive widths and the relationship to historic
drill holes that extend over a strike length of more than 1.3 km. The i ntensity of the alteration,
veining and sulphidation that we are seeing are consistent with a multi-stage, large-scale gold
system. Hole MTC-21-005 is the best hole ever drilled on the Project and may be amongst the best
greenfield intercepts from the Timm ins region over the past decade. As we await the remaining
assays, drilling at Montclerg will resume in the coming weeks.”
Assay and Drillhole Analysis
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. 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 ta rgets and the prospective MC
Footwall corridor. Assay results are pending for the remaining nine holes and the Company expects
to report these results throughout the first quarter.
Drill hole MTC-21-005 was drilled to test the Upper Footwall zone at depths of less than 150 m
vertical. The hole successfully encountered a zone of intense sericite, carbonate and silica
alteration, moderate quartz veining, and 1 to 10%, and locally to 25% , disseminated pyrite and
arsenopyrite at, and directly below the contact with the mafic volcanic footwall. This mineralized
zone returned 4.82 g/t Au over 26.0 m and included two sub- intervals that graded 15.96 g/t Au
2
over 1.8 m and 12.32 g/t Au over 5.5 m . A second zone of alteration and sulphidation was
encountered deeper in the hole and returned 11.29 g/t Au over 1.7 m . Follow-up drill holes are
pending on this shallow high-grade intercept, and it is a priority for the up-coming drill program.
Drill hole MTC-21-004 was drilled to test the westward extension of the Main zone above 100 m
depth and a possible extension of the Lower Footwall zone within the mafic volcanics to the south.
Within the felsic volcanic package two mineralized zones were intersected and graded 0.73 g/t Au
over 24.2 m and 1.24 g/t Au over 10.4 m . These zones are characterized by moderate to strong
silicification and sericite alteration, 1 to 10% quartz veining and trace to 3%, and locally up to 10%,
disseminated pyrite and arsenopyrite. The Lower Footwall zone was encountered and graded 3.09
g/t Au over 3.3 m.
Drill hole MTC-21-002 was drilled to test for down dip extension of the Lower Footwall zone at
MC Central. Highly- carbonate altered and sulphidized mafic volcanic rocks were encountered
between 357.2 and 363.5 m down hole corresponding to expected location of the targeted zone.
This interval returned 1.75 g/t Au over 6.3 m and included a sub-interval grading 4.13 g/t Au over
2.3 m. Historic drilling of the Lower Footwall zone returned high-grade intervals such as 9.05 g/t
Au over 4.0 m, 9.23 g/t Au over 2.15 m, and 5.38 g/t Au over 3.2 m. This zone remains open, with
assays pending on follow-up holes and remains a priority drill target for future programs.
Table 1: Initial Assay Results from Montclerg Gold Project
Hole ID From (m) To (m) Length (m) Au g/t Zone
MTC-21-0011 62.50 90.00 27.5 1.56 Upper Main
incl. 63.50 66.00 2.5 8.42
incl. 65.35 66.00 0.65 26.90
incl. 71.50 74.00 2.5 4.30
and 126.00 166.50 40.5 0.78 Lower Main
incl. 130.75 138.00 7.3 2.20
MTC-21-002 357.20 363.50 6.3 1.75 Lower Footwall
incl. 359.70 362.00 2.3 4.13
MTC-21-003 Abandoned hole
MTC-21-004 39.80 64.00 24.2 0.73 Upper Main
and 75.70 86.10 10.4 1.24 Lower Main
incl. 81.00 85.10 4.1 2.37
and 230.50 246.00 15.5 1.23 Lower Footwall
incl. 241.70 245.00 3.3 3.09
MTC-21-005 86.00 112.00 26.0 4.82 Upper Footwall
incl. 94.30 96.10 1.8 15.96
incl. 103.80 109.30 5.5 12.32
and 118.90 120.60 1.7 11.29 Upper Footwall
1 Previously released
*Drill intercepts are 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.
Outlook
In 2022, t he Company plans to complete approximately 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
3
will complete 3-4,000 m of drilling and while assay turnaround remains a challenge, a steady stream
of assays is expected over the coming weeks and months. In addition to the on-going drill program,
the Company will continue additional exploration activities and target development across the
Montclerg 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 wi ll 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”). 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. 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
4
Figure 2: Montclerg Gold Project Plan View Map
Figure 3: Montclerg Gold Project Cross Section Map (Holes MTC-21-001 and 004)
5
Figure 4: Montclerg Gold Project Cross Section Map (Hole MTC-21-005)
Figure 5: Core Photos of MTC-21-005 from Montclerg Gold Project
6
Figure 6: Highlighted Core Photos of MTC-21-005 from Montclerg Gold Project
2021 Financing Disclosure
In connection with the C$3.1 million financing completed in November 2021, the Company wishes
to correct its previous disclosure to confirm that it paid cash finder's fees on portions of the
financing totaling C$8,833, as opposed to C$7,833 as previously disclosed.
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 throug h 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: [email protected]
Website: www.gfgresources.com
7
Stay Connected with Us
Twitter: @GFGResources
LinkedIn: https://www.linkedin.com/company/gfgresources/
Facebook: https://www.facebook.com/GFGResourcesInc/
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 o f 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 m 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 ris ks,
unanticipated reclamation expenses, title disputes or claims and limitations on insurance cov erage. 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 “do es 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 a nd 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 Montclerg 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
Montclerg 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 caus e the actual results,
level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forw ard-
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 approv als 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 cont ained 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 oper ating
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.