GFG Hits Gold Mineralization at Slate Rock and Crawford Targets at the Pen Gold Project West of Timmins, ON
Media Release
GFG Hits Gold Mineralization at Slate Rock and Crawford
Targets at the Pen Gold Project West of Timmins, ON
Highlights:
• Initial drilling at the Slate Rock target successfully outlined broad gold mineralization in
hole PEN-19-025 grading 0.47 grams of gold per tonne (“g/t Au”) over 25.3 metres,
including 3.58 g/t Au over 1.0 metre;
• Follow-up drilling at the recent Crawford discovery confirmed several distinct styles of
gold mineralization down-dip of the discovery hole hosting up to 2.50 g/t Au over 1.0 metre
and a new lower zone that graded 0.19 g/t Au over 20.3 metres;
• A comprehensive summer field program is well underway at the Pen Gold Project that
includes regional till sampling, ground geophysics, prospecting and mapping;
• A Phase 2 drill program at the Pen Gold Project of approximately 3,500 metres is
anticipated to begin late in the third quarter of 2019; and
• Drilling at the Rattlesnake Hills Gold Project in Wyoming is scheduled to begin in early
July with joint venture partner Newcrest Mining Ltd.
June 20, 2019, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX -V: GFG)
(OTCQB: GFGSF) (“GFG” or the “Company”) is pleased to announce assay results from the 2019
Phase 1 drill program at its 100% owned Pen Gold Project located 40 kilometres west of the prolific
Timmins Gold District in Ontario, Canada. Results from the P hase 1 drill program successfully
discovered gold mineralization at the Slate Rock target and follow-up drilling at the Crawford target
returned several distinct styles of gold mineralization down- dip of the discovery hol e which
intersected 21.26 g/t Au over 1.7 metres (see link to news release: “GFG Discovers New Gold Zone
with 21.26 g/t Gold over 1.7 Metres at Pen Gold Project West of Timmins, ON”).
The 2019 Phase 1 drill program consisted of 15 drill holes (4,400 m) ranging in depth from 150 to
350 metres (see Table 1). The program was designed to test six individual targets within the Slate
Rock, Reeves and Jehann regional targets (see Figures 1-5). The six drill targets ha d no historic
drilling a nd were generated from the Company’s 2018 systematic integration of geological,
geochemical, structural and geophysical datasets. The Company also completed one follow-up drill
hole at the recent Crawford discovery where it intersected 21.26 g/t Au over 1.7 metres, located in
the Deerfoot regional target.
Brian Skanderbeg, President and CEO commented, “ In our first year at the Pen Gold Project we
have discovered multiple gold zones that reinforce our belief that this underexplored portion of the
Abitibi has the potential to host significant gold systems. We view the results from Slate Rock and
Crawford very positively as they demonstrate the gold system s are working and confirm efficacy
of our targeting strategy. At the Jehann target, drilling did not explain the significant gold- in-till
anomalies however, we remain confident in this target area and are currently conducting an in-fill
till sampling program to vector in on the source of the gold. While the Reeves drill results
demonstrated low gold values, we gained valuable insight on the regional geology of this untested
4 by 6 kilometre target.”
Mr. Skanderbeg added, “With two drill programs planned for the second of half of 2019 at the Pen
and Rattlesnake Hills gold projects, we are excited about the opportunity to make further gold
discoveries that will support our overall goal of delivering shareholder value.”
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Table 1: Results from the 2019 Phase 1 drill program at the Pen Gold Project
Hole ID From (m) To (m) Length (m) Au (g/t) Target
PEN-19-020 no significant assays Jehann East
PEN-19-021 no significant assays Jehann East
PEN-19-022 27.6 28.1 0.5 1.06 Jehann East
PEN-19-023 273.8 274.8 1.0 0.64 Jehann East
PEN-19-024(1) 106.5 120.0 13.5 0.41 Slate Rock
incl 106.5 108.0 1.5 2.53
and 281.5 282.5 1.0 0.86
and 309.8 310.3 0.5 0.76
PEN-19-025(1) 72.2 97.5 25.3 0.47 Slate Rock
incl 72.2 73.2 1.0 3.58
incl 91.5 93.0 1.5 1.81
and 202.5 215.0 12.5 0.15
PEN-19-026 165.8 166.9 1.1 0.53 Slate Rock
and 261.0 262.0 1.0 0.86
PEN-19-027 no significant assays Slate Rock
PEN-19-028 113.5 115.0 1.5 1.47 Reeves
PEN-19-029 no significant assays Reeves
PEN-19-030 no significant assays Reeves
PEN-19-031 no significant assays Reeves
PEN-19-032 no significant assays Reeves
PEN-19-033 56.5 65.0 8.5 0.26 Jehann Lake
PEN-19-034 140.0 141.0 1.0 2.50 Crawford
and 145.0 146.0 1.0 2.12
and(1,2) 219.8 240.0 20.3 0.19
incl(2) 219.8 221.0 1.3 0.53
*Gold intervals reported in the above table are at 0.5 g/t cut -off. Weighted averaging has been used to calculate all
reported intervals. True widths are estimated at 80-100% of drilled thickness.
(1) Interval calculated at 0.1 g/t cut-off.
(2) True width is unknown.
Phase 1 Drill Results Commentary
Slate Rock
The Slate Rock target encompasses a 0.5 by 2 kilometre prospective trend ( see Figure 2) where
limited historic work identified gold mineralization associated with diorite and felsic porphyry in
an area of extensive till cover. Historic grab sam ples of boulders returned up to 18.10 g/t Au in
altered diorite. High gold grain counts (up to 220 grains; 8 3% pristine) from till samples taken
within and down-ice of the target area in 2018 provide further support for the existence of a local
bedrock source. Over a kilometer to the east , recent prospecting samples from bedrock retu rned
anomalous gold values up to 0.57 g/t Au in weakly- altered and veined felsic porphyry with 1 -2%
pyrite and magnetite. Prior to the current drill program, only two historic holes were completed
along the 2 kilometre prospective trend.
In the 2019 Phas e 1 drill program, a total of four drill holes were completed. All four drill holes
intersected the target diorite and felsic porphyry intrusive rocks. Two of the four drill holes
intersected anomalous gold values (greater than 0.1 g/t Au) over widths of 12 to 25 meters.
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Drill hole PEN-19-024 tested the diorite-felsic porphyry complex in the vicinity of the till anomaly
and historic float samples. A 13.5- metre interval of moderately altered, quartz -veined diorite cut
by altered and deformed felsic porphyr y returned 0.41 g/t Au and included a sub- interval of 2.53
g/t Au over 1.5 metres.
Drill hole PEN-19-025, located 500 metres to the east of hole PEN-19-024, was drilled to test the
intrusive complex where it is disrupted by northeast -trending faults evident in airborne magnetic
data. It was collared in intensely altered and sheared mafic volcanic rocks, passed through multiple
intervals of variably altered (sericite- quartz-carbonate) and deformed diorite and felsic porphyry
and ended in mafic volcanic. Both diorite and felsic porphyry intervals were mineralized. A 25.3-
metre interval of variably altered and moderately deformed diorite returned 0.47 g/t Au and
included a 1.0 metre sub-interval of 3.58 g/t Au. The higher-grade section is related to extensional
quartz-carbonate-sulphide-magnetite veining.
Currently, the Slate Rock area is the focus of follow-up prospecting and till sampling in the area of
these drill holes and along strike towards the east and west where airborne magnetic data indicates
further structural complication. Based on these results, the Company plans further drilling of the
target, particularly the western and eastern portions that remain untested and host significant gold
in rock samples.
Deerfoot
The Deerfoot target encompasses a 1 by 3 k ilometre area in the easternmost part of the Pen Gold
Project that contains the westward extension of the Porcupine-Destor Fault Zone and second order
parallel shear zones and fault splays ( see Figure 3). The area is predominantly til l-covered with
very limited bedrock expos ure. To date three high- grade gold prospects occur along this trend:
Sewell, HGM and the recently discovered Crawford where in 2018 the Company intersected 21.26
g/t Au over 1.7 metres in drill hole PEN -18-016. (see links to news releases: “GFG Drills 33.77
g/t Gold over 1.05 Metres at Pen Gold Projec t West of Timmins, ON” and “GFG Discovers New
Gold Zone with 21.26 g/t Gold over 1.7 Metres at Pen Gold Project West of Timmins, ON”).
During Phase 1 of the 2019 drill program, one follow -up hole was drilled at Crawford to test for
the depth extension of the shear zone and gold mineralization intersected in PEN -18-016. Drill
hole PEN -19-034 inters ected two zones of sulphide -rich quartz veining within the main mafic
volcanic package. These graded 2.50 g/t Au over 1.0 metre and 2.12 g/t Au over 1.0 metre and
were associated with discrete minor shear zones (see Figures 3 and 4). The continuation of the shear
zone and felsic porphyry dike encountered in PEN -18-016 was also intersected in the follow -up
hole but only weakly anomalous gold values were returned.
Interestingly, a lower zone of gold mineralization was intersected in PEN -19-034 that was not
encountered in the previous Crawford drill hole (see Figure 4). A broad, low-grade intercept of 0.19
g/t Au over 20.3 metres was returned from an interval of sulphidized mafic volcanics that are
dissected by syenitic dykes . This interval coincides with a distinct change in core axis angles
consistent with a change in orientation of the rock package from north- to south-dipping. This lower
zone of gold mineralization occurs within an interpreted fold nose.
Ongoing review of geochemical and structural data will help to refine drill placement to test for the
strike extension and plunge of the high- grade mineralization intersected in the discovery hole.
Further drilling is also justified to assess the lower zo ne of mineralization. Additionally, several
targets within the Deerfoot region between the HGM and Sewell occurrences have been prioritized
for drill testing.
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Jehann East
The Jehann East target is located within the 20- square-kilometre Jehann regional tar get and
encompasses a 1 by 2 kilometre prospective trend adjacent to and immediately north of the
Porcupine Destor Fault Zone (see Figure 5). The area is largely covered by till and other surficial
deposits up to 20 metres in thickness and grab samples have returned anomalous gold values (up
to 0.5 g/t Au) in quartz veins. Till samples collected in 2018 contained highly anomalous numbers
of pristine gold grains (up to 250 grains; 94% pristine) suggesting a proximal bedrock source. Prior
to the 2019 drill program, no drill holes were completed within the ‘footprint’ of the till anomaly
or up-ice.
A total of 4 drill holes were completed in the initial phase of the 2019 drill program. The holes were
designed to test various candidate gold -bearing structures with northwest, east -northeast, and
northeast-trending orientations.
Drill hole PEN-19-022, designed to test a northeast -trending structural corridor, returned 1.06 g/t
Au over 0.5 metres in an interval of sheared and carbonate altered mafic volcanic containing pyrite
and tourmaline bearing quartz -carbonate shear vein ing. This intercept and the occurrence of
sporadic anomalous gold values through the top 1/3 of the hole confirm that the northeast trending
structures and veins are prospective and deserve further follow-up.
Results to date have not explained the source of highly anomalous gold -in-till. Additional in -fill
and regional till sampling and prospecting is currently being focused to the north and east of the
completed drill holes to further constrain the source of the till anomaly. Further drilling in the area
will be guided by results of these programs.
Reeves
The Reeves target encompasses a 4 by 4 k ilometre area containing several prospective structural
corridors west of the Reeves Ultramafic Complex (see Figure 6).
Historic drilling at the Talc-Mine target returned gold values up to 13.0 g/t Au over 4.3 metres
related to quartz -carbonate veining within i ntensely carbonate-altered ultramafic rocks. Recent
drilling by the Company at the Nib-Yellowknife target returned 0.89 g/t Au over 7.0 metres with
the presence of visible gold in an interval of moderately deformed, altered (carbonate-sericite-
quartz) diorite with dark grey quartz veins.
A total of 5 holes were drilled in the Reeves area during the initial phase of the 2019 drill program.
The drill holes were designed to test priority east -northeast-trending corridors at structural
intersections or in are as of lithologic complexity. The areas drilled had seen no previous drilling
and were in low-lying areas requiring frozen ground for access.
Drill hole PEN-19-028, designed to test a sheared contact of felsic porphyry body interpreted from
airborne magnetics, intersected 1.47 g/t Au over 1.5 metres in highly altered (carbonate-sericite-
quartz) mafic volcanic rocks in the footwall of a felsic porphyry body.
Further work in the Reeves area will focus on refining drill targets along the previously identifi ed
gold bearing structures related to the Talc -Mine and Nib -Yellowknife targets and along the
Porcupine Destor Fault Zone in the southern portion of the Reeves target.
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Outlook
The Company has commenced its summer exploration program which includes a Phase 3 till
sampling program designed to follow-up on highly anomalous areas and to test regions that have
no historic sampling and conduct ground geophysics, prospecting and mapping. Following the
summer program, the Company plans to begin its Phase 2 drill program of approximately 3,500
metres late in the third quarter of 2019.
At the Rattlesnake Hills Gold Project in Wyoming, U.S., the Company and its joint venture partner,
Newcrest Mining Ltd., have made significant progress on re-modeling the district and deposit-scale
geological and geophysical data . The updated model has refined and developed both deep and
greenfield drill target s that will be tested in 2019. T he Company plans to provide a detailed
summary of the 2019 exploration activities in the coming weeks with an aggressive drill program
anticipated to begin in early July.
Figure 1: Pen Gold Project Drill Targets
Figure 2: Slate Rock Plan Map
Figure 3: Crawford and HGM Plan Map
Figure 4: Crawford Cross Section
Figure 5: Jehann East Plan Map
Figure 6: Reeves Plan Map
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 a pproved the information
contained in this news release.
Sampling and Quality Control
Surface grab and drill core samples are being analyzed by Bureau Veritas Commodities Canada
Ltd. Preparation of a 1- kilogram pulp and gold assay of a 50- gram aliquot by Pb collection fire
assay with an Atomic Absorption Spectrometry finish (Package FA450) are being done in Timmins,
Ontario. Samples assaying above 5 ppm Au are being routinely re -run using gravimetric finish
(Package FA550). Mineralized zones containing vis ible gold will also be analyzed by screen
metallic fire assay. Multi-element analysis for 59 other elements using a four-acid digestion and an
ICP-MS finish (Package MA250) is being done in Vancouver, British Columbia. Quality control
and assurance measures include the monitoring of results for inserted certified reference materials,
coarse blanks and preparation duplicates of drill core.
Sampling protocols, quality control and assurance measures and geochemical results related to
historic 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.
About GFG Resources Inc.
GFG Resources Inc. 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
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have the same geological setting that hosts most of the gold deposits found in the Timmins Gold
Camp which have produced over 70 million ounces of gold. In Wyoming, the Company has
partnered with Newcrest Mining Ltd. through an option and earn- in agreement to advance the
Rattlesnake Hills Gold Project. 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defi ned in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 explor ation 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 nega tive
connotation thereof or variations of such words and phrases or state that certai n 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 Proje ct 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 forw ard-
looking statements, including but n ot 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 f rom 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 understandin g 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.
For further information, please contact:
GFG Resources Inc.
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
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