GFG Acquires Strategic Claims Adjacent to its Pen Gold Project West of Timmins, Ontario
Media Release
Release: Immediate
GFG Acquires Strategic Claims Adjacent to its Pen Gold
Project West of Timmins, Ontario
June 1 , 2018, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSXV: GFG )
(OTCQB: GFGSF) (“GFG” or the “Company”) is pleased to announce that it has entered into a
purchase and sale agreement (the “Agreement”) with Richmont Mines Inc. (“Richmont”), a
subsidiary of Alamos Gold Inc. (TSX: AGI; NYSE: AGI), to acquire a 100% interest in the Sewell
Property in exchange for 390,930 GFG common shares . The Sewell Property is located 10
kilometres west of Tahoe Resources’ West Timmins Gold Mine and is contiguous to portions of
the Pen Gold Project’s eastern boundary (See Figure 1). Following the acquisition of the Sewell
Property, GFG’s Pen Gold and Dore Gold properties will comprise nearly 700 square kilometres
(“km2”) in one of the most prolific gold districts in the world.
Brian Skanderbeg, President and CEO of GFG, commented, “ The acquisition of the Sewell
Property adds significant exploration potential and complements our consolidation strategy in one
of the most prolific gold districts in the world. W e believe that the historic high -grade drill
intercepts and grab samples on the Sewell Property are part of a four-kilometre-long gold trend that
we have outlined in our new structural model. Like many historical gold intercepts and occurrences
in the Swayze Greenstone Belt, there has been very little to no follow-up drilling or modelling for
over a decade. We will implement our strategic approach to exploration on the new claims and
follow-up on the historic gold intercepts as part of our 8,000 metre drill program in the third and
fourth quarters on this very prospective region of the Abitibi.”
Sewell Property Details
The Sewell Property hosts favourable geology and several historic economic drill intercepts.
Previous explorers, including Richmont, Storimin Exploration Inc. and Noranda Mining
Corporation of Canada, targeted the Sewell Property along the Deerfoot Deformation Zone, the
same major structural corridor that exists on the Pen Gold Project, with a total of 46 diamond drill
holes. Highlights from drilling along this interpreted structure include historical intercepts(1) of:
• 60.2 g/t Au over 1.3 metres;
• 30.2 g/t Au over 1.2 metres;
• 18.9 g/t Au over 1.6 metres;
• 92.6 g/t Au over 0.6 metres;
• 11.1 g/t Au over 1.7 metres; and
• 28.5 g/t Au over 1.6 metres.
In addition to historic drill intercepts, surface grab samples from trenching have returned results
ranging from 0.01 to 375 g/t Au. Gold mineralization occurs within and adjacent to a sequence of
moderately north-dipping quartz veins and shear zones cutting a carbonate-altered diorite. The east-
northeast trending zone has been traced in drilling for 300 metres , to a depth of 100 metres and
remains open to the west onto the Pen Gold property and down- plunge. The Company will
incorporate the Sewell Property in its 2018 exploration progr am and may allocate drilling metres
to follow-up on the historic drill intercepts.
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Transaction Details
Pursuant to the Agreement dated May 30, 2018, GFG will purchase 100% of Richmont’s interest
in the Sewell Property, a land package consisting of one legacy claim and five patented claims
covering approximately 3,000 hectares adjacent to GFG’s Pen Gold Project, in exchange for
390,930 GFG common shares, representing an implied purchase price of approximately C$100,000
based on GFG’s 10-day VWAP. In addition, within five years after closing of the Agreement , if
GFG files an independent National Instrument 43-101 technical report on the Sewell Property (or
on the Pen Gold Project if such technical report includes all or a portion of the Sewell Prope rty)
which outlines a mineral resource of at least 500,000 ounces of gold in respect of the claims
comprising the Sewell Property, Richmont will receive an additional 500,000 common shares of
GFG. Completion of the Sewell Property acquisition is subject to certain customary closing
conditions, including approval of the TSXV . The issued GFG common shares are subject to a
customary four month hold period.
Figure 1: Pen Gold Project Including Recently Acquired Sewell Property
https://www.gfgresources.com/files/images/projects/Fig-1_GFG-Resources_Pen-
Gold_Highlights_Sewell-Acquisition.jpg
Footnote
(1) Drill intercepts are presented using a 3 g/t Au cut-off and as drilled length. T rue width is
estimated to be 70 to 90% of drilled length. The QP has not verified the laboratory accreditation,
analytical method, sample size or QA/QC procedures utilized for the historic drill results or grab
samples.
Qualified Persons
Brian Skanderbeg, P.Geo. and M.Sc., serves as President and CEO of GFG, and is a “qualified
person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral
Projects. Mr. Skanderbeg has reviewed and approved the information contained in this news
release.
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
Twitter: @gfgresources
LinkedIn: https://linkedin.com/company/gfgresources/
About GFG Resources Inc.
GFG Resources is a North American precious metals exploration company headquartered in Saskatoon,
Saskatchewan, Canada, whose s hares trade on the TSX Venture Exchange (GFG) and on the OTCQB
(GFGSF). The Company owns 100% of two large and highly prospective gold properties west of the prolific
gold district of Timmins, Ontario, Canada. The Ontario properties are comprised of the 44,500- hectare Pen
Gold Project (including the West Porcupine property) and the 20,000- hectare Dore Gold Project. The
Company also controls 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project
located approximately 100 kilometres southwest of Casper, Wyoming, U.S. The geologic setting, alteration
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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 defined 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, disclosure regarding possible events, the proposed completion of the acquis ition of the Sewell Property (the
“Transaction”), conditions or financial performance that is based on assumptions about future economic conditions and courses of action;
planned use of proceeds, expenditures and budgets and the execution thereof. General ly, 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 current exploration and other objectives concerning its mineral projects can
be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained
or will improve; the continuity of the price of gold and other metals, economic and political conditions and operations; that all conditions
precedent to the Transaction, including requisite regulatory approval will be fulfilled in a timely manner and on acceptable terms; and
that general business and economic conditions will not change in a materially adverse manner.
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: risks and uncertainties related to the Transactions not being completed in the event that
any of the conditions precedent thereto are not satisfied; 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 app rovals 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 assume no obligation to update any forward -
looking statements, except as required by applicable laws.