GFG and Newcrest Begin Drilling at Rattlesnake Hills Gold Project, Wyoming
Media Release
Release: Immediate
GFG and Newcrest Begin Drilling at Rattlesnake Hills Gold
Project, Wyoming
Highlights:
• The drill program will consist of 5,000 to 6,000 metres in six to eight holes using two core
drill rigs testing both brownfield and greenfield targets;
• The majority of the drill program, approximately 5,000 metres in four to six holes, will test
moderate to deep gold targets below the North Stock deposit where historic deep drilling
intersected 2.49 grams of gold per tonne (g/t Au) over 22.9 metres;
• Greenfield targets are currently being prioritized and may see up to 1,000 metres of drilling
in two to four holes;
• The 2019 exploration program has a budget of approximately US$3.5 million and is
anticipated to be completed in October; and
• GFG is the operator of the program and will receive a 10% management fee on the total
expenditures.
July 9, 2019, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX-V: GFG)
(OTCQB: GFGSF) (“ GFG” or the “Company”) has started its 201 9 drilling program a t its
Rattlesnake Hills Gold P roject in Wyoming, United States. The program will consist of
approximately 5,000 to 6,000 metres of core drilling and is fully-funded by GFG’s partner,
Newcrest Resources Inc., a wholly -owned subsidiary of Newcrest Mining Limited (ASX: NCM)
(“Newcrest”), through its option and earn- in agreement (see news release dated September 11,
2018: GFG Signs Option and Earn-In Agreement with Newcrest to Advance the Rattlesnake Hills
Gold Project). The drill program includes two drill rigs that will focus on testing moderate to deep
gold targets proximal to the North Stock deposit (See Figures 1 to 3) and on greenfield targets. The
drill program is anticipated to be completed in October of 2019.
Brian Skanderbeg, President and CEO commented, “We are thrilled to resume drilling at our
Rattlesnake Hills Gold Project in Wyoming with our partner Newcrest. Our partnership with
Newcrest has been excellent and the asset has advanced considerably with the culmination of
Newcrest’s and GFG’s world -class expertise in Alkaline gold systems and the application of
machine-learning technology. We are optimistic that we will be able to demonstrate that a robust
gold system is present at depth where historic drilling successfully intersected high -grade gold
mineralization over meaningful widths.”
Mr. Skanderbeg added, “The drill program is anticipated to be completed in October with initial
results expected to be available late in the third quarter or early in the fourth quarter. As we
aggressively advance our Rattlesnake Hills Gold Project, we als o continue to make excellent
progress at our Pen Gold Project with our summer exploration program and plan to resume drilling
late in the third quarter.”
2
2019 Drill Program Outline
The 2019 drill program is anticipated to consist of 5,000 to 6,000 metres of core drilling on both
brownfield and greenfield targets for a total budget of approximately US$3.5 million. Much of the
drill program, approximately 5,000 metres in four to six holes, will focus on the brownfield
environment proximal to and at depth to the North Stock deposit (See Figure 1 to 3). The remaining
1,000 metres, in two to four holes, are allocated for greenfield drilling on regional targets that are
currently being evaluated and prioritized.
The brownfield drilling will be focused on four moderate to deep gold targets; South Deep, North
Deep, North Diatreme and Middle Ground. These targets were developed in the context of a new
deposit-scale alteration model generated from Corescan hyperspectr al scanning of historic drill
core, recently completed geophysical inversions and the application of machine-learning
technology. Modelling of the brownfield environment suggests the presence of high-grade, feeder
zones to the gold mineralization at the No rth Stock diatreme-hosted deposit. These deep feeder
zones are thought to be structural conduits that have focused intrusive activity, mineralizing fluids
and gold mineralization. Alteration is typically moderate to intense within and approaching the
corridors, consisting of adularia -carbonate-sericite and high temperature clays (montmorillonite-
illite). The establishment of deposit scale zonation has been a critical step in vectoring towards drill
targets within this large gold system.
Drill Target Descriptions (See Figures 2-3)
The South Deep target is located on the southeast flank of the North Stock deposit . The target is
600 metres in length, 125 metres wide and at a depth of 800 to 1,500 metres . It is associated with
multiple strong, sub-vertical, resistivity gradients and hosts numerous gold mineralized feldspar
porphyry and monzodiorite dykes. Historic drilling up-dip of the target area indicates the presence
of high-grade zones of gold mineralization such as RSC -027 which intersected 2.49 g/t Au over
22.9 metres in an altered interval of monolithic schist breccia, heterolithic volcanic breccia and
feldspar porphyry. Alteration of this interval consists of intense, vuggy adularia with sericite-
montmorillonite-illite-carbonate. Additional mineralized highlights include gold values as high as
7.20 g/t Au in the volcanic breccia, 3.12 g/t Au in the feldspar porphyry dikes and 2.97 g/t Au in
the host schist.
The North Deep target is located directly beneath the North Stock deposit. The target is 700 metres
long, 100 metres wide and at a depth of 800 to 1,500 metres. It is directly associated with the North
Stock diatreme and diatreme contact, has a strong sub-vertical resistivity gradient and is related to
phonolite and feldspar porphyry intrusive bodies. No historic deep drilling has tested this corridor,
although at shallow to intermediate depths it hosts the North Stock gold deposit and associated
moderate to intense adularia with carbonate-sericite-montmorillonite alteration.
The North Diatreme target is focused along the northern contact of the North Stock diatreme and
has seen limited historic drilling. It extends for approximately 1 kilometre along strike of the North
Stock deposit and is associated with a strong resistivity gradient and anomalous gold- in-soil
geochemistry. Initial drill testing proposes to test the target at shallow to intermediate depths (100
to 500 metres).
The Middle Ground target may be prioritized based on furth er evaluation and results from initial
drilling of the North and South Deep targets. The target is located at the southwestern extent of the
South Deep target, at the intersection with a series of prominent, northwest-oriented structures.
3
Historic drilling of the target at shallow depths (<300 metres) has intercepted feldspar porphyry
dikes, monolithic schist breccia and carbonate breccia with associated Au +/- Cu-Mo-Bi. Highlights
in this area include hole RSR-011 which returned 0.59 g/t Au over 53.3 metres, bottoming in 1.00
g/t over 10.7 metres and RSC-169 which returned 0.40 g/t Au over 21.8 metres.
The greenfield drilling program, which may consist of up to 1,000 metres in two to four holes, will
test new targets in the northern portion of the C ompany’s 135 square k ilometre property. The
targets share geological similarities with the mineralization seen at North Stock including Tertiary
rocks intruding Precambrian host rocks, the presence of heterolithic volcanic breccias and pervasive
potassic alteration. Geophysical inversions of the gravity , airborne magnetic and VTEM surveys
have been completed. Greenfield target prioritization will be based on results of a planned summer
field program with drilling to be completed towards the end of the proposed drill program.
The drill program is expected to be completed by the end of October 2019. T he Company
anticipates receiving the initial drill results late in the third quarter or fourth quarter.
In conjunction with the Rattlesnake Hills Gold Project drill program, the Company continues to
advance the Pen Gold Project, located west of the prolific Timmins Gold district, with an extensive
summer field exploration program consisting of regional till sampling, ground geophysics,
prospecting and mapping with a plan to resume drilling late in the third quarter of 2019.
Figure 1: Brownfield Drill Targets in Plan View Map
Figure 2: North-South Cross Section Map of Brownfield Targets
Figure 3: Northwest-Southeast Cross Section Map of Brownfield Targets
Qualified Person
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 the respective core intervals, sampling and QA/QC
procedures and results thereof as verification of the historical drilling data disclosed above and has
approved the information contained in this news release.
Quality Assurance and Quality Control
The quality assurance and quality control measures utilized by Evolving Gold Corp. in respect of
the historical drilling data disclosed above included the following: drill hole intervals were
weighted averages with each assay interval weighted according to the core length. Rigorous quality
assurance and quality control procedures were implemented including routine insertion of internal
standard reference materials, certified reference materials, blank material and duplicate samples
from both crush and pulp material. Gold assays were completed by SGS Canada Inc. in Toronto,
using a 30-gram charge, fire assay, with an ICP finish. SGS Canada laboratory in Toronto is ISO
accredited. GFG Resources follows similar measures for reporting drill assays and insertion of
blanks and standards. Gold assays for GFG are performed by Bureau Veritas using a 30g Fire
Assay with an AAS finish.
Gold intervals reported in this news release are based on a 0.20 g/t or 0.50 g/t Au cutoff. Weighted
averaging has been used to calculate all reported intervals. True widths are estimated at 60 -100%
of drilled thicknesses.
About GFG Resources Inc.
4
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
have the same geological s etting 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 St ates 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 Pen Gold Project and the Dore Gold Project is not necessary
indicative of the geological setting, alteration and mineralization o f 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 i n
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 prov iding 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.
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
5
Stay Connected with Us
Twitter: https://twitter.com/gfgresources
LinkedIn: https://www.linkedin.com/company/gfgresources/
Facebook: https://www.facebook.com/GFGResourcesInc/