GFG Expands and Identifies New Gold Anomalies and Completes Phase 1 Drill Program at the Pen Gold Project West of Timmins, ON
Media Release
Release: Immediate
GFG Expands and Identifies New Gold Anomalies and
Completes Phase 1 Drill Program at the Pen Gold Project West
of Timmins, ON
April 24, 2019, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSXV: GFG )
(OTCQB: GFGSF) (“GFG” or the “Company”) is pleased to announce the results from its Phase
2 regional till sampling program which has successfully confirmed and extended regional gold
targets and outlined new highly prospective areas at its 100% owned Pen Gold Project (“Project”)
in Ontario, Canada. The Project is located 40 kilometres west of the prolific Timmins Gold Camp
and is part of a consolidated, underexplored land package of approximately 680 square kilometres
that includes the Dore Gold Project.
Highlights:
• Follow-up sampling 200 metres (“m”) up-ice of the Slate Rock anomaly encountered a
significant increase in gold grain counts, to 220 gold grains, of which 83% were pristine
shaped, signaling the sample may be close to the source of gold mineralization – initial
drilling in this region has just been completed in the Phase 1 drill program;
• Follow-up sampling in the Jehann region verified and expanded the gold anomaly 425 m
northeast with multiple results returning above threshold anomalies and highlighted by 93
gold grains of which 80% were pristine shaped;
• Widely-spaced till samples were taken in the Reeves region and returned highly anomalous
counts of pristine gold grains with a peak anomaly of 91 gold grains of which 78% were
pristine shaped; and
• The Company has completed the 2019 Phase 1 drill program consisting of 4,400 m from
15 holes testing targets in the Jehann, Reeves, Slate Rock and Deerfoot regions. Results
are anticipated to be released during Q2 2019.
Brian Skanderbeg, President and CEO, commented, “ These recent till sampling results reinforce
the prospectivity of the region with increased counts of highly pristine gold grains. We are excited
that follow-up sampling results in the Slate Rock and Jehann areas generated stronger anomalies,
giving us confidence that we may be closing in on the bedrock source. The results also demonstrate
how underexplored our land package is. With very limited outcrop on the Pen Gold Project, the till
sampling program is generating new targets that we would not have identified with traditional
exploration techniques. With a strong geological model of the district, numerous prospective targets
and a successful first drill program includ ing a new discovery in hand, we are confident that we
will continue to discover new zones of gold mineralization.”
Till Sampling Explained – A Useful Regional Geochemistry Tool for Targeting
In 2017 and 2018, the Company consolidated the 475 square kilometre Pen Gold Project with the
belief that the property had significant potential to host multiple gold deposits. Due to its large size
and that less than 5% of the property has exposed bedrock, the Company prioritized till sampling
to identify regional gold targets. Till is a sediment deposited on the surface during glaciation and
typically contains fragments reflective of near-by bedrock. The main objective of the till sampling
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program is to identify highly anomalous numbers of pristine gold grains that are indicative of
significant undiscovered mineralization in areas of limited exposure. Till sampling has never been
broadly utilized in this area and th e technique provides a new layer of data that is vital to define
new exploration targets. See Figure 1 for a basic depiction of glacial till processes.
The results of the 2018 till sampling programs ranged from 0 up to 250 gold grains per till sample.
Based on the analysis of the distribution of gold grains collected at the Project, it was determined
the background number of gold grains in a 10 kilogram till sample was 20 gold grain s, and the
significant anomaly threshold was determined to be 30 gold grains per 10 kilogram till sample.
Phase 2 Till Sampling Results
The Phase 2 till sampling program completed during the fall of 2018 aimed to refine gold anomalies
identified during Phase 1 sampling at Slate Rock, Jehann, Hoodoo, Chabot and Deerfoot (see news
release “GFG Outlines 5 Priority Targets from Regional Till Sampling Program at the Pen Gold
Project Near Timmins, ON”) and to extend regional coverage over large unsampled areas (Reeves
and Broadway). Of the 467 sites sampled to date from across the 475 square kilometre property ,
70 till samples have values that exceed regional background of 20 gold grains. These anomalous
samples are grouped into 6 regional target areas: Jehann, Reeves, Deerfoot, Chabot, Slate Rock ,
Hoodoo and Broadway (see Figures 2 and 3).
The Phase 2 program successfully verified highly anomalous grain counts at Jehann and Slate Rock
returning values up to 93 and 220 gold grains, respectively. Importantly, as with the original
samples at these locations, a high percentage of pristine gold grain shapes suggest a nearby
mineralized bedrock source which is supported by the relatively thin layer of till and overburden,
1 to 20 m, that cover the area. The Company also completed a first pass till sampling program
confirming the regional prospectivity of the Reeves area returning highly anomalous numbers of
gold grains (78 pristine grains).
Jehann
In the eastern portion of the property at Jehann, a follow-up till sample collected 4 25 m to the
northeast of the original anomalous sample returned a highly anomalous 93 gold grains, 80% of
which have pristine shapes (see Figure 2). Combined with Phase 1 results of up to 250 gold grains,
the anomaly now extends over approximately 1.5 k ilometres in strike length. Evaluation of the
corresponding geochemical data reveals that the gold grain anomalies are also elevated in silver,
tellurium and bismuth consistent with nearby bedrock samples. As part of the Phase 1 drill program,
several holes were completed to test various structural orientations in this area that hosts multiple
splays of the Porcupine-Destor Fault Zone.
Slate Rock
In the western portion of the property, at Slate Rock, a 5-kilometre-long till gold grain anomaly is
associated with the intersection of a first-order regional shear zone and northeast-trending second-
order shear zones (see Figure 3). Phase 2 till sampling extended the previously identified anomaly
200 m up-ice to the northeast returning 220 gold grain s, 84 % of which have pristine shapes
suggesting that the bedrock source may be near the sample . Several altered and mineralized
porphyry intrusives occur in the area with historic rock samples returned up to 4.81 grams of gold
per tonne (“ g/t Au”) in outcrop, up to 18.10 g/t Au in boulders, and up to 1.3 g/t Au over 1.4 m in
drill core. The Phase 1 2019 drill program tested this regional target at several locations to identify
the bedrock source to the anomaly in this area of extensive till cover. There has been one historic
drill hole testing this target area that is 2 by 2 kilometres in size.
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Reeves
In the Reeves area, regionally-spaced till samples have returned highly anomalous counts of pristine
gold grains (91 gold grains; 78% pristine) confirming regional prospectivity (see Figure 2). This
area is of particular geological interest due to the presence of multiple northeast to east trending
structural corridors that contain quartz -feldspar porphyry intrusions and deformed polymictic
conglomerate horizons believed to be correlative to Timiskaming conglomerates. Similar structures
mark important mineralizing corridors within the central Timmins gold camp. In the recently
completed 2019 Phase 1 drill program , several holes were drilled to test various structural,
geophysical and alteration signatures in the vicinity of this till anomaly.
Deerfoot
Within the Deerfoot target area, till samples collected during the initial phase of sampling returned
up to 72 pristine gold grain s (>80% of total grain count). This highly anomalous sample was
collected 900 m to the south of gold mineralization at the Sewell Prospect confirming a southward
till transport direction (see Figure 2). Historic drilling of this occurrence returned values up to 60.2
g/t Au over 1.3 m associated with pyrite-bearing quartz veins in sheared mafic intrusive rocks. The
recently discovered g old zone at Crawford which returned 21.26 g/t Au over 1.7 m (see 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”) is also located within the Deerfoot region exemplifying the prospectivity
of the area. IP survey results are currently being re-processed and re-evaluated to identify additional
drill targets in this area of limited rock exposure.
Chabot
At Chabot, in the southeast part of the P roject, till samples collected during the initial phase of
sampling define a 2-kilometre trend of anomalous pristine gold grain counts. The northern end of
the anomalous area includes 3 samples with more than 30 gold grain s with greater than 80% of
those grains having pristine shapes. Historic drilling in the immediate area returned gold values of
0.5 g/t Au over 7.0 m however some of the anomalous till samples are located further to the north
suggesting that the bedrock source has not yet been located and further data review , till sampling
and prospecting is justified. Approximately 2 kilometres to the east , historic intercepts of up to
31.54 g/t Au over 1.53 m have been reported confirming the existence of high-grade mineralization
in this part of the property. Historic gold showings in this area can also be elevated in zinc, silver
and lead which is a distinct association from most other areas on the property suggesting a different
mineralizing event potentially of the volcanic-associated massive sulphide deposit type.
Hoodoo
To the southeast at Hoodoo, a number of widely-spaced till samples returned high counts of-pristine
gold grains associated with two parallel, first and second-order shear zones. The results near the
historic Joburke gold mine serve to validate till sampling as an effective property -scale target
identification tool as well as outline the down- ice (to the south) dispersion train from an existing
deposit located off the Project.
Broadway
In the northeastern part of the Project, the phase 2 till program returned a highly anomalous sample
containing 57 gold grains of which 77% have pristine shapes. A possible source for this anomaly
could relate to gold showings associated with north- trending shear zone(s) located 1 kilometre to
the north where surface grab samples of carbonate-altered and quartz-veined diorite returned up to
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3.93 g/t Au. Follow -up prospecting and till sampling will be conducted during the upcoming
summer program.
Phase 1 Drill Program Update
The Company has recently completed its 2019 Phase 1 drill program on the Project. The drill
program consisted of 4, 400 m in 15 holes testing targets in the Slate Rock, Jehann, Reeves and
Deerfoot regions. Due to favorable conditions the Company was able to follow-up on the Crawford
discovery (see 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 ”). Assays are pending on all completed holes and the
Company anticipates providing an update on the results during Q2 2019.
Outlook
At the Pen Gold Project, the Company will now begin its 2019 surface exploration programs which
will include additional regional till s ampling, ground geophysics, prospecting and mapping .
Prioritization and refinement of targets, at all scales, will occur throughout the year as further results
and interpretations are completed. The Phase 2 drill program of approximately 3,500 m is expected
to begin in the fall of 2019.
At the Rattlesnake Hills Gold Project in Wyoming, U.S., the Company is working with its JV
partner, Newcrest Mining Ltd., on re -modeling the district and deposit -scale geological and
geophysical data, to drive both deep and greenfield drill targeting. As part of this process, the
Company is currently applying Corescan technology to historic deep drill holes and innovative
machine-learning technology to constrain geochemical and mineralogical vectors related to gold
mineralization to further refine deep drill targets. The Company plans to provide a detailed
summary of the 2019 exploration activities in Q2 with an aggressive drill program anticipated to
begin in early Q3 2019.
Figure 1: Schematic map of the till sampling processes
Figure 2: Till sampling results from the east block of the Pen Gold Project
Figure 3: Till sampling results from the west block of the Pen Gold Project
Qualified Persons
Brian Skanderbeg, P.Geo. and M.Sc., President and C EO, 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 approved 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 3 ppm Au are being routinely re -run using gravimetric finish
(Package FA550). Mineralized zones containing visible gold will also be analyzed by screen
metallic fire assay. Selected rock samples will also be submitted for multi-element analysis for 59
other elements using a four-acid digestion and an ICP-MS finish (Package MA250) which is being
done in Vancouver, British Columbia. Quality control and assurance measures include the
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monitoring of results for inserted certified reference materials, coarse blanks and preparation
duplicates of drill core.
Till Samples were collected from hand-dug pits at depths up to 1.2 metres in a grid pattern with
nominal spacing of 500 by 1000m in areas of till cover. Geochemical samples (~2 kilograms) were
sieved to minus 230 mesh and analyzed for gold and multi -element using an aqua regia digestion
and ICP-ES/MS finish by Bureau Veritas Commodities Canada Ltd. in Vancouver in facilities
accredited by the Standards Council of Canada. Gold grains were separated from bulk till samples
(~10 kilograms) at IOS Services Geoscientifiques Inc. u sing their ArtPhot optical recognition
methodology. Composition of separated gold grain s were confirmed using a Scanning Electron
Microscope. Comparison of geochemical results with accepted values for inserted certified
reference materials confirms the accuracy of gold concentration results. Following convention and
to account for different proportions of coarse cobbles and rock fragments in each sample, till gold
grain counts have been normalized to 7.5 kilograms of sieved material.
Sampling protocols, quality control and assurance measures and geochemical results related to
historic till, 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 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 proje cts, 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 setting that hosts most of the gold deposits found in the Timmins Gold
Camp wh ich 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 see n 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.
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.
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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:
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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