GFG Finalizes Montclerg Gold Project Acquisition and Initiates Aggressive Exploration Program
Media Release
Release: Immediate
GFG Finalizes Montclerg Gold Project Acquisition and
Initiates Aggressive Exploration Program
October 25, 2021, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSXV: GFG)
(OTCQB: GFGSF) (“GFG” or the “Company”) announces that the Company has completed its
initial obligations pursuant to its previously announced definitive agreement (the “Agreement”)
with International Explorers and Prospectors Inc. (“IEP”) to acquire a 100% interest in the
Montclerg Gold Project (and/or the “Project”) (see news release: “ GFG Expands Presence in
Timmins - Acquires the Montclerg Gold Project East of the Prolific Timmins Gold District”). Under
the terms of the Agreement, GFG has the right to acquire 100% of the Project by completing a
series of staged equity paym ents, transferring assessment credits and spending C$1.0 million in
exploration expenditures over the next 24 months.
The Montclerg Gold Pro ject is located 48 kilometres (“km”) east of the prolific Timmins Gold
Camp (See Figure 1 ) and consists of five pa tented mining claims and 110 unpatented mining
claims. The land tenure includes 10 km of the highly prospective Pipestone Deformation Zone
(See Figure 2) which hosts multiple gold deposits and mines in one of the most prolific gold
districts in the world.
“This acquisition fits our strategy of exploring in top tier jurisdictions, leverages our skill set and
local Timmins team , lowers our exploration risk and encompasses a system with scale and
numerous advanced drill targets”, stated Brian Skanderbeg, President and CEO of GFG. “Before
year-end, w e plan to complete a resampling program of historic core, drone geophysics and
approximately 3,000 metres of drilling from our current cash on hand. With the combination of our
Timmins exploration programs and the on-going advancements at our Rattlesnake Hills Gold
Project with our partners Group 11 Technologies, we anticipate an exciting and catalyst-rich news
flow for the remainder of this year and 2022.”
Montclerg Gold Project Details
The Montclerg Gold Project overlaps the Pipestone D eformation Zone, a major northern splay of
the Porcupine Destor Deformation Zone, approximately 8.5 km east of Grace Gold’s Clavos gold
deposit and 37 km west of Mayfair Resources’ Fen-Gibb gold deposit. The two gold prospects at
the Montclerg Gold Project, MC and CX, occur north of and within the Pipestone Deformation
Zone, respectively, and are associated with east -northeast trending fault zones that bisect the
metasedimentary, felsic volcanic, mafic volcanic and felsic porphyry rocks of the area.
Since the discovery of gold at the MC prospect in 1938, a total of 19,730 metres (“m”) have been
drilled in 96 holes that sporadically test the trend over a 1.5 km strike length. The vast majority of
holes, approximately 80, were drilled prior to 1967 and focused on depths of less than 150 m.
These historic holes were not sampled completely with only the mo st intensely veined intervals
assayed.
Drilling in 2016 demonstrated the existence of up to five separate gold zo nes within the MC
prospect. Drill core shows three upper zones with composite grade and thickness on the order of
0.74 grams of gold per tonne (“ g/t Au”) over 124.5 m(1). Two deeper zones were intersected in
several drill holes that tested the mafic volcanic footwall stratigraphy. These two deeper zones are
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higher grade and have returned up to 3.69 g/t Au over 7.4 m (including 9.23 g/t Au over 2.2 m) and
6.05 g/t Au over 2.0 m (1). Broadly spaced drilling indicates this footwall system extends over a
strike length of 175 m and remains open across the property. The Company notes that a qualified
person has not verified the data disclosed in respect of the property, including sampling, analytical
and test data underlying this information. The data comes from historic reports prepared by
previous owners.
The CX prospect, occurring about 350 m south of the MC prospect , is hosted directly within the
Pipestone Deformation Zone and was first drilled in 1987. A total of 4,700 m has been drilled in
23 holes that test portions of the 1.2 km trend at depths of less than 200 m. The geology and
character of mineralization is analogous to the Clavos gold deposit with the mineralization at CX
occurring in close proximity to a quartz-feldspar porphyry body that intruded along the contact of
the metasedimentary and ultramafic rocks.
Both the MC and CX prospects have only been drilled sporadically along strike and have only been
tested to shallow depths (<200 m vertical) (See Figure 3). They remain open at depth and along
strike. Importantly, the deeper high- grade zone s at the MC prospect demonstrate the high
prospectivity of the footwall mafic volcanic rocks . See Table 1 for a list of selected highlighted
historic drill results(1).
Table 1: Select Highlighted Historic Drill Holes from the Montclerg Gold Project(1)
Hole From To Length Au g/t Area
MON-16-01 24.0 148.5 124.5 0.74 MC Central
incl. 40.5 81.0 40.5 1.20 MC Central
incl. 54.0 79.5 25.5 1.53 MC Central
and incl. 121.5 145.5 24.0 0.88 MC Central
and 294.6 297.0 2.4 3.28 MC Central
MAT-06-07 324.6 332.0 7.4 3.69 MC Central
incl. 324.6 326.9 2.2 9.23 MC Central
and 369.3 371.3 2.0 6.05 MC Central
MON-07-01 48.6 60.0 11.3 1.76 MC West
and 65.4 73.7 8.3 1.92 MC West
and 126.0 134.0 8.0 2.66 MC West
CMX13 58.0 59.0 1.0 3.98 CX Central
and 63.0 69.0 6.0 1.20 CX Central
and 82.0 87.0 5.0 4.11 CX Central
incl. 85.0 86.0 1.0 16.95 CX Central
(1) Drill intercepts are historical and presented using a 0.20 g/t Au cut -off and as drilled length.
Composites include internal dilution of 0.0 to 10.0 m at grades less than 0.10 g/t Au. True width is
estimated to be 50 to 90% of drilled length. GFG’s QP has not verified the laboratory accreditation,
analytical method, sample size or QA/QC procedures utilized for the historic drill results.
Potential quantity and grade is conceptual in nature. There has been insufficient exploration to
define a Mineral Resource on the Project to date and it is uncertain if further exploration will result
in the Project being defined as a Mineral Resource.
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Terms of the Agreement
Under the terms of the Agreement, GFG has a right to earn 100% interest in the Project, subject to
a net smelter return royalty of up to 2% on certain of the claims, by:
• The issuance of an aggregate of 7,423,905 common shares of GFG (the “Initial Shares”),
valued at C$1.0 million based on the volume weighted average pricing of such common
shares on the TSX Venture Exchange (the “VWAP”) for the five trading days immediately
preceding the date of announcement of the Agreement, which Initial Shares have been
issued;
• The issuance of common shares of GFG 12 months following the date of the Agreement,
valued at C$500,000, based on the VWAP for the five trading days immediately preceding
the 12-month anniversary of the Agreement;
• The issuance of common shares of GFG 24 mo nths following the date of the Agreement,
valued at C$500,000, based on the VWAP for the five trading days immediately preceding
the 24-month anniversary of the Agreement;
• Spend a minimum of C$1.0 million in exploration expenditures over 24 months on the
Project following the date of the Agreement; and
• GFG will transfer C$1.0 million in assessment credits of which, C$500,000 will be
transferred to IEP within 6 months following the date of the Agreement and the remaining
C$500,000 will be transferred 18 months following the date of the Agreement.
A maximum of 8,888,889 common shares of GFG may be issued pursuant to the Agreement,
exclusive of the Initial Shares. All common shares issuable pursuant to the Agreement will be
subject to a statutory four month hold period (which, with respect to the Initial Shares, shall expire
on February 23, 2022) and an agreed upon lock-up agreement with IEP.
Figure 1: Regional Map of GFG Gold Projects
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Figure 2: Montclerg Gold Project Geology Map with Historic Drill Holes
Figure 3: Montclerg Gold Project Cross Section Map
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 projects, two large and highly prospective gold properties
west of the prolific gold district of Timmins, Ontario, Canada. The Pen and Dore gold 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. In Wyoming, the Company has partnered
with Group 11 Technologies Inc. through an option and earn- in agreement to advance the
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Company’s Rattlesnake Hills Gold Project with disruption 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:
GFG Resources Inc.
Brian Skanderbeg, President & CEO
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: [email protected]
Website: www.gfgresources.com
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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.
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 re viewed and approved the technical info rmation contained in this
news 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 satisfaction of remaining conditions to be satisfied pursuant to the Agreement
and proposed activities thereunder (the “ Transaction”), exploration plans for the Project and expected results , 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. Generally, these forward -looking statements can be identi fied 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; the prospective
nature of the Project, that all conditions precedent to the acquisition of the Project , 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 e xpressed or implied by such forward -
looking statements, including but not limited to: risks and uncertainties related to the acquisition of the Project 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 obt aining
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 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 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 assume no obligation to update any forward -
looking statements, except as required by applicable laws.