GFG Identifies New Gold Target with up to 7 g/t Gold and Expands Slate Rock Target at the Pen Gold Project West of
Media Release
Release: Immediate
GFG Identifies New Gold Target with up to 7 g/t Gold and
Expands Slate Rock Target at the Pen Gold Project West of
Timmins, ON
December 9, 2019, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSXV: GFG )
(OTCQB: GFGSF) (“GFG” or the “ Company”) is pleased to announce the results from its
recently completed regional prospecting program which has successfully extended existing
regional gold targets and outlined new highly prospective areas at its 100% owned Pen Gold Project
(“Project”) in Ontario, Canada (see Figures 1-3). The Project is located 40 kilometres west of the
prolific Timmins Gold District and is part of a consolidated , underexplored land package of
approximately 680 square kilometres that includes the Dore Gold Project . Over the next five
months, the Company plans to drill approximately 6,500 metres at the Pen Gold Project.
Brian Skanderbeg, President and CEO, commented, “We are very encouraged by these results as
they expand current prospects and outline new kilometre scale targets that have never been drill
tested. The fact that we can identify a target like Boundary after decades of historic exploration
efforts on this property is exciting and demonstrates the opportunities that exist on this very large,
underexplored property.”
Surface Prospecting Results
In its 2019 regional prospecting program, t he Company collected 1, 395 rock grab and channel
samples to assess the prospectivity of priority target areas derived from the integration of
geological, structural and geochemical data . Recent p rospecting efforts have resulted in the
identification of a new mineralized trend (termed ‘Boundary’) and the confirmation of the regional
extent of the mineralized system at Slate Rock (see Figures 1-3). These two mineralized trends are
over 20 kilometres apart and located in the east and west block of the Project respectively.
In addition to the rock samples, the Company collected 165 regional and infill till samples on the
Project. The Company expect s to receive the results from the till sampling program in the first
quarter of 2020.
Boundary Target
The newly identified Boundary target was prioritized for prospecting due to the coincidence of a
regional till gold grain anomaly with an area of favorable structural complexity interpreted from
airborne magnetics.
Prospecting has identified several new gold occurrences along a three kilometre trend (see Figure
2). At eight different locations, grab samples collected from outcrop returned values in excess of
1.0 grams per tonne gold (“g/t Au”). The highest assay from the Boundary target to date is 6.98 g/t
Au. The primary host to gold mineralization at each of the showings is sheared, carbonate-chlorite
altered and pyrite -bearing mafic volcanic rock that is variably dissected by quartz- carbonate
veining. Structurally, the east-west trending Boundary deformation zone likely represents a splay
off the Porcupine Destor Fault Zone which occurs approximately 1.2 kilometres to the south.
Till samples collected in 2018 returned anomalous counts of pristine gold grains (> 20 grains) over
a wide area with values up to 250 gra ins from 1.5 kilometres down- ice at Jehann East (see news
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release “GFG Outlines 5 Priority Targets from Regional Till Sampling Program at the Pen Gold
Project Near Timmins, ON ”). An a dditional 35 till samples (results pending) were collected in
2019 to help target along this largely till-covered trend.
Further work, including overburden stripping, prospecting and structural mapping, will be
completed to assess the showings and prioritize them for drilling in 2020.
Slate Rock Target
The Slate Rock target in the west block of the Project now extends for over four kilometres and is
another highly prospective and underexplored regional target (see Figure 3) . Following up on a
regional till gold grain anomaly and targeting a magnetite -bearing intrusive body known to host
gold mineralization, the Company intersected 0.47 g/t Au over 25.3 metres during its
reconnaissance drill program in the first quarter of 2019 (see news release: “ GFG Hits Gold
Mineralization at Slate Rock and Crawford Targets at the Pen Gold Project West of Timmins,
ON”). The potential of the area is evident from historic prospecting samples which returned up to
18.10 g/t Au from several metre-scale, glacially transported boulders.
Prospecting along strike to the east and west has confirmed and extended the gold mineralized
system over four kilometres at Slate Rock. Prospecting on the western flank of the Slate Rock target
outlined carbonate-sericite altered diorite porphyry with quartz stockwork veins and disseminated
pyrite returned up to 4.00 g/t Au from grab samples and 1.96 g/t Au from an 80-centimetre channel
sample. Approximately three kilometres to the east where till cover becomes more extensive, grab
samples from outcrop of weakly altered diorite with millimeter-scale black quartz-chlorite veinlets
and disseminated pyrite returned up to 2.85 g/t Au. Neither of these areas have seen any drilling
historically.
All geochemical, geophysical and structural data for the four -kilometer long Slate Rock target is
currently under review in order to identify the most prospective areas for drill testing in the first
quarter of 2020.
Other Areas of Interest
The regional prospecting program also returned significant results from other target areas on the
Project including, in the west block, 6.18 g/t Au from a quartz vein boulder north and up-ice of the
past producing Joburke Mine; and, in the east block, 2.12 g/t Au from outcrop of quartz vein cutting
carbonate-sericite altered and deformed mafic volcanic rock west of Sewell Lake: and 4.94 g/t Au
from of altered and deformed mafic volcanic rock outcrop at the Lumbers occurrence. In 2018, a
surface grab sample collected by the Company at Lumbers returned 49.90 g/t Au (see Figure 1).
The Company plans to conduct further geochemical and geophysical work to advance these targets
in 2020.
Outlook
Over the next five months, the Company plans to drill approximately 6,500 metres at the Pen Gold
Project (see news release: “GFG Begins 6,500 Metre Drill Program at its Pen Gold Project West
of Timmins, ON ”). Before year -end 2019, the Company is testing six targets in the Deerfoot,
Tremblay and Reeves regional target areas with approximately 2,500 metres of drilling. Results
from this phase of the drill program are anticipated to be released in the first quarter of 2020.
Figure 1: Regional Map of the Pen Gold Project
Figure 2: Surface sampling results from the Boundary target at the Pen Gold Project
Figure 3: Surface sampling results from the Slate Rock target at the Pen Gold Project
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Qualified Persons
Brian Skanderbeg, P.Geo. and M.Sc., President and CE O, 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 rock samples collected in 2019 were analyzed for gold by Activation Laboratories Ltd. in
Timmins, Ontario using a 50-gram aliquot, Pb collection fire assay and an Atomic Absorption
Spectrometry finish (Package 1A2-50). Samples assaying above 5 ppm Au were re-run using a
gravimetric finish (Package 1A3-50). Selected rock samples were also b e submitted for m ulti-
element analysis using a four -acid digestion and an ICP -MS finish (Package MA250) at Bureau
Veritas Laboratories in Vancouver, British Columbia. Quality control and assurance measures
include the monitoring of results for inserted ce rtified reference materials coarse blanks and
preparation duplicates.
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, Ontar io 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 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.
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 exploration work, environmental ris ks,
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”, “for ecasts”, “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 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 of 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 res ults,
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 not limited to: actual results of current exploration activities; environmental risks; future prices of
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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 an ticipated, 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 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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