GFG Outlines Aggressive Exploration Program at Rattlesnake Hills Gold Project, Wyoming
Media Release
Release: Immediate
GFG Outlines Aggressive Exploration Program at Rattlesnake
Hills Gold Project, Wyoming
June 27, 2017, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX-V: GFG)
(OTCQB: GFGSF) (“GFG” or the “Company”) outlines an aggressive 2017 exploration
program at its 100% controlled, 33,500-acre Rattlesnake Hills Gold Project in central Wyoming,
United States. The fully funded, U.S.$4.0 million exploration program will consist of
approximately 50 holes or 15,000 metres of drilling focused on four brownfield targets and six
greenfield targets, additional soil and rock sampling and metallurg ical testwork. Drilling is
scheduled to begin in early July and will run through November 2017.
With the recent land consolidation of the Rattlesnake Hills District, t he Company is taking a
district approach to its 2017 exploration program which is designed to meet the following
objectives:
1. Expand the strike and explore for off -set extensions of the known mineralized trends at
North Stock and Antelope Basin which includes further testing the linkage between the
two deposits;
2. Follow-up on and test the strike and depth continuity of the 2016 discovery at the
Cowboy target (Hole RSC-185: 0.84 grams of gold per tonne (g/t Au) over 38.1 metres);
3. Further test a large (400 metre by 750 metre) gold, silver and arsenic (“Au-Ag-As”) soil
anomaly at Blackjack and test the strike extension of Hole NVJ -001: 1.33 g/t Au over
33.5 metres;
4. Test six high priority, kilometre-scale greenfield targets to discover new zones of gold
mineralization; and
5. Complete further soil and rock geochemistry and metallurgical testwork to develop a
maiden resource in H1 of 2018.
Brian Skanderbeg, President and CEO commented, “We are excited to take an aggressive
exploration approach to a district that we believe is highly prospective and regionally untested.
The 2017 program will include both brownfield and greenfield exploration with the objective to
expand the areas of known mineralization and to discover new zones of gold mineralization
within our 135 km2 property. Our technical team has significant alkaline gold deposit experie nce
and is applying similar strategies that successfully added over si x million ounces in resources in
the Cripple Creek Min ing District. Following this year’s program , we will have nearly 100,000
metres of drilling in the district and will work to develop the first ever mineral resource in the
Rattlesnake Hills District. Timing of a maiden resource is expect ed to be completed in the first
half of 2018.”
2017 Drill Program Outline
2
Brownfield Exploration
The majority of the 2017 exploration program (approximately 35 holes, 10,000 metres) will focus
on brownfield targets proximal to the North Stock and Antelope Basin deposits and at the
Blackjack target.
To view a map of the brownfield targets around the North Stock and Antelope Basin deposits,
click here.
North Stock and Antelope Basin
Drilling around the North Stock and Antelope Basin deposits is designed to test extensions of the
known mineralization, including the area in between the two deposits where previous intercepts
demonstrate the potential to link North Stock and Antelope Basin. Drilling will also test the
western extension of the North Stock deposit across a modelled northwest -oriented fault system
as well as the eastern extension where historic drilling in 2009 intercepted heterolithic breccia
hosting up to 21.3 metres at 2.60 g/t Au. As demonstrate d in Table 1, historic drilling was
successful at identifying broad zones of gold mineralization and narrow zones of high-grade gold
mineralization at North Stock and Antelope Basin.
Table 1: Selected Highlight Drill Intercepts:
Hole Zone From (m) To (m) Length (m)* Au (g/t)
RSC-007 North Stock 108.20 344.36 236.16 1.85
RSC-039 North Stock 25.91 176.78 150.88 2.08
RSC-042 Antelope Basin 147.83 224.03 76.20 1.91
RSC-089 North Stock 83.82 213.36 129.54 2.08
RSC-132 North Stock 112.78 329.18 216.41 1.58
RSC-141 North Stock 30.48 172.21 141.73 1.90
RSC-145 North Stock 204.22 281.94 77.72 4.20
Incl. 239.27 240.79 1.52 128.00
*Gold intervals reported in the above table 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.
The drilling at North Stock and Antelope Basin will be integrated with the historic results and is
expected to be included in the Company’s maiden National Instrument 43 -101 (“NI 43 -101”)
resource estimate in 2018.
In addition, the Company will follow up on its 2016 step-out hole, RSC-185, that discovered a
new zone of mineralization at the Cowboy target . The discovery hole located 240 metres
northeast of Antelope Basin and 350 metres sout heast of North Stock , returned 0.84 g/t Au over
38.1 metres . Drilling in this area will focus on a 500 -metre-long gold -in-soil and rock
geochemistry anomaly that links to the north contact of South Stock . The Cowboy target area
hosts northeast -trending monzodiorite dykes and intersecting east -west and northeast structural
corridors similar to those observed at Antelope Basin.
South Stock
3
GFG will test several targets in the South Stock target area . The area has seen limited historic
drilling and returned intercepts of up to 9.31 g/t Au over 3.1 metres in hole RSC-180 in 2011. A
strong soil anomaly along the northern margin of South Stock remains untested and is associated
with a cluster of rock grab samples in excess of 1 g/t Au. The geologic setting at South Stock is
similar to that at North Stock and links to the Cowboy target area. The Company will also test a
soil geochemical anomaly associated with the southern contact of South Stock.
Blackjack
Drilling at Blackjack is designed to test the large 400 metre by 750 metre Au-Ag-As soil anomaly
and follow-up on historic drilling. Historic drilling tested only a small portion of the targeted area
and highlights include 1.33 g/t Au over 33.5 metres from surface (Hole NVJ-001) and 0.74 g/t Au
over 13.7 metres (Hole NVJ -008). Gold mineralization at Blackjack is associated with the North
Granite Mountain Fault and hosted within rhyolite breccia and Precambrian granite .
Mineralization at Blackjack remains open at depth, down -dip and along strike and the drill
program is also designed to test the extensions of this mineralization.
Greenfield Exploration
The Company has outlined over 30 gre enfield targets and in 2017 prioritized six of these to drill
test. These targets were generated from historic and recent geophysical and geochemical
programs. Results from the 2016 VTEM survey highlighted several anomalies that are interpreted
to be structures, several of which were previously unknown. This type of geophysical survey and
interpretation was successfully applied in the Cripple Creek Min ing District . T he greenfield
program will consist of approximately 20 holes or 5,000 metres, testing multiple targets that are
located west of North Stock (MGT and Pronghorn), northwest of North Stock (STP, 44 and West
Baldy) and southwest and southeast of the Blackjack area. These target areas are considered
greenfield and have no historic drilling.
To view a map of the greenfield targets, click here.
MGT
The MGT target is located approximately 1.2 k ilometres southeast of North Stock . This target
was derived from a 150 metre by 250 metre gold-arsenic-copper (“Au-As-Cu”) soil anomaly that
is associated with the contact of a trachytic intrusive. The area also hosts banded iron formation
and the intersection of northeast and northwest-oriented structures.
Pronghorn
The Pronghorn target lies 300 to 600 metres west of North Stock. A number of small phonolite
plugs are present and have associated anomalous gold soil and rock geochemistry and mapped
heterolithic breccias. The target is also characterized by a gravity low and gravity gradient
signature consistent with that of North Stock.
West Baldy
The West Baldy target is associated with soil geochemistry that is similar to the Baldy target that
was tested in 2014 by NV Gold. The Baldy target is underlain by a phonolite d yke that intruded
copper-stained, Cambrian quartzites. The West Baldy target is a blind target that is characterized
by a large, circular (nearly 400 metres in diameter) copper-vanadium (“Cu-V”) soil anomaly.
Historic rock samples from the Baldy area contained the highest gold values collected on the
project with values of up to 35.4 g/t Au.
STP
4
The STP target shows strong similarities with and is located 3.5 kilometres northwest of North
Stock. The area hosts several phonolite intrusions that are surrounded by monolithic and
heterolithic volcanic breccias which have been potassically (adularia) altered. These are key
geological markers for gold mineralization in the Rattlesnake Hills and Cripple Creek Districts.
The STP target also hosts a nomalous rock and soil geochemistry , strong northeast -oriented
structures and a favorable gravity signature.
44
The 44 target is l ocated two kilometres west of North Stock and is associated with one of the
largest intrusions in the district, Goat Mountain . The area hosts several Au -As +/ - Cu-V soil
anomalies and occurs in a geologic environment that is similar to N orth Stock. Gravity and
gravity gradient signature as well as the structural setting are favorable to host gold
mineralization.
Blackjack Region
The greenfield drill program in the Blackjack area is designed to test several geophysical
(VTEM) and geochemical anomalies that were generated from the 2016 program and are outside
the main 400 metre by 750 metre soil anomaly. The Company will also test proximal to the North
Granite Mountain Fault, as the structural setting is conducive to host gold mineralization.
In addition to the drill program, further geochemical and metallurgical testwork will be
completed. A pproximately 800 soil samples will be collected to infill a reas where soil
geochemistry was never completed.
To support the Company’s plan to provide a NI 43-101 resource estimate, further metallurgical
studies will be completed which include historic pulps from previous drill campaigns available at
the Company’s facility in Casper, Wyoming. The Company plans to provide a NI 43-101
compliant resource in the first half of 2018.
Brian Skanderbeg, P.Geo. and M.Sc., President and CEO, 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.
GFG Resources Inc. is a publicly traded precious metals exploration company headquartered in
Saskatoon, Saskatchewan, Canada, whose shares trade on the TSX Venture Exchange (GFG) and
on the OTCQB (GFGSF) . The Company controls 100% of the Rattlesnake Hills Gold Project, a
district scale gold exploration project loc ated approximately 100 kilometres southwest of Casper,
Wyoming, U.S. 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 m etallurgical test work, permitting time lines,
currency exchange rate fluctuations, requirements for additional capital, government regulation of exploration work, environm ental
risks, unanticipated reclamation expenses, title disputes or claims and limita tions 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”, “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.
5
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 recei ve required permits and access to surface rights, that
the Company can access financing, appropriate equipment and sufficient labour, and that the political environment within the United
States will continue to support the development of mining projects in the United States. In addition, the similarity or proximity of
other gold deposits of the Rocky Mountain alkaline province to the Rattlesnake Hill Gold Project is not necessary indicative of the
geological setting, alteration and mineralization of the Rattlesnake Hills 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 thos e expressed or implied by such forward -
looking statements, including but not limited to: actual results of current exploration activities; environmental risks; fut ure 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 c ould cause actual results to differ materially from those contained 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 expectation s 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 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