GFG Provides Exploration Update and Launches 3,000 Metre Drill Program at Montclerg Gold Project, East of Timmins
Media Release
Release: Immediate
GFG Provides Exploration Update and Launches 3,000 Metre
Drill Program at Montclerg Gold Project, East of Timmins
November 8, 2021, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX-V: GFG)
(OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has initiated its Phase 1 3,000
metre (“m”) drill program testing bulk tonnage and high- grade vein targets at its Montclerg Gold
Project (the “Project” and/or “Montclerg”). Drilling is anticipated to continue into December, with
planning in progress for a more extensive H1 2022 program.
The Montclerg Gold Project is located 48 kilometres (“km”) east of the prolific Timmins Gold
Camp and is adjacent to multiple current and historic gold mines ( See Figure 1 ). The Project
consists of patented and unpatented mining claims that cover 10 km of the highly prospective
Pipestone Deformation Zone ( See Figure 2). GFG recently closed the acquisition of the Project,
and in parallel with the drill program , will advance a systematic exploration program to evaluate
and improve the property scale understanding.
Brian Skanderbeg, President and CEO commented, “We have already made great progress at
Montclerg and are now in a position to begin our Phase 1 drill program. This Phase 1 drilling will
focus on the MC prospect where historic drill campaigns outlined up to five separate gold zones
over a strike length of 1.5 km.”
“The vast majority of the historic drilling was completed prior to 1970 and focused on shallow,
high-grade segments of the system s; typically only sampling material above three grams of gold
per tonne (“g/t Au”) . GFG acquired Montclerg with a view that the property hosts both bulk-
tonnage and high-grade underground potential within a large-scale gold system that remains highly
under-explored. We are excited to begin drilling at Montclerg and combined with catalysts f rom
our activities at both the Pen and Rattlesnake Hills Projects, we are well -positioned to deliver
consistent news flow and value creation.”
Montclerg 2021 Exploration Program
In support of the Montclerg acquisition, the Company undertook a systemat ic approach to
evaluating the Project, specifically focused on building a comprehensive understanding of the gold
systems, ore controls and potential targets. Building upon this work, and to refine drill targets, the
exploration team has already completed significant work, including:
• Completion of a detailed drone magnetic survey covering the core extensions of the MC
and CX trends;
• Property wide compilation of historic geophysical and geochemical data;
• Relogging and sampling of historic drill core; and
• Detailed 3D geological , geochemical and structural modelling of both the MC and CX
targets.
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Montclerg 2021 Drill Program
The 3,000 m Phase 1 drill program will include 10 to 12 holes varying in length from 125 to 400
m testing a strike length of approximately 500 m. The program will systematically test the strike
and dip-extensions of the MC Central and MC East targets and the prospective MC Footwall target
(See Figure 3).
At the MC Central target, drilling is design ed to follow-up on historic d rilling that outlined three
lenses with composite grade and thickness on the order of 0.74 g/ t Au over 124.5 m. Drilling 150
m west of the above hole returned multiple intercepts in individual holes including 46.3 m at 1.43
g/t Au as well as 2.42 g/t Au over 10.7 m, above 100 m vertical depth. These broad zones of sheeted
quartz-veining are hosted in rhyolite and felsic porphyry and are typically associated with
disseminated pyrite and arsenopyrite. Broadly spaced drilling has intercepted these MC Central
zones in excess of 500 m of strike, with 1940’s drilling suggesting strike continuity into the MC
East target for a further 500 m . Significantly, individual historic holes at MC East host stacked,
higher grade intervals of 5.14 g/t Au over 1.89 m, 4.12 g/t Au over 1.74 m, 3.43 g/t Au over 4.0 m
and 2.57 g/t Au over 9.1 m, above 150 m vertical depth. Phase 1 drilling has been prioritized to
confirm and expand the MC Central mineralization and test the continuity for the MC Trend along
strike to the east.
Drilling at the MC Footwall target will be to test two deeper gold zones that were intersected in
several historic drill holes that tested the mafic volcanic footwall stratigraphy (See Figure 2). These
zones are higher grade , shear and vein -hosted with disseminated pyrite -arsenopyrite 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. Broadly spaced drilling indicates th e MC Footwall system extends over a strike length of 175
m and potentia lly an additional 350 m to the west and remains untested and open across the
property. The Company interprets a direct structural relationship between the MC Footwall zones
and the MC porphyry and rhyolite -hosted gold systems. This depth continuity target to the MC
Footwall will be tested as part of the current program.
The Company notes that a qualified person has not verified the data disclosed in respect of the
Project, including sampling, analytical and test data underlying this information. The data comes
from historic reports prepared by previous operators.
Outlook
The Company plans to complete the 3,000 m drill program before year-end 2021 with results
expected to be released in early 2022 based on anticipated assay lab turnaround time. In addition
to the on- going drill program at Montclerg , the Company will continue additional exploration
activities and target development. A more extensive Phase II drill program is in the planning stages
and will commence in Q1 2022.
At the Pen Gold Project, the Company will continue to refine and develop drill targets for 2022 and
is planning a sonic till drilling program in Q1 2022. At this time, the Company is reviewing various
alternatives to advance the Dore Gold Project and will provide further information as it becomes
available.
At the Rattlesnake Hills Gold Project, the Company has partnered with Group 11 Technologies Inc.
(“Group 11”) to apply In-situ Recovery technology to gold mining. Initial metallurgical results
from Stage 1 of the program are in progress with initial results anticipated in Q4 2021. A more
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extensive sampling and testing program is planned for Q1 2022. The Company is optimistic that
the Stage 1 program will demonstrate that the non -cyanide, water-based solution can effectively
recover gold and will be the first step in proving that this technology can be successfully applied to
the gold industry
Figure 1: Regional Map of GFG Gold Projects
Figure 2: Montclerg Gold Project Plan View Map with Geology, Historic Drill Holes and
Targets
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Figure 3: Montclerg Gold Project Cross Section Map
About GFG Resources Inc.
GFG 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 operates
the Montclerg, Pen and Dore gold projects, each large and highly prospective gold properties within
the prolific gold district of Timmins, Ontario, Canada. The 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. The Company also owns 100% of the Ratt lesnake Hills Gold Project, a
district scale gold exploration project located approximately 100 kilometres southwest of Casper,
Wyoming, U.S. In Wyoming, the Company has partnered with Group 11 through an option and
earn-in agreement to advance the Company’s Rattlesnake Hills Gold Project with a 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:
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
Stay Connected with Us
Twitter: @GFGResources
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Qualified Persons
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. 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.
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 0.1 0 g/t Au. True
width is estimated to be 50 to 90% of drilled length.
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.
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 ad ditional capital, government regulation of exploration work, environmental risks,
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”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or the negative
connotation thereof or variatio ns 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 and 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 Proje ct 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 obtai ning 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 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 re sults 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 assumes no obligation to update any forward-
looking statements, except as required by applicable laws.