K2 Gold Provides Exploration and Business Update
Suite 1020 – 800 West Pender St., Vancouver, BC V6C 2V6
K2 Gold Provides Exploration and Business Update
Vancouver, B.C., Canada – January 13, 2020, K2 Gold Corporation (“K2” or the
“Company”) (TSXV:KTO) is a North American mineral exploration company with projects in
California, the Yukon and Alaska.
K2 is pleased to provide the following summary of the progress made by the Company over the
past year and an overview of the planned exploration programs for 2020.
Highlights of the Past Year
• Yukon and Alaska - During the past year, the Company completed exploration fieldwork
programs in the Yukon and Alaska on the GDR, Wels and McArthur properties.
• California - In early July K2 announced an option to acquire 100% of the Mojave gold
project in California.
• At the end of August the Company closed an oversubscribed C$3.5M private placement.
• In October, Jodie Gibson was appointed VP Exploration and commenced working for K2
in December.
• Fieldwork at Mojave commenced in December . The results of Phase 1 of the field
program, which included rock and trench sampling are expected in Q1.
• In conjunction with the exploration program , the land package at Mojave was increased
from 4,569 ha to 5,145 ha to acquire some prospective ground not covered by the
original claims.
Mojave
Mineralization was first discovered at Mojave in the 1980’s in the north west of the property and
subsequently at least eight other gold rich areas have been discovered by various companies
including Newmont and BHP. To date 145 diamond drill holes have been drilled by three
companies: Asamera (113), Newmont (22) and BHP (10) . These programs focused on three
different target areas on the property. Highlights of historical drill results include 13.7m of 2.4 g/t
Au, 53m of 0.55 g/t Au and 99m of 1.1 g/t Au. The best trench result to date is an undrilled
section of the Dragonfly area where 42.7m of 4.2 g/t was reported by Great Bear Resources in
2013. All gold mineralization discovered to date is either at surface or close to surface.
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The qualified person has not verified the drilling data disclosed in this release, including
sampling data and assay results. These data come from historical reports made between 1984
and 2013 by various parties.
A three-month, two-phase, US$350,000 exploration program was initiated at Mojave by K2 in
December 2019. Phase 1 is complete with results pending. Phase 2 will start in mid -January.
The two-phase exploration program comprises hand trenching/channel sampling, rock and soil
sampling, ground magnetics , LiDAR, and a remote sensing spectral study, which will map rock
lithology and alteration. The focus of the exploration is the Newmont and Dragonfly zones that
were previously drilled by Newmont and BHP in the 1980’s and 1990’s . The mineralization is
predominantly surface and near -surface structurally related sediment-hosted oxide gold. The
style of mineralization suggests some zones may have Carlin-type affinities.
To date 384 soil samples, 48 grab/chip samples and 242 channel samples over 29 lines have
been collected and sent to MSA LABS, Vancouver , for gold and multi -element analysis. In
addition to prospecting and sampling, the Company has initiated a ground magnetic survey of
which 46.6 line-kilometres has been completed to date. The Company has also staked a further
576 hectares of ground over 69 claims. A Phase 2 program will comprise additional sampling,
geologic mapping and prospecting, an additional 100 line-km of ground magnetic surveys and
completion of a LiDAR and remote sensing surveys.
Yukon and Alaska Projects
Over the summer , exploration was completed at the GDR silver proper ty and the Wels gold
property in the Yukon. Results for GDR were announced on November 25th. Rock sampling
recovered values up to 936 g/t Ag and 20m of 5.05% Zn in trenching from the MR license block.
Results are still pending for Wels while the Company completes an in -depth compilation study
and review of data collected from the past 6 years which inc ludes soils, trenching and drilling
(1,800m of diamond drilling to date) over a large 3km by 2km target. The Company is still
extremely encouraged by the prospectivity of the Wels gold project and anticipates further
exploration work in 2020 pending the results of the ongoing compilation study.
A 184 sample soil sampling program at McArthur, Alaska returned negative results and the
property will probably be relinquished.
Personnel
Jodie Gibson, MSc, a US citizen and Canadian resident, started with the Company as Vice
President, Exploration in December . Jodie is an experienced geoscientist and a specialist in
Cordilleran terrains. He most recently managed a C $13 million drilling and exploration program
in the Yukon as Vice President of a mid-sized Yukon based exploration company.
In December, the Company also hired Alex Heath as Manager, Corporate Development and
Strategy to assist with Corporate, CSR and marketing requirements as the Company presses
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ahead in California. Alex has extensive capital markets and M&A experience focused on the
mining industry, and is a CFA charterholder.
Summary
K2 is well financed with approximately C$2.8M in cash (January 2020) and is more than
sufficiently funded to undertake the second phase of exploration at Mojave.
Stephen Swatton, CEO of K2 noted: “The acquisition of the Mojave gold project is a significant
strategic shift for the Company, compl ementing our Yukon projects. We believe Mojave has
great potential to develop into a significant oxide gold resource and we look forward to reporting
the results of the progress over the coming months. The Mojave gold project affords K2 the
opportunity to report news throughout the year on a regular basis as results are received.
The successful raise of C$3.5M ensures the Company can carry out the necessary exploratory
work in California and also has the opportunity to continue in the Yukon as dictated by the
outcome of the Wels data review. I am grateful for your continued interest and support, and look
forward to delivering exploration success in 2020.”
Qualified Person
Jodie Gibson, P .Geo. Vice President Exploration of K2 and Qualified Person under National
Instrument 43-101, has reviewed and approved the technical information in this release.
About K2
K2 is a well financed gold and silver exploration company focussed on North America. The
Company has projects in Alaska, Yukon and the SW USA. The most recent addition, the Mojave
gold property in California, is a 5,145 hectare oxide gold project. The location of Mojave enables
the company to have year round news flow on multiple previously recognized surface gold
targets that have been successfully drilled in the past by Majors BHP and Newmont. Besides
affording immediate drill targets the property also includes undrilled historical trench results
including 4.2 g/t gold over 42.7m.
For additional information please contact Stephen Swatton at 604-331-5093.
On behalf of the Board of Directors,
“Stephen Swatton”
President and CEO
K2 Gold Corporation
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Cautionary Statement on Forward-Looking Statement
This news release contains forward -looking statements that are not historical facts. Forward-
looking statements involve risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual results to differ materially from
these forward-looking statements include, but are not limited to, acceptance of the private
placement by the TSXV, the timing and completion of closing of the private placement and the
expected aggregate gross proceeds of the private placement. The reader is referred to the
Company's public disclosure record which is available on SEDAR (www.sedar.com). Although
the Company believes that the assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on these statements, which
only apply as of the date of this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. Except as required by securities laws and the
policies of the TSX Venture Exchange, the Company disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result of new information, future
events or otherwise.
This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall
there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful, including any of the securities in the United States of America. No
securities of the Company have been or will, in the foreseeable future, be registered under the
United States S ecurities Act of 1933 (the “1933 Act”) or any state securities laws and may not
be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as
defined in Regulation S under the 1933 Act) unless registered under the 1933 A ct and
applicable state securities laws, or an exemption from such registration requirements is
available.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.