Sky Expands the Mustang Property Contiguous to New Found Gold’S Queensway GOLD Project
SKY EXPANDS THE MUSTANG PROPERTY CONTIGUOUS TO
NEW FOUND GOLD’S QUEENSWAY GOLD PROJECT
Vancouver, British Columbia – November 10, 2020 – Sky Gold Corp. (TSX-V:
SKYG) (US:SRKZF)("Sky Gold Corp." or the “Company”) is pleased to announce
the acquisition of two properties, expanding the Company’s “Mustang Property”
contiguous to the Queensway Gold Project owned by New Found Gold Corp. (“New
Found Gold”).
Properties acquired:
• Kings Point Extension – This property comprises one 150-hectare claim located
over the Kings Point topographic feature on the Gander Outflow strait, south
of and contiguous to the Mustang property . The property extends for 3.0 km
along the border with New Found Gold in an east-west direction between the
Appleton and JBP fault zones. New Found Gold has identified gold
mineralization along and near the NNE-SSW trending Appleton Fault for over 5
km on trend and north-east of the Kings Point Extension claims.
• South Mustang Extension – This property comprises three claims totaling 125
hectares, located contiguous and south of the Company’s current Mustang
property. A mineral showing designated the “SW Mustang zone ” is located
approximately 500 meters southwest of the boundary with the Mustang
property, and has been mapped, sampled, trenched and drilled by Noranda
Exploration Ltd (1988) and Altius Resources Inc. (1998). Noranda trench
channel samples returned 1.11 g/t Au over 1.0 m and 0.57 g/t Au over 5.2 m.
Drill hole GO-88-05 returned 9.55 g/t Au over 0.5 m (@ 50.8 m), 0.54 g/t Au
over 1.0 m (@ 67.0 m), and 2.14 g/t Au over 2.6 m (@ 79.7 m). Altius grab
samples in 1998 returned 1.72, 1.08, 0.78, and 0.29 g/t Au, and drill hole GO-
98-05 returned 0.46 g/t Au over 11.9 m (@ 30 m), with a higher grade interval
of 1.26 g/t Au over 1.9 m . In 2016, a single float rock sample taken by the
owner (Report 002D/15/0941) approximately 1 kilometer south of the main
Mustang zone returned 6.13 g/t Au with anomalous arsenic and antimony. The
Company is initiating a drill program on the Mustang and P iper Zones in mid-
November, on trend and north-east of the South Mustang Extension claims.
To earn a 100-per-cent interest in the property (comprising two claims groups) from
two arm's-length parties, the company will make cash payments of $65,000, and
issue 1.2 million common shares over a period of two years, and grant the underlying
vendors a 2-per-cent net smelter royalty (NSR), 50 per cent of which is purchasable
by Sky Gold for $1 million at any time.
"The acquisition of these two new claims groups strategically adds to our Mustang
property and covers multiple on -trend targets. With drilling starting shortly we are
looking forward to being an active participant in the heart of this emerging gold district
led by New Found Gold on their Queensway Project." stated Mike England, CEO and
President of Sky Gold.
All of the Company’s field activities are conducted in conjunction with Federal and
Provincial COVID-19 operating protocols and safety measures as required.
SKY GOLD’S NEWFOUNDLAND PROJECTS
Virginia property
The Virginia property comprises 100 hectares and is approximately 5.7 km northeast
of New Found Gold's drill hole NFGC-19-01 which intersected 92.86 g.t Au over 19 m
(see Mexican Gold Corp. press releas e dated Jan. 26, 2020). Historic results
completed in the early 1990s by Manor Resources Ltd., and documented in
assessment file NFLD_2244, which reports two areas of mineralization (Zone A -2).
One showing comprised quartz veining developed over a 35-metre-wide zone within
sheared gabbro and graphitic shale (main shear) returning up to 8.7 g/t Au, and a
second showing comprised a sheared gabbro returned a grab sample up to 109.6 g/t
Au. The company is focused on confirming and extending these known mineral
showings.
Mustang property
The Mustang property now comprises 1,825 hectares and is contiguous to New Found
Gold's Queensway project and approximately 5 km southwest of their discovery hole.
The Mustang property hosts numerous gold prospects, including the Mustang and
Piper zones, on trend with New Found Gold Corp’s current drill program, and the
Breccia, Jasperiod, and Barite showings on the western portion of the property.
Gold mineralization was discovered at the Mustang zone in 1987 by Noranda
Exploration Company Ltd., which completed geologic mapping, trenching and shallow
(average 84 m) diamond drilling (12 holes totaling 1,007.6 m). Altius Resource Inc.
completed diamond drilling over the Mustang zone in 1998 (10 holes, 1,197.6 m).In
late 2001, Altius held the current claim area, with the Mustang zone anchoring a
major northeast-southwest structural feature of prospective geology covered by a
large property project known as the Mustang trend. Altius optioned the property to
Barrick Gold Corp. which undertook reconnaissance exploration in 2002, which
resulted in the discovery of several new gold showings on the western portion of the
property, including the Road Breccia, Barite, and Jasperoid showings.
Highest surface gold values from the Mustang zone include up to 28 g.t Au over 0.8
m, oc cur in dark grey hydrobreccia units, associated with higher arsenopyrite
concentrations. Selected diamond drill assay r esults from Noranda's drill program
include 1.27 g/t Au over 11.3 m, 0.67 g/t Au over 18.3 m and 0.92 g/t Au over 9.0
m. The company is focused on confirming and extending these known mineral
showings with the proposed diamond drill program.
Gold values on adjacent properties in similar rocks, and assays based on historical
work in surface sampling and drilling, are not representative of the mineralization on
the property, and have not been verified and should not be relied upon.
Qualified Person
Catherine Fitzgerald, P.Geo., a Qualified Person under National Instrument 43 -101,
is the Qualified Person responsible for reviewing and approving the technical contents
of this news release as they pertain to the Mustang and Virginia properties.
About Sky Gold Corp.
Sky Gold Corp. is a junior mineral exploration company engaged in acquiring and
advancing mineral properties in Canada and the USA. In addition to the Company’s
Newfoundland properties, the Company also owns the Evening Star property, located
12 km southeast of Hawthorne, NV, which is prospective for gold mineralization and
CRD (Carbonate Replacement Deposit) base and precious (silver and gold)
mineralization.
ON BEHALF OF THE BOARD
“Mike England”
Mike England, CEO&DIRECTOR
FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-683-3995 Toll Free: 1-888-945-770
Neither the 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.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate
to future events or future performance and reflect management’s current expectations and assumptions.
Such forward-looking statements reflect management’s current beliefs and are based on assumptions
made by and information currently available to the Company. Investors are cautioned that these forward
looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that
may cause future results to differ materially from those expected. These forward -looking statements are
made as of the date hereof and, except as required under applicable securities legislation, the Company
does not assume any obligation to upd ate or revise them to reflect new events or circumstances. All of
the forward-looking statements made in this press release are qualified by these cautionary statements
and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).