Sky GOLD Expands Mustang Property IN Central Newfoundland Contiguous to New Found Gold’S Queensway GOLD Project
SKY GOLD EXPANDS MUSTANG PROPERTY IN CENTRAL
NEWFOUNDLAND CONTIGUOUS TO NEW FOUND GOLD’S
QUEENSWAY GOLD PROJECT
Vancouver, British Columbia – May 7, 2020 – Sky Gold Corp. (TSX-V: SKYG)
(US:SRKZF)("Sky Gold Corp." or the “Company”) is pleased to announce the
expansion of the “Mustang Property”, in Central Newfoundland, contiguous to the
north-eastern portion of the Queensway Gold Project, owned by New Found Gold
Corp. (“New Found Gold”). The “Mustang Expansion” Property co mprises 57 claims
over 1,425 ha and connect the eastern and western Mustang block, which hosts
known mineral occurrences.
The newly acquired claims represent more than a 300% increase in land holdings for
a total of 1,875 ha for the property (see Figure 1) . The Mustang Expansion extends
across the Gander Lake outflow to the eastern shore contiguous to New Found Gold’s
Queensway Project and covers a portion of their interpreted Appleton Fault Zone.
Figure 1. – Location map of Sky Gold Corp.’s Newfoundland Projects
As previously reported (see press release dated January 31, 2020) Sky Gold had
acquired the Mustang property, comprising two non-contiguous blocks of claims. The
eastern claim block hosting the Outflow prospect, comprising the Mustang and Piper
mineralized zones. The eastern claim block is contiguous to New Found Gold's
Queensway gold project to the south. The western claim block is located
approximately 2.2 kilometres west-northwest of the eastern claims. With the Mustang
Expansion, the two blocks are now part of the larger property. The northern part of
the current Mustang Property is only 2.5 kilometers south of the village of Glenwood,
with abandoned logging road accessing the area. Glenwood is located on the Trans -
Canada Highway 25 kilometres west of an international airport in Gander.
Gold mineralization was discovered at the Outflow prospect in 1987 by Noranda
Exploration Company Ltd., which completed geologic mapping, trenching and shallow
(average 84 metres) diamond drilling (12 holes total ing 1,007.6 metres). In late
2001, Altius Minerals Corp. 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, including the Road
Breccia, Barite, Jasperoid and Gervase's Lane showings. Exploration on the property
was curtailed in late July 2003, when Barrick terminated its option.
Highest gold values, up to 28 grams per tonne gold (g/t Au) over 0.8 metres, occur
in dark grey hydrobreccia units, associated with higher arsenopyrite concentrations.
Selected diamond drill assay results from Noranda's drill program include 1.27 g/t Au
over 11.3 metres, 0.67 g/t Au over 18.3 metres and 0.92 g/t Au over 9.0 metres.*
*Gold values on adjacent properties in similar rocks, and assays based on historical
work, are not representative of the mineralization on the property, have not been
verified and should not be relied upon.
Two geologic models have been proposed for the gold mineralization at the Mustang
prospect. A low sulphidation epithermal model is proposed, bas ed on the silicified
zones, locally in association with fault zones, and consist of chalcedonic silica in
association with comb -textured and crustiform quartz and hydrothermal breccia.
However, Altius Minerals Corp. considered the Mustang prospect as a pos sible
example of Carlin-style mineralization (Altius Minerals press release dated Aug. 21,
2003), supported by typical enriched trace-element assemblages (As, Sb, Tl, Hg and
Ba) of Carlin deposits, and barite veins, breccia matrix and stockwork hosted by
calcareous sedimentary rocks.
President Mike England states: "With the expansion of the Mustang property, we
considerably increase the prospectivity and potential of the project, in an active,
emerging gold district, led by the recent success of New Found Gold. The company is
currently reviewing assessment reports on the expanded property, with an aggressive
Phase 1 exploration planned for the summer, subject to provincial health and safety
protocols related to the COVID-19 pandemic."
To earn a 100 -per-cent interest in the Mustang Expansion property from an arm's -
length party, the company will make a one -time payment of $12,000 cash, the
issuance of 600,000 common shares plus grant the underlying vendor a 2 -per-cent
net smelter royalty (NSR), 50 per cent of which is purchasable by Sky Gold for $1
million at any time.
This transaction is subject to TSX Venture Exchange approval.
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 Clone property.
About Sky Gold Corp.
Sky Gold Cor p. is a junior mineral exploration company engaged in acquiring and
advancing mineral properties in Canada and the USA. The Company is now positioned
in Newfoundland with the Mustang Gold project plus in Nevada with the Evening Star
polymetallic property.
ON BEHALF OF THE BOARD
“Mike England”
__________________________
Mike England, CEO & DIRECTOR
FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-683-3995
Toll Free: 1-888-945-4770
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
update 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).