Sky GOLD Reports Surface ROCK Grab Samples up to 12.14 Au G/T from the Mustang Project, Newfoundland
SKY GOLD REPORTS SURFACE ROCK GRAB SAMPLES UP TO
12.14 Au g/t FROM THE MUSTANG PROJECT,
NEWFOUNDLAND
Vancouver, British Columbia – January 25, 2021 – Sky Gold Corp. (TSX -V:
SKYG) (US:SRKZF) ("Sky Gold Co rp." or the “Company”) is pleased to report
surface rock samples assay results from the prospecting and geological mapping
activities on the Company’s Mustang Property contiguous to the Queensway Gold
Project, owned by New Found Gold Corp. (“New Found Gold”).
In total 296 samples were taken over several targets on the Property. Sampling
presented in this press release was conducted over approximately 1.25 kilometers of
the Mustang (and parallel) zones with encouraging gold values over three prospective
areas. Most samples comprised quartz veining, brecciation and silicification material,
and quartz stockwork, with associated sulphides (pyrite, arsenopyrite, and sphalerite).
Samples from other targets areas are being reviewed and the data compiled.
Mustang South
A total of 24 rock samples were collected across roughly northwest-southeast trending
lines while prospecting and geologic mapping over the Mustang South portion of the
Mustang Zone, with 16 samples averaging 2.68 grams gold per tonne (Au g/t) with a
peak value of 12.14 Au g/t, with a range from 0.10 Au g/t to 12.14 Au g/t. Eight samples
were collected east of the Mustang zone suggesting the presence of parallel mineralized
zones. These samples averaged 1.05 Au g/t with a range from 0.44 Au g/t to 2.98 Au
g/t.
Mustang South Target
Mustang South Target – Eastern Portion
Sample # Easting Northing Description Type Au g/t
466616 653825 5422263 Mustang South Outcrop-grab 1.31
466480 653826 5422269 Mustang South Subcrop-grab 4.54
466481 653809 5422257 Mustang South Outcrop-grab 0.69
466482 653803 5422255 Mustang South Outcrop-grab 0.75
466656 653808 5422254 Mustang South Outcrop-grab 0.88
466655 653807 5422248 Mustang South Outcrop-grab 0.95
466764 653806 5422247 Mustang South Outcrop-grab 0.74
466654 653814 5422249 Mustang South Outcrop-grab 2.33
466485 653803 5422244 Mustang South Subcrop-grab 8.03
466657 653807 5422247 Mustang South Outcrop-grab 1.14
466658 653804 5422240 Mustang South Outcrop-grab 5.00
466617 653814 5422241 Mustang South Outcrop-grab 1.18
466765 653812 5422240 Mustang South Subcrop-grab 2.52
466619 653810 5422239 Mustang South Outcrop-grab 0.10
466486 653803 5422239 Mustang South Outcrop-grab 12.14
466620 653808 5422236 Mustang South Outcrop-grab 0.69
Mustang South - From SW to NE Extent Approx. 50 meters Average 2.68
Sample # Easting Northing Description Type Au g/t
466760 653843 5422255 Mustang S East Subcrop-grab 1.38
466762 653827 5422241 Mustang S East Subcrop-grab 0.44
466615 653843 5422243 Mustang S East Outcrop-grab 2.98
466652 653849 5422256 Mustang S East Subcrop-grab 0.53
466478 653849 5422232 Mustang S East Subcrop-grab 0.54
466614 653886 5422195 Mustang S Far East Outcrop-grab 0.76
466618 653915 5422247 Mustang S Far East Outcrop-grab 1.20
466479 653847 5422252 Mustang S East Subcrop-grab 0.59
Mustang South - East - possible parallel zones Average 1.05
Mustang Central
A total of 18 samples were taken over the Mustang Central portion of the Mustang Zone,
averaging 1.31 Au g/t, with a range from 0.17 Au g/t to 3.42 Au g/t . Samples were
taken across the width of the projected target zone, over a strike len gth of
approximately 260 meters from the northeast to southwest extent.
Sample # Easting Northing Description Type Au g/t
466493 654179 5422827 Mustang Central NE Outcrop-grab 0.63
466771 654175 5422811 Mustang Central Subcrop-grab 3.42
466770 654175 5422809 Mustang Central Subcrop-grab 0.52
466665 654183 5422805 Mustang Central Subcrop-grab 0.17
466625 654176 5422799 Mustang Central Outcrop-grab 1.21
466769 654180 5422795 Mustang Central Outcrop-grab 1.83
466663 654170 5422790 Mustang Central Subcrop-grab 0.37
466491 654171 5422793 Mustang Central Subcrop-grab 2.26
466660 654152 5422772 Mustang Central Outcrop-grab 0.54
466490 654160 5422781 Mustang Central Outcrop-grab 3.38
Mustang and Piper North Zone
The northern portion of the Mustang and Piper zones were sampled with 16 on the Piper
North Zone averaging 1.3 1 Au g/t, and six samples on the Mustang North Zone
averaging 3.58 Au g/t, with range from 0.84 Au g/t to 10.30 Au g/t . Only one historic
drill hole has been completed on the Piper North Zone and the recent sampling suggests
continuity to the north-east.
Sample # Easting Northing Description Type Au g/t
466662 654159 5422773 Mustang Central Outcrop-grab 0.76
466624 654158 5422775 Mustang Central Outcrop-grab 3.28
466489 654158 5422764 Mustang Central Subcrop-grab 0.61
466487 654141 5422758 Mustang Central Outcrop-grab 0.88
466488 654141 5422754 Mustang Central Outcrop-grab 0.84
466623 654148 5422748 Mustang Central Outcrop-grab 0.46
466622 654162 5422743 Mustang Central Outcrop-grab 0.53
466768 654164 5422722 Mustang Central SW Outcrop-grab 1.97
Mustang Central - From NE to SW Extent Approx. 260 meters Average 1.31
Sample # Easting Northing Description Type Au g/t
526622 654234 5422863 North Mustang Trench 1 5.11
526621 654239 5422860 North Mustang Trench 1 3.52
466448 654246 5422854 North Mustang Outcrop-grab 0.84
466473 654248 5422851 North Mustang Outcrop-grab 10.30
466611 654252 5422849 North Mustang Outcrop-grab 0.88
466612 654238 5422850 North Mustang Subcrop-grab 0.85
Mustang North Zone - across approx 20 meters Average 3.58
Sample # Easting Northing Description Type Au g/t
526624 654276 5422872 North Mustang trench 2 0.96
466666 654276 5422869 North Mustang Outcrop-grab 0.56
466627 654272 5422864 North Mustang Outcrop-grab 0.57
526618 654280 5422867 North Mustang trench 2 0.77
Mustang North Extension Zone - across approx 10 meters Average 0.71
Company President and CEO Mike England commented " These surface results confirm
the significant gold values at surface and assist in designing the drill program to test
the Mustang Zone at depth and along strike.”
All of the Company’s field activities are conducted under Federal and Provincial COVID-
19 operating protocols and safety measures as required. Planet X Exploration Services
Ltd.'s field cre ws, retained through Grassroots Prospecting, a local, Newfoundland -
based prospect generation company, are undertaking all field and drill activities on the
Company’s Newfoundland properties.
All rock samples were secured delivered to Eastern Analytical Laboratory in Springdale,
Newfoundland, for a nalysis, an ISO/IEC17025 accredited laboratory . QA/QC included
the systematic insertion of certified standards and blanks. Samples were analyzed for
the ICP-34 package (34 element 4 acid leach, ICP-OES finish) and the Fire Assay (30g)
with AA finish. Eastern Analytical also provides its own internal QA/QC protocol of
blanks, duplicates and standards in each work order, which is supplied to the Company.
SKY GOLD’S NEWFOUNDLAND PROJECTS
Virginia Property
The Virginia property comprises 100 hectares and is approximately 5.7 kilometres
northeast of New Found Gold's drill hole NFGC -19-01 which intersected 92.86 Au g/t
Sample # Easting Northing Description Type Au g/t
526611 654227 5422879 North Piper Zone 0.5 m channel 0.62
466472 654233 5422878 North Piper Zone Outcrop-grab 5.64
526609 654228 5422876 North Piper Zone 0.5 m channel 0.87
466471 654220 5422878 North Piper Zone Outcrop-grab 0.86
466752 654223 5422875 North Piper Zone Subcrop-grab 1.45
466446 654226 5422874 North Piper Zone Subcrop-grab 1.59
466465 654230 5422872 North Piper Zone Float-grab 0.76
466443 654229 5422871 North Piper Zone Outcrop-grab 0.75
466466 654226 5422873 North Piper Zone Subcrop-grab 0.94
466467 654221 5422873 North Piper Zone Subcrop-grab 0.00
466468 654230 5422871 North Piper Zone Outcrop-grab 0.96
466606 654234 5422871 North Piper Zone Outcrop-grab 0.85
466603 654223 5422873 North Piper Zone Outcrop-grab 2.39
466442 654226 5422871 North Piper Zone Outcrop-grab 0.65
466447 654230 5422866 North Piper Zone Outcrop-grab 1.62
466607 654227 5422865 North Piper Zone Outcrop-grab 0.96
Piper North Zone - across approx 15 m by 15 m area Average 1.31
over 19 metres (see New Found Gold Corp. press release dated August 12, 2020 ).
Historic results completed in the early 1990s by Manor Resources Ltd., 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 Au g/t, and a second showing comprised a sheared gabbro returned
a grab sample up to 109.6 Au g/t*.
Mustang Property
The recently expanded Mustang property comprises 1,625 hectares and is contiguous
to New Found Gold's Queensway project and approximately fi ve kilometres 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 Road Breccia, Jasperoid, 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., who completed geologic mapping, trenching and shallow (average 84
metres) diamond drilling (12 holes totaling 1,007.6 metres). Altius Resource s Inc.
(“Altius”) completed diamond drilling over the Mustang zone in 1998 (10 holes, 1,197.6
meters). 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 larger property project known as the Mustang trend. Altius optioned the
property to Barrick Gold Corp. who undertook reconnaissance exploration in 2002,
resulting 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 Au g/t over 0.8
metres, occur in dark grey hydrobreccia units, associated with higher arsenop yrite
concentrations*. Selected diamond drill assay results from Noranda's drill program
include 1.27 Au g/t over 11.3 metres, 0.67 Au g/t over 18.3 metres and 0.92 Au g/t
over 9.0 metres*. 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, and
Independent Director of Sky Gold, 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.