Sky GOLD Selects Drill Contractor FOR Mustang and Virgina Properties Contiguous to New Found Gold’S Queensway GOLD Project
SKY GOLD SELECTS DRILL CONTRACTOR FOR MUSTANG AND VIRGINA PROPERTIES
CONTIGUOUS TO NEW FOUND GOLD’S QUEENSWAY GOLD PROJECT
Vancouver, British Columbia – October 15, 2020 – Sky Gold Corp. (TSX -V: SKYG) (US:SRKZF)
("Sky Gold Co rp." or the “Company”) is pleased to announce that Cabo Drilling (Pacific) Corp.
(“Cabo”) has been retained to complete a minimum 3,000 meter diamond drill program on the
Company’s “Mustang Property ” and the “Virginia Property” , contiguous to the north -eastern
portion of the Queensway gold project owned by New Found Gold Corp. (“New Found Gold”).
"Newfoundland is currently one of the hottest exploration areas in Canada , led by New Found
Gold with an active 100,000-metre diamond drill program at its 100-percent owned Queensway
project. We are very excited to start drilling at targets such as the Outflow prospect where
surface samples have been recorded as high as 28 grams per tonne gold (g/t Au) over 0.8
meters." stated Mike England, CEO of Sky Gold.
This is the maiden drill program by the Company on the Mustang and Virginia properties, with
targets defined by surface sampling, geological mapping and rock and soil geochemistry. Both
the field contractors and the drill contractor will exercise COVID -19 operating protocols and
safety measures as required.
Cabo is a local company based in Springdale, Ne wfoundland with extensive experience having
completed drill project s throughout the province. The drill will be mobilized in about three
weeks with the initial sites located on the Virginia property, followed by drilling on the Outflow
Prospect and Barite, Jasperoid and Road showings on the Mustang property.
SKY GOLD’S NEWFOUNDLAND PROJECTS
Virginia Property – The Virginia property is approximately 5.7 kilometres northeast of New
Found Gold's drill hole NFGC -19-01 which intersected 92.86 grams per tonne g old over 19
metres (see Mexican Gold Corp. press release dated Jan. 26, 2020) *. The Virginia property
comprises 100 hectares and is located 3.3 kilometres north -east of the village of Glenwood,
which is situated on the Trans -Canada Highway. Results to date support the work completed in
the early 1990’s by Manor Resources Ltd. (“Manor”), 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 w ithin sheared gabbro and graphitic shale
(main shear) returning up to 8.7 grams per tonne gold (g/t Au), and a second showing comprised
a sheared gabbro returned a grab sample up to 109.6 g/t Au *. The Virginia property was drilled
by Manor in 1991, with a series of short holes on geophysical targets, before the mineralization
in the A2 trench was defined in 1992, and the gold showing area has not been drilled. The
Company is focused on confirming an d extending these known mineral showings.
Mustang Property – The Mustang property comprises 1,550 hectares and is contiguous to New
Found Gold’s Queensway project and approximately 5 km from their discovery hole. The
northern part of the Mustang property is only 2.5 kilometers south of the village of Glenwood,
with abandoned logging road accessing the area. The property also hosts the Outflow prospect,
a target for the upcoming drill program.
Gold mineralization was discovered at the Outflow prospect in 1987 by Noranda Exploration
Company Ltd. (“Noranda”), which completed geologic mapping, trenching and shallow (average
84 metres) diamond drilling (12 holes to taling 1,007.6 m). 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 on the western portion of the property , including the Road Breccia, Barite, Jasperoid,
and Gervase's Lane showings.
Highest surface gold values from the Outflow pros pect include up to 28 grams per tonne gold
(g/t Au) over 0.8 meter s, occur 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, t he 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: 1 888-945-4770
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).