SASKATOON, SK–(Marketwired – June 27, 2017) – GFG Resources Inc. (TSX VENTURE: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) outlines an aggressive 2017 exploration program at its 100% controlled, 33,500-acre Rattlesnake Hills Gold Project in central Wyoming, United States. The fully funded, U.S.$4.0 million exploration program will consist of approximately 50 holes or 15,000 metres of drilling focused on four brownfield targets and six greenfield targets, additional soil and rock sampling and metallurgical testwork. Drilling is scheduled to begin in early July and will run through November 2017.
With the recent land consolidation of the Rattlesnake Hills District, the Company is taking a district approach to its 2017 exploration program which is designed to meet the following objectives:
- Expand the strike and explore for off-set extensions of the known mineralized trends at North Stock and Antelope Basin which includes further testing the linkage between the two deposits;
- Follow-up on and test the strike and depth continuity of the 2016 discovery at the Cowboy target (Hole RSC-185: 0.84 grams of gold per tonne (g/t Au) over 38.1 metres);
- Further test a large (400 metre by 750 metre) gold, silver and arsenic (“Au-Ag-As”) soil anomaly at Blackjack and test the strike extension of Hole NVJ-001: 1.33 g/t Au over 33.5 metres;
- Test six high priority, kilometre-scale greenfield targets to discover new zones of gold mineralization; and
- Complete further soil and rock geochemistry and metallurgical testwork to develop a maiden resource in H1 of 2018.
Brian Skanderbeg, President and CEO commented, “We are excited to take an aggressive exploration approach to a district that we believe is highly prospective and regionally untested. The 2017 program will include both brownfield and greenfield exploration with the objective to expand the areas of known mineralization and to discover new zones of gold mineralization within our 135 km2 property. Our technical team has significant alkaline gold deposit experience and is applying similar strategies that successfully added over six million ounces in resources in the Cripple Creek Mining District. Following this year’s program, we will have nearly 100,000 metres of drilling in the district and will work to develop the first ever mineral resource in the Rattlesnake Hills District. Timing of a maiden resource is expected to be completed in the first half of 2018.”
2017 Drill Program Outline
The majority of the 2017 exploration program (approximately 35 holes, 10,000 metres) will focus on brownfield targets proximal to the North Stock and Antelope Basin deposits and at the Blackjack target.
To view a map of the brownfield targets around the North Stock and Antelope Basin deposits, click here.
North Stock and Antelope Basin
Drilling around the North Stock and Antelope Basin deposits is designed to test extensions of the known mineralization, including the area in between the two deposits where previous intercepts demonstrate the potential to link North Stock and Antelope Basin. Drilling will also test the western extension of the North Stock deposit across a modelled northwest-oriented fault system as well as the eastern extension where historic drilling in 2009 intercepted heterolithic breccia hosting up to 21.3 metres at 2.60 g/t Au. As demonstrated in Table 1, historic drilling was successful at identifying broad zones of gold mineralization and narrow zones of high-grade gold mineralization at North Stock and Antelope Basin.
|Table 1: Selected Highlight Drill Intercepts:|
|Hole||Zone||From (m)||To (m)||Length (m)*||Au (g/t)|
|*Gold intervals reported in the above table are based on a 0.20 g/t or 0.50 g/t Au cutoff. Weighted averaging has been used to calculate all reported intervals. True widths are estimated at 60-100% of drilled thicknesses.|
The drilling at North Stock and Antelope Basin will be integrated with the historic results and is expected to be included in the Company’s maiden National Instrument 43-101 (“NI 43-101”) resource estimate in 2018.
In addition, the Company will follow up on its 2016 step-out hole, RSC-185, that discovered a new zone of mineralization at the Cowboy target. The discovery hole located 240 metres northeast of Antelope Basin and 350 metres southeast of North Stock, returned 0.84 g/t Au over 38.1 metres. Drilling in this area will focus on a 500-metre-long gold-in-soil and rock geochemistry anomaly that links to the north contact of South Stock. The Cowboy target area hosts northeast-trending monzodiorite dykes and intersecting east-west and northeast structural corridors similar to those observed at Antelope Basin.
GFG will test several targets in the South Stock target area. The area has seen limited historic drilling and returned intercepts of up to 9.31 g/t Au over 3.1 metres in hole RSC-180 in 2011. A strong soil anomaly along the northern margin of South Stock remains untested and is associated with a cluster of rock grab samples in excess of 1 g/t Au. The geologic setting at South Stock is similar to that at North Stock and links to the Cowboy target area. The Company will also test a soil geochemical anomaly associated with the southern contact of South Stock.
Drilling at Blackjack is designed to test the large 400 metre by 750 metre Au-Ag-As soil anomaly and follow-up on historic drilling. Historic drilling tested only a small portion of the targeted area and highlights include 1.33 g/t Au over 33.5 metres from surface (Hole NVJ-001) and 0.74 g/t Au over 13.7 metres (Hole NVJ-008). Gold mineralization at Blackjack is associated with the North Granite Mountain Fault and hosted within rhyolite breccia and Precambrian granite. Mineralization at Blackjack remains open at depth, down-dip and along strike and the drill program is also designed to test the extensions of this mineralization.
The Company has outlined over 30 greenfield targets and in 2017 prioritized six of these to drill test. These targets were generated from historic and recent geophysical and geochemical programs. Results from the 2016 VTEM survey highlighted several anomalies that are interpreted to be structures, several of which were previously unknown. This type of geophysical survey and interpretation was successfully applied in the Cripple Creek Mining District. The greenfield program will consist of approximately 20 holes or 5,000 metres, testing multiple targets that are located west of North Stock (MGT and Pronghorn), northwest of North Stock (STP, 44 and West Baldy) and southwest and southeast of the Blackjack area. These target areas are considered greenfield and have no historic drilling.
To view a map of the greenfield targets, click here.
The MGT target is located approximately 1.2 kilometres southeast of North Stock. This target was derived from a 150 metre by 250 metre gold-arsenic-copper (“Au-As-Cu”) soil anomaly that is associated with the contact of a trachytic intrusive. The area also hosts banded iron formation and the intersection of northeast and northwest-oriented structures.
The Pronghorn target lies 300 to 600 metres west of North Stock. A number of small phonolite plugs are present and have associated anomalous gold soil and rock geochemistry and mapped heterolithic breccias. The target is also characterized by a gravity low and gravity gradient signature consistent with that of North Stock.
The West Baldy target is associated with soil geochemistry that is similar to the Baldy target that was tested in 2014 by NV Gold. The Baldy target is underlain by a phonolite dyke that intruded copper-stained, Cambrian quartzites. The West Baldy target is a blind target that is characterized by a large, circular (nearly 400 metres in diameter) copper-vanadium (“Cu-V”) soil anomaly. Historic rock samples from the Baldy area contained the highest gold values collected on the project with values of up to 35.4 g/t Au.
The STP target shows strong similarities with and is located 3.5 kilometres northwest of North Stock. The area hosts several phonolite intrusions that are surrounded by monolithic and heterolithic volcanic breccias which have been potassically (adularia) altered. These are key geological markers for gold mineralization in the Rattlesnake Hills and Cripple Creek Districts. The STP target also hosts anomalous rock and soil geochemistry, strong northeast-oriented structures and a favorable gravity signature.
The 44 target is located two kilometres west of North Stock and is associated with one of the largest intrusions in the district, Goat Mountain. The area hosts several Au-As +/- Cu-V soil anomalies and occurs in a geologic environment that is similar to North Stock. Gravity and gravity gradient signature as well as the structural setting are favorable to host gold mineralization.
The greenfield drill program in the Blackjack area is designed to test several geophysical (VTEM) and geochemical anomalies that were generated from the 2016 program and are outside the main 400 metre by 750 metre soil anomaly. The Company will also test proximal to the North Granite Mountain Fault, as the structural setting is conducive to host gold mineralization.
In addition to the drill program, further geochemical and metallurgical testwork will be completed. Approximately 800 soil samples will be collected to infill areas where soil geochemistry was never completed.
To support the Company’s plan to provide a NI 43-101 resource estimate, further metallurgical studies will be completed which include historic pulps from previous drill campaigns available at the Company’s facility in Casper, Wyoming. The Company plans to provide a NI 43-101 compliant resource in the first half of 2018.
Brian Skanderbeg, P.Geo. and M.Sc., President and CEO, is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.
GFG Resources Inc. is a publicly traded precious metals exploration company headquartered in Saskatoon, Saskatchewan, Canada, whose shares trade on the TSX Venture Exchange (GFG) and on the OTCQB (GFGSF). The Company controls 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project located approximately 100 kilometres southwest of Casper, Wyoming, U.S. The geologic setting, alteration and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which, collectively, have produced over 50 million ounces of gold.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of historical fact, contained in this news release constitute “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). Forward-looking statements include, but are not limited to, the future price of gold, success of exploration activities and metallurgical test work, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of exploration work, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
All forward-looking statements are based on various assumptions, including, without limitation, the expectations and beliefs of management, the assumed long-term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour, and that the political environment within the United States will continue to support the development of mining projects in the United States. In addition, the similarity or proximity of other gold deposits of the Rocky Mountain alkaline province to the Rattlesnake Hill Gold Project is not necessary indicative of the geological setting, alteration and mineralization of the Rattlesnake Hills Gold Project.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: actual results of current exploration activities; environmental risks; future prices of gold; operating risks; accidents, labour issues and other risks of the mining industry; delays in obtaining government approvals or financing; and other risks and uncertainties. These risks and uncertainties are not, and should not be construed as being, exhaustive.
Although GFG has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of the date hereof and GFG assumes no obligation to update any forward-looking statements, except as required by applicable laws.
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For further information, please contact:
President & CEO
Phone: (306) 931-0930
Vice President, Business Development
Phone: (306) 931-0930
Email: [email protected]