Exploration Drill Program At The Pen Gold Project

 

SASKATOON - GFG Resources Inc. reported exploration results from its 2018 drill program at its 100% owned Pen Gold Project located 40 kilometers from the prolific Timmins Gold District in Ontario, Canada. During the fourth quarter of 2018, the Company completed 19 holes (4,744 metres) testing targets at Sewell, Deerfoot and Nib-Yellowknife. Of the 19 holes, the Company has received assays from six holes located in the Sewell and Deerfoot regions while assay results from the remaining 13 holes are pending.

Brian Skanderbeg, President and CEO commented, “We are pleased to see multiple high-grade gold intercepts in a number of holes from the first six holes from our inaugural drill program at the Pen Gold Project. These initial results demonstrate the prospectivity of this under-explored area west of the prolific Timmins Gold District. While we await results from the remaining 13 holes, we are excited to begin our 2019 drill program in February which will test some of the best targets on our 475 square kilometer Pen Gold Project. We expect 2019 to be a very exciting year as we execute aggressive exploration programs at our Pen, Dore and Rattlesnake Hills gold projects to deliver numerous catalysts throughout the year.”

The Phase 1 2018 drill program consisted of 4,744 metres in 19 holes ranging in depth from 150 to 500 metres. The objective of the Phase 1 drill program was to drill test six targets distributed across a 20-kilometer segment in the eastern portion of the Pen Gold Project.

PEN-18-001 tested the western extension of the Sewell system intercepting three distinct mineralized zones hosted in variably-deformed pyroxenite horizons within an intrusive complex composed of predominantly diorite and cut by numerous syenite dikes. The upper zone returned 7.44 g/t Au over 1.85 m within a broader interval that returned 3.57 g/t Au over 5.55 m at a downhole depth of 61.15 to 66.70 m. Gold mineralization is hosted within a strongly-sheared, altered and quartz-veined structure and associated with 2 to 7% disseminated and blebby pyrite.  A second structure returned 4.20 g/t Au over 1.00 m from 86.60 to 87.60 m associated with strong quartz-calcite veining and flooding and 15% disseminated pyrite. Further downhole, a third zone of mineralization returned 14.70 g/t Au over 0.75 m associated with quartz-veining and stockwork, 1 to 3% pyrite and fine-grained visible gold.

PEN-18-003 was drilled to test the eastern depth continuity of the Sewell system and returned five narrow, low-grade intervals. Grades ranged from 0.57 to 1.36 g/t Au over widths from 0.50 to 1.35 m. Gold mineralization is associated with sheared and variably, quartz-veined pyroxenite and diorite with trace to 5% disseminated pyrite.

PEN-18-004 was a 250 m step-out hole designed to test the southwestern extension of the Sewell system near an associated moderate chargeability anomaly. It intersected a sequence of pyroxenite and diorite intruded by syenite and mafic dikes. An interval of 2.32 g/t Au over 0.52 m was returned from a depth of 118.45 m. Gold mineralization is spatially related to a quartz-calcite flooded, mafic dike hosting 10 % coarse pyrite.

PEN-18-005 was a 550 m step-out hole designed to test the southwestern extension of the Sewell system and its intersection with an interpreted, east-west-trending magnetic low. It intersected a sequence of pyroxenite and diorite followed by an intercalated package of mafic flows and tuff, fine-grained sediments, conglomerate and feldspar porphyry. An interval of 0.62 g/t Au over 2.05 m was returned from a depth of 161.35 m within silicified sediments and tuff. Gold mineralization is hosted within a faulted and brecciated, sericite-fuchsite-altered zone associated with 1% fine-grained pyrite.

PEN-18-015 was drilled into the core of the Sewell system to confirm historic drill results and provide detailed structural information on the orientation and controls of gold mineralization. The hole intercepted four mineralized zones that are hosted within a package of variably-deformed pyroxenite and syenite dikes. High-grade gold mineralization of 33.77 g/t Au over 1.05 m was returned from a strongly-sheared, sericite-altered and quartz-veined interval at 59.95 m depth. Mineralization is associated with 1 to 3% pyrite and chalcopyrite and fine-grained visible gold.  This result validated the historic drilling down-dip that returned 7.63 g/t Au over 3.57 m including 33.46 g/t Au over 0.61 m.

In conjunction with the drill program, the Company completed a Phase 2 regional till sampling program on the Pen Gold Project. The Phase 2 program consisted of 108 till samples for a total of 467 till samples collected in 2018. The Company’s regional till sampling program is the first of its kind on this property and successfully outlined five priority target areas that are associated with highly prospective regional structures and confirmed regional gold prospectivity. Phase 2 till sampling was designed to extend regional coverage and infill around priority Phase 1 results that returned up to 2,470 ppb gold and 142 gold grains.  Phase 2 results are pending and expected to be received and announced in Q1 2019.

The Company also completed two detailed, IP surveys covering the Reeves and Deerfoot regions for a total of 112 line-kilometers. The IP data was used in combination with detailed airborne magnetic data, a structural model of the district, till geochemistry and an extensive surface rock sampling dataset to refine and prioritize drill targets.

The Company expects to receive assays from the remaining 13 holes of its 2018 drill program in Q1 2019 and will provide an update once all assays are returned and analyzed. The Company will begin its 2019 exploration program in February with a fully-permitted 4,000 meter drill program focused on highly prospective targets at Reeves, Slate Rock, Jehann and Deerfoot. 

In addition, the Company is working with its JV partner, Newcrest Mining Ltd., on the 2019 exploration budget and program at the Rattlesnake Hills Gold Project in Wyoming, U.S.. Currently, an extensive program of modeling the regional and target-scale geophysical datasets is in progress as well as a detailed review of the porphyry environment at depth and proximal to the North Stock deposit. 

The company’s address is Suite 202, 640 Broadway Ave, Saskatoon, SK S7N 1A9, (306) 931-0930, www.gfgresources.com.