Drilling And Exploration Program At Pen Gold Project

 

SASKATOON - GFG Resources Inc. has started the first phase of its 8,000 meter 2019 drill program at its 100% owned district scale Pen Gold Project located 20 kilometers west of the Timmins West gold complex in Ontario.  The Phase 1 drill program will consist of approximately 4,000 metres testing six new targets in the Reeves, Jehann, Deerfoot and Slate Rock regions. The Phase 2 drill program of approximately 4,000 metres is anticipated to begin in the third quarter. In addition to the 2019 drill programs, the Company will conduct additional regional till sampling, ground geophysics, prospecting and mapping on its 475-square-kilometer Pen Gold Project.

Brian Skanderbeg, President and CEO said, “We had a very productive and successful 2018 that included developing a new district model, identifying and confirming highly prospective target corridors and intersecting high-grade gold results from our inaugural drill program. In 2019, we will build off this success and are excited to be able to dedicate more resources into drilling with the overall objective of testing a broad spectrum of district-scale targets. Our 2019 Phase 1 drill program is designed to test six targets that are located on important regional structures and have all the geological hallmarks that host the multi-million-ounce gold deposits in the Timmins gold district. 2019 will be a very exciting and catalyst-rich year as we execute aggressive drill programs at both the Pen Gold Project and the Rattlesnake Hills Gold Project, each having the potential to yield gold discoveries.”

In 2019, the Company plans to drill approximately 8,000 meters in two phases at the Pen Gold Project, located west of the prolific Timmins gold district.

The Phase 1 drill program will consist of approximately 4,000 meters in 13-15 holes ranging in length from 150 to 300 meters with the objective to test six highly prospective targets in the Reeves, Jehann, Deerfoot and Slate Rock regions (See Figures 2-3). The six drill targets have seen no historic drilling and have been generated from the Company’s 2018 systematic integration of geological, geochemical, structural and geophysical datasets. The Phase 1 drill program has started and is expected to be completed in April. The Phase 2 drill program will consist of approximately 4,000 metres of drilling and is expected to begin in the third quarter of 2019.

The Company plans to test three targets in the 20-square-kilometer Jehann region during the first phase of the 2019 drill program. This geologically complex area contains multiple east-west trending shear zones, interpreted to be splays off the DPFZ.  Drilling will begin in the eastern Jehann area, where regional till samples returned 122 gold grains, of which >94% were pristine-shaped, indicating the gold was likely transported less than one kilometer from the bedrock source.

The second target to be tested within the Jehann region is located five kilometers to the west, where historic grab samples of quartz-carbonate veining in diorite and sediments returned values of up to 4.7 grams of gold per tonne (“g/t Au”). The veining occurs in highly-strained, sulphidized rocks displaying intense carbonate and silica alteration in an east to northeast-trending shear zone. No historic drilling has been documented in this area.

The third target occurs where north-trending altered mafic and ultramafic rocks are dragged into a first-order east-trending shear zone that dissects the Reeves Ultramafic Complex. Resistivity anomalies in this area are indicative of diorite or felsic porphyry intrusions which provide potential competency contrasts, increasing the likelihood of gold accumulation. Drilling in this area will target the flanks of interpreted porphyry bodies at the intersection of north and east trending shear zones.

The Company plans to test two targets within the Reeves region where extensive cover has hindered historic exploration. The two targets are located on two distinct northeast to east-trending structural corridors that contain quartz-feldspar porphyry intrusions and deformed polymictic conglomerate horizons that are interpreted to be analogous to Timiskaming conglomerates that mark important mineralizing structures within the central Timmins gold camp. 

The northern corridor contains shear zones that flank a large deformed quartz-feldspar porphyry intrusion displaying intense carbonate and local tourmaline alteration. The productivity of this structure is confirmed by historic surface grab samples which returned gold values up to 4.4 g/t Au. The planned drill holes will test the eastern limit of the porphyry body where it is disrupted by northwest trending structures and terminates in an area of no exposure.

Within the southern corridor, intensely carbonate-altered ultramafic horizons with elevated gold contents occur west of the Reeves Ultramafic Complex and adjacent to altered mafic-volcanic and conglomerate horizons. The prospectivity of this area is exemplified by historic surface grab samples at the Nib-Yellowknife showing which returned gold values up to 13.6 g/t Au and 37.6 g/t Au from north-east trending quartz-carbonate shears and east-northeast extensional veins. Drilling in this area will focus on fold-nose and shear zone intersection models, and coincident chargeable and resistive features identified in the recently completed 110-line-kilometer IP survey. 

Geologically, the Slate Rock region consists of a package of sedimentary and felsic-mafic volcanic rocks intruded by numerous quartz-feldspar porphyry bodies, the largest of which can be traced in outcrop and as a magnetic high for over five kilometers in the western portion of the Pen Gold Project. Much of the area is covered by overburden and has seen limited to no drilling.

Elevated gold values (up to 1.0 g/t Au) occur in outcropping porphyry where it is sheared, veined and carbonate-sericite altered. Accompanying anomalous contents of bismuth, tellurium and tungsten in the gold mineralized samples are consistent with porphyry-related mineralization. Historic samples of glacially transported boulders returned up to 18 g/t Au. Till samples collected in 2018 confirm the regional prospectivity returning high percentages (up to 70%) of pristine shaped gold grains (up to 66 grains).  Drilling in this area will focus on the southern contact of the main porphyry body where magnetic and IP data indicate structural complexity and alteration, and where the porphyry attenuates in areas of high strain.

The Deerfoot region is centered on a four-kilometer trend of the interpreted westward extension of the DPFZ and associated second-order fault splays that has seen limited historic drilling.  The stratigraphy, structure and nature of mineralization are analogous to that which hosts the Timmins West, Thunder Creek and the 144 Gap gold deposits currently being mined or developed by Pan American Silver Corp. 15 kilometers to the northeast. 

To date, two high grade gold prospects occur within the Deerfoot region: HGM and Sewell.  Recent drilling by the Company at the Sewell prospect confirmed the high-grade gold nature of the mineralization in this area returning intercepts of 33.8 g/t Au over 1.05 meters and 12.1 g/t Au over 0.85 meters in deformed pyroxenite horizons within the Sewell intrusive complex. At the HGM prospect, in central Deerfoot, historic drill assays returned up to 43.0 g/t Au over 1.50 metres in sulphidized carbonate-altered mafic volcanic rocks within a shear zone. Drilling will focus between the HGM and Sewell prospects where new geophysical data has revealed several drill targets along the two-kilometer trend with no historic drilling and where overburden has hindered historic prospecting efforts.

Surface Exploration Programs 

The company’s address is 202, 640 Broadway Ave, Saskatoon, SK S7N 1A9.