Drilling Resumes On Newmont Option Claims

VANCOUVER - Gold Terra Resource Corp. reported the restart of drilling to test the Campbell Shear as the Company has received the amended Land Use Permit (LUP) that allows drilling on the Company's recently optioned property from Newmont Ventures Limited and Miramar Northern Mining Limited adjacent to its 100% owned Yellowknife City Gold Project (YCG), NWT. The Newmont Option hosts the immediate southern extension of the Campbell Shear, where approximately 5 million ounces of gold was produced from the Con Mine between 1946 and 2005 at a grade of 15 g/t, and over widths of up to 100 metres.

President and CEO, David Suda, said, "The current drilling on the Newmont Option is one of our highest priority areas to potentially add high-grade ounces to our current YCG mineral resource. To the south of the Con Mine, the Campbell Shear structure extends over a minimum of 20 kilometers and has been largely underexplored with very limited exploration since 1961. The Campbell Shear is the largest district scale structure in the Yellowknife camp, and the high-grade nature of the gold produced from this zone makes it the most compelling target of our land package."

Drilling Program Highlights: In November 2020, the Company started a 12,000 meter drilling program to test the Campbell Shear Zone extension south of the Con Mine; During November-December, two holes were drilled for a combined total of 1,472 meters from Gold Terra's 100% owned YCG property with holes extending onto the Newmont Option area (assay results pending); The Company received the amended LUP on January 11th, which allows Gold Terra to drill on the Newmont Option area; Drilling began on January 18th with 6 holes totaling approximately 3,800 meters below existing known mineral resources at -300 meters vertical depth; and Based on the results of the first pass, a further 6,000 meters of drilling is planned at greater depth.

At the former Con Mine, the Campbell Shear hosted approximately 5 of the 6 million ounces of gold produced between 1946-2005. The Campbell Shear zone is within secondary and tertiary structures associated with a large district-scale structure, the Yellowknife River Fault Zone (YRFZ), that straddles the YCG property over 67 kilometers of strike length on the southern and northern extensions. The YRFZ is thought to be the extent equivalent of other prolific gold camps in the Abitibi, such as the Destor-Porcupine and the Larder Lake-Cadillac Fault zones. The Campbell Shear zone and associated structures such as the Con Shear are exceptional due to the high-grade nature of the lode deposits (approximately 20 g/t Au at the Con Shear, and 15 g/t Au at the Campbell Shear).

Gold Terra compilation work has identified that the majority of the historical drilling south of the Con Mine targeting the Campbell Shear structure was terminated at the first shear zone intersection and failed to test the footwall. On the Newmont Option the Campbell Shear extends for another 2.3 kilometers. All historical drilling from the Yellowrex Zone to the Kam Point North Zone indicates the presence of the Campbell Shear, showing intense shearing and gold mineralization.  The Campbell Shear was intersected at the Yellowrex Zone from surface to about 600 meters vertical with historical drill hole MY1 returning 2.8 g/t Au over 13.4 meters. The Campbell Shear was also intersected at the Kam Point North Zone from surface to about 250 meters vertical with historical drill hole KC054 returning 4.21 g/t Au over 7.0 meters and KC069 returning 1.92 g/t Au over 11.32 meters.

The Mackenzie Valley Land and Water Board issued an amended Land Use Permit (LUP) to Gold Terra. The original LUP was amended to include the Con Mine area claims and leases that form the Newmont Option. The amended LUP permits drilling on the Newmont Option with similar conditions to Gold Terra's previous LUP. The timely issuance of the LUP has allowed Gold Terra to expedite the start of its current drilling program.