GFG Resources and Newcrest Initiate Drill Program at Rattlesnake Hills Gold Project, Wyoming
TSX VENTURE: GFG
SASKATOON, Saskatchewan, Oct. 10, 2018 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) ("GFG" or the “Company”) has started its 2018 drilling program at its Rattlesnake Hills Gold Project in Wyoming, United States. The program will consist of approximately 3,000 metres and is fully funded by GFG’s partner, Newcrest Resources Inc., a wholly-owned subsidiary of Newcrest Mining Limited (ASX: NCM) ("Newcrest"), through its option and earn-in agreement (the "Agreement") (see news release dated September 11, 2018). The drill program will include two drill rigs and will focus on testing deep gold porphyry targets proximal to the North Stock deposit. Drilling will continue through the end of November 2018 with a second phase drill program scheduled for the second half of 2019.
Brian Skanderbeg, President and CEO commented, “Following our recent partnership with Newcrest, we acted quickly to formalize permitting and mobilized two drill rigs to test select high priority targets in 2018. This year’s drill program will include holes up to 1,500 metres in length focused on a porphyry environment where historic drilling successfully intersected high grade gold mineralization over meaningful widths. Newcrest brings world class technical expertise in porphyry-style systems and we are excited to work with them to work towards making a significant discovery. Results from the program are expected to be available in the first quarter of 2019.”
Mr. Skanderbeg added, “It will be an exciting fourth quarter for the Company as we also start drilling at our Pen Gold Project in Canada in the coming weeks. In total, we plan to drill nearly 10,000 metres before year end providing a strong pipeline of news catalysts from both projects.”
2018 Drill Program Outline
The objective of the 2018 drill program will be to test the concept that a bulk-tonnage, porphyry-style system may underlie the shallower, diatreme-hosted gold mineralization at the North Stock deposit.
There has been a limited number of historic drill holes testing a porphyry model at depth. A review of these holes combined with new geophysical interpretations and modeling suggest the system potentially hosts a mineralized porphyry ‘root’. The deepest holes from previous drilling, RSC-027, RSC-111.1, RSC-118.1 and RSC-137 all intersected zones of intrusive-hosted, gold mineralization as well as strong potassic alteration. In particular, hole RSC-027 intercepted 2.49 grams of gold per tonne (“g/t Au”) over 22.9 metres (“m”) in heterolithic breccia and feldspar porphyry dykes from approximately 707.1 to 730.0 metres depth. These results are significant as gold grades in heterolithic breccia ranged as high as 7.20 g/t Au and gold grades in feldspar porphyry ranged as high as 3.12 g/t Au. In addition, the intercepts exhibit anomalous molybdenum with potassic alteration in feldspar porphyry dykes. This is an important geochemical pathfinder and may indicate proximity to a source porphyry.
Review of 3D modeling, combined with a re-interpretation of the CSAMT, magnetic and VTEM data suggest the presence of an intrusive body at depth that sits in a favorable structural setting. This new interpretation combined with the gold values intersected within the intrusive rocks will be the focus of the 2018 program.
The 2018 drill program is expected to cost approximately US$1.2 million.
Brian Skanderbeg, P.Geo. and M.Sc., serves as President and CEO of GFG, and is a “qualified person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Skanderbeg has reviewed the respective core intervals, sampling and QA/QC procedures and results thereof as verification of the historical drilling data disclosed above and has approved the information contained in this news release.
Quality Analysis and Quality Control
The quality analysis and quality control measures utilized by Evolving Gold Corp. in respect of the historical drilling data disclosed above included the following: drill hole intervals were weighted averages with each assay interval weighted according to the core length. Rigorous quality assurance and quality control procedures were implemented including routine insertion of internal standard reference materials, certified reference materials, blank material and duplicate samples from both crush and pulp material. Gold assays were completed by SGS Canada Inc. in Toronto, using a 30-gram charge, fire assay, with an ICP finish. SGS Canada laboratory in Toronto is ISO accredited.
About GFG Resources Inc.
GFG Resources is a North American precious metals exploration company focused on district scale gold projects in tier one mining jurisdictions, Ontario and Wyoming. In Ontario, the Company owns 100% of the Pen and Dore gold projects, two large and highly prospective gold properties west of the prolific gold district of Timmins, Ontario, Canada. The Pen and the Dore gold projects have the same geological setting that hosts most of the gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold. In Wyoming, 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
Neither 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. This News Release includes certain "forward looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
For further information, please contact:
Brian Skanderbeg, President & CEO
Phone: (306) 931-0930
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930