Contact Gold Intersects 2.42 G/T Gold Over 35 Metres in Step-Out Drilling at Pony Creek's Bowl Zone
TSX VENTURE: C
Vancouver, British Columbia--(Newsfile Corp. - September 20, 2018) - Contact Gold Corp. (TSXV: C) (the "Company" or "Contact Gold") is pleased to report step out and exploration drill results, including high-grade and oxide results from an additional eight holes from the Bowl Zone at the Pony Creek gold property ("Pony Creek").
Drilling is still underway, with assays currently pending for 10 additional drill holes. Pony Creek is located on the Carlin Trend in Elko County, Nevada, adjacent to Gold Standard Ventures' Railroad-Pinion Project.
2.42 g/t over 35.05 metres from 266.7 metres, including 3.15 g/t Au over 24.38 metres from 274.32 metres, in hole PC18-33 at Bowl Zone
0.55 g/t oxide Au over 25.91 metres from 105.16 metres in drill hole PC18-034 at Bowl Zone
0.39 g/t oxide Au over 35.05 metres from 92.97 metres, including 1.77 g/t oxide Au over 4.57 metres from 99.06 metres in drill hole PC18-31 at Bowl Zone
0.34 g/t oxide Au over 35.05 metres from 88.39 metres, and 0.31 g/t oxide Au over 35.05 metres from 129.54 metres in drill hole PC18-29 at Bowl Zone
"Pony Creek continues to deliver excellent results as we step out and explore with improved understanding the geologic structures that control the higher grade and better oxidized gold mineralization at the Bowl Zone. These drill hole intercepts are from two areas of the Bowl Zone that were sparsely drilled in the past and remain open for continued expansion," stated Matt Lennox-King, CEO of Contact Gold. "These results from the Bowl Zone, along with the new discovery at the West Target, continue to set the stage for a very productive 2019, with clear opportunities for continued growth at both areas."
Bowl Zone Drilling
Holes 33, 34, and 35 are 100 meter step outs north from previously reported step-out holes on the Bowl Zone's west side (see news release June 21, 2018).
Holes 28 and 29 are a further 100 meters north from 33, 34 and 35 and establishes 200 meters strike length of new gold mineralization to the west side of the Bowl Zone.
The Bowl Zone has over 100 drill holes to date. Results include both step-out and infill drilling; and confirm higher grade gold mineralization than the grade of the historical mineral resource estimate.
The Bowl Zone remains open for further expansion, with step-out and infill drill holes demonstrating continuity of gold mineralization.
Gold mineralization at the Bowl Zone is associated with multiple cross cutting NW and NE striking faults intersecting what is interpreted to be the same major north-south structure zone associated with oxide gold mineralization, and in the same host rock, as at Gold Standard Ventures' Dixie and North Dark Star deposits.
Drilling at Pony Creek through 2018 is designed to expand mineralization at the Bowl Zone, and to test new large scale targets, including the West Target, the North Zone, the Moleen, and Elliot Dome targets, generated by Contact Gold since acquiring the property one year ago. The Company has completed 41 holes in 2018, totaling over 9,200m of drilling.
Table of 2018 Bowl Zone Drill Results:
|Area||Drill Hole||From (m)||To (m)||Au g/t||Interval (m)|
For a map of the Pony Creek target areas and drill collar locations, please click: Click here
For a detailed plan map of the Bowl Zone, please click: Click here
For a cross section of the Bowl Zone, please click: Click here
Pony Creek is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). There has been insufficient exploration to define a mineral resource estimate at Pony Creek. Additional information about Pony Creek is summarized in a technical report entitled "Technical Report on the Pony Creek Gold Project, Elko County, Nevada, USA" dated April 18, 2017, and effective March 15, 2017), prepared by Michael M. Gustin, C.P.G. of Mine Development Associates of Reno, Nevada (the "Technical Report"), which can be viewed under Contact Gold's issuer profile on SEDAR at www.sedar.com.
The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a "qualified person" within the meaning of NI 43-101.
Drill intercepts were calculated using a minimum thickness of 3.05 metres averaging 0.14 ppm gold and allowing inclusion of up to 4.57 metres of material averaging less than 0.14 ppm gold for low grade intervals and higher grade intervals were calculated using a minimum thickness of 3.05 metres averaging 1.00 ppm gold and allowing inclusion of up to 4.57 metres of assays averaging less than 1.00 ppm gold. Gravimetric assays are used for all Fire Assays above 4.00 ppm gold. True width of drilled mineralization is unknown, but owing to the apparent flat lying nature of mineralization, is estimated to generally be at least 70% of drilled thickness Quality Assurance / Quality Control consists of regular insertion of certified reference standards, blanks, and duplicates. All failures are followed up and resolved whenever possible with additional investigation whenever such an event occurs. Multi element geochemical assays are completed on composites using the MEMS 61 method. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab. Check assays are completed at a second, reputable assay lab after the program is complete.
About Contact Gold Corp.
Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold's extensive land holdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold's land position comprises approximately 275 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.
Additional information about the Company is available at www.contactgold.com.
For more information, please contact: +1 (604) 416-0576
John Glanville — Director Investor Relations
Chris Pennimpede — Corporate Development
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the anticipated exploration activities of the Company on the Pony Creek property.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.