Vancouver, British Columbia--(Newsfile Corp. - April 9, 2019) - Contact Gold Corp. (TSXV: C) (the "Company" or "Contact Gold") is pleased to announce the discovery of significant gold in rock chip and channel sampling from new road cuts, extending the known footprint of gold mineralization at the West Zone on the Pony Creek gold property ("Pony Creek"). Contact Gold also reports the discovery of a new Carlin-type gold target, the Mustang Target.
0.26 g/t Au over 73.2 metres in channel sampling connecting the 73 metre gap in gold mineralization with gold in drilling from previously reported drill holes PC18-50 & PC18-49 from the West Zone (see news release November 29, 2018)
0.32 g/t Au over 36.6 metres in channel sampling extending gold mineralization collared in drill hole PC18-51 (see news release November 29, 2018) to the west by 80 metres at the West Zone
Second highest grade grab rock sample ever collected from Pony Creek at 1.96 g/t Au from a 0.5 metre densely silicified structure exposed in a new road cut adjacent to the collar of PC18-49. This structure will be targeted by drilling in 2019
Gold-in-soil results at Mustang infilled a 140 metre gap in the gold anomaly between lines of 2017 soil samples further strengthening the Carlin-type gold target immediately south of Gold Standard Ventures' Jasperoid Wash discovery
Mustang Target is continuous along a northwest oriented soil anomaly of 2 kilometres long
"These new gold discoveries at the West Zone and Mustang Target continue to demonstrate the widespread gold mineralization, and abundance of drill targets we have generated at Pony Creek. Refinement of drill targets within large gold-in-soil anomalies using detailed mapping along with sampling of road cuts and subtle outcrops has positioned Contact Gold for continued drill success in 2019. We are excited to see that our drill intercepts from last year at the northern end of the West Zone can be correlated with extensive continuous channel samples of oxidized gold mineralization at surface. We also believe that this mineralization is wide open to the north where it dives below a mapped thrust fault," stated Matt Lennox-King, CEO of Contact Gold.
The West Zone was discovered through targeting a 2 km long, soil and CSAMT anomaly with drilling in 2018 as part of Contact Gold's successful target generation program at Pony Creek. Drill pad and access road building exposed strongly oxidized sandstones that were subsequently continuously channel sampled with local spot samples of the stronger alteration
Nearly all chip and channel samples returned completely oxidized gold mineralization at surface extending known gold mineralization from drilling
Drilling in 2018 encountered oxide gold in all 23 holes drilled over the 2.3km strike length by 400 metres wide oxide gold footprint
- The Mustang Target is located 600 metres north of the West Zone and runs into Gold Standard Ventures' Jasperoid Wash discovery. These infill soil samples create a more robust gold target to the previously known gold-in-soil extent from first past soil sampling in 2017.
- In defining the Mustang Target, additional infill gold-in-soil results were returned including 10 samples above 20 ppb Au, and up to 68 ppb Au
- The results of these infill soil samples connect the previously identified Willow and Moleen targets (together the Mustang Target) into a 2 kilometre long gold-in-soil anomaly similar to the initial surface expression of the West Zone prior to drilling
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. Grab samples are selective samples and may not necessarily be representative of the mineralization hosted on the property.
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 200 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) 449-3361
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.