SASKATOON, SK–(Marketwired – March 16, 2017) –
- Step-out hole RSC-185 discovered a new zone of mineralization 240 metres northeast of Antelope Basin and 350 metres southeast of North Stock with an intercept of 0.84 grams of gold per tonne (“g/t Au”) over 38.1 metres.
- Drilling the area between North Stock and Antelope Basin further demonstrates linkage potential with an intercept of 0.60 g/t Au over 73.2 metres.
- Aggressive 15,000 metre drill program planned for 2017 focused on expanding known zones of mineralization and testing five high priority greenfield targets.
GFG Resources Inc. (TSX VENTURE: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces drill results from its 2016 drill program at its 100% controlled Rattlesnake Hills Gold Project in central Wyoming, United States. In 2016, the Company completed a 12-hole, 3,500 metre drill program focused on three advanced target areas: North Stock, Antelope Basin and Blackjack.
Brian Skanderbeg, President and CEO commented, “We are very encouraged by the results of our 2016 program, in particular the discovery of a new zone northeast of Antelope Basin. In addition, drill results located between North Stock and Antelope Basin demonstrate the potential to link the two deposits. Linking the two deposits would be significant as it would represent a mineralized system that is nearly 1.5 kilometres in strike length. Overall, the drilling results support our team’s new geologic model of the Rattlesnake Hills Gold Project and continue to illustrate the scale and discovery potential of the district. In 2017, we will take a strategic approach to expand on historic drilling, further test the new discovery and test five greenfield targets that we generated from our 2016 exploration program.”
2016 Drill Program
The program was designed to drill test several targets in a short window of time. Specifically, the program was designed to test for extensions of mineralization beyond and below historic drilling, drill geochemical anomalies that had never been tested, and test the continuity of mineralization between North Stock and Antelope Basin. The bulk of the program, nine holes, focused in the North Stock and Antelope Basin areas and the remaining three holes targeted extensions at Blackjack.
North Stock and Antelope Basin Drilling
The Company completed seven step-out holes targeting the direct extensions and proximal analogies around the North Stock and Antelope Basin areas.
The most encouraging hole of the 2016 drill program was hole RSC-185 which intercepted 0.84 g/t Au over 38.1 metres. This drill hole was the Company’s largest step-out hole of the program and discovered a new area of gold mineralization northeast of Antelope Basin. This new discovery is significant as it expands the area of potential mineralization and supports the Company’s new structural understanding of the district. This intercept is associated with monzodiorite dikes and interpreted to be controlled by a northeast-oriented structure that is sub-parallel to Antelope Basin. The structure is further highlighted by a 500-metre-long gold-in-soil anomaly that has yet to be tested.
Historic drilling between the North Stock and Antelope Basin deposits indicated the presence of thick intervals of mineralization connecting the two deposits. In 2016, two holes were completed in this area and results were highlighted by hole RSR-004 which returned 0.60 g/t Au over 73.2 metres. This intercept was drilled approximately 50 metres from the nearest historic drill hole which intersected similar widths of mineralization with lower grade. This is important as the results suggest that the grade is improving in this area and mineralization remains open to the west where there has been no historic drilling. North Stock and Antelope Basin are approximately 650 metres apart and further drilling is proposed to link the two deposits.
RSR-016 and RSR-017 were drilled to test the mineralized extension towards the southwest of Antelope Basin. RSR-016 intersected the system, returning intercepts of 0.41 g/t Au over 10.7 metres and 0.64 g/t Au over 9.1 metres. Mineralization remains open to the southwest. RSR-017 returned no significant intercepts although it did intercept a sub-parallel quartz monzodiorite dike. This is significant as it indicates multiple dikes in the area that may host mineralization similar to Antelope Basin.
In addition to the drill results, the geologic logging of the core and chips samples northeast of North Stock indicated that an alteration halo of strong potassic alteration continues to the north and northeast. Fluorite and roscoelite, important indicator minerals in the Cripple Creek Mining District, were also observed in one of these three holes.
A total of three holes were drilled to test beneath and adjacent to known mineralization in the Blackjack area. Two holes were designed to test nearly 90 metres beneath known mineralization while the third hole stepped out 150 metres to the west of known mineralization.
Blackjack hole BJR-004, was designed to offset mineralization from historic drilling and to test the large gold-arsenic soil anomaly. Results were encouraging as strong alteration and brecciation were present and the last three intervals ended in mineralization with increasing gold grades down the hole. The last three assays (in order down the hole) included 0.64, 0.93 and 1.30 g/t Au. Unfortunately, the hole was terminated early after only reaching half the target depth.
It is important to note that extensions of the 600 metre soil anomaly remain open and untested.
In 2017, the Company will continue to take a district scale, multi-disciplinary approach to discover new zones of mineralization at the Rattlesnake Hills Gold Project. The 2017 exploration program will focus on expanding known areas of mineralization at North Stock, Antelope Basin and Blackjack, follow-up drilling of the recent discovery from Hole RSC-185, complete additional metallurgical testing and test at least five high priority greenfield targets. The 2017 exploration program will consist of approximately 15,000 metres of drilling at a cost of approximately U.S.$4.1 million and is fully funded from the Company’s current cash on hand. A detailed outline of the 2017 exploration program will be announced in the second quarter of 2017 and drilling is expected to start on July 1.
|2016 Drill Results from Rattlesnake Hills Gold Project:|
|Hole ID||From (m)||To (m)||Length (m)||Au (g/t)||Au cutoff (g/t)|
|RSR-010||no significant intercepts|
|RSR-017||no significant intercepts|
|BJR-003||no significant intercepts|
*Gold intervals reported in the above table are based on a 0.20 g/t or 0.50 g/t Au cutoff. Weighted averaging has been used to calculate all reported intervals. True widths are estimated at 60-100% of drilled thicknesses.
To view a plan map of North Stock and Antelope Basin 2016 drill results and historic drill highlights, click here: https://www.gfgresources.com/files/images/projects/exploration_targets/1-NS_AB_2016-Drill-Map.png
To view a plan map of Blackjack 2016 drill hole locations, historic drill highlights and gold in soil geochemistry, click here: https://www.gfgresources.com/files/images/projects/exploration_targets/2-Blackjack_2016-Drill-Map.png
To view a regional map of the Rattlesnake Hills Gold Project, click here: https://www.gfgresources.com/files/images/projects/exploration_targets/3-Regional-Map-RSH-March-2017.png
Brian Skanderbeg, P.Geo. and M.Sc., President and CEO, is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.
GFG Resources Inc. is a publicly traded precious metals exploration company headquartered in Saskatoon, Saskatchewan, Canada, whose shares trade on the TSX Venture Exchange (GFG) and on the OTCQB (GFGSF). 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
All statements, other than statements of historical fact, contained in this news release constitute “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). Forward-looking statements include, but are not limited to, the future price of gold, success of exploration activities and metallurgical test work, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of exploration work, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
All forward-looking statements are based on various assumptions, including, without limitation, the expectations and beliefs of management, the assumed long-term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour, and that the political environment within the United States will continue to support the development of mining projects in the United States. In addition, the similarity or proximity of other gold deposits of the Rocky Mountain alkaline province to the Rattlesnake Hill Gold Project is not necessary indicative of the geological setting, alteration and mineralization of the Rattlesnake Hills Gold Project.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: actual results of current exploration activities; environmental risks; future prices of gold; operating risks; accidents, labour issues and other risks of the mining industry; delays in obtaining government approvals or financing; and other risks and uncertainties. These risks and uncertainties are not, and should not be construed as being, exhaustive.
Although GFG has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of the date hereof and GFG assume no obligation to update any forward-looking statements, except as required by applicable laws.
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For further information, please contact:
President & CEO
Phone: (306) 931-0930