GFG begins 8,500m drill program at Pen Gold west of Timmins

GFG Resources Inc. has started its Phase II 8,500 metre drill program testing high-grade gold targets at its 100% owned, district-scale, Pen Gold Project.

The project is located approximately 40 kilometres west of Timmins. The contiguous land package, one of the largest in the region, consists of approximately 475 square kilometres and is situated between Newmont’s Borden Gold project and Pan American Silver’s Timmins West Mine. The Project covers an approximately 50-kilometre-long section of Archean greenstone that contains the interpreted western extension of the Porcupine-Destor Fault Zone within the same geological setting that hosts most of the gold deposits found in the Timmins Gold Camp.

The Phase II drill program is designed to:

• Follow-up on the recent high-grade gold discovery at the Nib Prospect which intersected 71.27 grams of gold per tonne (“g/t Au”) over 8.5 m from 50 m below surface (see news release dated April 6, 2020: “GFG Drills 71.27 Grams of Gold per Tonne Over 8.5 Metres at the Pen Gold Project West of Timmins Ontario”);
• Follow-up on the HGM and Crawford targets where the Company has successfully intersected several zones of gold mineralization that are open in multiple directions;
• Test earlier stage targets such as Broadway and Boundary that have been identified and advanced by the Company’s systematic exploration approach; and
• Test an east-trending structure that parallels the Sewell Prospect which has multiple high-grade gold intercepts.

Please see Figure 1 for drill target locations.

Brian Skanderbeg, President and CEO commented, “We have made significant progress with our summer field program and now are in a position to aggressively drill test several targets with our largest ever drill campaign to date. Drilling will focus on the high-grade Nib discovery and regional targets such as the HGM, Crawford, Sewell North, Boundary and Broadway targets. With a strong cash balance, robust and successful exploration model and several highly prospective targets including the Nib discovery in hand, we are well-positioned for an exciting second half of the year.”

2020 Phase 2 Drill Target Descriptions

Reeves Region – Nib Prospect
Four distinct northeast-trending mineralized zones have been outlined within sheared and altered diorite at the Nib Prospect. Initial follow-up drilling at the Nib Prospect will focus on the uppermost zone where hole PEN-20-47 encountered 71.27 g/t Au over 8.5 m at 50 m below surface and for strike and depth extensions of this shallow, high-grade zone.  

Tremblay Region – Broadway Prospect
Reconnaissance drilling at the Broadway Prospect returned 7.30 g/t Au over 0.7 m in veined and carbonate-altered diorite (see release dated February 19, 2020: “GFG Provides Exploration Update and Initiates 2020 Drill Program at Pen Gold Project West of Timmins, ON”). Surface rock grab samples grading up to 8.0 g/t Au and till anomalies with up to 57 gold grains (77% pristine) suggest that the mineralized trend could extend for about 1.2 kilometres. As part of the current drill program, three or four holes will test the trend towards the south at 300 m and 600 m from previous drilling.

Jehann East Region – Boundary Trend
At eight different locations along the three-kilometre-long Boundary Trend, grab samples collected from outcrop returned values of greater than 1.0 g/t Au with the highest assay being 11.10 g/t Au (see news releases dated July 15, 2020: “GFG Confirms New High-Grade Gold Target with up to 11 g/t Gold from Surface Sampling and Provides Exploration Update at the Pen Gold Project West of Timmins, ON” and December 9, 2019: “GFG Identifies New Gold Target with up to 7 g/t Gold and Expands Slate Rock Target at the Pen Gold Project West of Timmins, ON”).  As part of the current drill program, three or four priority targets will be tested along this trend which has seen no previous drilling despite its proximity to the Porcupine-Destor Fault Zone.

Deerfoot Region – HGM and Crawford Prospects
Recent drilling by the Company at the HGM and Crawford zones has returned high-grade intervals of 7.53 g/t Au over 2.2 m (including 31.80 g/t Au over 0.5 m) and 21.26 g/t Au over 1.7 m, respectively (see news releases dated January 8, 2020: “GFG Returns Multiple Zones of High-Grade Gold Mineralization at the HGM Target, Pen Gold Project West of Timmins, ON” and April 3, 2019:  “GFG Discovers New Gold Zone with 21.26 g/t Gold over 1.7 Metres at Pen Gold Project West of Timmins, ON”).  As part of the current drill program, three or four holes will be drilled to test for extensions to these zones.

Deerfoot Region – Sewell North Prospect
Reconnaissance drilling at the Sewell North Prospect, targeting a structure interpreted from airborne magnetics, returned 2.86 g/t Au over 1.0 m at 47 m downhole (see news release dated January 8, 2020: “GFG Returns Multiple Zones of High-Grade Gold Mineralization at the HGM Target, Pen Gold Project West of Timmins, ON”). The current drill program will include two holes testing this prospective structure which extends for over 1.0 kilometre and has seen very limited drilling.

Outlook
The Company anticipates completing the 8,500 m drill program by year-end 2020. In addition to the ongoing drill program at the Project, the Company will continue additional surface exploration activities such as prospecting, till sampling and further drone magnetic surveys over the Nib region. The Phase II drill program is fully funded following the recent financing of C$5.9 million which included the participation of Alamos Gold Inc. as a strategic investor. 
At the Rattlesnake Hills Gold Project, the Company continues to evaluate strategic options to advance the project. The Company will provide updates as they become available.