GFG Resources Inc.
GFG Provides Update on Exploration Activities at the Pen Gold Project West of Timmins, Ontario
SASKATOON, Saskatchewan, May 18, 2021 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) provides an update on its on-going exploration program at its 100% owned Pen Gold Project in Ontario, Canada.
The Pen Gold Project is located approximately 40 km west of the prolific Timmins Gold District in Ontario. The contiguous land package, one of the largest in the region, consists of approximately 475 square km and is situated between Newmont’s Borden Gold Mine and Pan American Silver’s Timmins West Mine. The Pen Gold Project covers an approximately 55-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 many of the gold deposits found in the Timmins Gold Camp.
In 2021, the Company plans to drill 8,000 – 10,000 metres in two phases and complete additional till sampling and drone geophysics in regions where the Company is focusing follow-up drilling. (see news release: “GFG Provides Results from 2020 Phase 2 Drill Program and Begins 4,000 m Drill Program at the Pen Gold Project West of Timmins, ON”). The aggressive 2021 exploration program at the Pen Gold Project is budgeted to be approximately C$3 million.
Year to Date Highlights:
- From February to May, safely and successfully completed the Phase 1 drill program consisting of approximately 5,800 metres of drilling from 17 holes (see Figure 1).
- Follow-up drilling was completed at the Slate Rock (4 holes) and Boundary (3 holes) prospects where the Company successfully intersected zones of gold mineralization in 2020.
- Tested three new targets for discovery at the R66 (5 holes), Keith Lake (1 hole), TMN (1 hole), and Sewell North (3 holes) prospects that were developed by the Company in 2020. None of these targets had historic drilling.
- 15 of 17 holes have been sent to the lab for analysis. Expected timeline to completion of all assays are on the order of 4-6 weeks.
- At the Slate Rock and Boundary regions, completed a pilot program of 21 sonic overburden drill holes to collect samples deeper in the till profile to assist in vectoring to the source of the significant till anomalies.
- Completed 770 line-kilometres of drone magnetic survey over the Slate Rock and R66 regions to improve the structural modelling, support prioritization of drill targets and generate new targets in the underexplored region.
Brian Skanderbeg, President and CEO of GFG stated, “Our strategy for the Phase 1 drill program was to follow up on priority targets that had delivered positive results from previous drilling and to test several new targets. Our Pen Gold Project remains highly underexplored and we are optimistic that the current program will continue to demonstrate the discovery potential that exists on our Timmins land package.”
Brian added, “In addition to a very active program in Timmins, we look forward to working with Group 11 this summer on their initial metallurgical testing phase at our Rattlesnake Hills Gold Project. We are confident that they will demonstrate positive test results and advance their proprietary technology to revolutionize the gold mining industry.”
Outlook
Over the coming months, the Company will provide assay and till sampling results as they become available. Following receipt of the exploration results, the Company will evaluate the results and prioritize drill targets for its Phase 2 drill program, which is scheduled to commence in the third quarter of 2021. The Company remains well financed with approximately C$2.5 million in cash.
At the Rattlesnake Hills Gold Project, the Company anticipates its partner, Group 11 Technologies Inc. (“Group 11”) (see news release: “GFG Signs Option Agreement with Group 11 Technologies to Advance the Rattlesnake Hills Gold Project with Disruptive Technology”), will complete their on-going financing in the coming weeks. Following the completion of the financing, Group 11 will immediately initiate metallurgical test work on historic core to assess gold recoveries using the patented, cyanide-free and water-based, EnviroLeach solution. Following Phase 1 metallurgical testing, Group 11 may complete additional metallurgical test work by drilling one or more holes at the Rattlesnake Hills Gold Project. The 2021 program and associated project costs will be managed and funded by Group 11.
Figure 1: Pen Gold Project Phase 1 Drill Targets Overview
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 Dore gold projects have similar geological settings that host most of the gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold. In Wyoming, the Company has partnered with Group 11 Technologies Inc. through an option and earn-in agreement to advance the Company’s Rattlesnake Hills Gold Project with disruption technology that could revolutionize the gold mining industry. 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.
For further information, please contact:
Brian Skanderbeg, President & CEO
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: info@gfgresources.com
Source: https://www.gfgresources.com/news/press-release-details/2021/GFG-Provides-Update-on-Exploration-Activities-at-the-Pen-Gold-Project-West-of-Timmins-Ontario/default.aspx
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