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  • TSX-V: GFG
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  • Volume143,000
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  • 52 Week$0.47$1.35
  • Open$0.50
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News details

GFG Resources Intersects 114.0 Metres of 0.45 g/t Gold from Step-Out Drilling West of North Stock at Rattlesnake Hills Gold Project

09/20/2017

SASKATOON, SK -- (Marketwired) -- 09/20/17 -- Highlights:

  • Step-out hole RSC-188 intersected 0.45 grams of gold per tonne ("g/t Au") over 114.0 metres, demonstrating gold mineralization, brecciation and alteration continue to the west of North Stock.
  • RSC-184 extended gold mineralization at Antelope Basin 200 metres to the east towards the Cowboy target with an intercept of 0.42 g/t Au over 73.2 metres.
  • Drilling between the North Stock and Antelope Basin deposits outlined several intervals of low grade mineralization, outlining the potential to link the two deposits.
  • Drill results at Blackjack intersected thick zones of gold-silver mineralization, highlighted by hole BJR-005: 0.79 g/t Au and 36.86 grams of silver per tonne (g/t Ag) over 18.3 metres and 0.36 g/t Au and 10.62 g/t Ag over 53.3 metres that demonstrate the system remains open to the west.
  • The Company has completed approximately 50% of the 2017 drill program with 14 holes pending assay results and expects to complete the program in November. Greenfield drilling is expected to begin in October.

GFG Resources Inc. (TSX VENTURE: GFG) (OTCQB: GFGSF) ("GFG" or the "Company") announces initial drill results from its 15,000 metre or 50-hole drill program at its 100% controlled, Rattlesnake Hills Gold Project in Wyoming, United States. These initial eight drill hole results (SeeTable 1) are from testing brownfield targets proximal to the North Stock, Antelope Basin and Blackjack areas (SeeFigures 1 and 2). The Company is very encouraged by the initial results as all the holes intersected broad zones of gold mineralization and demonstrate that the targeted areas remain open.

"Our objective over the last year has been to take an aggressive, district scale exploration approach by testing beyond the borders of historic drilling and to test the district for a new discovery with six greenfield targets. The most important factor to date, is that wherever we have drilled, we have intersected gold mineralization with key geological markers present. The district as whole remains prospective and we are confident that further drilling will demonstrate a much larger system," stated Brian Skanderbeg, President and CEO.

"Drilling was successful at extending the North Stock deposit to the west with hole RSC-188. We continue to intercept well mineralized and strongly altered heterolithic breccias in step-out holes testing the western extension and we believe that the system can be extended and potentially link with our Pronghorn and MGT regional targets. We were also able to expand the mineralization at Antelope Basin to the east towards the Cowboy target. We believe that the Cowboy target is a sub-parallel zone to Antelope Basin and we will complete another seven holes in that area this year. With most of the program assays yet to be announced, we look forward to providing further results to demonstrate the potential of the district. In October, we will begin testing our greenfield targets; all of which are kilometer in scale and show strong similarities to the North Stock and Antelope Basin systems."

Table 1: Initial 2017 Drill Results from Rattlesnake Hills Gold Project.

Hole ID From (m) To (m) Au (g/t) Ag (g/t) Length (m) Cut Off (g/t)
RSC-184 54.86 59.44 0.66 0.57 4.6 0.20
  82.30 155.45 0.43 1.27 73.2 0.20
includes 115.82 121.92 0.58 1.17 6.1 0.50
includes 129.54 152.40 0.72 1.95 22.9 0.50
  181.36 205.74 0.32 1.49 24.4 0.20
  220.98 256.03 0.39 1.50 35.1 0.20
includes 227.53 231.65 0.61 1.86 4.1 0.50
             
RSC-188 45.11 67.97 0.22 Assays Pending 22.9 0.20
  74.07 188.06 0.45   114.0 0.20
includes 92.35 109.12 1.15   16.8 0.50
includes 143.87 165.20 0.52   21.3 0.50
  194.16 213.97 0.24   19.8 0.20
  221.89 234.09 0.35   12.2 0.20
  266.09 274.93 0.25   8.8 0.20
  282.85 290.47 0.30   7.6 0.20
  333.15 349.91 0.21   16.8 0.20
             
RSR-001 196.60 211.84 0.55 0.94 15.2 0.20
includes 201.17 205.74 1.21 1.57 4.6 0.50
             
RSR-003 117.35 124.97 0.37 2.56 7.6 0.20
             
RSR-006 21.34 36.58 0.29 3.06 15.2 0.20
includes 22.86 28.96 0.41 5.27 6.1 0.50
  42.67 73.15 0.24 0.67 30.5 0.20
  175.26 192.02 0.27 1.22 16.8 0.20
  199.64 207.26 0.38 1.86 7.6 0.20
             
RSR-007 306.32 315.47 0.31 0.82 9.2 0.20
             
BJR-001 117.35 153.92 0.29 4.21 36.6 0.20
includes 128.02 138.68 0.51 5.15 10.7 0.50
  163.07 175.26 0.23 3.35 12.2 0.20
  187.45 196.60 0.22 7.21 9.2 0.20
             
BJR-005 120.40 138.68 0.79 36.86 18.3 0.20
includes 120.40 137.16 0.82 39.81 16.8 0.50
  150.88 204.22 0.36 10.62 53.3 0.20
includes 169.16 184.40 0.59 16.40 15.2 0.50

*Gold intervals reported in the above table are based on a 0.20 g/t or 0.50 g/t Au cutoff and may include waste or low-grade intervals of up to six metres. Weighted averaging has been used to calculate all reported intervals. True widths are estimated at 60-100% of drilled thickness.

Drill Results Commentary

RSC-184 was drilled in the flank of Antelope Basin deposit to test for sub-parallel zones east of the historic drilling. The lithologies were primarily schist and monolithic schist breccia and the gold mineralization was associated with moderate to strong carbonate and weak to moderate potassic alteration. This hole is significant as there is no proximal drilling and it intersected thick zones of mineralization, hosted in Precambrian schist, that extend nearly 200 metres east of the quartz monzodiorite dike that hosts mineralization at Antelope Basin.

RSC-188 was drilled on the west side of the North Stock intrusion and was 70 metres from the nearest historic drill hole (Hole RSC-149: 0.61 g/t Au over 86.9 metres). The hole intersected thick intervals of heterolithic breccia, phonolite and monolithic schist breccia before ending in Precambrian schist. The thick zone of gold mineralization (74.07 metres to 188.06 metres) confirms this extension and suggests that the mineralization continues towards the west and remains open. The alteration in this intercept included moderate potassic (adularia) flooding and moderate to strong pyrite. In addition, the lower intercept (333.15 metres to 349.91 metres), while lower grade, showed the contact zone between the Eocene volcanic breccia and the Precambrian schist is mineralized. This is similar to some of the mineralization seen in the Cripple Creek Mining District where this contact acted as a favorable conduit for fluids.

RSR-001 and RSR-003 tested the middle ground area between Antelope Basin and North Stock. Lithologies in both holes were largely schist, but the lower portions of RSR-003 intersected heterolithic breccias and phonolites below 240 metres where the intensity of the potassic alteration increased. The results suggest mineralization continues to remain open towards the west where additional holes have been planned and permitted. The Company will continue to drill in this area using core holes to better test the targets and explore the linkage between the two deposits.

RSR-006 was designed to test the northwestern extension of the mineralization at North Stock. The hole intersected lithologies that varied from phonolites, heterolithic breccias and schist with the better grades hosted in the breccia units. While the hole intersected thick zones of low grade mineralization, it also intersected some of the strongest alteration seen in the program with moderate to strong pervasive potassic alteration and associated carbonate alteration. This type of alteration is an important geological marker for gold mineralization in the district.

RSR-007 tested a strong IP anomaly 350 metres southwest of North Stock. The hole was drilled entirely in schist. The gold intercept reported near the bottom of the hole was associated with a zone of weak to moderate potassic alteration. The results showed low-grade mineralization associated with the IP anomaly and the Company has plans to further test the target in 2017.

BJR-001 and BJR-005 were designed to test the western portion of the large (400 metres by 750 metres) gold-silver soil geochemistry anomaly at Blackjack. Both holes intersected Precambrian granites with minor quartz veins. The gold was associated with zones of weak to moderate pyrite in BJR-001 while the mineralization in BJR-005 was found in zones with moderate to strong pyrite and potassic (adularia-quartz) alteration. It is important to note that BJR-005 hosted significant silver mineralization which included 36.86 g/t Ag over 18.3 metres and 10.62 g/t Ag over 53.3 metres. The holes are significant as they intersected thick zones of mineralization which remain open to the west with results pending on a number of proximal holes.

Outlook

To date, the Company has completed 50% of its 2017 drill program with approximately 14 holes pending assay results. The remaining 25 drill holes consist of an additional 10 brownfield holes and approximately 15 greenfield holes. Drilling on the greenfield targets is expected to begin in October. Based on current productivity rates, the Company expects to complete the drilling program in early November. Results from the 2017 drilling program are expected to be announced on a monthly basis for the remainder of the year and potentially into 2018. In addition to the drill program, further metallurgical testwork and geological and resource modelling will be completed to support a maiden National Instrument 43-101 resource estimate that is expected to be announced in the first half of 2018.

Figure 1: To view a plan map of North Stock and Antelope Basin 2017 drill results, planned hole locations and historic drill highlights, click here:
https://www.gfgresources.com/files/images/projects/exploration_targets/2017/09/NS_AB_Plan-Map_Sept-20_DDH-Release.jpg

Figure 2: To view a plan map of Blackjack 2017 drill results, planned hole locations and historic drill highlights, click here:
https://www.gfgresources.com/files/images/projects/exploration_targets/2017/09/BJ_Plan-Map_Sept-20-DDH-Results.jpg

Figure 3: To view a regional map of the Rattlesnake Hills Gold Project, click here:
https://www.gfgresources.com/files/images/projects/exploration_targets/2017/09/GFG-Resources-RSH_Regional-Target-Map-2017.jpg

Qualified Persons

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:
Brian Skanderbeg
President & CEO
Phone: (306) 931-0930
or
Marc Lepage
Vice President, Business Development
Phone: (306) 931-0930
Email:info@gfgresources.com
Website: www.gfgresources.com

Source: GFG Resources Inc.