GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with International Explorers and Prospectors Inc. to acquire a 100% interest in the Montclerg Gold Project.
The Montclerg Gold Project is located 48 kilometres east of the prolific Timmins Gold Camp and is surrounded by multiple current and historic gold mines (See Figure 1). The Project consists of five patented mining claims and 110 unpatented mining claims that cover 10 km of the highly prospective Pipestone Deformation Zone (See Figure 2) which hosts multiple gold deposits and mines in one of the most prolific gold districts in the world.
Brian Skanderbeg, President and CEO of GFG, commented, “The acquisition of the Montclerg Gold Project is a great opportunity to add a more advanced and drill ready exploration project that has a robust and underexplored gold system outlined. In addition to the known gold zones, we believe there is significant exploration potential to extend the system and discover additional mineralized zones. We look forward to implementing our exploration strategy and advancing the Montclerg Gold Project alongside our Pen and Dore gold projects located west of Timmins.”
Montclerg Gold Project Details
The Montclerg Gold Project overlaps the Pipestone Deformation Zone, a major northern splay of the Porcupine Destor Deformation Zone, approximately 8.5 km east of Grace Gold’s Clavos gold deposit and 37 km west of Mayfair Resources’ Fen-Gibb gold deposit. The two gold prospects at the Montclerg Gold Project, MC and CX, occur north and south of the Pipestone Deformation Zone, respectively, and are associated with east-northeast trending fault zones that bisect the metasedimentary, felsic volcanic, mafic volcanic and felsic porphyric rocks of the area.
Since the discovery of gold at the MC prospect in 1938, a total of 19,730 metres have been drilled in 96 holes that sporadically test the trend over a 1.5 km strike length. The vast majority of holes, approximately 80, were drilled prior to 1967 and focused on depths of less than 150 m. These historic holes were not sampled completely with only the most intensely veined intervals assayed.
Drilling in 2016 demonstrated the existence of up to five separate gold zones at the MC prospect. Well-sampled drill core shows three upper zones with grades and thickness on the order of 1.5 grams of gold per tonne (“g/t Au”) over 25.5 m(1). Two deeper zones were intersected in several drill holes that tested the mafic volcanic footwall deeper than 200 m vertical. The two deeper zones are higher grade and have returned up to 3.28 g/t Au over 2.4 m, 3.69 g/t Au over 7.4 m (including 9.23 g/t Au over 2.2 m) and 6.05 g/t Au over 2.0 m(1). Broadly spaced drilling indicates this footwall system extends over a strike length of 175 m.
The CX prospect, occurring about 350 m south of the MC prospect, was first drilled in 1987. A total of 4,700 m has been drilled in 23 holes that test portions of the 1.2 km trend to depths of less than 200 m. The geology and character of mineralization is analogous to the Clavos gold deposit with the mineralization at CX also occurring in close proximity to a quartz-feldspar porphyry body that intruded along the contact of the metasedimentary and ultramafic rocks within the Pipestone Deformation Zone.
Both the MC and CX prospects have only been drilled sporadically along strike and have only been tested to shallow depths (<200 m vertical) (See Figure 3). They remain open at depth and along strike. Importantly, the deeper high-grade zones at the MC prospect demonstrate the high prospectivity of the footwall mafic volcanic rocks. See Table 1 for a list of selected highlighted historic drill results(1).
Table 1: Select Highlighted Historic Drill Holes from the Montclerg Gold Project(1)
(1) Drill intercepts are historical and presented using a 0.20 g/t Au cut-off and as drilled length. True width is estimated to be 50 to 90% of drilled length. GFG’s QP has not verified the laboratory accreditation, analytical method, sample size or QA/QC procedures utilized for the historic drill results.
Potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource on the Project to date and it is uncertain if further exploration will result in the Project being defined as a Mineral Resource.
Terms of the Agreement
Under the terms of the Agreement, GFG has a right to earn 100% interest in the Project, subject to a net smelter return royalty of up to 2% on certain of the claims, by:
Completion of the Montclerg Gold Project acquisition is subject to certain customary closing conditions, including approval of the TSX Venture Exchange. The issued GFG common shares are subject to a customary four month hold period and an agreed upon lock-up agreement with IEP.
Figure 1: Regional Map of GFG Gold Projects
Figure 2: Montclerg Gold Project Geology Map with Historic Drill Holes
Figure 3: Montclerg Gold Project Cross Section Map
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.
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We acknowledge the [financial] support of the Government of Canada.