GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) reports initial assay results from the 2019 Phase 2 drill program at its 100% owned Pen Gold Project located 40 kilometres west of the prolific Timmins Gold District in Ontario, Canada. In the fourth quarter of 2019, the Company completed 2,500 metres of drilling from eight drill holes testing six targets (see Figures 1-4).
The initial results from four drill holes are highlighted by hole PEN-19-39 which successfully outlined mineralized stacked lenses with high-grade gold intercepts at the HGM target grading 7.53 g/t Au over 2.2 metres and 25.96 g/t Au over 1.0 metre (see Table 1 and Figures 2-6).
Brian Skanderbeg, President and CEO commented, “This was our first attempt at following up on the historic drilling at the HGM target. These results validate our model of a robust gold system with multiple high-grade stacked lenses. The system remains open for growth and we plan to further drill test the HGM target in the upcoming 4,000 metre drill program along with other high priority targets at Slate Rock, Crawford and Nib. With further results pending from both the Pen Gold Project and Rattlesnake Hills Gold Project, and drilling anticipated to restart at Timmins in the coming weeks, 2020 should be an exciting year for GFG.”
Deerfoot Region – HGM Prospect
The HGM prospect was initially discovered and drilled by Hemlo Gold Mines and successively tested between 1994 and 2011 with 15 holes. It is hosted along the Deerfoot Corridor, a one by three kilometre area in the easternmost part of the Pen Gold Project, that contains the westward extension of the Porcupine-Destor Fault Zone and second order sub-parallel shear zones and fault splays. Detailed review of historic drill logs and re-logging of available drill core by GFG outlined a series of stacked, replacement style gold lenses within a sequence of carbonate-silica-sericite altered, brecciated mafic volcanic rocks. Historic drilling focused on the first 300 metres from surface and returned multiple high-grade assays over broad widths such as to 21.59 g/t Au over 3.9 metres and 4.30 g/t Au over 5.0 metres.
During Phase 2 of the 2019 drill program, GFG drilled two holes at the HGM target to test the eastern depth and western strike continuity of the system (see Figures 2-4). Assays received to date from drill hole PEN-19-39, the deepest and easternmost hole testing the system, outlined five distinct mineralized intervals within a 225-metre-long section from 146.2 to 372.0 metres downhole. Most significant are two, visible gold-bearing intervals that assayed 7.53 g/t Au over 2.2 metres (including 31.80 g/t Au over 0.5 metres) and 25.96 g/t Au over 1.0 metres (including 51.80 g/t Au over 0.5 metres) from 309.7 and 371.0 metres, respectively (see Figures 5 and 6). The former is hosted within a strongly silicified and sericitized, quartz breccia-veined mafic volcanic interval with 10% disseminated and stringer pyrite with visible gold. The latter is associated with quartz-carbonate brecciated mafic volcanic hosting 10% disseminated and stringer chalcopyrite, pyrrhotite, pyrite with visible gold. Further up-hole, several lower grade intervals returned 0.49 g/t Au over 1.2 metres, 0.63 g/t Au over 0.5 metres and 1.24 g/t Au over 1.0 metres from 146.2, 215.8 and 233.6 metres. Assays remain outstanding for a number of sections between and below the aforementioned intervals.
Mineralized intervals from Hole PEN-19-39 are interpreted to link to historic hole 94-18 located 75 metres up-plunge that returned 6.52 g/t Au over 2.0 metres and 21.59 g/t Au over 3.9 metres and to hole 95-23 located 50 metres along strike to the west that returned 21.94 g/t Au over 1.0 metres.
Drill hole PEN-19-36 tested the western strike extension of the HGM target and intersected two distinct mineralized intervals ranging from 269.6 to 322.7 metres downhole. Most significant is a 7.4 metre interval that returned 0.93 g/t Au, including 1.2 metres at 2.86 g/t Au. The interval is associated with a moderately quartz-carbonate brecciated and veined mafic volcanic interval with 1 to 5% disseminated and stringer pyrite and pyrrhotite. Further downhole, an interval returned 0.42 g/t Au over 1.3 metres.
The system at HGM remains open along strike to the east and west as well as at depth and will be the focus of further drilling in the coming 2020 drill program.
Deerfoot Region– Sewell North
GFG drilled one hole at the Sewell North target to on follow up on a historic hole that returned multiple gold mineralized intervals associated with a structure approximately 250 metres northwest of the Sewell prospect (see Figure 1). Assays received to date from drill hole PEN-19-35 include two distinct, diorite-hosted, quartz veined intervals hosting tourmaline, pyrite and arsenopyrite. The two intervals assayed 1.21 g/t Au over 1.0 metres and 2.89 g/t Au over 1.0 metres from 39.1 and 47.0 metres, respectively. The system remains open in all directions.
Deerfoot Region – Regional
The Company completed two holes along an untested two-kilometre segment of the Porcupine Destor Fault Zone, between the HGM and Sewell prospects. Hole PEN-19-37 was drilled to test a complex fold structure and structural intersection associated with a resistivity break. No significant assays were returned from the hole. Assays from a second hole, located 600 metres northeast along the same segment, are pending.
Over the coming weeks, the Company expects to receive the remaining assay results from the 2019 Phase 2 drill program and will provide an update once received. Starting in early February, the Company will resume drilling at the Pen Gold Project with a target to drill approximately 4,000 metres focused on follow-up drilling at the Slate Rock, HGM, Crawford and Nib prospects and other regional targets.
At the Company’s Rattlesnake Hills Gold Project in Wyoming, the Company anticipates being able to provide final assay results from its 2019 drill program in the coming weeks.
|Table 1: Initial Results from the 2019 Phase 2 Drill Program at the Pen Gold Project
|Hole ID||From (m)||To (m)||Length (m)||Au (g/t)||Target|
|PEN-19-37||no significant intercept||Deerfoot Regional|
*Gold intervals reported in the above table are at 0.1 g/t cut-off. Weighted averaging has been used to calculate all reported intervals. True widths are estimated at 70-90% of drilled thickness.
Figure 2: Plan Map of the Deerfoot Trend
Figure 3: Cross Section of the HGM Target
Figure 4: Longitudinal Section of the HGM Target
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 the Dore gold projects have the same geological setting that hosts 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 Newcrest Mining Ltd. through an option and earn-in agreement to advance the Rattlesnake Hills Gold Project. 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.
Photos accompanying this announcement are available at:
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