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GFG Resources reported the intersection of a significant high-grade gold system at its Nib Prospect in Ontario

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The Nib Prospect is located in the central part of the company’s 100% owned Pen Gold Project located 40 kilometers west of the prolific Timmins Gold District in Ontario.

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Additional Information:

Company: GFG Resources
Website: http://www.GFGresources.com
Stock Symbol: TSXV: GFG
Date Published: Apr 8, 2020
Transcript: Available

Video Transcript:

I’m Fiona Forbes for Investmentpitch Media

GFG Resources reported the intersection of a significant high-grade gold system at its Nib Prospect in Ontario.

The Nib Prospect is located in the central part of the company’s 100% owned Pen Gold Project located 40 kilometers west of the prolific Timmins Gold District in Ontario.

Extensive swamp and esker cover in this area have hindered historic exploration and prevented explorers from realizing the significance of the gold mineralization at the Nib-Yellowknife occurrence.

Hole PEN-20-47 intersected 71.27 grams per tonne gold over 8.5 meters including 511.00 grams per tonne gold over 1.15 meters at a vertical depth of approximately 50 meters below surface.

Hole PEN-20-047, which intersected 3 mineralized vein zones at depth, was designed to test for the depth extension of the zones intersected in PEN-18-017 as well as any sub-parallel vein sets.

Brian Skanderbeg, President and CEO, stated: “Hole PEN-20-47 is the most significant intercept ever drilled on our 500 square kilometre Pen Gold Project. This exceptional intercept along with the multiple mineralized intervals further downhole demonstrates that the Nib Prospect has the potential to host a large-scale gold system. These recent results in combination with numerous significant intercepts at our other regional targets, validates our view that this portion of the Abitibi has the potential to host multiple gold deposits next to a world-class gold camp. We look forward to follow-up drilling on this very exciting and underexplored target in our Phase 2 2020 drill program in the third quarter.”

During the first quarter of 2020, the company completed seven holes, totalling 2,751 meters as part of its 2020 Phase 1 drill program, which was designed to test targets at the Nib, HGM and Slate Rock prospects with approximately 3,500 meters of drilling.

Visible gold was identified in three consecutive samples corresponding to gold grades of 511 grams per tonne, 1.5 grams per tonne, and 14 grams per tonne.

Currently, the company is drilling the final hole of the program at the HGM Prospect and expects to finish the hole in the coming week.

The results from the first 2 holes are shown in this table.

Hole PEN-20-046 was designed to test for the northeastern extension of the vein system identified in PEN-19-017 with a 150 meter step-out.

While similar diorite host rock was encountered only low gold values were returned.

The company anticipates completing the current drill program in the coming week, with the remainder of the assays from the Phase 1 program, including multiple follow-up holes from the HGM target, to be released as they become available.

Following the completion of the drill program, the technical team will focus on interpreting the Phase1 drill data, evaluate and model the recently completed airborne magnetic survey on the Dore Gold Project and prepare for the upcoming field season.

The company anticipates to resume drilling on its recent successes and test regional targets in the third quarter.

Following these results, Craig Stanley, a mining analyst at Eight Capital, issued a “FIRST IMPRESSIONS” note, with a buy recommendation and a $0.70 target price, stating: “Our target price is based on 1x our net asset value, calculated at Eight Capital’s long-term gold price of $1,400 per ounce.”

The shares are trading at $0.165.

For more information, please visit the company’s website at www.GFGresources.com, contact Marc Lepage, VP Business Development at 306-931-0930 or by email at info@GFGresources.com.

I’m Fiona Forbes for Investmentpitch Media