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GFG Resources Begins 8,500 Metre Drill Program on High-Grade Gold Targets at its Pen Gold Project, West of Timmins, Ontario

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The Pen Project, located approximately 40 kilometres west of the prolific Timmins Gold District in Ontario, covers an approximately 50-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 most of the gold deposits found in the Timmins Gold Camp, which have produced more than 70 million ounces of gold.

Additional Information:

Company: GFG Resources
Website: http://www.GFGresources.com
Stock Symbol: TSXV: GFG
Date Published: Sep 15, 2020
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Today’s feature company is GFG Resources, which has started its Phase II, 8,500 metre drill program testing high-grade gold targets at its 100% owned, district-scale, Pen Gold Project.

The Pen Project, located approximately 40 kilometres west of the prolific Timmins Gold District in Ontario, covers an approximately 50-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 most of the gold deposits found in the Timmins Gold Camp, which have produced more than 70 million ounces of gold.

The contiguous land package, one of the largest in the region, consists of approximately 475 square kilometres and is situated between Newmont’s Borden Gold project and Pan American Silver’s Timmins West Mine.

The company’s nearby 100% owned Dore Gold Project land package is approximately 205 square kilometres and covers a 12-kilometre-long section of Archean greenstone within the Swayze Greenstone Belt.

The Phase II drill program is designed to follow-up on the recent high-grade gold discovery at the Nib Prospect which intersected 71.27 grams per tonne gold over 8.5 metres starting at just 50 metres below the surface in hole 20-047.

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.

Three or four holes will be drilled to follow-up on the HGM and Crawford targets where the company has successfully intersected several zones of gold mineralization that are open in multiple directions.

Previous drilling returned high-grade intervals of 7.53 g/t gold over 2.2 metres, including 31.80 g/t gold over 0.5 metres and 21.26 g/t gold over 1.7 metres.

At the Broadway prospect, three or four holes will test the trend towards the south at 300 metres and 600 metres from previous drilling, which returned 7.30 g/t gold over 0.7 metres.

At 8 different locations along the 3-kilometre-long Boundary Trend, grab samples collected from outcrop returned values of greater than 1.0 g/t gold with the highest assay being 11.10 g/t gold.

Three or four priority targets will be tested along this trend which has seen no previous drilling despite its proximity to the Porcupine-Destor Fault Zone.
Reconnaissance drilling at the Sewell North Prospect, targeting a structure interpreted from airborne magnetics, returned 2.86 g/t gold over 1.0 metres at 47 metres downhole.

The current drill program will include 2 holes testing this prospective structure which extends for over 1.0 kilometre and has seen very limited drilling.

The Phase II drill program, which the company anticipates completing by the end of 2020, is fully funded following the recent financing of $5.9 million which included the participation of Alamos Gold Inc. as a strategic investor.

Brian Skanderbeg, President and CEO, stated: “We have made significant progress with our summer field program and now are in a position to aggressively drill test several targets with our largest ever drill campaign to date. Drilling will focus on the high-grade Nib discovery and regional targets such as the HGM, Crawford, Sewell North, Boundary and Broadway targets. With a strong cash balance, robust and successful exploration model and several highly prospective targets including the Nib discovery in hand, we are well-positioned for an exciting second half of the year.”

The company also owns 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project hosting 3 significant zones of gold mineralization, located approximately 100 kilometres southwest of Casper, Wyoming.

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.

At the Rattlesnake Hills Gold Project, the Company continues to evaluate strategic options to advance the project.

The shares are trading at $0.27.

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 Megan Edwards for Investmentpitch Media