Nov 2 2016
GFG Resources Inc. ("GFG" or the "Company") is pleased to announce that it has received all required permits to begin drilling at its 100% owned Rattlesnake Hills Gold Project in central Wyoming, United States. As part of its Phase II exploration program, the Company has initiated a 5,000 to 7,500 metre drill program that will focus on the direct extensions and proximal analogies at the North Stock and Antelope Basin deposits and the Black Jack target. The drill program will utilize two reverse circulation rigs and one core rig and will be completed in the fourth quarter of 2016.
Brian Skanderbeg, President and CEO, commented, "We are excited to initiate an aggressive fourth quarter drill program at our Rattlesnake Hills Gold Project. We have analyzed a significant amount of historical data and have completed our Phase 1 exploration program, which included a field program comprised of soil sampling and an airborne VTEM survey paired with detailed geological and structural mapping. The objective of the Phase II drill program will be to test direct extensions of known mineralization and proximal targets with a goal to expand the footprint of the mineralized systems. In addition to our drill program, we will conduct further soil sampling and analysis of historical and newly generated data to develop new target areas within our 33,500 acre land package at the Rattlesnake Hills Gold Project."
2016 Drill Program
The Phase II drill program of 5,000 to 7,500 metres will focus on the following targets:
North Stock: Precious metal mineralization at North Stock is hosted in breccia, phonolite and schist and has been defined by historic drilling in a broad, 100 metre by 300 metre tabular mineralized zone, extending over 500 metres deep. The Company will test extensions to the known mineralization to the northeast and southwest. In addition, infill holes are planned to test the area between Antelope Basin and North Stock where previous drilling intersected significant gold intervals in broadly spaced holes. Holes have also been designed to test a strong IP anomaly located to the southwest of North Stock and to test geochemical anomalies in soils and possible extensions of mineralization on the western side of North Stock. Highlights from historic drilling at North Stock include 1.85 grams of gold per tonne over 236.2 metres core length (Hole RSC-007), 1.58 grams of gold per tonne over 216.4 metres core length (Hole RSC-132) and 9.73 grams of gold per tonne over 55.7 metres core length (Hole RSC-020). The system remains open to the north, west and south toward the Antelope Basin deposit.
Antelope Basin: The mineralization at Antelope Basin is hosted by a quartz monzodiorite dike and remains open along strike to the northeast as well as the southwest. These possible extensions will be tested with the proposed program. Historic drilling at Antelope Basin demonstrates broad zones of low grade, as well as narrow discrete zones of high grade gold and silver mineralization. Mineralization at Antelope Basin has been defined over an area of 200 metres by 350 metres and to a depth of 200 metres. Highlights from the historic drilling at Antelope Basin include 1.91 grams of gold per tonne over 76.2 metres core length (Hole RSC-042), 1.21 grams of gold per tonne over 97.5 metres core length (Hole RSC-019) and 1.63 grams of gold per tonne over 77.7 metres core length (Hole RSC-078).
Black Jack: Gold mineralization at Black Jack is more typical of a low sulphidation epithermal system and is hosted within a rhyolite breccia emplaced along the North Granite Mountain Fault zone and within the underlying Precambrian granite and gneiss. The Black Jack target has had a limited amount of drilling, eight holes, and highlights include 1.33 grams of gold per tonne over 33.5 metres from surface (Hole NVJ-001) and 0.74 grams of gold per tonne over 13.7 metres core length (Hole NVJ-008). The Black Jack mineralization remains open at depth, down-dip and along strike and the drill program is designed to test the extensions of this mineralization. The program will also test coincident soil anomalies (Au, Ag, and As) to the northwest and northeast of the historic drilling.
The Company expects to complete the Phase II exploration program by the first quarter of 2017 at a cost of approximately U.S.$2.0 million. The exploration expenditures will be funded with the Company's current working capital.
With the newly consolidated land package and positive results from the on-going exploration program, the Company is confident that the property hosts compelling targets outside of the known mineralized zones at North Stock, Antelope Basin and Black Jack. As such, and in conjunction with the current drill program, the Company will conduct further soil sampling and evaluate new and historical data to generate and prioritize regional target areas for further drill testing in 2017.
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.