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GFG Resources Acquires Strategic Claims Adjacent to its Pen Gold Project West of Timmins, Ontario
SASKATOON, Saskatchewan, June 01, 2018 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV:GFG) (OTCQB:GFGSF) (“GFG” or the “Company”) is pleased to announce that it h
About this update from Gfg Resources, Inc.
[{"type":"text","content":" SASKATOON, Saskatchewan, June 01, 2018 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV:GFG) (OTCQB:GFGSF) (“GFG” or the “Company”) is pleased to announce that it has entered into a purchase and sale agreement (the “Agreement”) with Richmont Mines Inc. (“Richmont”), a subsidiary of Alamos Gold Inc. (TSX:AGI) (NYSE:AGI), to acquire a 100% interest in the Sewell Property in exchange for 390,930 GFG common shares. The Sewell Property is located 10 kilometres west of Tahoe Resources’ West Timmins Gold Mine and is contiguous to portions of the Pen Gold Project’s eastern boundary (See Figure 1). Following the acquisition of the Sewell Property, GFG’s Pen Gold and Dore Gold properties will comprise nearly 700 square kilometres (“km2”) in one of the most prolific gold districts in the world. Brian Skanderbeg, President and CEO of GFG, commented, “The acquisition of the Sewell Property adds significant exploration potential and complements our consolidation strategy in one of the most prolific gold districts in the world. We believe that the historic high-grade drill intercepts and grab samples on the Sewell Property are part of a four-kilometre-long gold trend that we have outlined in our new structural model. Like many historical gold intercepts and occurrences in the Swayze Greenstone Belt, there has been very little to no follow-up drilling or modelling for over a decade. We will implement our strategic approach to exploration on the new claims and follow-up on the historic gold intercepts as part of our 8,000 metre drill program in the third and fourth quarters on this very prospective region of the Abitibi.” Sewell Property Details The Sewell Property hosts favourable geology and several historic economic drill intercepts. Previous explorers, including Richmont, Storimin Exploration Inc. and Noranda Mining Corporation of Canada, targeted the Sewell Property along the Deerfoot Deformation Zone, the same major structural corridor that exists on the Pen Gold Project, with a total of 46 diamond drill holes. Highlights from drilling along this interpreted structure include historical intercepts(1) of: 60.2 g/t Au over 1.3 metres; 30.2 g/t Au over 1.2 metres; 18.9 g/t Au over 1.6 metres; 92.6 g/t Au over 0.6 metres; 11.1 g/t Au over 1.7 metres; and 28.5 g/t Au over 1.6 metres. In addition to historic drill intercepts, surface grab samples f...