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GFG Resources Completes Acquisition of Sewell Property Adjacent to its Pen Gold Project West of Timmins, Ontario
SASKATOON, Saskatchewan, June 25, 2018 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV:GFG) (OTCQB:GFGSF) (“GFG” or the “Company”) is pleased to announce that it h
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[{"type":"text","content":"SASKATOON, Saskatchewan, June 25, 2018 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV:GFG) (OTCQB:GFGSF) (“GFG” or the “Company”) is pleased to announce that it has completed the acquisition of the Sewell Property from a subsidiary of Alamos Gold Inc. (“Alamos”) (TSX:AGI) (NYSE:AGI), 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). The Company will incorporate the Sewell Property in its 2018 exploration program and may allocate drilling metres to follow-up on the historic drill intercepts. Sewell Property Details The Sewell Property is highly prospective as it hosts favourable geology and several historic high-grade drill intercepts. Previous explorers 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. Gold mineralization occurs within and adjacent to a sequence of moderately north-dipping quartz veins and shear zones cutting a carbonate-altered diorite. The east-northeast trending zone has been traced in drilling for 300 metres, to a depth of 100 metres and remains open to the west onto the Pen Gold property and down-plunge. Transaction Details GFG purchased 100% of Alamos’ interest in the Sewell Property, a land package consisting of one legacy claim and five patented claims covering approximately 3,000 hectares adjacent to GFG’s Pen Gold Project, in exchange for 390,930 GFG common shares, representing an implied purchase price of approximately C$100,000 based on GFG’s 10-day VWAP. In addition, within five years after closing of the Agreement, if GFG files an independent National Instrument 43-101 technical report on the Sewell Property (or on the Pen Gold Project if such technical report includes all or a portion of the Sewell Property) which outlines a mineral resource of at least 500,000 ounces of gold in respect of the claims comprising the Sewell Property, Al...