GFG Provides Update on Rattlesnake Hills Gold Project Option Agreement with Newcrest

SASKATOON, Saskatchewan, April 03, 2020 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) reports it has been advised by Newcrest Resources Inc., a wholly-owned subsidiary of Newcrest Mining Limited (ASX: NCM) (“Newcrest”) of its decision to withdraw from the option and earn-in agreement for the Rattlesnake Hills Gold Project (the “Project”) in Wyoming, United States. The Project remains 100% owned and controlled by GFG.

Since September 2018, Newcrest has invested approximately US$5.0 million in exploration expenditures on the Project which included over 4,000 metres (“m”) of drilling, extensive reprocessing and modelling of regional and local geophysics, hyperspectral scanning of historic core and the application of machine learning technology to generate a new deposit-scale alteration and targeting model.

“We are grateful to have been able to work with Newcrest’s world-class team over the past 18 months,” stated Brian Skanderbeg, President and CEO. “Their investment, modelling, target analysis and drilling programs have added significant value and understanding to the Project. Over the coming months, we will initiate a strategic review to identify the best path forward to advance the Project with the objective of maximizing shareholder value.”

Brian Skanderbeg added, “While we evaluate strategic options for the Rattlesnake Hills Gold Project, we continue to explore our Pen Gold Project located 40 kilometres west of the Timmins Gold District. We are in the process of completing our final drill hole from the 2020 Phase 1 drill program and will provide a program update along with initial assay results shortly.”

The Rattlesnake Hills Gold Project:
The Rattlesnake Hills Gold Project is a 135 square kilometres district scale gold exploration project located in central Wyoming approximately 100 kilometres southwest of Casper. The Project is centrally located within a roughly 1,500-kilometre-long belt of alkalic intrusive complexes that occur along the eastern side of the Rocky Mountains from Montana to New Mexico.

The Project has approximately 95,000 m of historic drilling which has outlined three significant zones of alteration and precious metal mineralization that are associated with Eocene age alkalic intrusions at North Stock, Antelope Basin and Blackjack. The majority of the drilling has focused on near surface, open pit targets in the North Stock and Antelope Basin area with highlights that include intercepts⁽¹⁾ of 1.85 grams of gold per tonne (“g/t Au”) over 236.2 m hole length; 4.20 g/t Au over 77.7 m hole length; 2.08 g/t Au over 150.9 m hole length and 0.82 g/t Au over 99.1 m hole length. In addition to the outlined zones of mineralization, the Company believes that the district is highly prospective and has outlined several kilometre-scale greenfield targets that have never been drill tested. These greenfield targets were generated from the Company’s geophysical and geochemical programs and host strong similarities to the North Stock and Antelope Basin systems.