GFG Confirms New High-Grade Gold Target with up to 11 g/t Gold from Surface Sampling and Provides Exploration Update at the Pen Gold Project West of Timmins, ON - Seite 2

While most of the gold occurrences along the Boundary Trend are hosted by deformed and altered mafic volcanics, the new occurrence on the western end is hosted in a previously unrecognized diorite body which is the same host rock as the high-grade gold mineralization at the nearby Nib Prospect. The Boundary Trend remains open to the west in an area of extensive cover where it intersects a north-east trending structural corridor that hosts the Nib discovery.

Targets along the Boundary Trend are being prioritized by ongoing structural mapping and the drone magnetic survey data. This area will be tested as part of the upcoming drill program.

Broadway
The Broadway Prospect is an early stage, kilometre-scale target in the northeast portion of the Pen Gold Project in the Tremblay Region (see Figure 1).  In 2019, following-up on positive prospecting results, the Company drilled 2.29 g/t Au over 2.5 m including 7.30 g/t Au over 0.7 m in sheared and quartz-carbonate altered diorite (see news release: “GFG Provides Exploration Update and Initiates 2020 Drill Program at Pen Gold Project West of Timmins, ON”). Anomalous rock samples (up to 0.8 g/t Au) and till gold grain counts (up to 55 grains; 84% pristine) suggest that the mineralized system could extend up to 700 m south of this intercept. Ongoing mapping and drone magnetic survey data are being used to prioritize targets along this previously undrilled trend. Selected high priority targets will be tested as part of the upcoming drill program.

Nib
In the first quarter of 2020, the Company drilled a new gold zone at the Nib Prospect that returned 71.27 g/t Au over 8.5 m including 511.00 g/t Au over 1.15 m in sheared and altered diorite (see news release: “GFG Drills 71.27 Grams of Gold per Tonne Over 8.5 Metres at the Pen Gold Project West of Timmins, Ontario”).  This new zone is part of a stacked vein system that is related to north-east and east-trending structures along the western margin of the Reeves Ultramafic Complex.  Additional parallel structures have been interpreted from airborne magnetic data and are additional high priority drill targets.  To better constrain these targets, in this region of extensive swamp and esker cover, a high-resolution drone magnetic survey is being conducted that will cover the greater Nib Prospect area and extend eastward to cover the new high-grade surface showing at the west end of the Boundary Trend.  Identified high priority targets from the drone magnetic survey will be tested as part of the upcoming drill program.