GFG Begins 8,500 Metre Drill Program Focused on High-Grade Gold Targets at the Pen Gold Project, West of Timmins, ON

SASKATOON, Saskatchewan, Aug. 31, 2020 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has started its Phase II 8,500 metre (“m”) drill program testing high-grade gold targets at its 100% owned, district-scale, Pen Gold Project (the “Project”).

The Project is located approximately 40 kilometres west of the prolific Timmins Gold District in Ontario. The contiguous land package, one of the largest in the region, consists of approximately 475 square kilometres and is situated between Newmont’s Borden Gold project and Pan American Silver’s Timmins West Mine. The Project covers an approximately 50-kilometre-long section of Archean greenstone that contains the interpreted western extension of the Porcupine-Destor Fault Zone within the same geological setting that hosts most of the gold deposits found in the Timmins Gold Camp.

The Phase II drill program is designed to:

• Follow-up on the recent high-grade gold discovery at the Nib Prospect which intersected 71.27 grams of gold per tonne (“g/t Au”) over 8.5 m from 50 m below surface (see news release dated April 6, 2020: “GFG Drills 71.27 Grams of Gold per Tonne Over 8.5 Metres at the Pen Gold Project West of Timmins Ontario”);
• Follow-up on the HGM and Crawford targets where the Company has successfully intersected several zones of gold mineralization that are open in multiple directions;
• Test earlier stage targets such as Broadway and Boundary that have been identified and advanced by the Company’s systematic exploration approach; and
• Test an east-trending structure that parallels the Sewell Prospect which has multiple high-grade gold intercepts.

Please see Figure 1 for drill target locations.

Brian Skanderbeg, President and CEO commented, “We have made significant progress with our summer field program and now are in a position to aggressively drill test several targets with our largest ever drill campaign to date. Drilling will focus on the high-grade Nib discovery and regional targets such as the HGM, Crawford, Sewell North, Boundary and Broadway targets. With a strong cash balance, robust and successful exploration model and several highly prospective targets including the Nib discovery in hand, we are well-positioned for an exciting second half of the year.”