Nov 15 2016
GFK Resources Inc. (the "Company" or "GFK") - (TSX VENTURE:GFK), is pleased to announce that the fall trenching program on the Kellar Lake showing area was successful and has returned encouraging gold grades. A new gold bearing vein was identified, which brings the total to three gold bearing structures in the Kellar Lake showing area, highlighting a possible new stacked NNE gold bearing fault system with associated conjugate EW gold bearing structures. The 2016 work program was designed to expand the historical work and locate new veins. Mechanical stripping was carried out over vein No-1 to expose the maximum length of the vein. Over 460 metres of strike length was stripped and the structure remains open in all directions. The vein varied in width from 0.5 to over 3.6 metres including the mineralised and silicified contact zone. The vein strikes NNE-SSW and dips to the east at approximately 75 degrees. Channel samples were taken at 5.0 metre intervals across the mineralised zone, where ever possible. The full width of the zone was not always accessible for channel sampling. The following table is a summary of the best individual or composite assay results from over 139 channel totaling 310 individual samples oriented perpendicular to strike:
Complete assay results table, location maps and detailed trenches maps can be found at the links indicated at the end of the release.
Vein No-1 and structure was lost both to the north and south due to thick overburden, however the historical IP survey carried out on lines 800 feet apart did show continuity and other parallel similar anomalies.
Vein No-2 is located 480 metres to the SW from the end of the trench on No-1 vein and was discovered during early exploration programmes in the area. It strikes NE-SW and was exposed in the past over a length over 100 metres. The vein varies in width from 5 to 50 centimetres. According to historical reports from SIGEOM public database, chip samples taken by Meston Lake Resources in 1980 along strike returned values ranging from 1.0 to 81.0 g/t Au. Thick overburden prevented early explorers from following this trend along strike. In 2016, no work was done on this vein due to an early snowfall. However, follow-up exploration will be done on this vein during the next phase of the exploration program.
Vein No-3 is a new gold bearing E-W vein discovered during the fall trenching program. It was discovered in a small exploration trench located 60.0 metres to the east of vein No-1. The vein was exposed over a length of 15 metres. Late in the program a small hand-dug trench located another exposure of this vein 60.0 metres further east for a total estimated length of 120 metres. The vein continues to the east however thick overburden and an early heavy snowfall ended the work program at this time. Further mechanical stripping will be done on this new vein. The following table gives the results of the preliminary channel/chip sampling done on this vein.
The discovery of a new gold bearing vein during preliminary exploration work on the Kellar Lake showing and the consistent significant grades returned so far justified the commissioning of a detailed IP survey to define the extent of the known veins and find new ones. Next phase will include trenching and diamond drilling.
HISTORY OF THE KELLAR SHOWING
Kellar Vein No-1 was discovered in 1936 by George E. Kellar a prospector working for Prospector Airways. They reported finding visible gold and traced the vein by digging small pits for a distance of 1,600 feet. Work was abandoned due to the project's remoteness at the time. However, work resumed on the property after a road was built to Chibougamau to service the mines in the area. The property became accessible by a short float plane flight from a base at Cache Lake. According to historical reports from SIGEOM public database, in the early fifties, several pits were cleaned and resampled which returned grab sample results varying from 3.4 to 23.8 g/t Au. A small portable drill was then brought-in to test the vein at depth. A number of companies returned over the years to resample the old trenches reporting similar results. This was then followed by a wide spaced IP survey that was carried out over the main showing area. It identified the No-1 vein structure and several other parallel anomalies which may indicate a stacked vein system. A limited drilling program with small core diameter tested the coincident IP anomaly / Vein No-1 structure in the early eighties with mitigated results. No further work was reported on this showing since.
Grizzly is a gold property which consists of 136 mining claims covering an area of 7,371 hectares located approximately 35 kilometers northwest of the town of Chapais. The area is underlain by rocks of Archean age of the Gilman and La Trève formations. The property contains more than 10 historical gold showings and occurrences associated with EW and NNE trends with grades varying from 1 g/t to up to 46 g/t. Very limited exploration work such as basic prospecting, mechanical trenching and shallow drilling was done over the property.
Samples collected during the 2016 fall exploration programme were dispatched from Chibougamau to Accurassay's Rouyn-Noranda Laboartory for processing. Standard and blank QA-QC samples were introduced in the sample series at regular intervals in the field. All samples were processed according to Accurassay's internal quality control procedures. They were analysed following standard pyro-analyses technics "Fire Assay-Atomic Absorption". Samples which returned values equal or greater than 10.0 g/t were reanalysed by gravimetric method.
GFK fulfilled the asset purchase agreement between Probe Metals Inc. and GFK Resources Inc, dated July 19, 2016, by paying an amount of $100,000 to Probe Metals Inc. as a final good standing payment required there. GFK also completed the acquisition of a 100% ownership in three properties, Vezza, Vezza North and Bachelor Extension properties, in exchange for 3,000,000 common shares of GFK. Probe Metals Inc. kept a 2% net smelter returns (NSR) on all 3 properties; half of that royalty (1%) can be bought back at any time by GFK, at its sole discretion, for an amount of $1,000,000.
Mr. Louis Morin, CEO, states: "GFK is committed at exploring for gold within high potential discovery areas. We are very pleased by those initial results, generated from those quality properties recently added within our portfolio. We are optimistic about the results we obtained. Those provide a strong incentive to continue our work program within those areas."
Mr. Tony Brisson, B.Sc., P.Geo. is acting as qualified person (as defined by NI 43-101) for GFK and has reviewed and approved the scientific and technical information in this press release.