Posted in | Gold | Mining Business

GFG and Newcrest’s Option Agreement on Rattlesnake Hills Gold Project

GFG Resources Inc., a North American precious metals exploration company, has announced that Newcrest Resources Inc.—a wholly-owned subsidiary of Newcrest Mining Limited—has decided to withdraw from the option and earn-in agreement relating to the Rattlesnake Hills Gold Project located in Wyoming, United States.

The Rattlesnake Hills Gold Project continues to be fully owned and controlled by GFG Resources.

From September 2018, Newcrest Resources has invested about US$5.0 million relating to exploration expenditures on the Rattlesnake Hills Gold Project, which included more than 4,000 m of drilling, hyperspectral scanning of the historic core, elaborate modeling and reprocessing of local and regional geophysics, and the use of machine learning technology to create the latest 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. 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, President and CEO, GFG Resources Inc.

Brian Skanderbeg continued, “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 district-scale gold exploration project stretching 135 km2 and situated in central Wyoming about 100 km southwest of Casper. It is centrally situated within about 1,500-km-long belt of alkalic intrusive complexes that exist along the eastern part of the Rocky Mountains spanning from Montana to New Mexico.

The Rattlesnake Hills Gold Project has about 95,000 m of historic drilling which has successfully delineated three major zones of the alteration as well as precious metal mineralization linked to Eocene age alkalic intrusions at Blackjack, Antelope Basin, and North Stock.

Most of the drilling had targeted open-pit, near-surface targets located in the Antelope Basin and North Stock areas and had successfully intercepted 1.85 g of gold per ton (g/t Au) over a hole length of 236.2 m; 4.20 g/t Au over a hole length of 77.7 m; 2.08 g/t Au over a hole length of 150.9 m, and 0.82 g/t Au over a hole length of 99.1 m.

Apart from the outlined mineralized zones, GFG Resources assumes that the district is extremely prospective and has delineated greenfield targets that stretch to several kilometers and have never been drill tested so far. The greenfield targets were created from the geochemical and geophysical programs of GFG Resources and host robust similarities to the Antelope Basin and North Stock systems.

Source: https://www.gfgresources.com/

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