C:CC - Contact Gold Begins 2023 Drill Program at Green Springs Gold Project
(TheNewswire)
Vancouver, BC - TheNewswire - May 31, 202 3 - Contact GoldCorp. (the “Company” or“Contact Gold”) (TSXV:C ) ( OTC:CGOLF) is pleasedto announce that the 2023 drill program has commenced at the GreenSprings gold project located on the prolific Cortez Trend innortheastern Nevada.
The 2023 drill program will be the first programcarried out as part of the US$ 10 million earn-in agreement withCenterra Gold Inc. (“Centerra”) (TSX: CG; NYSE: CGAU), and comes on the heels of drillprograms by Contact Gold that have consistently delivered intervals ofhigh grade oxidized gold mineralization and multiple gold discoveries.
“We are excited to be back drilling at Green Springsafter very successful discovery and step out programs in 2021 and2022, with this year being the first with Centerra as our fundingpartner.” said Matt Lennox-King, President and CEO of Contact Gold. “Since we first acquired the project in 2019, we have consistentlydelivered high grade, well oxidized, near surface drill intercepts inall target areas, along with bona fide discoveries at X-Ray and Tango. We fully expect to have an equally impactful program this year as wework through our priority drill targets.”
2023 Drill Program:
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Approved budget for the 2023 program is US$ 1.85 M (C$2.52 M)
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Contact Gold is the project operator.
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4,500 metres of reverse circulation drilling (RC), foran expected 45 drill holes, indicating the near surface nature of goldmineralization at Green Springs
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Drilling will focus on stepping out from existing zonesof high-grade oxidized gold mineralization and testing new undrilledtargets for new discoveries.
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First drill holes will be at the X-Ray zone, followedby the Echo zone at the southern end of the 3 km long Green SpringsMine Trend. Both X-Ray and Echo host shallow, high grade goldmineralization.
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Drilling is also planned at the Tango and Alpha zoneswhich are located NE and on trend with X-Ray, forming a 1.5 km trendof oxidized gold mineralization in drilling.
Map Showing Green Springs targetareas:
Key targets and intercepts:
X- Ray Zone:
Gold mineralization at X-Ray is hosted within the PilotShale, a key regional host unit across northeastern Nevada, includingat the neighbouring Pan Mine. The X-Ray zone is wide open forexpansion, particularly to the south and west of the originaldiscovery location where drill pads are currently being constructed. Alpha and Tango sit to the northeast of X-Ray, indicating thepotential to define a significant corridor of gold mineralization. Thediscovery was drilled by Contact Gold in 2021, with following updrilling in 2022 returning exceptional results.
Highlights of previous drilling at X-Ray:
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1.66 g/t Au over 28.96metres , from a depth of 9.14 metres, in drillhole GS22-01
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Including: 2.66g/t Au over 15.24 metres
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1.95 g/t Au over 41.15metres , from a depth of 15.24 metres, in drillhole GS22-04
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Including: 3.71g/t Au over 15.24 metres
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Echo Zone:
Gold mineralization at Echo is hosted within theChainman Shale, at the contact with the underlying Joanna Limestone,and is also a well-known host rock across the northeast of Nevada. Contact Gold drilled numerous holes at Echo in 2019, 2020, and 2021,consistently hitting well oxidized gold mineralization. Individualdrill intervals at Echo run up to 20 g/t Au in well oxidized rock. Echo is open for expansion to the south towards the Zulu target,with the Chainman shale dipping shallowly in that direction.
Highlights of previous drilling at Echo:
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2.24 g/t oxide Au over 35.05m from a depth of 35 metres in hole GS20-14
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Including: 3.14g/t Au over 22.86 m
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2.36 g/t oxide Au over 70.10 m from a depth of 80.77 metres in hole GS19-07
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Including: 4.09g/t Au over 38.10 metres
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and including: 8.05 g/t Au over 12.19 metres
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Qualified Person and technicaldisclosure
The scientific andtechnical information contained in this news release has been reviewedand approved by Vance Spalding, CPG, VP Exploration, Contact Gold, whois a “qualified person” within the meaning of NI 43-101.
Green Springs is strategically located 7 km immediatelyeast of the Gold Rock project operated by Calibre Mining Corp. (TSX:CXB; OTCQX: CXBMF) and 20 km southeast of their Pan Mine.
In December 2022 the Company entered into an earn-inagreement with a wholly-owned subsidiary of Centerra providing Centerra the option to acquire a 70% interest in GreenSprings for cumulative earn-in exploration expenditures of US$10,000,000 and aggregate cash payments to the Company of US$1,000,000. For further details on the earn -inwith Centerra and planned program for 2023 please see Contact Gold news release s dated December 9,2022 , and April 5, 2023 .
Green Springs is an early-stage exploration propertyand does not contain any mineral resource estimates as defined byNational Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”). There has been insufficient exploration to define amineral resource estimate at Green Springs. Additional informationabout Green Springs is summarized in the NI 43-101 Technical Reportentitled “NI 43-101 Technical Report for the Green Springs Project,White Pine County, Nevada, USA” prepared for Contact Gold, with aneffective date of June 12, 2020, and dated August 5, 2020, as preparedby John J. Read, C.P.G; an independent consultant and qualified personunder NI 43-101, and can be viewed under Contact Gold’s issuerprofile on SEDAR at www.sedar.com .
About Contact Gold Corp.
Contact Gold is an exploration company focused onmaking district scale gold discoveries in Nevada. Contact Gold’sextensive land holdings are on the prolific Carlin and Cortez goldtrends which host numerous gold deposits and mines. Contact Gold’sland position comprises approximately 149 km 2 of target richmineral tenure hosting numerous known gold occurrences, ranging fromearly- to advanced-exploration and current gold resources.
Additional information about the Company is availableat www.contactgold.com .
For more information, please contact: +1 (604)449-3361
Matthew Lennox-King – President & CEO
E-mail: info@ContactGold.com
Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy of this release. Nostock exchange, securities commission or other regulatory authorityhas approved or disapproved the information contained herein.
Cautionary Note RegardingForward-Looking Information
This news release contains"forward-looking information" and "forward-lookingstatements" (collectively, "forward-lookingstatements") within the meaning of the applicable Canadiansecurities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based onexpectations, estimates and projections as at the date of this newsrelease. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as "expects", or "does not expect","is expected", "anticipates" or "does notanticipate", "plans", "budget","scheduled", "forecasts", "estimates","believes" or "intends" or variations of suchwords and phrases or stating that certain actions, events or results"may" or "could", "would","might" or "will" be taken to occur or beachieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-lookingstatements relate, among other things, to the anticipated explorationactivities of the Company at the Green Springs property, and thecompletion of the earn-in by Centerra at Green Springs.
These forward-looking statements arebased on reasonable assumptions and estimates of management of theCompany at the time such statements were made. Actual future resultsmay differ materially as forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company tomaterially differ from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factors,among other things, include: fluctuations in general macroeconomicconditions; fluctuations in securities markets; fluctuations in spotand forward prices of gold, silver, base metals or certain othercommodities; fluctuations in currency markets (such as the Canadiandollar to United States dollar exchange rate); change in national andlocal government, legislation, taxation, controls, regulations andpolitical or economic developments (including those arising from theCovid-19 coronavirus outbreak); risks and hazards associated with thebusiness of mineral exploration, development and mining (includingenvironmental hazards, industrial accidents, unusual or unexpectedformations pressures, cave-ins and flooding); inability to obtainadequate insurance to cover risks and hazards; the presence of lawsand regulations that may impose restrictions on mining; employeerelations; relationships with and claims by local communities andindigenous populations; availability of increasing costs associatedwith mining inputs and labour; the speculative nature of mineralexploration and development (including the risks of obtainingnecessary licenses, permits and approvals from governmentauthorities); and title to properties. Although the forward-lookingstatements contained in this news release are based upon whatmanagement of the Company believes, or believed at the time, to bereasonable assumptions, the Company cannot assure shareholders thatactual results will be consistent with such forward-lookingstatements, as there may be other factors that cause results not to beas anticipated, estimated or intended. Readers should not place unduereliance on the forward-looking statements and information containedin this news release. The Company assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or otherfactors, should they change, except as required by law.
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