Contact Gold Starts Drilling at Green Springs Gold Project

Vancouver, British Columbia--(Newsfile Corp. - October 29, 2019) - Contact Gold Corp. (TSXV: C) (the "Company" or "Contact Gold") is pleased to report the start of the 2019 drill program at the Green Springs gold property ("Green Springs"). Drilling is underway, with one reverse circulation rig drilling at the Alpha ("A") Zone.

Key Points:

  • Contact Gold's first drill program at Green Springs
  • Drilling will target high grade gold in several zones, broadly spaced along a 4.5km long gold trend containing several past-producing open pits
  • First program to test for gold mineralization in the Pilot Shale, which hosts shallow gold mineralization in the Alpha Zone but has been insufficiently tested beneath the open pits and other gold zones
  • Drilling by Contact Gold will target the lower horizon Pilot Shale below areas of known gold mineralization in the Chainman Shale including:
    • Alpha Zone: 2017 drill highlights of 1.37 g/t Au over 38.2m
    • Bravo Zone: historical drill highlights of 1.59 g/t Au over 16.7m
    • Echo Zone: 2019 cyanide solubility assay drill highlights of 5.05 g/t Au over 39.6m

Contact Gold believes that the Pilot Shale has the potential to host high-grade Carlin-type gold mineralization at each of the 6 existing Chainman gold zones, plus 4 new target areas where the Pilot Shale/Devils Gate Limestone contact is exposed at surface.

Green Springs is located near the southern end of the Cortez Trend of Carlin-type gold deposits in White Pine County, Nevada, adjacent to Fiore Gold's Pan Mine and Gold Rock Project and Waterton's Mount Hamilton deposit. The Green Springs property is 16 km2 encompassing 4 shallow past producing open pits and numerous targets that were not mined. Contact Gold's drilling will start at the Alpha Zone and then will move to the Bravo and Echo Zones.

"Our team is excited to begin our first drill program at Green Springs. This initial drill program will focus on the expansion potential of the known mineralization at Green Springs. The Alpha, Echo and Bravo Zones represent a compelling opportunity to rapidly expand the known footprint for gold mineralization. If gold mineralization is proven in drilling at the Pilot Shale-Devil's Gate Limestone contact, we will have much higher confidence in drilling untested targets where we have very strong gold-in-soil values up to 1.05 g/t Au in areas where the Pilot/Devil's Gate contact is exposed at surface as seen at Tango, Whiskey and the Foxtrot targets." stated Matt Lennox-King, CEO of Contact Gold. "The combination of high grades, thick intervals, with extensive alteration in prospective host rocks present a compelling case for new discoveries at Green Springs".

Alpha Zone Drilling:

The Alpha Zone is located 1.5km north of the past-producing Charlie Zone. The Alpha Zone is a repeated section of gold mineralized contacts at the Mississippian Chainman Shale-Joanna Limestone and Devonian Pilot Shale-Devil's Gate Limestone.

Highlights from 2017 drilling include:

  • 1.07 g/t Au over 39.6m from 27.4m in hole GSC17-5
  • 1.37 g/t Au over 38.2m from 16.7m in hole GSC17-8

Three of the Contact Gold drill holes are planned in the Alpha Zone to offset the 2017 gold mineralization to the west, north and south and to test all prospective stratigraphic horizons. Drilling will also provide metallurgical recoveries from gold mineralization at the Alpha Zone as well as act as a proof of concept for gold mineralization hosted in the Pilot Shale-Devil's Gate Limestone contact.

For a map of the Green Springs target areas highlighting the Alpha, Bravo, and Echo Zones, each priority for follow-up drilling, please click:
http://www.contactgold.com/_resources/images/GS-Targets-20191029.jpg

For a location map of the Green Springs project, please click:
http://www.contactgold.com/_resources/news/Regional-Green-Springs.jpg

Contact Gold signed a purchase option agreement with Ely Gold Royalties ("Ely Gold") to acquire an undivided 100% interest in Green Springs in July 2019. The Company immediately began planning for a results-driven drill program, including validation of historical data, the building of a first time 3D geological and mineralization model, acquisition and subsequent assaying of historical RC drill chips, and field confirmation of existing drill hole locations. Green Springs is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"). There has been insufficient exploration to define a mineral resource estimate at Green Springs.

The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a "qualified person" within the meaning of NI 43-101. All historic production, drill or sample figures quoted herein are based on prior data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify results. The historical figures should not be relied upon and have not been verified by a Qualified Person.

About Contact Gold Corp.

Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold's extensive land holdings are on the prolific Carlin, Cortez, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold's land position comprises approximately 140 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.

Additional information about the Company is available at www.contactgold.com.

For more information, please contact: +1 (604) 449-3361
John Glanville - Director Investor Relations
Chris Pennimpede - Corporate Development
E-mail: info@ContactGold.com

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the anticipated exploration activities of the Company on the Green Springs property.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/49206

info