Contact Gold Drills 28 Metres of 1.34 g/t Oxide Gold at Green Springs

Vancouver, British Columbia--(Newsfile Corp. - January 7, 2020) - Contact Gold Corp. (TSXV: C) (the "Company" or "Contact Gold") is pleased to report that it has intersected oxidegold mineralization in the first 2 drill holes from the Alpha Zone at its newly-acquired Green Springs gold project located on the southern Cortez Trend in Nevada. Results are pending for an additional four holes drilled at the Alpha Zone, and four drilled at the Echo, Beta and Charlie zones.

Contact Gold Drill Highlights - Alpha Zone:

  • 1.34 g/t Au over 28.96 m from 24.38 m in hole GS19-02
    • Including 2.00 g/t Au over 15.24 m from 32.00 m
  • 0.67 g/t Au over 9.14 m from 6.10 m in hole GS19-01
  • 0.52 g/t Au over 57.91 m from 25.91 m in hole GS19-01

"We made the Green Springs acquisition based in part upon the strong potential for Alligator Ridge style gold deposits to be discovered at the base of the Pilot Shale. The near-surface oxide gold intercept returned from hole 2 validates our model that gold mineralization is not confined to the Chainman/Joanna contact where USMX did their mining at Green Springs almost 40 years ago. We can now apply this model with confidence along the Green Springs mine trend to the north and south of Alpha as well as the targets to the east along a parallel trend." said Vance Spalding, VP Exploration for Contact Gold. "Coupled with the historical high-grade oxide drill intercepts from the Echo Zone, we are confident that Green Springs will continue to deliver compelling gold intercepts from both new and existing targets."

Alpha Zone - Key Points

  • Contact Gold drilled six holes at the Alpha Zone to offset the gold mineralization in historic drilling

  • The Alpha Zone is hosted within a fault repeated section of Devonian Pilot Shale

  • The discovery of oxide gold mineralization at the base of the Pilot Shale is a significant proof of concept milestone in Contact Gold's exploration thesis

  • GS19-01 extended gold mineralization to the south of historic drilling

  • GS19-02 extended mineralization to the north beneath a historic hole that was lost in mineralization and confirmed oxidation has occurred at the Alpha Zone

  • Results demonstrate that there is potential for significant oxide gold below the past-producing areas and targets tested by previous operators, which is exciting given the discovery potential at the Echo, Charlie and Bravo zones, as well as the rest of the property

  • Contact Gold completed 1,300 metres in 10 drill holes at the Alpha, Echo, Charlie and Bravo zones in its first drill program at Green Springs.

  • The Alpha Zone is located 1.5km north of the past-producing Charlie Zone

The past-producing Green Springs gold project is adjacent to Fiore Gold's Pan Mine and Gold Rock Project, and Waterton's Mount Hamilton deposit. Fiore Gold is currently drilling gold mineralization in the Pilot Shale around the Pan Mine, which is encouraging for Contact's exploration thesis of targeting the base of the Pilot Shale at Green Springs. The Green Springs property is 16 km2 encompassing two shallow past-producing open pits, four zones and numerous other targets.

For a map of the Alpha Zone please click:
http://www.contactgold.com/_resources/news/AlphaZone-20200106.jpg

For a cross section of the Alpha Zone, please click:
http://www.contactgold.com/_resources/news/AlphaCrossSection-20200106.jpg

For a location map of the 2019 Drill Program at Green Springs project, please click:
http://www.contactgold.com/_resources/news/GreenSprings-20200106.jpg

Table of Alpha Zone Drill Results:

Area
Drill HoleFrom (m)To (m)Au g/tInterval
Alpha ZoneGS19016.115.240.6669.14

including10.6713.721.5233.05


25.9183.820.52157.91

including59.4462.481.0563.05

and including77.7280.771.0633.05


92.97112.780.26919.81
Alpha ZoneGS190224.3853.341.34528.96

including3247.242.00515.24

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. 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. Drill intercepts were calculated using a minimum thickness of 3.05 metres averaging 0.14 ppm gold and allowing inclusion of up to 4.57 metres of material averaging less than 0.14 ppm gold for low grade intervals and higher grade intervals were calculated using a minimum thickness of 3.05 metres averaging 1.00 ppm gold and allowing inclusion of up to 4.57 metres of assays averaging less than 1.00 ppm gold. Gravimetric assays are used for all Fire Assays above 4.00 ppm gold. Cyanide solubility assays are completed on all Fire Assays greater than 0.1 g/t. True width of drilled mineralization is unknown, but owing to the apparent flat lying nature of mineralization, is estimated to generally be at least 70% of drilled thickness. Quality Assurance / Quality Control consists of regular insertion of certified reference standards, blanks, and duplicates. All failures are followed up and resolved whenever possible with additional investigation whenever such an event occurs. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab. Check assays are completed at a second, reputable assay lab after the program is complete.

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, 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/51205

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