Contact Gold Drills 1.4 g/t Oxide Gold over 42.6 Metres at Green Springs Gold Project, Nevada

Vancouver, British Columbia--(Newsfile Corp. - April 14, 2021) -  Contact Gold Corp. (TSXV: C) (OTCQB: CGOL) (the "Company" or "Contact Gold") is pleased to report results for the final 4 drill holes completed during the 2020 drill program at the Green Springs gold property ("Green Springs"), Nevada. Results are from the Alpha Zone; the northernmost zone of gold mineralization identified at Green Springs to date.

Highlights:

  • 1.40 g/t Au over 42.6 metre from a depth of 24.38 m in hole GSC20-04 at the Alpha Zone

    • Including: 1.91 g/t Au over 23.77 m

  • Drilling at the Alpha Zone in 2020 intersected thick intervals of variably oxidized gold mineralization hosted within the Pilot Shale

  • Oxidation of the gold mineralization at Alpha is controlled by high and low angle faults

  • The Alpha Zone is located 1.5km northeast of the Mine Trend, and remains open for expansion in all directions and sits on the same northeast structure linking Bravo to Alpha and Tango

  • Building the road from the Alpha Zone to the Tango Target is now complete

  • Drilling the first ever holes at the Tango Target is underway

"The Alpha Zone continues to return thick intercepts of gold mineralization. In building the road from Alpha to Tango, we aim to make the next drill discovery at Green Springs and possibly link these two targets together," stated Matt Lennox-King, CEO of Contact Gold. "The 2021 drill program is going very well and we are looking forward to drilling the virgin Tango target, which is the most obvious untested drill target at Green Springs."

The Company has completed 3,100 meters in the first 23 drill holes of the 2021 drill program and plans to continue drilling the Mine Trend and testing the never before drilled targets "Tango", and "Foxtrot", which are located 1.5 km to the north and east of the Mine Trend, respectively.

The 2021 program is focused on rapidly expanding the footprint of oxidized gold mineralization at Green Springs, by stepping out on high grade zones along the Mine Trend encountered by Contact Gold in the 2020 program, and by testing high-potential exploration targets to the east and north of the Mine Trend. Gold mineralization at Green Springs is typically near surface and well oxidized, and found in 2 key host units, the Chainman and Pilot Shales.

Tango Target:

The Tango Target has never been drill tested. Tango is hosted in the Pilot Shale at the contact with the underlying Guilmette limestone; the same horizon that hosts drilled gold mineralization at the Alpha Zone, located 500m to the South. This horizon also hosts the deposits at Kinross's Alligator Ridge mine and at the nearby Pan mine operated by Fiore Gold.

A large gold-in-soil anomaly with values ranging from 122 ppb Au to 1070 ppb Au was outlined by previous operators over an area measuring 500 m x 250 m. Contact Gold geologists mapped and rock sampled the northern portion of Tango in early winter 2019. The highest gold samples grading +1 g/t were collected from strongly decalcified, oxidized Pilot Shale adjacent to Pilot Shale jasperoid proximal to northwest and north-south striking faults. The target is open for expansion, particularly to the west where it dives beneath Joana limestone.

  • Systematic channel sampling of the road cuts from Alpha to Tango is underway.

  • 26 rock samples ranging from 0.1 g/t Au to 1.52 g/t Au across the target area

  • Separately 7 samples returned with >20 g/t Ag from the same batch of 26 rock samples

  • 1.52 g/t Au is the best gold-in-rock sample

  • 172 g/t Ag is the best silver-in-rock sample

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Drone photo of the Tango Target with the drill pad layout.

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5350/80373_2fc11c33a4ba4a09_004full.jpg

2020 Green Springs drill hole results from this news release:

Drill HoleMine Trend sub-ZoneFrom
(m)
To
(m)
Interval
(m)
Grade
(Au g/t)
Oxidation
GSC20-04Alpha24.3867.0642.671.40 Mixed (28% CN Recovery)
including
35.0558.8323.771.91Mixed (30% CN Recovery with the bottom 24 m averaging 54% CN recovery)
GS20-15Delta3.0512.199.140.26Oxide (76% CN Recovery)
GS20-16Delta



No Reportable Intercepts
GS20-17Delta



No Reportable Intercepts

 

For a plan map of the Alpha-Tango Zones, please click:
http://www.contactgold.com/_resources/news/Alpha-Tango-20210414.jpg

For a simplified cross section of the Alpha Zone, please click:
http://www.contactgold.com/_resources/news/2021Apr-Alpha-section.jpg

About the Green Springs Project:

Green Springs is located near the southern end of the Cortez Trend of Carlin-type gold deposits in White Pine County, Nevada, east of Fiore Gold's Pan Mine and Gold Rock Project and south of Waterton's Mount Hamilton deposit. The Green Springs property is 18.5 km2 encompassing 3 shallow past producing open pits and numerous targets that were not mined.

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. Additional information about Green Springs is summarized in the NI 43-101 Technical Report entitled "NI 43-101 Technical Report for the Green Springs Project, White Pine County, Nevada, USA" prepared for Contact Gold, with an effective date of June 12, 2020, and dated August 5, 2020, as prepared by John J. Read, C.P.G; an independent consultant and qualified person under NI 43-101, and can be viewed under Contact Gold's issuer profile on SEDAR at www.sedar.com.

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. The Cyanide recovery percentages are equally averaged by interval, and are not weighted by gold content per interval. 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 Paragon; 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 making district scale gold discoveries in Nevada. Contact Gold's extensive land holdings are on the prolific Carlin and Cortez 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 - VP, 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: impacts arising from the global disruption by the Covid-19 coronavirus outbreak; 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.

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