Contact Gold Continues to Extend Gold Mineralization at the Appaloosa Zone at Pony Creek

Wednesday, 18. September 2019 14:30

Vancouver, British Columbia--(Newsfile Corp. - September 18, 2019) - Contact Gold Corp. (TSXV: C) (the "Company" or "Contact Gold") is pleased to report that exploration drill results from the 2019 program have returned broad zones of gold mineralization in the first holes drilled in two years into the Pony's "Appaloosa Zone" (formerly the North Zone).

The Appaloosa Zone is an oxide gold corridor located 1.2 km northeast of the property's Bowl Zone, and currently extends over a 1.6 km strike length that is 200 metres wide. The Appaloosa Zone has been sparsely drilled and is open in all directions. It represents a sizeable zone of significant oxide gold mineralization at Pony Creek.

Drill holes PC19-15 through PC19-18 reported today were drilled to target the extension, in both north and south directions, of the two highest grade gold intercepts in historical drilling in the Appaloosa Zone (38.1m @ 0.91 g/t Au in PC-06-03 and 36.5m @ 0.92 g/t Au in 95-08). These historical holes were not surveyed by historical operators and thus the location and projection of the mineralized intervals were uncertain.

Contact Gold Drill Highlights - Appaloosa Zone:

  • 0.38 g/t Au over 28.96 m from 83.82 m in hole PC19-16

    • Including 2.19 g/t Au over 3.05 m from 89.92 m

  • 0.84 g/t Au over 7.62 m from 85.35 m in hole PC19-17

    • Including 1.56 g/t Au over 3.05 m from 88.39 m

  • 0.31 g/t Au over 13.72 m from 106.68 m in hole PC19-17

"The Appaloosa Zone represents the 3rd sizeable zone of shallow gold mineralization drilled by our team at Pony Creek. Future drilling at the Appaloosa Zone will leverage off these results and will also focus on the low-hanging fruit identified in the soil and rock anomalies generated by Contact Gold. We plan to aggressively advance this zone and add another shallow oxide gold corridor as we continue to grow our Pony Creek project," said Matt Lennox-King, President & CEO of Contact Gold.

Appaloosa Zone

  • The Appaloosa Zone is an at-to-near-surface oxide gold corridor stretching over 1.6 km, potentially connecting in a southwest direction 1.2km to the Bowl Zone, and to the northwest to the Mustang Target. This trend, defined by Contact Gold through soil sampling, rock sampling and drilling, ultimately terminates at Contact Gold's property boundary with Gold Standard Ventures' ("GSV") Railroad-Pinion Project and their newly defined Jasperoid Wash deposit
  • The grades and thicknesses intersected in initial drilling at the Appaloosa Zone are broadly comparable with those found in exploration drilling at many existing Carlin-type gold deposits such as those found at the Bald Mountain mine to the southeast of Pony Creek. The best historical intercepts are at the rhyolite/sediment contact where intersected by high angle structures.

  • PC19-16 extended gold mineralization north within rhyolite between two sets of historical drill intercepts.

  • PC19-17 had several short intercepts of variably oxidized gold mineralization within rhyolite extending gold mineralization south from the current position of historical drilling
  • PC19-19, was lost above target due to poor ground conditions, and was targeting a potential new gold zone where the northern most part of the Appaloosa Zone gold-in-soil anomaly connects to the Mustang Target.
  • In 2017 Contact Gold returned the highest-grade rock sample ever taken on the Pony Creek project from the Appaloosa zone returning 2.71 g/t Au in an area yet to be drilled by Contact Gold. This area is also defined by strong gold-in-soil values up to 1.18 g/t Au and will be ready to drill upon approval of our Plan of Operations permit.

As a follow up to the successful 2017 and 2018 programs which resulted in new oxide gold discoveries at the Bowl and Stallion Zones, Contact Gold has completed 4,660 metres in 24 drill holes at the Bowl, Appaloosa and Stallion zones in this initial 2019 program. Assays are pending for 6 drill holes.

Pony Creek is located on the Carlin Trend in Elko County, Nevada, adjacent to GSV's Railroad-Pinion Project.

For a map of the Pony Creek target areas please click:
http://www.contactgold.com/_resources/images/Appaloosa-Zones-20190918.jpg

For a detailed plan map of the Appaloosa Zone, please click:
http://www.contactgold.com/_resources/images/Appaloosa-20190918.jpg

For a section of the Appaloosa Zone, please click:
http://www.contactgold.com/_resources/images/Appaloosa-Section-20190918.jpg

Table of Appaloosa Zone Drill Results:

AreaDrill HoleFrom (m)To (m)IntervalAu g/t
Appaloosa ZonePC19-1576.2079.253.050.19


97.54100.593.050.15
Appaloosa ZonePC19-1683.82112.7828.960.38

including89.9292.973.052.19


128.02131.073.050.33
Appaloosa ZonePC19-1770.1076.206.100.22


85.3592.977.620.84

including88.3991.443.051.56


106.68120.4013.720.31


128.02131.073.050.14


135.64138.693.050.19
Appaloosa ZonePC19-1822.8625.913.050.14


210.31213.363.050.16
Appaloosa ZonePC19-19no significant intercepts, watered out

 

Pony Creek 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 Pony Creek. Additional information about Pony Creek is summarized in the NI 43-101 Technical Report entitled "NI 43-101 Technical Report on the Pony Creek Project, Elko County, Nevada, USA" prepared for Contact Gold, with an effective date of October 16, 2018, and dated October 22, 2018, as prepared by Vance Spalding, C.P.G; VP Exploration of Contact Gold, 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. 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 Pony Creek 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/47872

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