GFG Resources Inc. reported further gold assay results from the recently completed 2023 Phase 2 drill program at its Montclerg Gold Project, located 40 kilometres east of Timmins, Ontario. The results released are from two infill holes and two step-out holes completed along the Montclerg gold system where GFG has continuously proven and grown a robust gold system since the Company acquired the asset in October 2021. In the Phase 2 drill program the Company completed a total of 3,613 m from 15 holes (7 at Montclerg and 8 at Aljo).

The program focused on step-out and in-fill drilling at Montclerg and tested a spectrum of targets at Aljo located within the Goldarm Property east of Timmins, Ontario. The Company eagerly anticipates releasing the remaining 8 holes from Aljo in the coming weeks as several zones of gold mineralization were observed in core logging. MTC-23-058 was drilled to test the dip extension of the Lower Footwall Zone.

The hole intersects approximately 13 m of weak to moderate sericite-ankerite-silica alteration in mafic volcanic rocks with up to 15% disseminated arsenopyrite and pyrite. Quartz-carbonate veins and veinlets are present throughout the zone yielding 0.79 g/t Au over 9.2 m and 2.99 g/t Au over 0.9 m. This zone is observed between two high-grade intercepts in MTC-23-057 and MTC-23-059 that graded 10.21 g/t Au over 2.7 m including 16.20 g/t Au over 1.5 m and4.79 g/t Au over 12.8 m including 10.05 g/t Au over 4.3 m, respectively. This hole, while lower grade than those around it, confirms the increased thickness of the Lower Footwall Zone below 350 vertical metres, supporting belief that the local change in geology has had a positive impact on overall gold endowment at depth.

MTC-23-060 was drilled to infill an area of the Main Zone and to test the upper extent of the Lower Footwall. The hole intersected approximately 80 m of moderate to strong sericite-ankerite-silica alteration in the felsic volcanic-hosted Upper and Lower Main zones yielding intercepts of 1.05 g/t Au over 24.9 m and 0.92 g/t Au over 41.8 m, respectively, with up to 5% disseminated arsenopyrite and pyrite. Further downhole, the Lower Footwall Zone was intersected yielding intercepts of 1.95 g/t Au over 0.5 m and 0.97 g/t Au over 3.2 m within 7 m of weak to moderate ankerite and silica-altered mafic volcanic rocks.

This hole fills a gap in drilling within the Main Zone and was successful in defining the upper extent of the Lower Footwall Zone, increasing confidence in the overall geological model. MTC-23-062 targeted an area in the Upper Main Zone which hosted high-grade gold in historical holes drilled at oblique angles and infill the Upper Footwall. The hole intersects 1.16 g/t over 12.8 m and 3.09 g/t Au over 12.8 m in the Upper Main Zone including a high-grade core of 9.76 g/t Au over 2.9 m. This represents one of the highest-grade intercepts drilled to-date within the bulk-tonnage style Main Zone and lies 60 m below surface.

Further downhole, an intercept yielding 2.41 g/t Au over 4.1 m including 8.20 g/t Au over 0.9 m is interested in the Upper Footwall Zone. These higher-grade infill holes are important as they show upside to the overall resource grade while allowing to define the upper margins of the Lower Footwall Zone. MTC-23-064 is a 150 m step-out to the east of MTC-23-058 along the Lower Footwall Zone as noted above .

The hole intersected approximately 7 m of weak to moderate sericite-ankerite-silica alteration in mafic volcanic rocks with up to 7% disseminated arsenopyrite and pyrite. Quartz-carbonate veins and veinlets are present throughout the zone yielding 0.66 g/t Au over 5.3 m. The hole also intersects a hanging wall zone of mineralization 250 m up-hole from the Lower Footwall Zone that grades 1.84 g/t Au over 1.8 m in similarly altered mafic volcanic rocks. The presence of the Lower Footwall Zone, albeit low-grade in this hole, is important for understanding the geological model and testing it beyond the current limits of the known deposit area.

The intercepts observed over the course of the 2023 Phase 2 drill program including the deep, high-grade intercept of MTC-23-059 yielding 4.79 g/t Au over 12.8 m show that this system can be extended significantly at depth.