GFK Resources Inc.
TSX VENTURE : GFK

GFK Resources Inc.

November 14, 2016 12:13 ET

GFK Finds Gold Grades Up to 18.0 g/t Over 0.9m and 6.2 g/t Over 1.4m on Kellar Showing, Grizzly Property in Chibougamau-Chapais Area, Quebec, Canada

MONTREAL, QUEBEC--(Marketwired - Nov. 14, 2016) - GFK Resources Inc. (the "Company" or "GFK") - (TSX VENTURE:GFK), is pleased to announce that the fall trenching program on the Kellar Lake showing area was successful and has returned encouraging gold grades. A new gold bearing vein was identified, which brings the total to three gold bearing structures in the Kellar Lake showing area, highlighting a possible new stacked NNE gold bearing fault system with associated conjugate EW gold bearing structures. The 2016 work program was designed to expand the historical work and locate new veins. Mechanical stripping was carried out over vein No-1 to expose the maximum length of the vein. Over 460 metres of strike length was stripped and the structure remains open in all directions. The vein varied in width from 0.5 to over 3.6 metres including the mineralised and silicified contact zone. The vein strikes NNE-SSW and dips to the east at approximately 75 degrees. Channel samples were taken at 5.0 metre intervals across the mineralised zone, where ever possible. The full width of the zone was not always accessible for channel sampling. The following table is a summary of the best individual or composite assay results from over 139 channel totaling 310 individual samples oriented perpendicular to strike:

Vein No-1

Channel # Weighted Avg
g/t Au
Length m Extent Zone
Sampled
11 3.16 0.59 Partial
12 6.45 0.29 Partial
25 17.96 0.93 Full
35 3.01 1.30 Full
37 4.78 0.89 Full
41 9.07 0.63 Partial
53 2.58 2.07 Full
55 3.31 2.61 Partial
57 5.58 0.62 Partial
58 2.05 1.66 Full
62 3.62 1.58 Full
65 2.68 1.88 Partial
67 6.19 1.36 Partial
68 7.73 0.76 Partial
73 4.89 1.63 Partial
104 3.94 1.17 Partial
112 4.74 3.59 Full

Complete assay results table, location maps and detailed trenches maps can be found at the links indicated at the end of the release.

Vein No-1 and structure was lost both to the north and south due to thick overburden, however the historical IP survey carried out on lines 800 feet apart did show continuity and other parallel similar anomalies.

Vein No-2 is located 480 metres to the SW from the end of the trench on No-1 vein and was discovered during early exploration programmes in the area. It strikes NE-SW and was exposed in the past over a length over 100 metres. The vein varies in width from 5 to 50 centimetres. According to historical reports from SIGEOM public database, chip samples taken by Meston Lake Resources in 1980 along strike returned values ranging from 1.0 to 81.0 g/t Au. Thick overburden prevented early explorers from following this trend along strike. In 2016, no work was done on this vein due to an early snowfall. However, follow-up exploration will be done on this vein during the next phase of the exploration program.

Vein No-3 is a new gold bearing E-W vein discovered during the fall trenching program. It was discovered in a small exploration trench located 60.0 metres to the east of vein No-1. The vein was exposed over a length of 15 metres. Late in the program a small hand-dug trench located another exposure of this vein 60.0 metres further east for a total estimated length of 120 metres. The vein continues to the east however thick overburden and an early heavy snowfall ended the work program at this time. Further mechanical stripping will be done on this new vein. The following table gives the results of the preliminary channel/chip sampling done on this vein.

Vein No-3

Channel # Weighted Avg
g/t Au
Length m Extent Zone
Sampled
139 5.41 1.04 Full
135 3.66 0.54 Full
137 1.74 0.73 Full

The discovery of a new gold bearing vein during preliminary exploration work on the Kellar Lake showing and the consistent significant grades returned so far justified the commissioning of a detailed IP survey to define the extent of the known veins and find new ones. Next phase will include trenching and diamond drilling.

HISTORY OF THE KELLAR SHOWING

Kellar Vein No-1 was discovered in 1936 by George E. Kellar a prospector working for Prospector Airways. They reported finding visible gold and traced the vein by digging small pits for a distance of 1,600 feet. Work was abandoned due to the project's remoteness at the time. However, work resumed on the property after a road was built to Chibougamau to service the mines in the area. The property became accessible by a short float plane flight from a base at Cache Lake. According to historical reports from SIGEOM public database, in the early fifties, several pits were cleaned and resampled which returned grab sample results varying from 3.4 to 23.8 g/t Au. A small portable drill was then brought-in to test the vein at depth. A number of companies returned over the years to resample the old trenches reporting similar results. This was then followed by a wide spaced IP survey that was carried out over the main showing area. It identified the No-1 vein structure and several other parallel anomalies which may indicate a stacked vein system. A limited drilling program with small core diameter tested the coincident IP anomaly / Vein No-1 structure in the early eighties with mitigated results. No further work was reported on this showing since.

Grizzly is a gold property which consists of 136 mining claims covering an area of 7,371 hectares located approximately 35 kilometers northwest of the town of Chapais. The area is underlain by rocks of Archean age of the Gilman and La Trève formations. The property contains more than 10 historical gold showings and occurrences associated with EW and NNE trends with grades varying from 1 g/t to up to 46 g/t. Very limited exploration work such as basic prospecting, mechanical trenching and shallow drilling was done over the property.

Samples collected during the 2016 fall exploration programme were dispatched from Chibougamau to Accurassay's Rouyn-Noranda Laboartory for processing. Standard and blank QA-QC samples were introduced in the sample series at regular intervals in the field. All samples were processed according to Accurassay's internal quality control procedures. They were analysed following standard pyro-analyses technics "Fire Assay-Atomic Absorption". Samples which returned values equal or greater than 10.0 g/t were reanalysed by gravimetric method.

GFK fulfilled the asset purchase agreement between Probe Metals Inc. and GFK Resources Inc, dated July 19, 2016, by paying an amount of $100,000 to Probe Metals Inc. as a final good standing payment required there. GFK also completed the acquisition of a 100% ownership in three properties, Vezza, Vezza North and Bachelor Extension properties, in exchange for 3,000,000 common shares of GFK. Probe Metals Inc. kept a 2% net smelter returns (NSR) on all 3 properties; half of that royalty (1%) can be bought back at any time by GFK, at its sole discretion, for an amount of $1,000,000.

Mr. Louis Morin, CEO, states: "GFK is committed at exploring for gold within high potential discovery areas. We are very pleased by those initial results, generated from those quality properties recently added within our portfolio. We are optimistic about the results we obtained. Those provide a strong incentive to continue our work program within those areas."

Mr. Tony Brisson, B.Sc., P.Geo. is acting as qualified person (as defined by NI 43-101) for GFK and has reviewed and approved the scientific and technical information in this press release.

About GFK Resources Inc.

GFK Resources Inc. is a mining exploration company focused on discovering high quality gold deposits within strategically located properties within proven mining camps, sometimes close to existing mines in the Abitibi Greenstone Belt located in north-west Quebec and north-east Ontario - one of the most prolific gold deposits areas in the world. GFK holds assets in Val-d'Or and Chibougamau areas. GFK acquired quality assets along the Casa-Berardi-Cameron Gold Break - a proven environment with strong potential for new gold discoveries and where exploration costs are low. Casa-Cameron properties are adjacent to Bachelor Gold Mine and Vezza Gold Mine. More recently, GFK acquired new properties, all easily accessible by a good road network: Fecteau property, located in the active Urban-Barry townsip, Winwin property, located in the neighbourhood of Iamgold/Tomagold Monster Lake property and Grizzly property, located in Chibougamau mining camp.

Forward-Looking Statements

This news release contains statements that may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of GFK, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the development of the Grizzly Property, or if any of them do so, what benefits GFK will derive. Forward-looking information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond GFK Resources Inc.' control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in GFK's management discussion and analysis for the year ended August 31, 2015, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. GFK does not intend, nor does GFK undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/GFK-Release-Figures.pdf.

To view the data table associated with this press release, please visit the following link: http://media3.marketwire.com/docs/Table_1_Kellar_channels.pdf.

Contact Information

  • GFK Resources Inc.
    Mr. Louis Morin
    CEO
    (514) 591-3988