Goldstrike Resources Ltd.
TSX VENTURE : GSR
OTC PINK : APRAF
FRANKFURT : KCG1

Goldstrike Resources Ltd.

October 25, 2016 07:45 ET

Goldstrike Drilling Intersects 13 Meters Grading 2.2 Grams per Tonne Gold, Including 8.50 Meters Grading 3.21 Grams per Tonne Gold at Plateau

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 25, 2016) - Goldstrike Resources Ltd. (TSX VENTURE:GSR)(OTC PINK:APRAF)(FRANKFURT:KCG1) ("Goldstrike") is pleased to report that all 11 holes from the 2016 drilling campaign at its flagship Plateau property in Yukon, Canada, totalling over 1500 meters, were successful in intersecting the Goldstack zone. The 2016 drilling was focused on expanding the Goldstack zone, one of the many drill targets along the newly discovered, 50 km long, mineralized Yellow Giant trend. PSGS-16-01 was previously reported in the Company's press release dated September 6, 2016. Please see that press release for further details. Drill hole PSGS-16-08 returned the best value from the latest phase of drilling with a value of 2.2 g/t Au over 13 m, including 8.5 m grading 3.21 g/t Au. Drill hole assay highlights from the entire 2016 program are presented below in Table 1.

Drilling indicates that the main control of the mineralized system at the Goldstack zone is a northeast/southwest structure known as the Eldorado Fault. This structure has been mapped for 1 km, remains open along strike in both directions and will be one of the principal targets for drilling next year. The Eldorado Fault hosts the mineralized Goldstack discovery outcrop.

An initial first pass metallurgical test of the Goldstack zone returned a total recovery value of over 98.5% gold. This confirms the coarse nature of the gold observed in this system.

Table 1: Gold assay highlights from 2016 drilling

Hole ID From
(m)
To
(m)
Interval
(m)
1
Au
(g/t)
Au
(oz/ton)
2
PSGS-16-01 11.00 56.50 45.50 6.05 0.176
including
13.75 26.00 12.25 21.13 0.62
PSGS-16-02 27.60 63.70 36.10 0.52 0.015
including
30.00 31.00 1.00 3.11 0.091
PSGS-16-03 55.00 56.00 1.00 0.73 0.021
and
72.80 74.20 1.40 0.90 0.026
PSGS-16-04 30.80 68.50 37.70 0.23 0.007
Hole ID From
(m)
To
(m)
Interval
(m)
1
Au
(g/t)
Au
(oz/ton)
2
PSGS-16-05 65.50 68.60 3.10 11.01 0.321
PSGS-16-06 67.50 81.50 14.00 0.40 0.012
including
67.50 71.50 4.00 0.83 0.024
PSGS-16-07 80.00 83.50 3.50 1.30 0.038
PSGS-16-08 67.00 80.00 13.00 2.20 0.064
including
71.50 80.00 8.50 3.21 0.094
PSGS-16-09 103.00 108.50 5.50 0.36 0.011
PSGS-16-10 123.20 124.00 0.80 0.20 0.006
PSGS-16-11 177.50 179.50 2.00 0.23 0.007
Notes:
1- Down hole length; true thicknesses unknown
2 - Ounces (Troy) / Short Ton

Link to 3D model of the Goldstack gold mineralized hydrothermal breccia and stockwork zone Video link https://youtu.be/WkQTiz93aFM

2016 Completed Exploration Goals:

The 2016 exploration goals for Goldstrike at Plateau included: (1) expanding the known gold mineralization within the Goldstack zone, (2) gaining a better understanding of the widespread nature of gold mineralization on the property, and (3) completing a regional prospecting and staking program to ensure that Goldstrike continues to control the key ground in this new district scale gold system.

Goldstrike has achieved its 2016 goals by expanding known mineralization within the Goldstack zone and by improving its understanding of the geometry and structural controls on the Goldstack/Eldorado mineralized system. Further, a regional prospecting program led to doubling the known strike length of the Yellow Giant Trend from 25 km to 50 km and staking additional ground to control the Trend. Finally, the 2016 exploration program confirmed the prospectivity and potential of the property.

2016 Program Highlights: (all previously reported)

A map and photos of the prospects discussed below is available under the header "What's New" on the home page of Goldstrike's web site (www.goldstrikeresources.com).

Goldback: (New)

Prospecting led to the discovery of the Goldback showing, located approximately 480 m southeast of the Goldstack zone. Assay values from outcrop grab samples yielded a best result of 15 g/t Au. At the Goldback zone it was discovered that gold occurs in quartz stockwork containing arsenopyrite blebs and veinlets similar to the Goldstack zone.

Bonanza: (New)

Approximately 3.5 km northwest of the Goldstack zone, a 30 by 30 m area of outcrop containing widespread visible gold returned a best grab sample value of 436.4 g/t Au. Mineralization at this newly discovered zone, named the Bonanza zone, is believed by Goldstrike's geological team to be hosted by orogenic quartz veins. Channel sampling of this zone yielded a best result of 15.06 g/t Au over 1.13m (see October 3, 2016 Press Release). The Bonanza zone contains the most wide spread visible gold discovered on the property to date, and initial geological reconnaissance suggests many similarities to the Goldstack zone.

Big Bang: (New)

Approximately 13 km along strike northwest of the Goldstack zone is an eight square kilometre area of intense structural deformation with multiple mineralized outcrops. This new zone, named the Big Bang zone, consists of a series of mineralized quartz stockwork veins and breccia. Multiple samples from this zone returned gold values from bedrock, with the best value being 21.2 g/t Au (grab sample). Initial channel sampling of the Big Bang zone yielded a best result of 2.17 g/t Au over 1m.

Goldworks Gold-in-soil Anomaly: (New)

Located approximately 1 km south of the Golddome prospect and approximately 17 km east of Goldstack, a 950 by 450 m zone of co-incident gold-in-soil and arsenic-in-soil anomaly was discovered. This new anomaly was named Goldworks. The best results from this soil sampling program were 568.3 parts per billion ("ppb") gold, and 232.9 ppb arsenic. Outcrop grab samples taken within the anomalous area yielded a best result of 2.15 g/t Au.

Goldbar: (New)

Four kilometres west of the Goldbank West zone, a new 350 by 100 m wide mineralized zone was discovered, the Goldbar zone. This zone returned a best result of 16 g/t Au, from a grab sample taken from outcrop. An additional twelve samples from this zone returned values between 1.12 and 8.66 g/t Au. Goldbar, like the rest of the referenced zones, is part of a mineralized trend that strikes northwest-southeast. Follow-up exploration and ground geophysics are planned in preparation for future drilling.

Bullion zone: (New)

The Bullion zone was discovered 50 km east of the western boundary of the Big Bang prospect. Two grab samples taken from outcrop in this area returned values of 13.66 g/t Au and 1.93 g/t Au, and the zone remains open. The gold mineralization was found in a brecciated fault zone, in an area of abundant quartz veining.

The new discoveries summarized above further confirm the widespread distribution and multiple occurrences of high grade gold mineralization along the 50 km Yellow Giant trend currently being explored by Goldstrike.

Future plans:

The main focus of the next phase of drilling will be on the newly mapped area around the Goldstack zone, along the 1 km Eldorado fault and in the Goldback, Bonanza and Big Bang Zones. Additionally, further exploration is planned for the Goldworks, Goldbar, Bullion and Goldrush zones with the objective of developing drill targets.

Based on the positive 2016 results, Goldstrike has arranged to leave the drill in place at the Goldstack zone providing for significant savings in mobilization costs and to accomodate drilling as early as possible next season. Goldstrike looks forward to continuing to unlock the value within the Plateau property with an expanded drill campaign and exploration program for next season.

Terrence King,President and CEO stated,"We are very pleased with the results from another successful exploration program, which continue to demonstrate the potential of this district scale system. The Plateau project has attracted serious interest from miners and institutions alike, confirming the significance of this discovery, and Goldstrike looks forward to advancing this asset for the benefit of all our stakeholders. We also look forward to the release of the phase two program results from Lucky Strike Property in the White Gold District of the Yukon."

2016 drill sections and an animated 3D model of the Goldstack zone mineralization are available on http://www.goldstrikeresources.com/ under "What's New".

All 2016 holes were drilled with an NTW diameter. Sample analysis and assaying for all of Goldstrike's projects has been conducted by Bureau Veritas in Vancouver, BC, which is ISO 9001 accredited. Soil samples are dried at 60C and 100 grams are sieved to -80 mesh. A 15 gram sample split is then leached in aqua regia at 95 degrees C and analyzed by a 36-element ICP package that includes semi-quantitative gold. Rock and drill core samples are crushed to 80% -10 mesh and a 500 gram sample split is pulverized to 85% -200 mesh. 50 gram charges are then assayed for gold using fire assay fusion and ICP-ES finish with a lower detection limit of 2 ppb and an upper detection limit of 10 ppm Au. In addition, 0.5 mg charges are digested by modified 1:1:1 aqua regia (HCl-HNO3-H20) and analyzed by 36-element ICP-MS that also includes semi-quantitative gold with a lower detection limit of 0.5 ppb Au and an upper detection limit of 100 ppm Au. Selected samples are subjected to 500 gram metallic fire assays, for which the plus fraction is finished gravimetrically and the minus fraction is finished with AA. Rigorous procedures are in place regarding sample collection, chain of custody, and data entry. Certified assay standards, duplicate samples and blanks are routinely inserted into the sample stream to ensure integrity of the assay process.

Note: Grab samples are selective by nature, and are unlikely to represent average grades on the property. Due to the coarse nature of the gold, the Company is using metallics fire assays to capture the gold in the coarse fraction, providing the most accurate representation of the gold mineralization. Historically, regular fire assays have underestimated the grade of gold in coarse gold systems, and metallic fire assays and bulk samples can more accurately represent the true grade because they capture all gold including the coarse fraction, which otherwise could have been discarded.

Tony Gilman, M.Sc., P.Eng, P. Geo., Terrane Geoscience Inc., is a qualified person as defined by National Instrument 43-101 and has supervised the preparation of and has reviewed and approved the technical information in this release.

ON BEHALF OF THE BOARD

Terrence E. King, President and Chief Executive Officer

For new information from this program, please visit Goldstrike's website at GoldstrikeResources.com. For further information follow the Company's tweets at Twitter.com/GoldstrikeRes.

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

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of 5 property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions, and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The reader is cautioned not to place undue reliance on forward-looking statements.

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