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SKY GOLD INTERCEPTS VISIBLE GOLD IN HOLE MT-20-06 AT MUSTANG PROJECT, NEWFOUNDLAND AND PROVIDES DRILLING UPDATE
Sky Gold Corp. has provided an update on the continuing maiden diamond drilling program on the company's Mustang property contiguous to the Queensway gold project, owned by New Found Gold Corp., and the observation of fine-grained visible gold in hole MT-20-06.
Highlights include:
Since mid-November, to date, seven holes have been completed on the Mustang Property, comprising 1,321 meters. Assays are pending.Six holes targeted the Mustang Zone and one hole tested for a parallel zone. All six holes on the Mustang Zone intersected prospective geology with a varying amount of quartz veining, brecciation and silicification, and quartz stockwork, with associated sulphides (pyrite, arsenopyrite, sphalerite, trace galena and chalcopyrite), in sediments (greywacke and siltstone) and in faulted graphitic siltstone.Significantly, several fine pin-point grains of visible gold were observed in a chloritized black jasperoid clast in hole MT-20-06 at depth of ~260 meters down the hole (653800 m N, 5422510 m E, azimuth 134degree, dip -52degree). To the Company's knowledge this is the first observation of visible gold in diamond drill core on the Mustang zone. Hole MT-20-06 was designed for a depth of 180 meters but was drilled to a depth of 294 meters due to extensive quartz veining, brecciation - silicification, quartz veins and associated sulphides observed in intervals from 250 to 282 meters.The Company's recent drilling, previous shallow drilling and rehabilitated trenches indicate a style of mineralization consistent with a low sulphidation epithermal model, comprising hydrobrecciation and vuggy quartz veining and stockworks.Drilling has been contracted to Cabo Drilling (Pacific) Corp. with a minimum 3,000-metre diamond drill program over multiple target locations on both the Mustang property and the Virginia property, which are situated within the highly prospective Gander gold district. Drilling has ceased for a two -week period over the Holidays and will resume in early January 2021. Logging, core cutting and sampling is ongoing from a facility established in Gander.Drilling in 2021 will also investigate the Barite, Jasperoid and Road Breccia showings on the western portion of the Mustang property, which have never been drilled. Ongoing trenching and soil geochemistry is also in progress on the remainder of the property.
Company President and CEO Mike England commented "Rapid drilling progress, encouraging visual geology and now the observation of the first visible gold in core on the Mustang Zone, are an excellent start to our maiden drill program in Newfoundland. We are expediting the logging, core cutting, sampling and assaying of the prospective zones in holes MT-20-06 and MT-20-07 to assist the design of, and to expand, the drill program in 2021."
All of the Company's field activities are conducted under Federal and Provincial COVID-19 operating protocols and safety measures as required. Planet X Exploration Services Ltd.'s field crews, retained through Grassroots Prospecting, a local, Newfoundland-based prospect generation company, are undertaking all field and drill activities on the Company's Newfoundland properties. Project Manager, Robert Weicker states, "The efforts and diligence of the teams of Planet X Exploration Services Ltd., and Grassroots Prospecting, are to be commended and are greatly appreciated."
SKY GOLD'S NEWFOUNDLAND PROJECTS
Virginia Property
The Virginia property comprises 100 hectares and is approximately 5.7 kilometres northeast of New Found Gold's drill hole NFGC-19-01 which intersected 92.86 g/t Au over 19 metres (see New Found Gold Corp. press release dated August 12, 2020). Historic results completed in the early 1990s by Manor Resources Ltd., reports two areas of mineralization (Zone A-2). One showing comprised quartz veining developed over a 35-metre-wide zone within sheared gabbro and graphitic shale (main shear) returning up to 8.7 g/t Au, and a second showing comprised a sheared gabbro returned a grab sample up to 109.6 g/t Au*.
Mustang Property
The recently expanded Mustang property comprises 1,625 hectares and is contiguous to New Found Gold's Queensway project and approximately five kilometres southwest of their discovery hole. The Mustang property hosts numerous gold prospects including the Mustang and Piper zones, on trend with New Found Gold Corp's current drill program, and the Road Breccia, Jasperoid, and Barite showings on the western portion of the property.